Organizational Culture

Topics: British American Tobacco, American Tobacco Company, Organizational studies Pages: 13 (3737 words) Published: May 10, 2014
CHAPTER 1.0
INTRODUCTION

1.1Company Overview- British American Tobacco

British American Tobacco plc. is British multinational company headquartered in London, United Kingdom. It is the world’s second-largest tobacco company by sales.

BAT has a market leading position in over 50 countries and operations in around 180 countries. Its four largest-selling brands are Dunhill, Lucky Strike, Kent and Pall Mall, with others including Benson & Hedges, Kool, Rothmans.

BAT has a primary listing on the LSE and as of 2012, it had a capitalization of £65.6 billion, the sixth largest of any company listed on the LSE.

1.1.2 Company history- British American Tobacco

The company was formed in 1902, when the United Kingdom's Imperial Tobacco Company and the American Tobacco Company of the USA agreed to form a joint venture, the British-American Tobacco Company Ltd. The parent companies agreed not to trade in each other's domestic territory and to assign trademarks, export businesses and overseas subsidiaries to the joint venture. James 'Buck' Duke became its chairman and the British American Tobacco business began life in countries as diverse as Canada, China, Germany, South Africa, New Zealand and Australia, but not in the United Kingdom or USA. In China, BAT inherited a factory in the Pudong district of Shanghai from W.D. & H.O. Wills, one of the precursor companies of Imperial Tobacco. It worked closely with the local Wing Tai Vo Tobacco Company, which developed into BAT's principal Chinese partner after its success with the "Ruby Queen" cigarette brand. In 1911 the American Tobacco Company sold its share of the company. Imperial Tobacco gradually reduced its shareholding, but it was not until 1980 that it divested its remaining interests in the company. At its peak, in 1937 BAT manufactured and distributed 55 billion cigarettes in China. The company's assets were seized by the Japanese in 1941 following their 1937 invasion. In 1953 the company was ejected from China following the foundation of the People's Republic. In 1976 the group companies were reorganised under a new holding company, B.A.T Industries. In 1994 BAT acquired its former parent, American Tobacco Company. This brought the Lucky Strike and Pall Mall brands into BAT's portfolio.[12] In 1999 it merged with Rothmans International, which included a share in a factory in Burma. This made it the target of criticism from human rights groups. It sold its share of the factory on 6 November 2003 after an "exceptional request" from the British government.

1.1.3 History in the subcontinent and in Bangladesh
The presence of British American Tobacco in this part of the world can be traced back to 1910. Beginning the journey as Imperial Tobacco 100 years ago, the Company set up its first sales depot at Armanitola in Dhaka. After the partition of India in 1947, the company was established in 1949. Then in the Pakistan era, it was named Pakistan Tobacco Company. It then became Bangladesh Tobacco Company Limited in 1972 immediately after Bangladesh’s independence. In 1998, the Company changed its name and identity to British American Tobacco Bangladesh Company Ltd.

1.1.4 Presence and prominence in Bangladesh
BATB (British American Tobacco Bangladesh) was one of the first companies listed on Dhaka and Chittagong stock exchanges. The British American Tobacco Group holds 65.91% of the shares in British American Tobacco Bangladesh. Other shareholders are the Investment Corporation of Bangladesh, Shadharan Bima Corporation, Bangladesh Shilpa Rin Shangstha, Government of People’s Republic of Bangladesh, Sena Kalyan Shangstha and other members of the public. British American Tobacco Bangladesh is one of the largest multinational companies in Bangladesh. Consequently, we are also the largest private sector tax payer in Bangladesh. In 2010, it contributed Tk. 46.27 billion in the form of Supplementary Duty, Value Added Tax (VAT) and other taxes to the national...
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