Regulatory Environment Impact on British American Tobacco

Running head: ACCOUNTING
Accounting
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1ACCOUNTING
Executive Summary:
The current report is based on the understanding the regulatory environment that creates an
impact on the operational performance of the British American Tobacco. The report would be
highlighting the industry in which the company is operating and the number of staff it has
both in Australia and internationally. The report would recognize the legislative framework
that creates an impact on the British American Tobacco while carrying out the performance
in Australia. The report would also provide a detailed analysis of the conventions or
agreements that have created an effect on the products and services of the chosen company.

2ACCOUNTING
Table of Contents
Introduction:...............................................................................................................................3
Legislative regulatory framework affecting BATA:..................................................................3
Countrywide constant retail law:...........................................................................................4
Pricing and Related Issues:....................................................................................................4
Duty Free Sales Regulations:.................................................................................................5
Framework Convention on Tobacco Control:........................................................................6
Plain Packaging......................................................................................................................7
A dangerous precedent for other product categories:............................................................8
Conclusions:...............................................................................................................................9
References:...............................................................................................................................10

3ACCOUNTING
Introduction:
British American Tobacco Plc (BAT) is the British international cigarette and tobacco
producing company that has the headquarter in London, UK. It is regarded as the largest
publicly listed tobacco business in the world (Bata.com.au 2019). The business indulges in
the 3rd party supplicants in numerous jurisdictions where the company holds the commercial
interest. For example, in South Australia the company indulges “Wells Haslem Mayhew
Strategic Public Affairs”. During the year 2017, the company has announced the acquisition
of number of Bulgarian cigarette brands at a value of €100 million.
The company has approximately 550 full time employees in Australia and around
55,000 employees across its global operations. British American Tobacco has the market
leading position in more than 50 nations and carries its functions in approximately 180
countries (Bat.com 2019). It is regarded as the four largest selling brands and are considered
its native brand while the other brands that is marketed by the company comprises of the
Benson & Hedges and Rothmans.
Legislative regulatory framework affecting BATA:
The Australian states as well as territories have banned the sale of cigarette products
to anyone that are below the age of 18 years. The excise duty in Australia has over the years
has witnessed a rise due to inflations with the exceptions of 25% rise during 2010 and a
sequence of around four 12.5% rise commencing from the December 2013 (Bond 2017).
British American Tobacco believes that there is already large extent of regulations has been
imposed on the tobacco products and there might presently be heavy risk, with unintentional
consequences of moving further.