British American Tobacco Company: SWOT Analysis and External Factors Impact

INTRODUCTION
The business practice includes the information relating
to financial information, business plans, manufacturing
processes, services, products and sources of supply,
cost, making plans, advertising and pricing methods and
customers. The business practice are doing in the
business operations and activities which consist the
buying, producing, transporting, etc. the report will
choose the British American tobacco company which is
the largest manufacturing company of tobacco products
in London, United kingdom. It is the British
multinational company that manufacture and sell the
products of tobacco and cigarettes and other nicotine
products.
PaPaPresent
BUSINESS IN PRACTICE
External factor impact on the
British American tobacco
The external factors are things which done outside of business
and that impacts on the business directly and it can be positive
and negative. The company cannot control the external factors.
There are many external factors such as economic factors,
technological factors, political factors, competitive factor, social
factor, legal factor. The external factors consist the macro and
micro environments. The macro environments affect the British
American company
Political factors: The political factors influence the tobacco
industry with the taxes. The governments try to reduce the
consumption of tobacco because it affects the health by adopt
the higher tax rate on the products of tobacco.
Economic factors: The disposable incomes helps in increase
the demands of necessary products such as cloths, electronics
and tobacco products. The incomes of people are increased than
the demand of tobacco products also increase.
Social factors: The social factors also affecting the tobacco
industry with the helps of addictive nature, growing awareness
that the products of tobacco are not good for health, smoke
pollution, etc.
Technological factors: The technological factors also affecting
the tobacco industry such as vaping devices. The new
technology develop the vaping device for smoking and drawing
the interest away from the traditional tobacco products.
Legal factors: The legal factors also affects the tobacco
industry because it is illegal for the under-age 18 to buy and use
the cigarettes because it affects the health and side effects of
smoked tobacco products by governments laws.
Environmental factors: The tobacco industry also pollute the
environments because it contains the chemical. Cigarette
pollutes the environments as well as affects the health of
everyone. So the environmental factors affects the tobacco
industry.
BAT impacts on the external
environment
The external environments factors are referred as outside of
the organization environments and it consists the various
external environments such as technology, political, social,
customers, etc.
Environments: The company impacts on the environmental
factors because the natural resources run the business and
company have responsibility to minimize the impacts on the
environmental factors. Company can eliminate the waste and
the company can net he zero deforestation, and they can
manage the forest for the future business. BAT can implement
the environmental policy for sustain the developments and
enhance environmental protection. The company can also
control the environmental pollution, and they also ensure the
human health protections.
Social: Company can ensure the health and safety of
employees, contracted farmers and contractors through
providing the safe working environments. Company cam
retain and attract the women management workforce. BAT
can also start the corporate social responsibility to attract the
more customers and build reputation in competitive
marketplace. It can also increase the diseases related to
smoking such as cancer and it also kills more people than
alcohol.
Economic: company can develop the economic of country
because the economic cost are associated with smoking. The
cost of cigarette is also high so it helps in developed the
economy factors.
Consumers: It directly impacts on the consumer health
because the smoking causes the diseases and impact in the
health of customers. Smoking pollution also affects the health
of people to . The company can supply the low risk products
for consumers which not directly affects the health of
customers.
CONCLUSION
As the conclusion, this business
practice are most important for
increase the productivity and
profitability in the competitive
marketplace. The selected company is
British American tobacco company in
the tobacco industry, the company
manufacturers and sell the cigarettes
and tobacco in large demand. In the
conclusion, the report also discussed
the external factors such as political,
environmental, social, etc. it also
includes the internal factors which
consist the strengthen and
weaknesses of company that affects
the organization. The report also
elaborated the British American
company impacts on the external
environments that include the social,
environmental, consumers and
economic.
Swot analysis
In the Swot analysis, there are tow types of factors such as internal
and external factors. The internal factors include the weaknesses
and strengths while the external factors includes the opportunities
and threats. The British American company is the leading
organization in the industry.
Internal factors:
Strength: the company have the various strength in the
marketplace. The company have the strong market position and 2nd
most company in tobacco industry. It is diversified in geographical
areas, control the tobacco leaf.
Weaknesses: The company have the weaknesses such as operating
profitability of company is worsening. Company face gap in sold
the products to customers and financial planning are also not good
as well as company also not good at products demand because its
products affects the health of individuals.
External factors
Opportunities: company can manufacture the light cigarettes
which not affects the health's so, it opportunities to increase the
women population and customers base. BAT can also rise the
popularity of smokeless tobacco with the use of fewer chemicals
and harmful products. Company can also adopt the new technology
with governments agreements. The company also have
opportunities to develop the new customers with the online
channels and know its customers for understand the expectation
and perception as well as needs and wants that helps in increase the
profitability with the customers base.
Threats: in the external strategic factors, the company face threats
to grow the profits of organization, and they are also not able to
supply the innovative products. Company also have threats of new
environments regulation which directly affects the tobacco
industry. They also face the issues of shortage of skilled at
workplace.
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Organizational chart of British American
tobacco company