Business Environment Analysis of British American Tobacco Company

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY .................................................................................................................................3
INDUSTRY ANALYSIS ......................................................................................................3
Porters 5 forces :.....................................................................................................................3
Swot analysis:.........................................................................................................................5
INTERNATIONAL TRADE POSITION:.............................................................................5
POLITICAL AND ECONOMIC FACTOR:..........................................................................6
SOCIAL AND ENVIRONMENTAL FACTOR :................................................................7
Conclusion.......................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment is define as the assemblage of all external and internal factors such
as supply and demand, management, employees, customer needs and their expectations,
suppliers, activities by government, owners, social and economical change, social and market
trends etc. it is very helpful in identifying business opportunities improves the growth of
company by focusing on performance and profitability of business(Andersen, and Hansen
2019). The report has tabbed the British American Tobacco company, this is multinational
company which produce and sell tobacco and nicotine based products. The British American
Tobacco is very old company and world's largest tobacco company and reason behind for
choosing this company is their market value, sustainability and purpose to build a better
tomorrow by decreasing the health impact of their business(Bhuvana, and Aithal, 2020).The
British American Tobacco focus on both microeconomic and macroeconomic policy and the
following report has mentioned the overall analysis of this company based on their social,
economical political and environmental factor(Klimuk. and Lazdins, 2019)
MAIN BODY
INDUSTRY ANALYSIS
It is the tool which is used by business analyst to know the overall competitive dynamic
of an industry. It focus on the overall aspect of company like degree of competition within
industry, demand supply statics, and future prospects of the industry. The important methods for
performing industry analysis are as follows:
Porters 5 forces :
This model is based on competitive forces model introduced by Michael Porter in 1980
and five forces of this model provides accurate and suitable impression of the industry and help
in analysis(Leke, Chironga and Desvaux, 2018).The five forces of Porter which help in
analysing company and competitors are given below.
 Intensity of industry rivalry: It shows the rivalry between companies in form of price
competition, ad campaigns , new product introduction as well as services associated
with products. The British American Tobacco has strong rivalry to other companies like
Japan Tobacco and China Tobacco National Company so British American Tobacco