Global Strategic Management: Analysis of British American Tobacco's Strategy

GLOBAL STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Presenting strategy used by British American Tobacco..............................................................3
External Analysis.........................................................................................................................3
Organization could Improve their strategy..................................................................................6
Different component strategic issues...........................................................................................7
Levels of strategy.........................................................................................................................8
Porter's five forces of company...................................................................................................8
Blue ocean strategy....................................................................................................................10
RECOMMENDATION.................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Global strategic managements is appeared from the accumulation of globalization and
implications on the business world. Global strategic managements is important for allow to
diversify the business risk that includes their operational risk and economic risk. This strategic
managements help in gain the competitive advantages. The global strategic managements ids
achieve the vision of company and promote the well-being of organization. British American
tobacco company is the world international tobacco group and British multinational company at
London, United kingdom. The company manufactures and sells the tobacco, cigarettes and other
nicotine products. This report will discuss the existing strategy of company with the external and
internal environments as well as negative and positive impacts of current strategy (Campá
García, 2019). This report will elaborate the improvements for the strategy by organization,
recommendation for changes for successful business with justification. This report also discuss
the different contemporary strategic issues and analysis the poster's five forces and blue oceans
in the project.
MAIN BODY
Presenting strategy used by British American Tobacco
British American Tobacco (BAT) is British multinational company that sell and
manufacture tobacco and nicotine products. The organization was first established in 1902 and
the headquarter is located at London, England. Thus, it is one of the largest tobacco company in
the world based on net sales as well as it cigarette brands include Dunhill, Kent, Lucky strike and
Pall Mal. The brand includes Vuse, Vype and GIo as well as BAT primary has been listed on the
London Stock Exchange.
External Analysis
PESTEL
Political: This factor is consisting of rules and regulation made by the government in order to
maintain the smooth flow of business in market area. Along with this, British American Tobacco
is closely follow the states and territories polices (Thomas and et.al., 2021). Although from lower
taxation policy company has been benefited and that has resulted in high profits as well as firm
has invested in research and development so that it can make environmental products.

Economic: Due to pandemic there has been impact on customer disposal income and due to that
there has been change in their purchasing cycle and it has negatively impacted consumer and
company revenue. Moreover, government intervention in non-cyclical sector in Tobacco industry
can impact the fortune of consumer spending behaviour.
Social: The organization basically targets young customer in order to run their organization as
well as consumer nowadays prefer experimental products instead of traditional value proposition
in non-cyclical sector (Capobianco and et.al., 2021). Moreover, for understanding societal
norms firm should set local team to serve quality services to customer.
Technological factor: The organization need to make use of digital media in order to promote
their products and services in the market area as it will enhance the sales through attracting large
customer. Along with this, making use of advance technology means lower supply chain and
greater access to information that helps in finding innovative idea to deal with challenges.
Environmental: The organization is trying to prioritize environmental norms so that can give
their contribution in development of society (Shahid, 2022). Along with this, it will be
manufacturing products according to environmental designed and standards rather than catering
to traditional value. The company is following CSR strategy in order to build awareness in the
market area.
Legal: The company is following rules like employment law in order to give legal protection to
employees so that it work safely. Along with this, it taken copyright for the company so that no
one can make misuse of the brand.
SWOT
Strength: The company has good brand image in the market area and it has helped in increasing
overall sales of the organization in positive way. Along with this, due to good brand name it has
best customer base than other competitors (Benzaghta and et.al., 2021). The organization have
good marketing mix and due to that it is able to cater various customer’s segments in the
Tobacco industry.
Weakness: High competition is the major weakness of the organization and due to that it has to
invest more in innovative ideas in order to increase profitability (Djellabi and et.al., 2021).
Opportunity: The company has online service opportunity so that it can offer customer good
services to their customer as well as expand their business in positive manner.