This report delves into the organizational theory and practices of British American Tobacco (BAT). It begins by examining the management styles employed, specifically highlighting the democratic approach, and the four key functions of management: planning, organizing, leading, and controlling. The report then analyzes the structured steps BAT takes to achieve high performance, incorporating Hofstede's cultural theory to assess internal environments and employee relations. Furthermore, it explores the leadership style of the CEO, emphasizing transformational leadership and motivational techniques used to improve productivity and address industry challenges. The report also discusses the effects of power dynamics, its influence, and potential conflicts within the organization. Finally, the report provides recommendations for enhancing BAT's performance, offering insights into how the company can maximize its effectiveness and navigate the complexities of the tobacco industry.