Although intense rivalry between the top brands is important to be taken care of, the emphasis for tobacco manufacturers should now be on dealing with the people. Anti-Smoking campaigns, new laws and the gaining public awareness about the harms of smoking is decreasing the annual consumption of cigarettes. This is definitely a de-motivating feature for the company and its employees. However the thing tobacco industry has kept going in its favour is the addictive nature of cigarettes. This fact however presents the company with serious corporate social responsibility issues and therefore British American Tobacco should keep these issues in mind when developing a new human resource management strategy as proposed in this paper.
British American Tobacco is the most globalization brand in the world. The brand has millions of diverse customers across the globe, with access to over 180 markets globally, and makes the best quality tobacco products. The brand commits its customers to always be indulged in principles of corporate social responsibility, a practice kept running through out the group. (http://www.British American Tobacco.com/)
With the exception of the Chinese state tobacco monopoly, UK holds the 3 of the top 5 tobacco companies within its boundaries. Philip Morris leads the market with 18% share, BRITISH AMERICAN TOBACCO follows with 11%, while Imperial Tobacco and Gallaher hold fourth and fifth position in the global tobacco pie. The missing third spot belongs to Japan Tobacco.
Cigarette and Tobacco Pie Share in UK Market share
In UK, the cigarette and tobacco market is predominantly captivated by Gallaher and Imperial Tobacco; the two firms enjoy an 80% hold in the market. BRITISH AMERICAN TOBACCO has its manufacturing facilities in UK but exports most of its production. (Cullum and Pissarides, 2004) (Action on Smoking and Health, Fact sheet no.18)
% share of
UK cigarette market
Lambert & Butler KS
Benson & Hedges Gold
Mayfair King Size
Richmond King Size
Marlboro Gold King Size
Royals King Size Red
Silk Cut Purple
Top 10 UK cigarette brands: 2004
Recent Developments at BRITISH AMERICAN TOBACCO
Recently, BRITISH AMERICAN TOBACCO has strengthened its position in the Tobacco world market with different moves. As per the most recent developments, to expand their reach farther, BRITISH AMERICAN TOBACCO is in process of acquiring small firms internationally so as to have extended access to the markets, and to have stronger position at the same. The group is also quite close to the completion of purchasing House of Prince (HoP).