Friday, September 13, 2019

Analysing the strategic situation of a company Essay

Analysing the strategic situation of a company - Essay Example The main strengths of the company are strong management, loyal customers, acquisitions and financial position. The analysis has identified lack of diversification and failure to embrace technology in management as some of the weaknesses of BAT. The company faces threats from competitors. The corporate strategies adopted by BAT include acquisitions, manufacturing of products that meet the purchasing power of diverse customers and taking initiative to develop voluntary standards. The main strategic issues BAT are on forecasting demand as this varies greatly and restrictive legislations. The recommended actions include adaption of technology in the supply chain and invest more resources in research and development. In almost all parts of the world, tobacco is consumed and cigarettes are the most iconic of tobacco consumption (Moerman and Van, 2005, p. 375). According to Moerman and Van (2005, p. 375), cigarette smokers always strive to satisfy their craving for them as they do in case of hunger. This makes the industry post high annual revenues. Cigarette is a simple object made from shredded tobacco rolled on a paper and it was invented in the nineteenth century. Cigarettes emerged in first half of the nineteenth century in France and Spain. By 1830s, France was producing hand rolled cigarettes but this was later overtaken by pipe tobacco and snuffs that was being consumed US (Thompson, 2004, p. 21). This was followed by various developments in the industry that eventually led to the formation of a well-organized tobacco industry with several players. One of the major companies in the tobacco industry is the British American Tobacco (BAT). Tobacco industry contributes significantly to the eco nomic development of countries globally through employment and tax. However, the industry faces huge opposition from health organization given that smoking causes

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