New Performance Scorecard

Background of the Organization

In more than 100 years of British American Tobacco's existence, its Group of companies has traded through the turbulence of wars, revolutions and nationalizations - as well as all the controversy surrounding smoking.

BAT brands, whether international, regional or local, are what drive British American Tobacco. The maxim of British American Tobacco founder Buck Duke - "Develop a superior product" - is as relevant today as it was then.

In many ways they are even more important because they represent the company's character: a character that, with its enterprising spirit, strength from diversity, freedom through responsibility and open mindedness, is just as important now as it was in BAT's early years.

Duke would readily recognize the enterprise he created in the British American Tobacco of today. He and his successors built a great business and they remain determined to live up to his expectations in the 21st century.

On 29 September 1902 the UK's Imperial Tobacco Company and the American Tobacco Company of the United States formed a joint venture, the British American Tobacco Company, in a bid to end an intense trade war, and now it has turned out to be the second largest tobacco company in the world.

Based in London, UK, it operates in more than 50 countries with the strength of 100,000 employees and sells more than 250 brands in more than 180 markets worldwide.

Today British American Tobacco sells the leading brands covering 102 countries, has more than 320 brands worldwide, employs more than 90,000 people and produces some 8 billion cigarettes everyday.

In order to support the company's business goals the merger of BAT with Rothmans International had been announced on 11 January 1999. This global merger was completed on 7th June 1999. This brings number 2 and 4 players which together will boost a combined volume exceeding 900 billion cigarettes around the world with some 120,000 employees and a worldwide market share of 16 percent, which is just 1% less than the world's number one- Phillip Morris.

Brief History

British American Tobacco Bangladesh Company Limited is a subsidiary of British American Tobacco and is one of the 68 countries in which BAT has manufacturing plants. It is one of the oldest and largest multinational companies operating in Bangladesh. It was established in 1972 and since then it has been the market leader in the country. The company currently employs around 200 managers and 1300 employees.

The history of BATB goes a long way back when it was established back in 1910 as Imperial Tobacco Company Ltd. However the BATB that we know today came into being after the independence of Bangladesh, on 2nd February 1972 under the Companies Act 1913, with the assets and liabilities of PTC and was initially known as the Bangladesh Tobacco Company (BTC). British American Tobacco played a major role in BTC's creation in 1972 and since then has been involved in BTC's development every step of the way. To pronounce the successful relationship with British American Tobacco, BTC has changed its name and identity to British American Tobacco (BAT) Bangladesh Company Limited on March 1998. The merger is a major step forward in British American Tobacco's vision of becoming the world's leading International Tobacco Company.

BATB History

March 1949 Formation of Pakistan Tobacco Company (PTC)

1954 PTC opened its first factory in Fouzdarhat, Chittagong

1962 Opened a branch in Moulavibazar, Dhaka

1965 Building of a factory in Mohakhali, Dhaka

February 1972 Incorporation of Bangladesh Tobacco Company with a paid up capital of Tk. 400 million

March 22, 1998 Changed its identity from Bangladesh Tobacco Company (BTC) to British American Tobacco Bangladesh Company Limited (BATB)

Source: BATB

CHAPTER-2

Objectivities and Major activities

OBJECTIVES

British American Tobacco (BAT) is passing through a transition where globally they are embracing a new approach to leadership. This imperative has clear implications for the leadership roles expected from all of them. BAT believes in creating a working environment where people can perform and enjoy. The major objective of the present study is to examine and evaluate the working capital management in BATBCL.

 To examine the management pattern of inventory in the BATBCL.

 To analyze and evaluate receivables management along with its impact on working Capital management.

 To analyze cash position and the efficiency with which the same is managed during the period.

 To assess the current liability positions and the efficiency with which the overall working capital is managed.

 To suggest some measures for improvement in working capital management of BATBCL.

 Creating and sustaining a winning environment which inspires passion