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Welcome to the second Battalion Progress keport
First, just a quick reminder of its purpose. it
should be keeping us all, both Staffers and
Drivers, swam of progress in all areas of the
Project If you feel it is not doing so adequately,
please feel free to pass your comments on to Paul
Richmond at Windsor House.
So far, the good news is that we are still on
schedule. The Battalion worldwide communica-
tion programme is now complete, except for a visit
to B&W, now tabled for 61June.
Generally, the programme has been well received.
The majority of questions to have arisen
concern strategy and clarity of direction. These
are being addressed by Hilary in consultation
with Bain & Co (see Tobacco Strategy, below).
issue number 2. 261 may 1995
Project Battalion
Windsor House,
50 Viro_ S,,,,-. L.ndo,, SW:F 01;L
Telephone: 0171 222 79-9
Fax: 01-1 ZZ-1 4094
The next key date is the presentation to the CEC
of the Diagnostic Report, scheduled for
12, June.
PRODUCTION
PROGRESS
Key issues have been identified
in each majorfunctional area anc
de=ion mapping is in progress.
The examples otclecisions
under scrutiny include:
Reorganisation of flue-
cumd production in Chile;
'Product improvemeny
development of Luciry SoIke in
Indonesia;
NEXTSTEPS
Opportunity identification and
priontisation is underway. with
several meetings by the sub-4eams
of leaf. R&D and production sched-
led for late May-
u
. interim progress review and joint
co-ordination meeting with Paul
Adams (Marketing Driver). sched-
uled for 1'- 2" June.
EadKohrviorst
productpon,oriiff
MARKETING
Kefth S. Duft Proiect Director
Argentina. Brazil. Malaysia. Hong
Kong/China and Switzerland.
NEX7STEPS
.
Team to hold a working session
on 31- May - I-June to generate
findings. reach a consensus and
agree options for improvements to
decision making processes and
organisation.
. A meeting with Earl Kolinhorst
rProduction' Driver). to be chaired
by Keith Dunt. on 11 - 2- June. to
cross-reference findings and agree
forward action and team strudure.
- Movement of Hc,16%ow
export sourcing from Braa to
Germany: and
- Purchasing leverage of
c3 garerte paper. -
- Functionaibencnmarkingisin
progress with Bain & Co's assist.
ance. Companies being revie,~
include Pnilip Morris. Guiness.
Pr=or & Gamble and Nestle.
PROGRESS
Interviews for the Diagnostic
Phase have now been completed.
, The exercise vivoKeed intemews
b, Marketing Team members in the
following locations:
. - BAT (Germany). Brown &
Williamson. SATCo (Staines).
page (i)
PWAdams
marke&VDI~ff
C)
LEGAL -P.
PROGRESS Lrl
. The Legal Drive Team com.
prises Stuart Chaffen. Tony Burke.
Peter Clarke. Nelson Di?_ Joachim
Dreyer and Neil Wdhington. co
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BAT Industries document for Province of British
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rssue number 2. 26~ mav 1995
A'kick-ofr meeting was held on
231 March with a folio. up meeting
on 191 April.
Co-ordination within the legal
function is already well developed
and discussions have focused on
reviewing the eidstmg melliods of
operation in the conted of Project
Battalion.
NEXTSTEPS
Legal Drive Team to re-convene
on 191 - 201 June. It will:
- Consider the output from
the Diagnostic Phase:
- Agree upon benchmarking
candidates and methodology; and
- Establish a detailed work
plan forthe Battalion Blueprint
Phase. including the identification
of cross-functional relationships
and input into other Drive Team
act.ities
proposing the actions SAT would
have to take to gain a leading
position in each market Dy the year
2005.
NEXTSTEPS
The toba= strategy to be
presented to the Group Soard on
61 June. Then to be dismmed at
the joint riveting of the TSG.
marketing directors. and regional
directors on 141 June. as back-
ground to their discussion of major
brand strategies and prionfies.
. At the same time. work with
Bain & Co to ensure that the
organisationall implicMions of the
strategy are incorporated in the
Battalion blueprint are to corin .nue.
Hkvy Barton
Pfarriing Staffer
INFORMATION
TECHNOLOGY
Nei W217moon
- Work is progressing as outlined
in the last Progress ReporL
TOBACCO STRATEGY
PROGRESS
In October 1994, the Group
Board apprcied the objective of
recapturing the number one
position.
The Team are currently, attend-
ing an IT seminar by Professor
I John Donovan of the Massacnu-
I
setts Institute of Technology in
Boston, USA.
Antonio Ame"C" ROt"gu0s
f -, Ori~vv
' As part of the annual planning
.ycle, in June the Group Board will
review the tobacco strategy (i.e.
how we are going to achieve the
objective). In preparation. several
meetings have bow held with the
CEC to update the strategy from
laist year.
Srnral discussions have also
been hold with Bain & Co who !re
providing an ftemal'cha~enge to
the strategy.
CORPORATE AF.=AIRS
PROGRESS
Views an- being canvassed from
Operating Groups on the following:
The correct scope of the
col"Porate affairs function for a truly
international group:
j - What are corporate affairs'
target audiences:
. Meanwhile. the Operating Organisation of the
corpo-
Groups have been preparing rate affairs function:
and
realistic. optimistic and pe_ssimisfic
*scen2rios'torthe majortobacco NEXTSTEPS
markets overthe ned decade. and :
* The resulting analysm to shape
part of the presentation to tlie CEC
scheduled for 12, June. This will
include:
wpm P.7. ri)
- Key areas that the corpo.
rate affairs function Should tackle in
an integrated tobacco group. and
- The opportunities and
challenges inherent in an integrated
approach to corporate affairs.
A6 QUWF`ndea-
Corporalte Aflars Driver
HUMAN RESOURCES
PROGRESS
* Each operating Group and
Wndsor House have now re-
3 POnded to a diagnostic instrument
designed to identify the key human
resources issues.
. e instrument focuses on two
broad areas:
- Management development
and careeir and performance
m2 nagement and
Compensation. benefits
and administration.
' Analysis of the data .91 be
completed by 301 May. -
The human resources key issue
output will be available by 2"June.
NECTSTEPS
i- A meeting of the Human Re-
sources Drive Team to be arranged
in June.
- Where needed. the Drive Team
will utilise the human resources
benchmark data already collected
for a vainety of US and European
multiLinationals.
David'Stevens
Hurnan Resources Drrder
FINANCt
PROGRESS
A meeting of the Project Team
was held an 151 - 161 May. cover-
ing the following ground:
- A basis and timetable for
the mid-year update on 1995 brand/
Market results for the September
TSG sub-group. Systems issues
were resolved with IT involvement.
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issue number 2. 26' mav 1995
work is under way on Member from each ooerating
Produce an owrallsurn-
accounts definitions. mainty in the Group and
Windsor House is Mary to form a oasis for
discussion
area of sales and distribution. Team putting
together a draft summary of at the FDs' meeting on
131 June.
Members are to comment on the the status quo.
issues. etc. in
approach discussed at the meeting relation to
their operations for DavidPwer
by 311 May. discussion with the full rinance
Accounting Statrer
Team.
- Agreement was reached
NEXTSTEPS TAXATION
on the aims for the Di2g nostic
Phase. A work programme and
* Project meeting SCIeduled for
Work is progressinig as outlined
timetable was agreed. 81 June to: in the last
Progress Report.
* Work has commenced on all - Discu, the above
sum- Tom filikon
the above. in particular, one Team maries of
status quo, issues. etc Taxation Sraffer
P.g. P-11
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BAT Industries document for Province of British
Columbia 3 November 1999