o w W (D 0 ry issue number 2. 26' inav 7995 Welcome to the second Battalion Progress Report First just a quick reminder of its purpose. It should be keeping us all, both Staffers and Drivers, aware 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 6, June. 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). The next key date is the presentation to the CEC of the Diagnostic Report, scheduled for 121 June. PRODUCTION' PROGRESS Key issues have been iderdtfied in each major functional area and decision mapping is in progress. The examples of decisions under scrutiny include: Reorgaritsation offlue- cured production in Chile; - Product improvement! development of Lucky Stnke in Indonesia: - Movement of Hoilyood export sourcing ftm Brazil to Geffnany; and - Purchasing leverage of cigarette paper. Functional 6enchmarking -is in progress with Bain & Co's assist- ance. Companies being reviewed include Philip Moms, Guiness, Proctor & Gamble and Nestle. NEXTSTEPS Project Battalloll Wind.- House 50 Viaoria Screm London SNX'lFt' :N'- Telephone: 0 171 222 7979 Fax: 0 17 1 2ZZ 4094 Keith S. Durrt Proiect Direcwr Argentina. Brazil. Malaysia, Hong Kong/China and Switzerland. NEXTSTEPS . Team to hold a working sesscr on 311 May - 11 June to generate findings. reach a consensus arc agree options for improvements w decision making processes anc organisation. * A meeting with Earl Kohnhors: ('Production'Driver). to be chasw by Keith Dunt. on 11 - 2- June. = cross-reference findings and agree forward action and team struaim- Opportunity identtrication and I prioritisation is underway, with several meetings by the sub-tea 7 of leaf, R&D and produaton sched- uled for late May. Interim progress review and joint co-ordination meeting with Paul Adarns (Marketing Driver). sched- uled for 1"- 2- June. EwfKohnhorst -Productjon - Dri,,er MARKETING PROGRESS PaulAcarns Marke&V * Interviews for the Diagnostic i Phase have now been completed. 1 LEGAL . The exercise involved irderAews i PROGRESS by Marketing Team members in the :: following locations: I BAT (Germany). Brown& Wiliamson. BATCo (Staines), P-9. N * The Legal Drive Team com. prises Stuart Chaffen, Tony Bume. Peter Clarke. Nelson Diz. Joaawn Dreyer and Neil VVIthington. X1. (-n (_n C) -10 BAT Industries document for Province of British Columbia 3 November 1999 issue r7urnber 2. 26- may 1995 - Work is underway on Member from each Operating - Produce an overall sun-i.. accounts definitions. maimy in the Group and Windsor House is -arY Ic form a basis for discussion area of sales and distribution. Team putting together a draft summary of at the FDs'rneeting on 13, June. Members are to comment on the the status quo, issues. etc. in approach discussed at the meeting relation to their operations for David Potter by 311 May. discussion with the full Finanre Accounting Staffer Tearri, - Agreement was reached NEXTSTEPS TAXATION on the aims for the Diagnostic Phase. A work programme and Project meeting scheduled for Work is progressing as outlined timetable was agreed. 8" June to: in the last Progress Report. . Work has commenced on all - Discuss the above sum- TOM siftn the above. In particular. one Team maries of status quo, issues, etc. Taxation Staffer r1 i X~. Ln Ln Ln CD CD BAT Industries document for Province of British Columbia 3 November 1999