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Pro~ect Battalion
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50 Victo- S--ee% Loncon SWIH ON'L
T.1cpho- 01-: --' -P-9
Fax: 0171 _':: 4094
PROXFCT BATTALION FORTNTGT-M-Y PROGRFSS RFPORT
Welcome to the first Battalion Progress Report!
Issue ]Va. 1, 12th VaV 1995
Throughout Battalion I hope the Report will keep
as all in touch with what's happening
elsewhere in the project and allow as to liaise on
a regular basis. Please do make full use
ofit. You should have a list of future submission
dates with you.
At the moment it's fall steam ahead an the
diapostic phase with up to 70 broad picture
interviews, and as a sub-set to these, the
Marketing Drive Team is conducting a further
detailed discustsion process. This involves the
Group's Marketing Directors visiting other
than their own Operating Group companies. You may
be aware that, as a result of this
approach, the same people are, in some cases,
being interviewed twice. There are- I
2 mure you, excellent reasons for this.
Ile next Project M"agement Team review is
scheduled for 2nd June, and the
presentation of the Diagnostic Phase to the CEC
for the second week of June - A tough
timetable I know, but one which through our joint
efforts, I am sure we will achLieve.
X~irh D-f. Preja Di-,.,
MARKETING REPORT
PROGBESS
. Exploratory meetings have been held between Paul
Adams and Bain & Co's marketing
consultants, Paul Stone and Nick Jackson.
. The Marketing Drive Team had its "kick-off"
meeting on 3rd May. The team members are:
Paul Adams, Flavio Andrade, Georg Domiz1aff, Jimmi
Rembiszewski and John Winebrenner.
IVEXT =S
. Next Team meeting scheduled for 15th May to fine
rune and rehearse the dia-enostic
interviews which will be conducted from 16th-24th
May,
. A working session ofthe Team to meet on 3 Ist
May- ist June to generate findings.
consensus and options for improvements to decision
processes and organisation.
. It is planned that this will be followed by a
meeting between Paul Adams and Earl
Kohahorst on 2nd June to cross-reference findines
and agree forward action.
Paul Adams, Marketing Driver
"PRODUC71ON" REPORT
PROGRESS TO DA TE
A Production Drive Team has been established. It
encompasses three principal activities:
manufacturing; leafoperations: and R&D. C)
(Cont
page A)
BAT Industries document for Province of British
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Production Report Continued)
The Temm's initial meeting took place on 26th-28th
April with the followin-e objectives:
to review overall Project Battalion Objectives;
to agree the Drive Team's scope, approach and
deliverables:
to begin the Diagnostic Phase brainstorming.
Thes: objectives were met with prelim inary
assessments of BAT's strengths. weaknesses
and oppormnities, in respect of manufacturing,
leafand R&D.
Two broader issues for the Battalion Team to
consider were also identified:
the need for a broad understanding of BATs
strategy and priorities over
the next 10 years, as these have an influence on
organisational structure.
the proposai that the development of Lucky Strike
be used as a case study to
identif., c.-nis2 ional strengths, weaknesm and
decision making processes. This proposal
has been a;rproved by the Battalion Project
Leader, Ulrich Hermr. The process wfll also be
extended to Belmont and Hollywood and will be led
by the Marketing Drive Team.
Ar= E,--?S
. Sub-mams to focus more closely on fact finding
and opportunities in their respective areas.
This to include opportunity prioritisation, bench
marking and decision analysis. The sub-teams
will begin reporting back in early June.
Zarl Kohnhorst. Production Driver
INFOR.NtATION TECBNOLOGY REPORT
PROGPSSS
Co-ordinarion of BAT Toba= companies has been
happening for sometime.
In the las- 12 months many agreements have been
reached which will help standardise IT
across the Tobacco Group with the intention of
providing one general infrastructure.
. A wide area network will be in place by the end
of 1995 which will link all Tobacco
Operating Companies.
IVEXTSTIMPS
. The IT Group, including representatives from
B.A.T Industries and each Tobacco
Operating Group, is meeting in Swindon 17th-19th
May to agree requirements and evaluation
criteria in orde7- to select the appropriate
Enterprise Network Operating System for the B.A.T
Industries Tobacco Group.
. This will be followed ky a visit to ateam
meeting in Cambridge (Boston), USA in the
week commencing 2-1 May, when participants will
also attend an IT seminar by Professor John
Donovan of the Massachusetts Institute
ofTechnology.
. Bus iriess processes are being reviewed to help
determine suitable IT architectures to
support these processes throughout the Group.
Da-id,Read, ITStffe,
Antonio Americo Rodr~pes. IT Driver
FINANCE REPORT
PROGR= C:)
. The Finan--: Project Team continues working
towards the development of the Stem Phase
(definitions and transitional financial
information). Lrl
Inflorrizion gathering for Battalion's Diagnostic
Phase is also being undertaken. Ln
Lrl
C=)
(Cont... f\-)
page (W
BAT Industries document for Province of British
Columbia 3 November 1999


Finance Repori cominued)
NEXTS-7EPS
Project Team meczine to be held at Windsor House
on 15-16th May. This meeting will:
Estabiish the basis for the mid-year update on
1995 brandlinarket results,
Progress the development of consistent Group
definidons, especially in
relation to mark etine, sales and overheads, and
- Es-Ll ish a demi led timetablei-ork programme
for the remainder of the
Diagnostic Stage.
. A meeting of the Operating Group Finance
Directors to discuss the findings of the
Diagnostic Phase has been agreed with David Allvey
and will take place on 13th June.
David Potter, Accounting Staffir
Antonio Americo Rodrigues, Finance Driver
HUMAN RESOURCES REPORT
PROGRESS
. The Human Resources Drive Team comprises Messm.
Stevens, Andri, Frick, Owen,
Rocha and Chamberime.
The output from the initial 'broad picture' review
will be divided into two strarids:
Recruftmemr, performance and career management;
and
Compeasarion, benefits and administration.
NEXT S7F-PS
. The main factbase information will be available
by 19th May.
. Ibe human resoun-An questionnaire will be
cortipleted by the four Operating Groups and
Windsor House by 26th May.
. The resulting data will be consolidated during
the week commencing 29th May for input
by 2nd June.
David Stevens, Human Resources Driver
CORPORATE AFFAIRS REPORT
PROGRESS
. The Battalion Project Management Team his
suggested the following key issues for an
integrated worldwide tobacco business:
Smoking and health;
Excise:
Marketing fireedom;
Lobbying; and
Corporate image.
NEXTMFS
. A 'Drive Team' where all these skills will be
represented to be assembled before the end of
the month and will be announced in the next
Progress Report.
. In the meantime, work to be undertaken in
conjunction with Bain & Co to develop a
questionnaire which will help refine the above
list of issues and start to identify major
barriers
to handling them on a more integrated basis.
Michael Pride= Corporate Affavs Driver
P-g, fliQ
(Cont
r1 i
C)
D.
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Columbia 3 November 1999


TAXATION REPORT
PFOGRESS
. A low key investigation has been initiated into
thetax implications of changing the
existing structure of the Group.
T'he investigation is focussing on the tax
siruarion in three principal areas:
Investments;
Central Services, such as T&AL and R&D. and
Different forms and locations ofbusiness units.
To. Billon. Ta=io,, sla:~7z'
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BAT Industries document for Province of British
Columbia 3 November 1999