SAM6 Strategy Review 1989
A CPC meeting was bald on 27th July 1989 to discuss a BATCo. Strategy
Review paper covering Strategies for Europe, the Restructuring and
Relocatiou of BATCo - Headquarters and R&D.
Present: Mr. P. Sheehy, Mr. I.P. Garraway, Mr. S.D. Braulty,
Mr. D.G. Haywood, Mr. &.A. Crichton and Mr. N.C. Brookes.
Dr. R. Salter was in attendance.
I. For gurope, the CPC accepted the main thrust of the BATCo. study
tasals recommandations and it was agreed that BATCo. should present a
further report containing firm proposals to sot up 3" (Europe) with
recommendations for the organization proposed, including key
responsibilities for the directors.
2. Having considered the alternative orgazisations discussed in the
review, it was suggested that it would be beat for domestic and export
marketing to be the responsibility of a single director who could
balance the respective requirements of the markets. The alternative
organization where there were separate directors for domestic and
export markets was considered to be less attractive since it would
result in too many decisions having to be resolved by the Managing
Director.
3. Another key member of the SAT (Europe) Board would be the Production
Director with responsibility for &U aspects of manufacturing and for
raw material supply. The Managing Director, the Finance Director, the
Marketing Director and the Production Director would form the core of
the new Organisation.
4. A key issue to be addressed would be the relationships of the No-I's
in companies that had production units, especially where those were
based outside the TIC (e.g. in Switzerland and Finland). While it was
expected that the degree of market integration and the need to manage
the European market as a coherent. whole would increase with ciao, it
was suggested that it might ask* most sense to manage the EFTA
companies, the Cigar Group, and TaUcataria as separate entities
possibly tbrough the Marketing Director.
S. The CPC quies tion*d the need for BAT (Europe) to control BATCP exports
outside Europe and it vat suggested that this proposal should be
discussed separately with BATCY.
6. It was noted that further study would be required to evaluate the
possible advantages and disadvantages of closing Cyprus, Corby and
Helsinki. It was also noted that no action would be taken to progress
these strategies until the evaluation& had been completed.
7. it was a gre ed that it would be best for the IBM department to revert
to BATCo. rather than being absorbed Ln SAT (Europ*).
S. The CPC accepted in principle, the proposals fOr thl lastructuring
and Ulocation of BATCo. it was noted that a fuller document would
be presented to the CPC before the proposals war* Implemented.
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9. On 10, it was suggested that BATCO. should discuss the
r*couseudetions with the other CAC companies and should prepare a
paper for discussion at the unit meeting of the Tobacco Strategy
Review Team, due to be held in October/November.
10. It was noted that It van proposed to site the majority of the
fundamental work in Southampton. Rowever, the CPC believed that It
night be more advantageous for this work to be based in BATIC, MMS
and Souza, Cruz.
II. In conclusion, the Chairman ampbasised the need for progress to be
maintained in the preparation of plans for restructuring and
relocation. Rowevor, because of the current situation, it night be
necessary for additional checks on the likely political impUcations
before implantation, especially where tbo changes proposed sight
involve closures or large scale redundancies
&S/DJA
Ilth August 1989
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BAT Industries document for Province of British COIUMbla 22 April 1999