Item C : Tobacco
in his introduction Mr. Bruell might be asked-
1. To review the current position of the Group relative to the major
competitors in the market.
2. To review the likely development of the market with particular
reference to:-
(a) Overall growth
(b) The implications for the competitive situation of recent changes
in management and strategic moves by the ocher major Tobacco
companies
(c) The growth of generics
(d) Changes in the monopoly markets.
3. To restate the objectives to maintain growth in profits and cash flow
(with volume and market share objectives subsidiary to this).
4. To outline the ma lot thrusts worldwide:-
J
(a) To continue to seek growth but also to maintain profitability
through placing particular emphasis on product quality,
production-rationalisation and a tight control of marketing
expenditure
(b) To maintain pressure on the authorities to ensure a reasonable
regime on taxation and on the attitude taken to smoking
(c) To support these initiatives with an appropriate R&D programme
(including projects aimed at developing a more acceptable
cigarette)
(d) To continue to seek opportunities to become established on a
significant scale in former monopoly markets as these are
deregulated.
Issues which delegates might be asked to discuss in relation to their own
markets and competitive situation could include:-
1. The current and likely future impact of price cutting and the
implications for profitability and cash targets
2. Opportunities for growth and market share improvements and the key
factors in determining whether these can be achieved.
3. Benefits that might be obtained by increasing the degree of
interchange both of information and people between B.A.T Tobacco
companies worldwide.
RS/JTA
1st December 1986
a,
Lr,
BAT Industries document for Province of British Columbia 21 April 1999