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BAT CDC Documents

Talk to Tmdp - Chelwood - August 1990

Date: 24 Jul 1990
Length: 24 pages
502619006-502619029
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bat_cdc 25085

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Original File
BATCO002
URL
http://outside.cdc.gov/images4/00/02/50/85/doc00001.TIF
Company
British American Tobacco
Date Loaded
04 Mar 2003
Box
BAO783-8

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Page 21: 25085
and =he profi=amili~y of ~heir operations. Withou~ ~a~ infoz~ation, how can we c~mpete effectively? Analysis Ga.--many USA Malaysla Other companies~industries Europe Asse~ Use Review - Major Thl-u~ Finally, ~ha highes~ of prioriUies is afforded ~o ~.~e quality and effec~.iveness of our~uman resaurce,~ a~out whic~ Don Pat~enden will be speaking in a for~-night's time. Investment in human resources is of the paramount importance. We are determined to ensure t_hat high s~andard5 of excmll~n=e are maintained and rewal-ded, and ~hat executives aT every level are encouraged to be entrepreneurial. We are reviewing our cDrporate and manamement struc---uTes in various par~s of ~he world, mos~ notably in Europe, in order ~o ensure ~at, through ~latt,~, ~ore ~=A~S_~=u~-~/ we ~av. more effective and motivated manageumen~ ~aams ~o mee: ommpe~i~ive challenges. [MILLBA/q~] These are our fundamental strategies, so to speak, a--ross ~he ~oard. In addition ~o ~hese of cou~rse there is an individual set cf strategies for each of our S2 operating companies. - 21 - O kO O BAT Co LID - ,k11NNF-50]A TOBACCO LITIGATION
Page 22: 25085
"The main challenge for our toDac¢o interests is the achievemen-. "of profit.able volu~e gro'~--~t,. T~a~ is far from easy in T-he face of voia~ile exchange rates, economic recession, social controversy and compe~i-.ive pressures. But r.he oppo~u-nlnles are there and our oc~petlticn is aggressively pursuing t/~em. [SLIDE 7{ Just some examples of opportunities. These are the countries in which BATCo has operating companies, hut in which At has less ~han 50% share of the domestic marke~.. They alone represent a ~otal market volume of over 180 billions in co%Ln~ries where we are already well represented. This is -..no same size as t.he total sales volume of all BATCo+s subsidial-y This slide is a lls~ of couunZries where Governmen~ monopolies are gr_adually relinquishin~ T2~eir hold on the marke~, thus crea~.ng opportunities for international companies. ~-e~t~_r~_ • ,~marke~ volume-ln t2~ok-e--co~n~ries in whi=h ~e BAT GrOup has noY ,'~-o~ac=o opez~tlng-company amounts ~o 1197 .billion in-.~he F!'ee .u-., ",',-,_a_+,: So we have something ~c go for. I~ is an exciting prospect,, and a challenging industry in which ~o be worming. Bu~ al~hough ~e should s~rive for grow--h, we mus~ safeguard ~he quali~y of our exis=ing mar~e: shares and cf cur current profi~ levels. There is nc room for complacency. Successful ~anagement depends on C~ ~D P~ BAT Co L][~ - hllNNESOTATOBACCOhlTIGATION
Page 23: 25085
: dedication to excellence. We must strive to have ~.he best ~rands, the highmsZ quali~y, t_he lowest costs, and the most efficient distribution. All of then are great challenqes, but I see no reason for not achievin~ t.he same growth razes in profits from ~;obacco t21a~ we have achieved in the past, if we attack ---hose issues head-on with ent/~usiasm and com~ir.=ent. i have covered ~/~e key challenges V.hat face us in the tobacco in~us~ry. I have highlighted some of the diffic%~iZies we have encountered. While it is true these exist, ~ust as important, and muc~ less publioised, are our positive aspec~cs such as: - Our success last year in Japan (8 bn - 25% of impoz-~ed segment), Taiwan (1.2 bn), China (15 bn = 46% of imp3rts), Indo-China (1.5 bn) and Sou~h Korea (36% of impo~sl - .'no innovation of Barclay and i~s su==ess in Europe - The development of our business in Canada. - The containment of Philip Morris in many par~s of t_~e world - in 1989, 12 operaZing =ompanies in highly competitive markets in BATCo alone improved ~heir market share - We have the single top selling brand in over 30 ooun,~ries - Las~ but not least, the excellent resul~s for t.he BAT Group's tohac=o in~eresT-~ in 1989 - trading profits up ~y 25% in s~erling terms to a ~eco~d total of £945 million. BATCo's profits were up by 29%. In t/%e first qua~er of this year, as you may have seen, profits fro= the BAT Group's tobacuo interests rose again by a further 12%, boosted by t_he continued grow~.h in expor~-s. - 23 - O c~ BAT Co LTD - ,~IlNNESOTA TOBACCO LITIGATION
Page 24: 25085
These fml-m a very subs~antia! base for us to build on for future success. I am very op~:.u£stic abou~ our prospects. But ~he future is very much in your hands and V.his is why you are here. 24T.~ July 1990 - 24 - t~ 0 Q ~D BAT Co LTD - MINNESOTA TOBACCO LITIGATION

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