Head of Sales

Question about British American Tobacco ( d exclusivelyy racket): BAT Bangladesh looks interesting based on recent ROE, abandon cash-flow and dividend performance. just now as your colleague Shahnewaz observes, BAT suffers from the drawbacks of high measurees, rising health thought among consumers, and the remotion of g all everywherenment incentives for baccy plant plant cultivation. The company in like stylus does non seem to be exporting raw tobacco plant or cut rag: I am not an agronomist, notwithstanding would I be right in state of matter that Bangladesh has too much rainfallfall to have competitive profit in tobacco production? Increased sales impose is indeed expected to have an effect on record growth in FY2012. However, the silver lining for BAT is that rightfully low-end cigarettes (cigarettes priced BDT 1 or lower) and biri (a very low-end and hand-made tobacco product) are doing well, not being subjected to the same sales tax. BAT, by the way, also has over 90% of the high-end cigarette market. As for rising health disposition - there are advocacy groups at work unless increasing migration to cities, nationwide ban on alcohol, and a estate of the realm median age of 22 - probably cumulatively compensate.

As for BAT, in 2010, the company invested heavily to improve efficiency - the issue of which has been a significant improvement in the YTD performance ( more than 3% improvement in gross and operating margins). Traditionally, tobacco has been civilized in the northern region of Bangladesh, especially the great lemanderin area. However, over the last few years, farmers scattered across t! he country are reverting to tobacco cultivation lots at the expense of rice nation. Moreover, to offset effects of rain and removal of government incentives, companies like BAT offer monetary allowance to farmers. Here is an article from IRIN, a UN-sponsored news service, that suggests tobacco farming increased by 68% in 2007-2009 alone. address more broadly about the Bangladeshi equity market: 1. Consumer companies: which new(prenominal) listed companies you would...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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