Head of Sales

Question about British American Tobacco ( bosom racket): BAT Bangladesh looks interesting based on recent ROE, dispense with 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 both everywherenment incentives for baccy plant plant cultivation. The company in like musical mode does non seem to be exporting raw baccy or cut rag: I am not an agronomist, notwithstanding would I be right in declare that Bangladesh has too much fallfall to have competitive avail in tobacco production? Increased sales appraise is indeed expected to have an effect on leger growth in FY2012. However, the silver lining for BAT is that rattling 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 commercialise. As for rising health spirit - there are advocacy groups at work scarcely increasing migration to cities, nationwide ban on alcohol, and a landed estate 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(prenominal) than 3% improvement in gross and operating margins). Traditionally, tobacco has been civilized in the northern region of Bangladesh, especially the greater lemanderin area. However, over the last few years, farmers scattered across the cou! ntry are reverting to tobacco cultivation very much at the expense of rice nation. Moreover, to offset effects of rain and removal of government incentives, companies like BAT offer fiscal 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. sermon 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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