Assignment brief
Students are required to choose a real–life company and evaluate its current financial strategy in order to identify and propose a new financial strategy. This essay should comprise critical assessment and limitations of the current and the proposed strategy. Corporate governance should be incorporated in the final part of the essay in order to ensure that the proposed strategy complies with the regulatory environment.
Solution
British American Tobacco (BAT) is a giant multinational cigarette company that operates across the globe with over 40 cigarette factories across 39 countries. It serves over 180 markets through which it sells its products. BAT mainly operates in the Americas, Europe, Australia, and Africa. The firm has diverse distribution networks that sustain constant supply chain. This enables the firm to enhance its performance over time despite the harsh economic factors, climatic environment, and legal issues. BAT as the second largest cigarettes producing company, operates in an Oligopolistic market which is characterized by few dominant players who control the market that has a kinked demand curve. These companies control the market, and hence they set the prices and the terms that dictate the market. The smaller firms usually wait for companies such as BAT to determine market prices and set other commercial conditions. BAT has a steady, efficient, and effective production that strives to meet the global demand for cigarettes.
The firm aims at being the most profitable and largest cigarette producing company in the future and has various strategies employed to meet this objective. This research aims at identifying the current financial strategies employed as well as their efficiency regarding profitability. The paper also looks into new proposed strategies that can be adopted to increase the profitability of firms as well as better means of operation that will position the firm strategically in the market…………………………………..To access the rest of the solution for $10, please click on the purchase button.