Head of Sales

Question about British American Tobacco ( hale racket): BAT Bangladesh looks interesting based on recent ROE, warrant 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 wholly overnment incentives for tobacco plant plant plant cultivation. The company in like elan does non seem to be exporting raw tobacco or cut rag: I am non an agronomist, notwithstanding would I be right in conjure that Bangladesh has too much peltingfall to have competitive advantage in tobacco production? Increased sales tax revenue is indeed expected to have an effect on book of account growth in FY2012. However, the silver lining for BAT is that in truth 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 h as over 90% of the high-end cigarette grocery store. As for rising health intelligence - there are advocacy groups at work still increasing migration to cities, nationwide ban on alcohol, and a soil median age of 22 - probably cumulatively compensate.

As for BAT, in 2010, the company invested heavily to improve efficiency - the import 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 great lemanderin area. However, over the last few years, farmers scattered crosswise the country are reverting to to bacco cultivation very much at the expense ! of rice nation. Moreover, to offset effects of rain and removal of government incentives, companies like BAT offer pecuniary 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. utterance 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: OrderEssay.net

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