| dc.description.abstract | British American Tobacco Kenya is the leading tobacco manufacturing firm in Kenya, which has
been operation in the country since 1907 and currently commands an estimated 71% of the
market share of the tobacco industry. In the year 2002, they recorded a gross turnover of
9.4Billion shillings with a profit after tax of 823 million shillings, contributing estimated
4.5billion shillings to government in form of taxes. From these results, it can be seen that the
firm has been successful in its operations in Kenya. It has however been operating in a business
environment that has faced various challenges such as the extended economic slump,
competition, and government fiscal and legislative policies among other challenges that have
been discussed in detail in this study.
The main motivation for this study on the strategic responses of British American Tobacco
Kenya to environmental challenges is based not only on its successful performance over the
years and the professional business image, enabling it earn the status of the to ten most admired
firms in East Africa, but also on the fact that it is operating in an increasingly controversial
industry that is facing opposition from various lobby groups, top on the list the health groups due
to the health risks associated with smoking. This study has outlined the current environmental
challenges that the firm is facing together with those issues unique to the tobacco industry, their
effects on the firm and the strategic responses that have employed in managing the
environmental challenges. One of the interesting strategies being employed in managing the
challenges from pressure groups is the social reporting initiatives, which will begin in 2003. This
will be through the process of meeting a cross section of the company's stakeholders in a series of dialogue sessions where their views will be collected and responses made. This will be done
in the presence of an independent audit company Bureau Veritas to ensure that the meetings are
carried out in a transparent manner and that they are free from bias. Such an initiative is one of
its kind in this country by profit making corporate and is commendable demonstrating its
leadership in Corporate social responsibility.
Also outlined in this study is the company's overall mission and vision statements, and thus
deriving its strategic intent and key strategic priorities together with its core business. There is
also a brief historical background on the company, how the firm is governed and how it's
responsibilities are divided including a list of its current major shareholders.
This study has been an interesting one in outlining the strategies employed by British America
Tobacco Kenya in managing the current environmental challenges. The business of British
American Tobacco is not about persuading people to smoke; it is about offering high quality
brands to adults who have already taken the decision to smoke and it is their strong belief that
smoking should only be for adults who are aware of the risks. They have managed to be
successful thus far in managing environmental challenges due to their open-minded attitude and
thus strategic responses to these challenges. The future of the business will depend on how well
they are able to adjust their business operations to the volatile environment. | en |
