Balanced Scorecard For Tobacco Industry
- Vision and Strategy: India is the 2nd most populous nation in the world, with a population of 1.295B people
This populous country represents a largely untapped market for the top tier tobacco companies. While tobacco use is common in India, cigarette smoking is not. Due to the size of the market, and its immense diversity, even relatively small percentage increases in the number of tobacco users migrating to cigarettes from other tobacco products would create large amounts of new customers for PMI.
This potential opportunity does not come without challenges for PMI. There are barriers to entry into the Indian tobacco market. India has been raising taxes on cigarette use in recent years, and while the number of tobacco …show more content…
• Obtain an additional share of the bidi market in rural areas through contracting with local manufacturers and providing resources for oversight and quality control.
PMI has the efficiency and knowledge to translate this plan into action through working with the government and their local partner, Godfrey Phillips.
The Balanced Scorecard:
The Balanced Scorecard is a strategic management tool used in the planning and management process. It is a combination of both financial and non-financial measures designed to help managers identify what needs to be done and how it should be measured. While the Balanced Scorecard is frequently seen as a measurement system, it can also serve as a tool that helps organizations clarify their strategies and translate them into action.
The Balanced Scorecard is the tool that will be used to describe how PMI will implement their plan to expand their business operations in India. This tool is a good fit for the task because PMI must be able to use all of the various organizational capacities they possess to successfully implement the different parts of the plan.
Figure 36 - The Balanced …show more content…
While this information is dated, it can be used to estimate the total number of tobacco users in the country. With population estimates of 1.295B residents, this percentage would mean there are about 356M tobacco users in the country. Other sources place the number of tobacco users at closer to 275M. While the exact number of tobacco users in India is not able to be precisely calculated, even with the low-end estimate of 275M, India would still be the world’s second largest market for tobacco products. Indian tobacco users are not all smokers. Cigarette smoking is relatively uncommon in India when compared to other forms of tobacco