Imperial Tobacco Case Study

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Register to read the introduction… It manufactures markets and sells a comprehensive range of cigarettes, tobaccos, rolling papers and cigars. It achieves sales in over one hundred and thirty (130) countries; employs approximately fifteen thousand (15,000) employees; and has thirty three (32) factories worldwide.

2.1 Strategy
The strategy of Imperial Tobacco is "to create sustainable shareholder value by growing our international operations, both organically and through acquisition.' (www.Imperial Tobacco.com)

Since its international expansion in 1996 focus has been on international growth. This has been achieved through acquisitions in companies worldwide that has afforded Imperial Tobacco to achieve both horizontal and backward integration. This gives them an advantage of cost reduction, quality enhancement, corporate restructuring, innovation and speed of response capability.

2.2 Values
Imperial Tobacco values include: (1) working together for the good of the whole business; (2) value of individuality and hard work; (3) looking after our people; (4) putting shareholders first among our stakeholders; (5) being responsible; and (6) pursuing high standards of business ethics (see Appendix
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there is also an increasing trend in teenagers smoking.' (http://news.bbc.co.uk/2/hi/health/1458249.stm)

3.4 Technological
Investments in advanced techniques have resulted in improved quality, cutting of wastage and speeding production. Shared technology and expertise have resulted in reduced cost of production. Imperial Tobacco continues research in new technology in order to continue to reduce costs of production. It has also improved operating standards to meet ISO specifications.

3.5 Legal
There are increased legislations on smoking bans in public places in certain countries and partial bans on others. Another legal aspect affecting this company is the Framework Convention on Tobacco Control (FCTC). This framework includes bans on smoking in public places; that pictorial health warnings be included packages of tobacco products; and that there are no advertising of tobacco products.

3.6

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