Identify the purpose of the business and nature of the national environment in which a specific business operates

Contents Part: A 3 Introduction: 3 Aim of this assignment: 3 British American tobacco: company profile: 3 Strategy of this organization: 3 Vision of the British American tobacco: 4 Stakeholder group: 5 Objective of the stakeholder: 5 How BAT meets the objective of the stakeholders: 5 Responsibility of the organization: 5 Economic system for BAT: 6 Fiscal policy impact on British American tobacco: 7 Monetary policy impact on British American tobacco: 7 Role of Competition policy: 7 Conclusion: 8 Reference: 8

Part: A
Introduction:
Among the four largest companies in the world there are two companies which are namely British American tobacco and imperial tobacco are actually based on UK. In all over the world British American company is the second largest company which is actually based on UK though in cigarette market it has contributed only 8% of the UK share. Bat’s global tobacco activities are all most controlled by bat in the UK where exclude USA, Brazil and Germany. This company it about 694 billion cigarette could produce during in 2012 all over the world. Though it was about 705 billion in 2011 and brought operating profit approximately of £5,142 million. In those ways this company plays an important role in UK economy.
Aim of this assignment:
In this assignment we determine or select an organization like British American tobacco (Bat). Then we will find out the purpose of this organization and its environment in which it operates its business. Besides various factor which influenced this organization.
British American tobacco: company profile:
British American tobacco was started in 1902. At the first time it was formed as joint venture between most prominent company of British American tobacco and UK’s imperial company. James ‘Buck’ Duke was the founder of this organization. Therefore we can say this organization has been doing its business for 100 years. Though the name of this company is derived from the home bases of its two founding company, British American tobacco was formed in order to do its business not only UK and USA but also out site if these country. Even though it was spread from its roots in many countries like Asia, Africa, along with Latin America and Europe included
Strategy of this organization:
This company’s strategy is to become leader or gaining leading point of tobacco industries. Besides this Bat try to fulfilling consumer need or demand than that of others company. Here is graph which can show the mission, goal, and vision in short. (Meyer and Gupta, 1994)

Productivity:
This organization uses its recourse effectively in order to maximizing profit. Enhance operating margin also considerable for their productivity.
Winning organization:
British American tobacco is the best place for work and it is the appropriate place for new generation leader this are their aim. Higher performance is also their aim in order to attract and hold on new generation leaders from diverse culture and environment.
Responsibility: in their activities there must be remain morality and ethics and they always try to shrink environmental pollution which by producing their product.
Growth: They are consumer oriented and emphasis on superior or best product in comparison to other company
Vision of the British American tobacco:
The vision of this organization is to exist or remain in future in tobacco business which may add shareholders value and related to the product responsibility. In 2007 British American tobacco designed a sustainable agenda that focuses on five goals which are given below………… 1. Harm minimized 2. Market place 3. Environment 4. Supply chain 5. People and culture
Stakeholder group:
Anyone who is impacted by or impact on the business and they may be a lot of term in the following may include * Investors * Customers * Suppliers * Different NGOs * Community * Regulators * Scientific and public health * Consumers * Employees * And sustainability opinion leader can also be include
Objective of the stakeholder:
According to Neely and Mills (1996)
Different group are the part of stakeholder and they have a lot of objective in which they are concern to gain their objective. For example: investors are always seeking their profit, and the customers are always try to get the product at a low a cost than others company, scientific and public health factor do their various perform in order to reduce the risk, on the same way opinion leaders give their valuable predict which can bring the sustainability in the business organization.
How BAT meets the objective of the stakeholders:
Now a day’s British American tobacco are doing greater work in a way so that stakeholders can get their expected thing. So there have five goals in which organization try to achieve for the purpose of stakeholders. 1. Bring the product which are consumer oriented may be less- risk product in market in order to commercially sustain. 2. Within market place this company engaged in high standard contract. 3. Strongly identify the impact on business which is strongly related to natural environment. 4. In term of supply chain they are working hard for positive, social along with environmental impact. 5. They are ensuring that they have skill full people to meet their demand or goals.
Responsibility of the organization:
In the year 2011 BAT had established some goals and in 2012 it has gained it goal. For example: They have taken some work in order to lessen their direct energy use within their2012 target
Of 11.03 gigajoules per million cigarettes which is equivalent
Produced, 6.7 per cent lower than during the time of 2007 baseline and is attained this goal in environmental sector. In 2011- 2012 they also established some goals to ensure the safety of environment. And that is why they try to cut down 50% of the CO2 emission by 2030 and 80% by 2050. They try to define that it is against their 2000n baseline of 1.38 tones per million cigarettes equivalent goods which they produce. Same as to that this
They are also trying to establish many forests to ensure environmental safety. That is why in Sri Lanka they conduct many researches due to re-establish natural forest.
Economic system for BAT:
British American tobacco has been generated and disseminated through direct economic value. Some important factor are included this economic system which are namely * Operating cost * Investment and donated from other community * Compensation for employee * Retained earning * Payment to the government * And revenue
In 2011 the economic response that means the company produce the value £46,980m which drive from net sales where included revenue. This revenue actually came from sales of asset and financial investment.
In which way the economic system allocates resource we can understand below this short graph.

Operating cost | 7176 million | Investment community | 13.7 million | Payment to government | 32194 million | Payment to the capital provider | 3675 million | Wages of employee and benefit | 2694 million |

Fiscal policy impact on British American tobacco:
Fiscal policy influences the specific group for example: cutting down the tax rate for small business or any other organization for specific region. So therefore fiscal policy defines when government control the tax rate and expend level that affects the national economy. This factor plays important roles to achieve country’s economical goal. By means of using fiscal policy government encourage healthy behavior. For example government imposes on tax on tobacco industry so that government can ensure for health support for the people by using fiscal policy. BAT also carry on opportunity and engage on consultation with various regulatory which also one kind of impact of fiscal policy. Bat also trying to assist the regulatory address which is the core factor encompassed their product. Monetary policy impact on British American tobacco:
In term of monetary policy central bank or so other regulatory board or committee controls money supply. It determines what rate will be the growth which has greatly influences the interest rate. Changing the amount of money or decreasing or increasing rate is defined by monetary policy.
Role of Competition policy:
According to Aragón-Correa (1998)
British American tobacco has been emphasis on employees need and for attracted the employee deployed in various criteria which included different factor * Skill * Qualification * Performance * Responsibility * As well as contribution
This organization uses some important tools to identifying level and seniority of roles which based on in a method of assessment of job. Within organization well define method of job evaluation can be included roles, scope, future salary position as well as rang and so on. In order to make sure competitiveness it’s needed to compare against local market.
Regulation of mechanism:
Some mechanism and principle of regulation are practiced by British American tobacco. There are also combined blows factors * EU communications on regulation * With a view to following guide line organization for economic cooperation * UK better regulation executive
Moreover British American tobacco also involving in consults in some factor such as agriculture, health, revenue with customs and other area. However regulatory activities are controlled and monitored through regional audit. Both of global level and local level British American tobacco is doing their activities with stakeholder in regard of regulatory basis.
Conclusion:
All types of business environment in which a company does it business needed to develop strategy so that it can go through proper way to attain goal. That is why British American tobacco designs its business by maintaining all regulatory mechanism.
Reference:
1. Meyer, M.W. and Gupta,V., 1994. Research in Organizational Behavior: Vol. 16, JAI Press: Greenwich, CT: pp. 309-69.

2. Neely, A.D. Mills, J.F. Gregory, M.J. Richards, A.H. Platts, K.W. and Bourne, M.C.S., 1996. Getting theMeasure of Your Business, Findlay Publications: Horton Kirby. 3. Aguilera, R. Rupp, D. Williams, C. and Ganapathi, J., 2007. ‘Putting the S back In corporate social responsibility: A multi-level theory of social change in organizations,’ Academy of Management Review, 32(3): 836 – 863.

4. Aragón-Correa, J., 1998. Strategic proactivity and firm approach to the natural Environment: Academy of Management Journal, 41(5): 556 –567. 5 Waggoner, D.B., Neely, A.D. and Kennerley, M.P., 1999. The forces that shape organizational Performance measurement systems: an interdisciplinary review, International Journal of Production Economics, Vols 60-61, pp. 53-60.