Head of Sales

Question about British American Tobacco ( thrust racket): BAT Bangladesh looks interesting based on recent ROE, empty 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 altogether everyplacenment incentives for baccy plant cultivation. The company in like agency does non seem to be exporting raw baccy or cut rag: I am not an agronomist, notwithstanding would I be right in subject that Bangladesh has too much rain downfall to have competitive advantage in tobacco production? Increased sales appraise is indeed expected to have an effect on al-Quran growth in FY2012. However, the silver lining for BAT is that truly 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 has over 90% of the high-end cigarette marketplace. As for rising health intelligence - there are advocacy groups at work simply increasing migration to cities, nationwide ban on alcohol, and a state median age of 22 - probably cumulatively compensate.

As for BAT, in 2010, the company invested heavily to improve efficiency - the result of which has been a significant improvement in the YTD performance ( more than than 3% improvement in gross and operating margins). Traditionally, tobacco has been civilized in the northern region of Bangladesh, especially the greater lemanderin area. However, over the last few years, farme rs scattered across the country are reverti! ng to tobacco cultivation a great deal at the expense of rice nation. Moreover, to offset effects of rain and removal of government incentives, companies like BAT offer monetary 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. sermon 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: OrderCustomPaper.com

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