The Coffee Bean & Tea Leaf(CBTL), Business strategy case study
Ceylon tobacco company (ctc)
1. M O H A M M E D S H A B I R
P A R I N D A R A J A P A K S H A
A S H E N I J A Y A W A R D E N A
D U L A N J A N W E N G A P P U L I A R A R A C H C H I
A Y Y O O B H A M Z A
Ceylon Tobacco Company
(CTC)
2. • Ceylon Tobacco Company PLC engages in the manufacture, marketing,
and export of cigarettes.
• Incorporated in: 1932
• Headquarters at : Colombo 15, Sri Lanka
• A subsidiary of British American Tobacco Holdings (Sri Lanka) BV.
Principal Activities
1. Manufacture and marketing of cigarettes and smoking tobacco.
2. Tobacco Merchants.
3. Export of cigarettes, leaf tobacco and foliage plants. Financial Services.
An Overview
3. Dunhill Pall Mall
John Player Gold Leaf
Capstan
Four Aces Three Roses
Viceroy
CTC Products
4. • Jayampathi Bandaranayake - Chairman
• James Yamanaka - Chief Executive Officer
• James Yamanaka - Managing Director
• Jayampathi Bandaranayake - Director/Member Of The Board
• Mobasher Raza - Director/Member Of The Board
Key Executives
5. Vision
To be the Inspiration for Corporate Excellence in
Sri Lanka
Mission
To secure and perpetuate CTC's leadership role in
the Sri Lankan tobacco market by achieving
consumer driven cost/quality leadership in the
South Asian region.
6. CTC contributes to around 10% of total government tax revenue.
Provide direct and indirect employment to a significant number of Sri-
Lankans.
In 2009, CTC was a key source of revenue to the Government of Sri
Lanka contributing a total of 52.4 billion rupees
1. 7.6 percent of the country's total tax revenue
2. Approximately 2.2 percent of the GDP.
Shareholders:
1. British American Tobacco plc. : 84.13%
2. FTR Holdings SA : 8.32%.
Facts
7. Balance Sheet
Total Assets : 13,761,491
Current Assets : 11,938,156
Total Liabilities : 10,197,066
Shareholders Equity: 3,564,425
Current Liabilities :9,939,141
Income Statement
Total Operating Revenue :17,068,395
Operational Profit (Loss) :10,728,572
Net Profit (Loss) :6,568,831
An Audit-2011
8. Open mindedness
We listen actively, communicate openly and value feedback.
We are open and honest in all our dealings and foster a climate of trust and
support.
Strength from diversity
We seek ideas and accept input from a range of sources.
We know and value individual abilities and utilize these in improving team
contribution.
Freedom through responsibility
We are accountable to our people and responsible to the resources they need.
We actively coach and develop our people.
Enterprising spirit
Constantly provide opportunities and experiences to learn and grow to maximize
individual potential.
Values
11. Future talents – Employees who can train and develop for fulfilling
future requirements of the company.
• Talented enough to catch the knowledge and skills easily.
Key players – These employees are the experienced and responsible
employees of the company.
• Have the knowledge, experience and skills on how the current
process is going.
• Knows how to react immediately in a situation.
Others - Other employees are normal staff.
• Go through a usual process as employees.
Employee Categories
12. "Your Voice Survey" –
• A diagnostic tool designed to measure
organizational climate, employee satisfaction and
morale.
This identifies & prioritizes action and
behavior which would make the
organization a 'Great Place to Work'.
It provides an opportunity for the
employees to express their thoughts and
feelings about the workplace.
• Not only to identify and celebrate the strengths as a
Company, but also to identify improvements that
can be made.
• As a result of "Your Voice Survey" for 2007, a
number of initiatives and action plans were taken
place at an organizational & functional level.
Culture
An environment where people are inspired to perform
15. Being the only production company in
Sri Lanka’s top 10 Business rankings
2004 – 2005 2011 – 2012
(Business Today top 10)
16. High share prices and demand at the share
market
17. Backing from a multinational corporation
( British American Tobacco PLC )
Technologically advanced production facility
Highly talented workforce
Consequent good performances
Addiction of people
29. •To minimize or eliminate threats and exploit opportunities.
•Planning to anticipate and respond to volatile and disruptive
environmental changes.
•Build Strategic Plans of Actions
•Avoid taking action that is doomed to failure from the
beginning, for reasons beyond the control
•Help to adapt quickly to the realities of the new environment.
•Have position in competitive market place
•Create the brand that will propel your products ahead
•Know potential investment areas
•Have strategic options such as entering a new market or
launching new Products
Why it is important
30. •Government rules and regulations
•Formal and informal rules
• Environmental pollution
•Trade barriers
•Government is imposing taxes on cigarettes and
increasing it at every annual budget.
•Regulating marketing, forbidding any marketing
campaigns and avoid sponsorships
•Prohibiting smoking in public areas
Political Factors
31. •Reduction in sales
•Higher Taxes
•Economy crisis in the country and the buying
power or cost of living
•Dollar value
Economical Factors
32. •People are encouraged to stop smoking
•People who work in manufacturing cigarettes are
considered to be doing harm to the society
•Recruit male employees for some sections
•Looking for young crowd
•Arising of health problems
•Growth of usage of young aged
people and females
Socio –Cultural Factors
33. •The changes of the technology and higher cost
for bringing new technology
•Cost for training programmes
•Arrival of internet
Technological Factors
35. Industry at a volatile state
Need of forecasting
If situation arises will be highly costly
Better to have reserves
Better management
Ensure survival in the market
Why be proactive
36. Marketing
No marketing means no sales
Regulations imposed by government
Socio-cultural factors
Taking on the cyber marketing
Addressing the niche market directly
37. Environmental Pollution
Local tobacco farmers contribute
Safeguarding the environment
Better living for farmers
CSR activities
Re-planting trees and nourishing
Green garden concepts
Green concept at head office
38. Technology
Highly technological production process
New equipment introduced
BAT requiring new tech to be
used
Training local staff
Foreign training trips
Off the job training
Attitude training
40. Why Information Technology
Information Technology facilitates
Decision making
Control and Coordination
Risk management
Organization process
Aiming towards organization objectives.
41. Information System Strategy
Information Technology Strategy
Information Management Strategy
42. Information System Strategy
Determines the long term Information requirement of the
organization and is concerned with acquiring ,storing and
making available information across the organization
To satisfy information needs
Quicker Decision Making
Pro active approach
Easy access to information
Ensure efficient organization process
43. Information Technology Strategy
Defines the specific system requirements of the
hardware,software,operating systems and backup facilities.
Information Management Strategy
This concerns on which information is stored and made
available. Control procedures should be in place to ensure
relevant information is being produced for the users and
not redundant information
44. Collecting Information
Electronic Point of Sale (EPOS)
Uses bar code scanning mainly for the purpose of inventory
management.
Effective and efficienct operations
Safeguarding assets
Prevention and detection of fraud
Accurate and Complete Accounting Information
Timely and relevant financial Information
45. Collecting Information
Document Managing System
Process reduces the amount of tangible materials used in
increasing efficiencies and faster decision Making.
Which will help on
Periodic reports
Transaction reports
Briefing books
Exception reports
46. Information System Used in CTC
Transaction Processing System
The System capture source data about an entity’s
transactions the output of the system is more useful for
planning purposes and as an audit rate.
This helps in decision making and takes on a pro active approach
Management Information Systems
Provides useful Information for decision making and control.
inputs data is sought from transaction processing systems and
processed further to generate “Standardized reports”.
47. Information System Used in CTC
Enterprise Resource Planning
CTC utilizes the use of ERP systems in an organization wide
scale. CTC and its parent company and the whole tobacco
chain is highly IT oriented where the whole chain is networked
through a intranet handled by their IT base located in
Singapore.
Payroll System
Leave Management
Work Schedule
Task & Production Schedule
48. Information System Used in CTC
Crisis Management Systems
Pro Active Approach
Deal with threats
Continuation of Normal Operation
Minimal disruptions
49. Main Concern
Marketing
Regulations against marketing of tobacco products in any of the digital
or printed media within Sri Lanka. and also All forms of television,
radio, newspapers, magazines, posters, banners, etc are prohibited of
tobacco related campaigning or advertising
CTC has a huge database of their clients email address, which they use
as a marketing media within Sri Lanka.