Internship Report

On

Implementation of the Integrated Work System in the

Secondary Manufacturing Department of

British American Tobacco Bangladesh

Submitted To
Mr. Tofazzal Hossain
Lecturer
BRAC Business School
BRAC University

Submitted By
Shadman Sakib
ID: 14304153
BRAC Business School
BRAC University
Course: BUS400
Date of Submission: 2nd August 2018
Letter of Transmittal

2nd August, 2018

Mr. Tofazzal Hossain
Lecturer
BRAC Business School
BRAC University

Subject: Submission of the Internship Report

Dear Sir,

It is an immense pleasure for me to be able to submit the internship report that I have prepared
from my experience of working with British American Tobacco Bangladesh under the operations
department.

I feel really privileged to be a part of an immensely eminent MNC like British American Tobacco
Bangladesh for last three months as I have been able to gather valuable insights about the
professional life as well as the corporate world. Throughout my three months stint with British
American Tobacco Bangladesh I tried to learn every little aspect of the corporate life and I also
tried to deliver from my end. This report has been prepared to fulfill the requirement of my
internship program at my assigned organization. This report attempts to describe the observations
and learning during the course of my internship with British American Tobacco Bangladesh.

I would like to convey my utmost gratitude and appreciation for your kind cooperation, guidance
and supervision in conducting and preparing my internship report. It would be an absolute honor
for me if you find this report informative enough to fulfill the requirements. I will be happy to
provide further query and clarification if needed.

Sincerely,
Shadman Sakib
14304153

i
Letter of Endorsement

The Internship Report titled “Implementation of the Integrated Work System in the Secondary
Manufacturing Department of British American Tobacco Bangladesh” has been submitted, to
BRAC Business School, for partial fulfillment of the requirements for the degree of Bachelor of
Business Administration, major in Marketing and Human Resource management from BRAC
University on 2nd August, 2018 by Shadman Sakib, ID: 14304153. The report has been accepted
and may be presented to the Internship Defense Committee for evaluation.

(Any opinions, suggestions made in this report are entirely that of the author of the report. The

University does not condone nor reject any of these opinions or suggestions).

---------------------------------

Mr. Tofazzal Hossain

Internship Supervisor Faculty

Lecturer

BRAC Business School

BRAC University

ii
 Acknowledgement

In preparing the internship report on my three months long experience with British American
Tobacco Bangladesh, firstly I would like to convey my utmost gratitude to my academic supervisor
Mr. Tofazzal Hossain, without his kind direction and proper guidance this report would not have
been possible.

I also would like to show my deepest appreciation and gratitude to my line manager Syed Faiyaz
Ahsan who helped me to understand the basics of the business. He supported and guided me
throughout my internship journey. I thank him for putting his trust on me with real tasks which
gave me the opportunity to play an active role in British American Tobacco Bangladesh.

I also would like to thank each and every one of my fellow colleagues of British American Tobacco
who gave me their valuable time and enough information to help me successfully complete this
report.

Throughout my last three months as a part of my role in British American Tobacco I got to meet
many people from different backgrounds and professions. I would like thank each one of them for
their valuable contribution in making my internship program a successful and memorable one.

iii
 Executive Summary

British American Tobacco is one of the leading and prominent multinational companies not only
in Bangladesh but also globally. British American Tobacco is constantly innovating and producing
world class products to satisfy their consumers

At the very beginning of the report I have given an overview of British American Tobacco
Bangladesh and its history. It will give the readers a clear idea about British American Tobacco
Bangladesh’s legacy and its mission and vision.

In the next part I have provided an Organizational structure of the company. Which will give the
readers a clear idea about the structure of the company as well as the management team.

Next part of the report contains an overview of all the functions British American Tobacco
Bangladesh has and how they operate together. I have also provided our brands and products
profiles which will give a clear idea about our current brands and products in the market.

In the next part I have given a detailed overview of the Integration Work System (IWS) of BATB
specifically in the secondary manufacturing department of the organization. This was my main
concentration of my internship program. This is the basic work system British American Tobacco
Bangladesh follows and maintains across all the wings of the Production and Manufacturing
department of under Operations. I was highly involved in this system and the way of work. In this
part I mentioned and described what IWS is and how it works.

In the following part I have given my day to day activities in British American Tobacco. I have
given a detailed and comprehensive overview of my involvement with British American Tobacco
Bangladesh over the last three months.

I have mentioned and the limitations and learnings in the last part of the report. I have also tried to
come up with few suggestions from my observations which I believe can be helpful to British
American Tobacco Bangladesh.

iv
Table of Contents
INTRODUCTION....................................................................................................................................... 1
1.1 Introduction ....................................................................................................................................... 2
1.2 Origin of the Report.......................................................................................................................... 3
1.3 Objective of the Report..................................................................................................................... 3
1.4 Methodology ...................................................................................................................................... 4
1.5 Limitations while Preparing the Report ......................................................................................... 4
ORGANIZATIONAL OVERVIEW ......................................................................................................... 5
2.1 History of British American Tobacco ............................................................................................. 6
2.2 History of British American Tobacco Bangladesh ......................................................................... 7
2.3 Mission and Vision ............................................................................................................................ 8
2.4 Brands Offered by British American Tobacco Bangladesh .......................................................... 9
2.5 Functional Departments of British American Tobacco Bangladesh .......................................... 11
2.6 Organizational Structure ............................................................................................................... 15
2.7 Core Business Activities.................................................................................................................. 16
2.8 Corporate Social Responsibilities .................................................................................................. 17
2.9 SWOT Analysis ............................................................................................................................... 18
Integrated Work System in Secondary Manufacturing Department ................................................... 21
3.1 Secondary Manufacturing Department ........................................................................................ 22
3.2 Integrated Work System (IWS) ..................................................................................................... 24
Activities Undertaken ............................................................................................................................... 29
4.1 Internship Program Timeline ........................................................................................................ 30
4.2 Specific Responsibilities as an Intern ............................................................................................ 30
4.3 Project Evolution ............................................................................................................................ 32
Limitations and Recommendations ......................................................................................................... 35
5.1 Identified Challenges in British American Tobacco Bangladesh ............................................... 36
5.2 Recommendations for British American Tobacco Bangladesh .................................................. 37
Learnings and Conclusion ........................................................................................................................ 40
6.1 Learnings from the Internship Experience .................................................................................. 41
6.2 Conclusion ....................................................................................................................................... 42
References .................................................................................................................................................. 43

v
 CHAPTER 1

INTRODUCTION

Page 1 of 43
1.1 Introduction

British American Tobacco is one of the leading tobacco companies around the whole world. They
have more than 200 brands in their portfolio and they operate in 180 countries. Currently more
than 55,000 people are employed in British American Tobacco Groups around the world.

British-American Tobacco have been doing business for more than 100 years. The Group was first
listed in 1912, and today they are one of the top 10 companies listed on the London Stock
Exchange. British American Tobacco is additionally one of the esteemed Fortune 500 listed
organizations.

British American Tobacco Bangladesh (BATB) is a subsidiary of British American Tobacco

Group. British American Tobacco Bangladesh is operating in Bangladesh since 1972. It was
known as Bangladesh Tobacco Company (BTC). Since then it is one of the leading multinational
organizations in the country. From the earliest starting point of their operations in Bangladesh till
date they are keeping up the leading position in the tobacco industry of Bangladesh by providing
some of the most powerful global and local brands. Currently BATB is the highest tax paying
company in the country. Around 8% of the total revenue of the Government of Bangladesh comes
from the Tax payed by BATB. In spite of manufacturing and selling a controversial product like
cigarette BATB has been able to maintain their image as one of the most prominent socially
responsible and contributing company in Bangladesh.

Bangladesh is one of the major markets for BATB because Bangladesh is considered as one of the
leading tobacco consuming countries in the world. At least 43% of the population above 15
years of age consumed tobacco in Bangladesh last year. BATB have one of the biggest
manufacturing and production plants among all the BAT groups around the world. Everyday
almost 19 million sticks of cigarettes are produced in our local factory in Bangladesh.

British American Tobacco Bangladesh is currently flourishing in the industry because of the
diversity of the product portfolio, their human capital and their integrity in the business.

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1.2 Origin of the Report

This report is the final output of my three months long experience with British American Tobacco
Bangladesh as per the requirements set but BRAC University. I worked with the operations
department of British American Tobacco Bangladesh. In the first one month I worked as a part of
the Secondary Manufacturing Department (SMD). I assisted them with day to day activities to get
a clear idea about their unique production system “Integrated Work System (IWS)”. For the last
two months I worked under my line manager in the project name “Project Evolution”. My whole
report is based my observation, experience and the information provided by my colleagues in
British American Tobacco Bangladesh.

1.3 Objective of the Report

The primary objective of preparing this report is to fulfill the requirement of the Internship
Program of BRAC University. But while collecting information for this report I got to know about
many different aspects of not only British American Tobacco but also the multinational work
environment. Some other important objectives of this preparing this report on British American
Tobacco Bangladesh are given below.

i. To present an overview of British American Tobacco Bangladesh

ii. To analyze the industry.

iii. To analyze the core functions of British American Tobacco

iv. To analyze the production system IWS of British American Tobacco Bangladesh

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1.4 Methodology

Primary: For primary data collection I mostly emphasized on interviews. I interviewed my line
manager Syed Faiyaz Ahsan who is currently the in charge of the project evolution of BATB. He
is a former cell manager of SMD. I also interviewed Mr. Jawwad Sadiq who is the IWS process
lead of BATB. I also interviewed few team leaders who are heading different production teams.

Secondary: For secondary data collection I went through the website, Annual reports, and
different websites.

1.5 Limitations while Preparing the Report

Confidentiality

BATB manufacture and sell a highly controversial product. This is why the internal processes are
highly confidential. Without being a part of the organization it is very difficult to understand how
the biggest cigarette manufacturing company operates. This is why I could not mention everything
in the report.

Mismatch between Academic Background and Functional Department

I am a business student. But as I was attached with the Secondary Manufacturing Department I
had to gain a necessary amount of knowledge about the technologies and machineries and the
technical know-how which are more suitable for people from engineering background. Though
most of my task was HR related but to deal with the people I had to have a clear idea about the
technical activities of the people. In the beginning I faced difficulties to familiarize with the
technical terms.

Time Constraints

Companies like BATB make the best use of their employees. Though I learned a lot but it is
undeniable that for the last three months I faced huge workload. Within July 1st and July 31st I had
to stay in Savar for 16 days for the workshops. It was really difficult to balance the time between
completing office work and preparing a comprehend report.

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 CHAPTER 2

ORGANIZATIONAL OVERVIEW

Page 5 of 43
2.1 History of British American Tobacco

1902

The British American Tobacco Company was formed by the joint venture of UK’s Imperial
Tobacco Company and the American Tobacco Company of the United States.

1904–1911

BAT expanded its operations in countries like West Indies, India, Ceylon, Egypt, and many
European countries as well.

1910

Cigarettes sales went up to more than 10 billion cigarette per year

1939

Second World War occurred and it severely interfered with worldwide activities.

1966

For the first time in history Company profits exceeded £100 million by the acquisition of cigar
manufacturer Henri Wintermans by BAT.

1994

BAT enhanced its portfolio by adding the prestigious Lucky Strike and Pall Mall brands to the
portfolio.

1998

British American Tobacco becomes a completely separately quoted entity on the London Stock
Exchange.

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2013

First E-cigarette Vype launched in UK

2017

Reynolds American Inc. was acquired by BAT completely to expand its business.

(bat.com, 2018)

2.2 History of British American Tobacco Bangladesh

In 1910 British American Tobacco was established in Calcutta. At that point it had been called
Imperial Tobacco Company. In 1926 Imperial Tobacco Company opened a subsidiary at
Moulovibazar. Cigarettes were manufactured in Carreras Ltd., Calcutta. Imperial and Carreras
incorporate into single entity in 1943. After the partition in 1947, cigarettes were coming freely
from Calcutta, but introduction of customs barriers in 1948 between India and Pakistan interrupted
the interfered with the smooth stream of cigarettes from Calcutta to East Pakistan. In March 1,
1949, Pakistan Tobacco Company (PTC) came into existence with head office in Karachi; with
the assets and liabilities of ITC Limited held in Pakistan. At that time East Pakistan Office was
situated in Alico Building, Motijheel. In order to satisfying the increasing demand, the primary
manufacturing plant within the then East Pakistan was established in Chittagong in 1952. From
this point, demand for cigarettes for East Pakistan markets were fulfilled from products
manufactured in Karachi. PTC founded first cigarette manufacturing plan in 1954. The Dhaka
factory of PTC started producing in 1965. After the war amongst India and Pakistan in 1965; the
import of tender leaf from India for the production of Bidi was halted. This gave a major lift to
cigarette business. It was around then the East Pakistani entrepreneurs set up 16 cigarette factories
in this region. Under the Companies Act 1913Bangladesh Tobacco Company (Pvt.) Limited was
formed on 02 February 1972 after independence. In BTC's inception in 1972 British American
Tobacco played a major role and since then has been involved in BTC's development every step
of the way. BTC changed its name and identity to British American Tobacco (BAT) Bangladesh
Company Limited on March 22, 1998. The company changed its identity to establish commitment

Page 7 of 43
to the highest international standards. The Government of Bangladesh owns 26.57% through
several of its agencies, while 7.52% is owned by other shareholders. (batbangladesh.com, 2018)

2.3 Mission and Vision

Mission

“Our mission is delivering our commitments to society, while championing informed consumer
choice. We need to continue to ensure that our consumers are fully informed about the choices
they are making when they purchase our tobacco products. We recognize that we have a
responsibility to offer a choice of products across the risk spectrum, but we will also defend their
rights to choose and provide them with the products they want. As society changes, and people’s
priorities and needs shift, we need to be ready to meet new challenges and take advantage of new
opportunities. We are a major international business and with this status come responsibilities,
from being open about the risks of our products to supporting rural communities in the developing
world “(Annual Report, 2017)

Vision

“Our vision is to be the world’s best at satisfying consumer moments in tobacco and beyond”
(batbangladesh.com, 2018)

Vision 2020 of British American Tobacco Bangladesh

BATB has a vision set for the year 2020. Vision 2020 is “By ensuring best process and by engaging
best people we want to be a world class operation and we want to make our revenue twice as big
within the year 2020”

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Strategic Focus

BATB’s all business strategies are built upon the strategic focus areas. Strategic focus areas work
as the foundation of their business decisions. They continue to concentrate on their activities in all
four focus areas and constantly review their ways of working. According to BATB website
“Growth requires understanding and delivering enjoyable consumer moments. Resources should
be effectively deployed to increase profits and generate funds for better productivity. Winning
organizations consists of great people, great teams and a great place to work. Ensuring a
sustainable business that meets stakeholders’ expectations is another part of our strategic focus.”
(batbangladesh.com, 2018)

Guiding Principles of BATB

 Strength from diversity

 Open minded
 Enterprising spirit
 Freedom through responsibility

2.4 Brands Offered by British American Tobacco Bangladesh

BAT has hundreds of brands around the world but in Bangladesh they manufacture and sell few
brands. British American Tobacco Bangladesh does not encourage anyone to smoke rather they
fulfill the demand of those adults who chose to smoke. British American Tobacco Bangladesh
manufactures and markets high quality and well established international and local cigarette
brands. Main attraction is to focus on flavors and packaging. In Bangladesh, British American
Tobacco Bangladesh is the market leader in tobacco sector. All of their brands are positioned in
four segments in the Bangladesh cigarette market. They are premium segment, aspirational
premium segment, value for money (VFM) segment and low segment. They have almost 48%
market share. Current brands in Bangladeshi market are Benson & Hedges, John Player Gold Leaf,
Pall Mall, Capstan, Star, Pilot, Hollywood and Derby. A brief overview of brands is given in the
below:

Page 9 of 43
 Benson & Hedges

It was launched in 1997. Since its introduction in the Bangladeshi market

Benson & Hedges has dominated the Premium segment and set the
standards in a very competitive market. And in 2012, the house of Benson
& Hedges introduced a new and unique variant - Benson & Hedges
Switch. With BAT’s innovative product development idea Benson &
Hedges Switch became the first ever capsule cigarette to be launched in
Bangladesh. At that time it was really hyped up and highly demanding
product. Still it has hold a great place in consumer’s choice. Currently
Benson & Hedges has three different variations they are Benson & Hedges Full Flavor which is
widely known as Benson & Hedges Red, Benson & Hedges Blue Gold which is widely known as
Benson & Hedges Light and last but not the list there is Benson & Hedges Switch.

John Player Gold Leaf, Pall Mall and Capstan

John Player Gold Leaf, Pall Mall and Capstan are

positioned in the Aspirational Premium segment. John
Player Gold Leaf was launched in 1980. Since then it is
one of the most popular and most sold tobacco products
in Bangladesh. There is no viable completion for John
Player Gold Leaf in the aspirational premium segment in
Bangladesh. Capstan is not that popular or consumed in Bangladesh. This is why its production is
very rare. Pall Mall was the Group’s first Global Drive Brand to be launched in Bangladesh in
2006. Pall Mall is another successful brand in this segment.

Page 10 of 43
Star and Star Next

Star and Star Next are positioned in the value for Money segment. Star was
launched in 1964 and Star Next was launched in 2012. Star Next is one of the
highest growing brands in Bangladesh. In this VFM segment this brand does
not have any real competition. Star is one of the most consumed brand in
Bangladesh thus it is also one of the highest produced brand too.

Pilot, Hollywood and Derby

In the low segment we have three brands and they are – Derby, Pilot & Hollywood.
Derby was launched in 2013 and is the biggest brand among the three. Through
two variants it is offering taste differentiation to the consumers. Pilot is renowned
for true and authentic smoke .Pilot was launched in 2009. Currently it is the fastest
growing brand in the industry. The third brand is Hollywood which was launched
in 2011.In this segment in spite of facing some real competition all three brands
are thriving and doing really good business.

2.5 Functional Departments of British American Tobacco Bangladesh

BATB is one of the prominent and most efficient operations in Bangladesh. Very few companies
in Bangladesh can be compared to BATB in terms of their market share and brand value. To
maintain this position all the departments and wings need to be very well synchronized and aligned.
BATB has 7 major functional areas. They are:

 Operations
Operations is one of the most important departments of BATB. BATB manufactures their
own products. Operation department consists of two sub wings. They are production and
supply chain. BATB produces millions of cigarettes in their factory every single day.
Production department consists of three wings. They are Primary Manufacturing
Department (PMD), Secondary Manufacturing Department (SMD) and Filter
Manufacturing Department (FMD). Another sub wing of Operations is Supply Chain
Department. Supply chain ensures the smooth operations of the whole business from very

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 beginning till end. Ensuring right material at the right time at right quantity is Supply
Chain’s job. Supply Chain Department also deal with the third party vendors who deal with
BATB in different areas.

 Finance
Finance is another important department of BATB. Finance department does not work
solely rather they work by aligning with other departments to achieve company’s vision.
Core activities are given below.
i. Setting up financial targets and objectives and delivering against them.
ii. Planning, forecasting and budgeting properly to ensure the optimal use of the
resources which helps the organization to grow and give the organization a
competitive advantage over the competitors
iii. Preparing annual report to give a better understanding of the current market
scenario
iv. Audit and business risk management
v. Working as a business partner to other core functions

 Marketing
Marketing is one of the most crucial core functions of BATB. Cigarette is a very
controversial product. It is legally prohibited to publicly conduct any promotional activity
of BATB and its products. This is why it is very challenging. Yet the marketing team of
BATB has been able to capture a huge market share with their brilliant below the line
marketing activities. Marketing department of BATB has two different functions. One is
Trade Marketing and other one is Brand Marketing. BATB has one of the best trade
marketing teams in the country. With their very strong distribution network and trade
marketing activities they ensure the availability and visibility of their products in the
market. The brand marketing team come up with unique below the line marketing
campaigns and activities to attract new consumers

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 Leaf
This is a very unique and effective wing of BATB. Raw tobacco leaf is the main raw
material of the cigarettes. More than 80% of leafs are their own cultivation. In Kushtia
leafs are cultivated. In Kushtia BATB has Green Leaf and Threshing (GLT) pant. In that
plant cultivated raw leafs are processed to turn that tobacco leaf into a suitable form for
cigarette production. Processed tobacco is then delivered to Dhaka manufacturing plant.
So the Leaf department is responsible for cultivating, processing, controlling leaf quality,
packaging and delivering to the manufacturing plant. This wing play a very vital role as
they need to make sure the continuous supply of the raw materials to the manufacturing
plant. Taste and quality of the finished goods are also very much dependent on the quality
of the produced leafs.

 Human Resources
Human Resources is one of the most important support functions in BATB. They play a
very vital role in company’s success. They are responsible for retaining, attracting,
recruiting, training and managing the employees. BATB is renowned for hiring the best
talents in the market. They recruit each and every individual through a very rigorous and
fair assessment process. They make sure equal opportunity for everyone. This is how they
recruit the best talents in each department. With their excellent salary, benefits and profit
sharing package they retain their employees. BATB is renowned for creating talents. They
do not believe in head hunting. They believe in creating own talents. Most of the people in
top management are in BATB from the beginning of their career. Current Managing
Director, Head of Marketing, Head of HR, Head of Strategic Planning of British American
Tobacco Bangladesh all started their career as a Territory Officer in British American
Tobacco. The HR team also believes in continuous improvement. That is why on a regular
basis effective training and mentoring sessions are arranged in British American Tobacco
Bangladesh.

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 Legal and External Affairs (LEX)
BATB has one of the most renowned and strongest legal teams in the country. As BATB
manufactures and produce a highly controversial product like cigarette their legal team
needs to be very careful and detail oriented. They make sure that every single aspects of
their operation is aligned with state’s laws and regulations. Every single laws are taken
very seriously. Whenever BATB face and legal trouble their legal team takes care of it.
They also manage the external affairs of the organization. This department was previously
known as Corporate and Regulatory Office (CORA).

 Business Development
This department help BATB to move forward. Business Development department is
continuously working to find out new opportunities and scopes of expanding their business
in Bangladesh. Partnering with different entities and product development, market
development etc. are the responsibilities of the Business Development Department.

Page 14 of 43
 2.6 Organizational Structure

Board of Directors

Board CSR Board

Board Audit Compensation
Committee
Committee Committee

Managing Director

Head of Legal and

Head of Operations External Affairs

Head of Business
Head of Marketing Development

Head of Human
Head of Finance
Resources
Page 15 of 43
2.7 Core Business Activities

British American Tobacco Bangladesh mainly manufacture and sell cigarette. From growing raw
tobacco leaf to distributing the finished goods to the retailers for the consumption of end users
there are some steps. They are given below-

 Raw Tobacco Leaf Growing

In different farms in Kushtia, Chittagong and Rangpur Registered farmers of BATB
cultivate and grow raw tobacco leafs
 Leaf Processing
In the Green Leaf Threshing (GLT) plant raw tobacco leaf is processed. Stern is separated
from leaf here for further use. This processed leaf is delivered to the Manufacturing Plant
in Dhaka
 Cigarette Manufacturing
Primary Manufacturing department (PMD) receives the processed leafs and cut leaf to
produce cut tobacco as the final ready to use tobacco for cigarette. Then that cut tobacco is
send to the Secondary manufacturing Department (SMD) where all the packaging materials
and other materials of cigarettes are converted into finished ready to use cigarettes.
 Distribution
Finished package goods are then sent out to different distribution centers across the centers.
Trade marketing team of BATB then send the goods to the distributors using the sell
representatives. Distributors then distribute the goods to the retailers to make the goods
available for the consumption of the end users.
 Branding
As any kind of promotional activity for Cigarette is banned by the government so BATB
continuously try to innovate and come up with effective below the line marketing ideas to
maximize brand awareness and brand visibility.

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2.8 Corporate Social Responsibilities

"Success and responsibility go together" is the philosophy that has driven British American
Tobacco Bangladesh over the years. Every member of BATB Believes in this philosophy from
day one. In spite of manufacturing and selling a highly debatable product like cigarette BATB is
known as one of the most ethical and contributing company to the society. BATB has successfully
holds the image of being a socially responsible company over the years with their Corporate Social
Responsibilities activities. BATB believe that the success that they have acquired is because of
their responsible business operations. They believe that they have a key role to play in contributing
to the economic, social and environmental sustainability of the community. BATB is currently
operating three CSR activities in Bangladesh they are Afforestation, Safe Drinking Water and
Solar Home Systems. (batbangladesh.com, 2018)

Afforestation

This is BATB’s flagship CSR program. In 1980 the forest department asked for the support of the
private sector and then BATB started this afforestation program. In last 34 years BATB has
contributed more than 79.5 million saplings to the country for the cause of afforestation. This is
the largest contribution any private company made in the cause of afforestation in the history of
Bangladesh. The Project has additionally won global acknowledgment for the organization as of
late when BATB was granted Asia Responsible Entrepreneurship Award in 2014 under Green
Leadership by Enterprise Asia, a non-governmental organization striving for the pursuit of
entrepreneurship development in Asia Region. Not only globally but also nationally BATB has
been awarded the national award one five different occasions. BATB is really proud of this
initiative and plan on to contributing like this in the future.

Safe Drinking Water (Probaho)

Safe drinking water is something we take for granted in the cities. But in the rural areas of
Bangladesh safe drinking water is a luxury. This has become a huge issue in our country. Millions
of people in our country experience the ill effects of water borne diseases due to the lack of safe
drinking water. Realizing this problem BATB have come up with a safe drinking water project.
As a part of the safe drinking water initiative, BAT Bangladesh has already installed 53 filtration
plants to make water free from arsenic and other harmful contents in arsenic prone areas in the

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country. All the 53 plants currently refine 270,000 liters of drinking water, addressing the need of
135,000 individuals every day. With this project BATB has enable them to enjoy safe drinking
water and thus gave them a better future.

Solar home systems: Bringing ray of hope in rural communities

Bangladesh is a third world country. Being a third world country we cannot take electricity for
granted. In many corners of Bangladesh electricity has not been reached yet. People of those areas
are being unable to enjoy the blessing that is electricity. BATB identified this as a major problem
and they have come forward with a great initiative. They are providing Solar Home Systems free
of cost to rural communities of the country which are currently out of electricity. Till date 1,366
units of solar home systems have been installed in 15 villages of Bandarban and Khagrachari
districts. More than 8000 people of those areas are now getting electricity because of this initiative.
This is just the beginning. This initiative will go a long way. BATB plan to make available in every
possible corner of this country to help a huge number of people progress.

2.9 SWOT Analysis

SWOT analysis is a very important and useful tool to analysis the external and internal factors that
can affect the business. By analyzing the internal factors Strength and Weakness can be found and
by analyzing the external factors opportunities and threats can be found. SWOT analysis of British
American Tobacco Bangladesh is given below.

Page 18 of 43
Strength

 Market Leader: BATB is the absolute market leader in the industry. Being the market
leader they easily manipulate the market to get a competitive advantage over the
competitions.
 Brand Value: British American Tobacco is one of the biggest and most prominent names
globally. This is why in Bangladesh BATB holds a respected position in people’s mind.
Every job seeker wants to be a part of this organization. Thus BATB able to attract the best
talent in the country. By having the best human capitals in the country BATB is thriving in
the industry. They have the best human resources in every department.
 Government’s Support: BATB is the highest tax paying company in the country. They
are highly contributing in the economy of the country. In 2017 BATB contributed BDT
16,427 Crore which is almost 8% of the total GDP of this year. Because of this huge
contribution in the economy BATB get full support from the government.
 Strong Trade Marketing Team: BATB is renowned for their trade marketing team.
Arguably they have the strongest trade marketing team in the country. With their strong
trade marketing team and a very strong distribution network BATB ensure the availability
and visibility of the product in every corner of the country. This is their one of the biggest
strengths
 Highly Automated Manufacturing Plant: BATB have one of the most efficient
production systems. It is highly automated and the operators are really skilled. This is why
they can fulfill the demand of the consumers without any problem.

Weakness

 Ban on Promotion: This is one of the biggest challenges for BATB. Because of the health
hazards of consuming the product our government has banned any kind of visible
promotional activity of cigarette. This is why BATB cannot promote their product like any
other product
 High Volume but Low Value Industry: Though cigarette is sold at a mass amount
country wide but the profit margin is very low. This is why profit per unit is very low. They
need to sell huge amount of product to get the expected revenue.

Page 19 of 43
  Sensitive Product: There is no denying that cigarette is harmful to our health. This is a
very weak point for British American Tobacco.

Opportunity

 Change in Preference: In the past most of the consumers of tobacco used to consume bidi.
Cigarette was a luxury. But with the increase of income life style is changing and with that
choice of product is changing. People are now preferring cigarette over bidi. More people
are starting to consume cigarette every day and this is a great opportunity for BATB to
expand their market.
 Lack of Competition: BATB is the absolute market leader in the industry. There are some
other companies like Phillip Morris International, Akij Tobacco Industry, Dhaka Tobacco
Company, Abul Khayer group etc. But these companies are dominated by BATB. BATB
holds more than 50% of total market. Because of very strict laws and regulations it is very
difficult to start tobacco business or introducing a tobacco company in Bangladesh. Lack
of competition is a big opportunity for BATB to expand its market in Bangladesh.

Threat

 Increase in Health Awareness: People are now more health conscious. Everyone knows
the bad effects of cigarettes. People are now educated about the risk more than ever. Many
campaigns are being carried on by different organization against tobacco. This is a big
threat. If people start rejecting the product company will be in great trouble
 Increase in Rules and Regulations: Government is imposing more rules and regulations
on cigarettes. It is making the business difficult for all the tobacco companies. If
government keep imposing more regulations it will become a great threat for the existence
of this industry.
 Alternatives: Many people are now switching to less harmful alternatives of cigarettes like
vape and E- cigarettes. These are becoming really popular in no time. This can be a great
threat in future

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 CHAPTER 3

Integrated Work System in Secondary

Manufacturing Department

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3.1 Secondary Manufacturing Department

I joined as an intern in the Secondary Manufacturing Department (SMD) of British American

Tobacco Bangladesh. SMD is one of the most important wings of the operations of British
American Tobacco Bangladesh. This is where all the final products are manufactured. Leafs are
processed in GLT plant in Kushtia to prepare tobacco. Then those processed tobacco come to the
Primary Manufacturing department. Those processed tobacco are conditioned and blended in the
Primary manufacturing Department and then delivered to the Secondary Manufacturing Secondary
Manufacturing Department produces the Final products that are cigarettes in a totally packed form
and makes ready for the CSC (Customer Service Center). As inputs for the final production all the
raw materials (mainly coming from PMD, Material Warehouse and Filter Rod Department) enter
in different machines in SMD. SMD consists of 32 Modules. Each module is a set of machines
which delivers complete package goods. Breakdown of each modules are given below.

MAKER TRAY TRAY PACKER

LOADER UNLOADER
R WRAPPER

Maker: Maker is the part where processed tobacco, paper rod, filter and other raw materials are
assembled and complete cigarette sticks are made. This is a very fast process. There are Decoufle
85, Decoufle 100, Protos 90, Protos 100 and Focke. Decoufle 85 and Protos 90 makes 8500
cigarette sticks per minute. Decoufle 100, Protos 100 and Focke these machines produce 10000
cigarette sticks per minute. In the cigarette manufacturing process, processed tobacco, filter rod
and wrapping materials are transferred to Cigarette making division to make a complete cigarette.
These machines are run and operated 24 hours a day 7 days a week. There are four shifts. Green,
Blue, Yellow and White. Per day three shifts cover the day. Per shift work for 8 hours. This
machines are never unattended. Two operators are always operating and maintaining the maker
machines on rotation. When their shift ends they hand over the responsibility of the machine to
the operators of the new shift. This is how all the machines are always producing cigarettes.

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Tray Loader: Complete cigarettes are then transferred to tray loader. Tray loader is an
intermediator where complete cigarettes are loaded. Tray loader then deliver the complete
cigarettes to tray unloader. HCF is the most used tray loader machine in SMD.

Tray Unloader: Tray unloader receives the complete cigarettes from tray loader. Then those
complete goods are unloaded and transferred to packer for packaging. Magomat is the most used
tray unloader machine.

S90: Soft link machines are mostly used in the SMD. Soft link machines transfer the cigarettes
from maker to packer using tray loader and tray unloader. But there are few hard link machines in
the SMD which are comparatively new. Those hard link machines directly transfer the cigarettes
from Maker to Packer using the S90 machine. S90 machine can store 90 thousand cigarettes at a
time.

Packer: From the makers complete cigarettes are then transferred t the packing machine. When
cigarettes are transferred to the packing machine, it packs the Cigarettes with blanks and wrappers
and make a complete packet of cigarettes. There are three type of packing machines in the factory.
They are GDX2, GDX2NV and Focke. GDX2 machines can produce 360 cigarette packets per
minute. GDX2NV is the new version. It can produce 420 cigarette packets per minute. Focke
machines can produce 500 cigarette packets per minute. Cigarettes are packed in two forms. 20s
packets and 10s packets. 20s packets consist of 20 sticks and 10s packets consist of 10 sticks.
Completed cigarette packets are consist of blank, inner frame, foil, package, EOD etc. Then
complete cigarette packets are transferred to the wrapper.

Wrapper:

Then complete packets are sent to the packet wrapper machine where tear ribbon, wrapping film
and tax stamp are attached. Thirdly, it is sent to the outer wrapper machine to make a 10 packets
wrapping and then sent to outer machine. An outer consists of 10 cigarette packets. Then those
outers are send for final packaging. Finally, the packets are placed in CBC (Corrugated Box
Carton) to make the final shipment to the warehouse. 50 outers make a CBC usually. CBC are then
send to the warehouse for shipment.

This is the whole process the SMD. BATB’s whole SMD is divided into six different cells. Each
cell is responsible for 5-6 modules. Members of those cell take care of the machines and the

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 operators of their modules. Each cell is consist of one Cell Manager, one Shift Leader, one IWS
Process Lead, one IWS Maintenance Lead and one or two Team Leaders. These are the people
from Management in each cell. They take care of the machines and the operators. Cell Manager is
the in charge of the whole cell. Process lead ensures the proper implementation of the IWS process
in the workflow. Maintenance lead takes care of the maintenance of the machines. Shift leader is
the in charge of the whole shift of the cell. Team leaders lead the operators of that shift. They
directly interact with the operators most. Every cell manager reports to the SMD Manager and
SMD Manager Reports to the Head of Manufacturing.

Cell Manager

Shift Leader

IWS Maintenance
IWS Process Lead Team Leader
Lead

3.2 Integrated Work System (IWS)

Every large multinational operation has their own unique production system. For example. Toyota
has TPS which stands for Toyota Production System. Just like that BATB has Integrated Work
System (IWS) which is an organizational capability building strategy aimed at achieving and

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sustaining breakthrough business results through 100% employee ownership with zero loss
mindset. The objectives of IWS are given below-

 Optimized operations
 High flexibility through zero setup time
 Zero Quality Defects & 100% Compliance
 Zero Unwanted incidents
 Zero non-value added cost
 Just-In-Time Inventory

BATB is run highly efficient operation. Their production system is considered as the benchmark
for the manufacturing companies in the country. Their efficiency has been possible due to the
implementation of IWS. Overall efficiency of the operation in the SMD is judged based on two
output measures. They are Overall Equipment Effectiveness (OEE) and MTBF (Mean Time
between Failures)

OEE: Overall equipment effectiveness measures the output of the factory. Raw materials, time,
manpower, machine capability taking all these in the equation the final output is measured. OEE
shows how efficient the operation was the previous day. OEE is measured module wise. 80% OEE
is the target and 75% OEE is expected. OEE less than that means that production was not efficient
enough

MTBF: Whenever for any reason machine stops the production also stops. IWS Process Lead of
Cell One Mr. Jawwad Sadiq stated that “Our machines can produce up to 10,000 unit cigarette per
minute. So even if only machine is stopped just for one minute it means we are producing 10,000
unit less than expected”. His statement clearly shows how unplanned downtime or stops can bring
loss for the organization. Mean time between failures indicated the average time a machine can
run without being stopped. Ideal MTBF should be 20 minutes but at this stage accepted MTBF is
8 minutes.

BATB believes in process rather than outcome. Expected OEE and MTBF can be achieved only
then when everything is done according to the right process. If the process is followed and
maintained and executed properly then target outcome can easily be achieved. In order to gaining
the target OEE and MTBF IWS has some tools or actions. They are known as Daily Management

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System (DMS). There are six DMS tools. This DMS tools are the given process for the factory
workers. They are instructed and advised to follow the DMS tools and guidelines to achieve the
target OEE and MTBF. The DMS tools are given below.

Cleaning, Inspection, Lubrication (CIL): The CIL DMS is a critical step in the IWS guidelines.
CIL’s are intended to return and maintain the equipment at base condition. Cleaning is done to
return and maintain the equipment in base condition. Every machine can give the best result when
it is at its base condition. Inspection is done to find and then fix defects which prevent stops and
breakdowns. Machine breakdowns or stops can stop production. Before any break down and
unplanned stop take place inspection can identify potential defect and prevent them from
happening. Lubrication standards help components last for their expected life span or beyond. It
makes the machines run smooth and perfectly. CIL is a must in BATB SMD factory. 30 minutes
is allocated for CIL in every 8 hours shift. Without proper CIL machine can never perform at its
best.

Center Lines (CL): Center Lines are strictly maintain the factory. Center line is the set parameters
and optimal settings for the optimal outcome in a production system. Center lines are set in a way
that keep all the machine in the right parameter and a coherent state. Center lines help to keep the
machine in the best possible setting for the best possible outcome. All the operators are instructed
to follow and maintain the given centerline.

Defect Handling (DH): Defects cause unplanned stopping of the machines. Defects also cause
decline in machine performance. The Defect Handling DMS ensures identified defects are tracked,
prioritized and fixed in a timely manner and equipment is maintained at base condition. Defects
are taken very seriously and usually taken care of right away to ensure smooth performance of the
machines. Root causes of the defects are also found out to prevent them from happening again.
Operators inspect for defects and after consulting with the management team take necessary
actions.

Breakdown Elimination (BDE): Breakdown is the biggest fear for both the management team
and the operators. Breakdowns badly hamper productivity of the factory. Breakdowns are those
stops where spare parts are needed to run the machines again. Breakdowns can take hours to fix.
This is why breakdowns are taken really seriously. Monthly deep cleaning and maintenance
actions are taken to find out potential breakdown causes and to fix them. Defects also can lead to

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break down if not taken care of timely. That is why root cause of defects are found and fixed
timely. If any breakdown takes place the root cause is identified as soon as possible and necessary
actions are taken to prevent break down from happening again.

Incident Elimination (IE): Incidents are the unwanted events like health hazard or accident.
Operators work with machine all the times. Accidents can take place anytime where machineries
involved. Environment Health and Safety (EHS) team set some safety parameters for using the
machines. For example always wearing safety shoes, using noise cancelling ear plug, knife
resisting gloves, not bypassing etc. All the operators abide by these rules and whenever any safety
incident takes place they fill up near miss report and submit them to EHS team. EHS take necessary
actions to prevent incidents like them from happening.

Quality Inspection (QI): BATB never compromises with product quality. They are very serious
about it. Operators continuously keep checking the quality of the product against the standard.
Sample product from each batch is also sent to Quality department to ensure the quality of the
product.

These are the DMS, BATB follow. These DMS are in process measures. BATB believes and it is
proven that if above mentioned processes are conducted regularly and properly then target outcome
and efficiency can be easily achieved.

To achieve the long term vision in Integrated Work System there are few short term meeting to set
action plans aligning the long term goal. There are Compelling Business Need (CBN), 90 Days
Action Plan, Monthly DDS, Weekly DDS, Shift DDS, Cell DDS. All of them take place to achieve
the long term vision.

CBN: Compelling Business Need is a plant level statement that articulates the plant's objectives
to achieve the business strategy & objectives over the next 3 to 5 years. The CBN guides the line
teams in their daily work, aligning daily actions to support the CBN. By implementing IWS totally
and by achieving highest efficiency within 2020 BATB wants to become a world class
organization and also wants to make their revenue twice more. This is their vision and CBN for
2020. All the actions taken in the plant level are being taken to achieve this CBN.

Shift DDS: DDS stands for Daily Direction Setting. It has already been mentioned that there are
three shifts working in a single day. After being done with the shift the operators of that shift hand

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over the machine to the operators of the next shift. When this handover takes place operators of
the previous shift give a briefing to the next shift’s operators about the found defects, issues etc.
They give them a clear idea about what has happened and what to do. This shift DDS makes the
transition smooth and keep the machines healthy. According to IWS the transition should be as
smooth so that machine does not understand that they are being operated by different hands.

Cell DDS: This is a very important part of the day for everyone working in the SMD of BATB.
Every cell has their own Cell DDS room and Cell DDS meeting takes place every morning at 8.30
am. All the management members of that cell including the cell manager attend the meeting with
the operators of the current shift. This meeting sets the tone for the day. OEE of previous day,
MTBF of previous day found unsolved defects and their reasons, top three losses and their reasons
all these issues are discussed in Cell DDS. According to the decisions taken in the meeting actions
plans are made for the day and operators as well as the members of the management team work all
day according to the action plan.

Weekly DDS: Management team members of each cell conduct the meeting weekly. In the
meeting all the issues of past week are discussed. And the actions needed to be taken going forward
are also decided in this meeting.

Monthly DDS: Last weekly DDS of each month is the monthly DDS. In this meeting all the issues
of the past month is discussed and decisions for the next month are also taken in this meeting.

90 Days Action Plan: 90 days action plan is also a major direction setting event. In this event all
the major decisions and action plans for next 90 days are taken according to the CBN. According
to that 90 days action plan all Monthly DDS, Weekly DDS and Shift and Cell DDS are aligned.

This is the whole idea of Integrated Work System. In the Secondary Manufacturing Department
of BATB all the principals and tools of IWS are strictly followed and maintained.

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 CHAPTER 4

Activities Undertaken

Page 29 of 43
4.1 Internship Program Timeline

I joined British American Tobacco Bangladesh as an Intern on 15th of May through the Xcelerate
Internship Program, BATB’s flagship internship program. I joined in the SMD department under
Operations as a HR Operation intern. My three months in BATB can be divided into three phases
based on the activities undertaken by me.

Month 1 Month 2
Month 3
Assisting SMD in
Training Period Coordinating
Day to Day
Activities “Project Evolution”

4.2 Specific Responsibilities as an Intern

After joining BATB at first I had to get a clear idea about the Secondary manufacturing Department
of BATB. From the very first day I was given assignment based task to get on hand experience
about the process. I was attached with Cell One. Under Cell one there are 5 modules. As going
forward I had to deal with the management team members as well as the operators of the machine
I interacted with everyone. At first I had individual briefing sessions with the management team
members. I sit with everyone from Cell managers to Team Leaders and I talked to them. They gave
me an overview of the work process of not only the Secondary manufacturing Department but also
the whole manufacturing process. Then my fast task was to designing a lay out of the placement
of the machines and the modules. It gave me a clear idea about the specific position of the modules.
Then my next task was to interacting with the machine operators and learning how the machine

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works. By observing regularly and by learning from the operators I got a clear idea about the whole
process. After having a clear idea about the work process of the Secondary Manufacturing
Department my Cell manager Mr. Nafis Hussain briefed me an overview of the Integrated Work
System (IWS) and how IWS is being implemented in SMD. After having an idea about the SMD
and IWS I started assisting SMD in day to day activities. My activities as a member of Cell One
are as follows.

Attending Cell DDS Meeting: I used to start my day with the Cell DDS meeting. In the Cell DDS
Meeting. All the management members of the cell and the operators of every module of that shift
attend the meeting to discuss about the issues and action plans. I had to play an active role in those
meeting. Before starting the floor I used to collect all the necessary data from the ANT software.
Then I had to fill up the board which includes OEE,
MTBF, Top three losses, number of incidents etc.
Based on the data on the board the whole meeting
used to go on. Sometimes I used to conduct some
part of the meeting. In the meeting top three losses
of the previous day are discussed. And according to
the discussion priorities are set and action plans are
made for the day.

Updating the DH Logs: Everyday tens of defects are found in every machine. I was responsible
for 5 out of the 32 machines in the factory. I used to collect the defect logs and I used to update
them. In our data base. This defect data are then discussed in the meeting to take necessary action
to solve them.

Updating the PM Cards: PM Card is the log book for the Breakdowns. Whenever a breakdown
occurs operators instantly right the details in the PM Card. I used to collect the PM cards and
update them in our Data base.

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Inspecting the CIL: In the previous part of the report CIL has been discussed in detail. Cleaning,
Inspection and Lubrication is a very important action to keep the machine in their base condition
and to find out the defects too. I used to inspect the CIL when it was being done so that it was done
properly. Any negligence by the operator regarding this can hamper machine’s health.

Inspecting Center Lines: Center line is the set parameters and optimal settings for the optimal
outcome in a production system. Center lines are set in a way that keep all the machine in the right
parameter and a coherent state. When the centerlines are not in the right place it means something
is not right and machine will not be able to perform at its full capacity. My job was to regularly
inspect and observe the centerline to find out whether there was any machine out of centerline. If
I found any machine out of centerline I used to immediately consult with the management team
members to take further actions.

Requisition for Spare Parts: BATB use SAP software to requisite spare parts. I had to learn how
to use the software. Whenever a spare part was needed operators came to me with the official
requisition order. Then using the SAP software I had to place the order to our global inventory.

Apart from these regular tasks I used to assist the IWS Process lead and the Cell manager whenever
they needed any assistance with their work. For the first one and a half month I worked with SMD.
For the second half of my internship I am coordinating a BATB Project named “Project Evolution”.

4.3 Project Evolution

For the last one and a half month I am working in a Project of BATB named “Project Evolution”.
My line manager Syed Faiyaz Ahsan is the Project manager of this project. This is one of the
biggest projects of BATB currently. BATB has a vision set for 2020. BATB’s vision 2020 is “With
the best process and the best people making British American Tobacco Bangladesh a world
class operation and making the revenue twice as much within 2020”. To achieve this vision
and to make this possible a big cultural change is needed in the organization. A big shift in the
mindset is needed. BATB needs to make their employees efficient and productive not just in the
organization but also in their personal life. To achieve vision 2020 BATB needs to be a High
Performing Organization. To make BATB a High Performing Organization the workers and
employees need to be High Performing Individuals as well. As the first step of bringing the change
BATB has arranged two days long workshops named HPO Workshops. HPO Workshop is a

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personal development and team building workshop. Over the month of July and August more 12
workshops have been conducted. These workshops are facilitated by a New York based
consultancy firm named Sensei International. Srilankan consultant Mr. Ranjan Di Silva and Mrs.
Tanji Shamsuddin is facilitating the whole workshop along with my line manager Syed Faiyaz
Ahsan. I am working as the coordinator of the workshops. I am working as the representative of
BATB and I am dealing with the transportation provider Garibhara.com, accommodation provider
BRAC CDM Savar, BRAC CDM Rajendrapur, logistic support provider Prohelica Foundation and
the consultancy firm Sensei International. My work
is connecting all the dots together to successfully
organizing the workshops.

Team Building Activities

Personal Development
Activities

Feedback Sessions

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Objectives of the HPO Workshops

 Understand the Vision 2020 of BATB.

 Understand the High Performance Principles and related behaviors.
 Learn to improve work and personal life by living by the HPO Principles.
 Understand own strengths and improvement areas.
 Learn life tools which help to improve behaviors.
 Understand psychological obstacles and learn how to overcome them.

This project is believed to be evolve the way company operates. In Bangladesh BATB is arguably
the most or one of the most efficient factories there are. But in global context still we have a long
way to go. Successful completion of this Project Evolution will make the workers and management
of BATB High Performing Individuals. When the individuals will be high performing they will
also be able to implement High Performing Process and that will at the end of the day make BATB
as a whole as a High Performing Organization. The project manager of this project Syed Faiyaz
Ahsan stated “To improve the overall efficiency of an organization at first we need to work on the
people. When people will be efficient and high performing that will lead to a high performing
organization. With this workshops we are bringing a big cultural change among the participants.
They will start thinking in a different way and will start looking at life in a more positive way.
After attending the workshops participants will not only try to improve their capabilities and way
of life but also help others around them to improve their life as well”

IWS Process Lead of Cell 5 Jawwad Sadiq stated” After participating in the workshop I can
confidently say that this workshops will help the participants to add a new dimension to their way
of thinking. One of the hardest things to change is predetermined mindsets. But the contents of the
workshop and the activities of the workshop help us to find the gap between our purpose of life
and the gap between our predetermined mindsets”

Cell Manager Mr. Nafis Hussain said “The change is visible. After attending the workshops my
operators are delivering better results. I believe all of us have unlimited opportunity and potential.
But we fail to realize that. But while taking part in different activities of the workshop all of us are
believing in ourselves more than ever. I believe this has been a very effective session.” As a part
of my internship I personally feel privileged to be a part of this project.

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 CHAPTER 5

Limitations and Recommendations

Page 35 of 43
5.1 Identified Challenges in British American Tobacco Bangladesh

Turnover
British American Tobacco Bangladesh is one of the most cherished work place for most of
the people. This is one of the top choices among the MNCs to work for. Considering the
work environment, salary and other benefits jobs in BATB are really lucrative. But there
is another side of the coin. BATB is a FMCG company. Their product is very high
demanding. To cope up with the demand all the employees especially in Trade Marketing
and Manufacturing work really hard and face great deal of pressure. Failing to cope up
with the pressure many people quit their jobs. This is a common scenario in BATB.
Turnover is adds unexpected expense to companies overall expense. Moreover recruiting
and training new employees is also time consuming. This big challenge faced by BATB.
Increase in Tax Imposed by the Government
As this is a harmful and addictive product every year during the budget period government
impose new tax on BATB products. In 2017 BATB paid 17 thousand crore BDT as Tax
money. Whenever tax is increased price of product also increases. Now a days for a stick
of premium cigarette consumers have to pay 12 BDT. If this scenario does not change
cigarette consumption will drastically decease in near future.

Ban on Promotion
Promoting cigarette is strictly prohibited by law in Bangladesh. This is why BATB can
promote their products like other products of any other company. If they could promote
their product they could definitely attract more consumers undoubtedly. Ban on promoton
is a big challenge.

Shortage of Engineers in the Manufacturing Department

Team leaders and shift leaders work in shift and other employees work in common shift.
Though usually shift is 8 hours but because of intense work pressure most of the employees
in have to stay for 10 to 12 hours daily. Moreover management members do not get
overtime payment. This is a big challenge. If there were enough manpower in operations,
employees would not have to stay late for work pressure.

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 Inefficient and Aged Workforce
Operators in BATB enjoy life time job. This is an unwritten rule. Factory workers do not
get fired. Still a very noticeable number of factory workers are really aged. Some of them
are serving BATB for more than 30 years. They are inefficient and they do not understand
the technologies like the young workers. Because of the unionized workforce without any
proper cause it is impossible to fire them. Those inefficient and aged workforce are
decreasing the overall efficiency of the organization.

Limited Career Growth and Opportunities for Operators

Career growth is one of the biggest incentives one can have in his career. For the operators
of the machine it is same. But from my observation it was clear that career growth and
opportunities are very limited for the operators. In their 30-35 years career they can have
3-4 level up promotions highest. From operator they can become senior technician. But
they cannot go for the management roles. This fact make the operators demotivated. This
is a challenge BATB needs to address.

5.2 Recommendations for British American Tobacco Bangladesh

Recruiting More Employees in SMD and Trade Marketing

In the identified challenged part it has been mentioned that SMD needs more engineers so
that employees can enjoy a better work life balance which is a common problem in BATB.
So under each cells BATB should recruit more team leaders so that work load can be
distributed well. Trade marketing team also needs more manpower. More entry level
professionals are needed in trade marketing and sales.

Recruiting Young Operators

Young people understand technology better than aged people. This is a fact. Moreover
young people are more enthusiastic and they can learn fast. So young operators are more
efficient and they can deliver better outcome than the aged people. BATB needs to be strict

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with the retirement age. Retirement age limit should be less than what it is now so that new
people can replace the aged workers more frequently.

More Defined Career path for the Operators

There should be no limit. If anyone is capable he or she should rise as much as he or she
can. There should be a more defined career path for the operators. There should be
opportunities for the operators to take management roles. If the career path is more defined
and there is a benchmark or standard then their performances can be evaluated against that
standard so that they get opportunities based on their performances.

Harm Minimization
Research and development team of British American Tobacco Bangladesh can come up
with ways to reduce the harm of cigarette. By improvising the filters or by inventing better
filtering process they can reduce the harm. R&D team needs to figure out the ways of
reducing the harm and it will attract more consumers down the line.

Placing the Interns in Relevant Fields

British American Tobacco Bangladesh interns do not get to choose the department they
want to work in. They can prefer departments but at the end of the day BATB place interns
based on their necessity. By placing interns according their relevant field BATB can get
better outcome and enthusiasm from the interns.

Implementing More CSR Activities

BATB already has many effective and important CSR activities. They are working hard to
contribute in the improvement of the society and environment. But considering the health
risk of consuming their products BATB can come up with more CSR activities. They can
contribute in the medical sector. They can contribute in education sector as well.
Considering the size of the organization in terms on revenue investing in more CSR
activities should not be a problem for them.

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Maintaining Office Hour
From my three months long experience in BATB I got to talk with people from various
department. No one has any complain regarding salary or benefits package. No one has
any complain regarding the environment either. But all of them expressed a common cause
of dissatisfaction. And that is lack of work life balance. Though the official working hour
is 9 to 5 but it is no actually applied in the office. Most of the employees work really late
regularly. They work more than one or two hours every day more than their actual working
hour. A prominent MNC like BATB should maintain their working hours.

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 CHAPTER 6

Learnings and Conclusion

Page 40 of 43
6.1 Learnings from the Internship Experience

Experiencing Multinational Organization’s Work Environment

From my three months long stint with BATB I got to experience the work environment of
a MNC. I got to experience how the employees behave in the organization. How formal or
casual the interactions are among the employees. I also learned to behave professionally in
the office premise. I also got an idea about the office culture of the particular organization.

Understanding of the Industry

Before joining BATB I only read about the FMCG industry as well as the tobacco industry.
I did not have any practical knowledge. But during my internship period with BATB gained
practical knowledge about the FMCG industry. Now I have a more in depth knowledge
about the work process of a multinational FMCG company like BATB. I also learned many
things about the tobacco industry. I have a clear understanding about the process from
cultivating raw materials to distributing the end goods to meet the needs of the end
consumers. Moreover I gained hand on experience on the manufacturing process of
cigarettes.

Adapting the Etiquettes

MNC work environment demands certain etiquettes and qualities. I learned to be punctual
in last three months. At first it was difficult for me to wake up early in the morning for
office. But soon I made it my habit. I learned to be punctual. I learned to live by a set
routine. Moreover wearing appropriate cloths is also important. I always tried to be in my
best look. I always wore appropriate cloths. These are just few examples. By working with
BATB I also learned many other office etiquettes which are very important.

Learning to Excel Under Pressure

In a high efficient organization like BATB pressure always expected. All the employees
are always under continuous pressure. After joining BATB definition of pressure changed
for me. At first I thought that pressure was too much for me. But gradually I started to cope
up with the pressure. By the end of my internship with BATB I learned to excel in pressure.

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6.2 Conclusion

British American Tobacco Bangladesh is one of the biggest companies in Bangladesh.

Working with them was an absolute privilege for me. I learn very important aspects of
business from BATB. I always used to look at products and wonder how this products are
made. Working with the Manufacturing department of BATB gave me the chance to
witness the whole process of turning the raw materials into complete finished goods. What
I observed that BATB’s production is already very efficient. Probably it is one of the most
efficient operations in our country. But BATB does not want to confine their capability and
efficiency within the country. They want to best in the world. They want to be an exemplary
world class operations. I believe they are on the right track. When they’ll be able to adapt
the Integrated Work System (IWS) completely they will surely become a world class
organization. The ongoing Project Evolution will give its result in near future. By making
the employees and workers High Performing Individuals, the whole organization will
become a High Performing Organization. Though BATB has its fair share of challenges
but eliminating those challenges will not be difficult if BATB can identify the root causes
and work to fix them. What can be said with confidence is that BATB think about their
employees. They constantly try to find out the improvement areas and they are always
investing in the improvement of the employees. This constant improvement efforts makes
BATB different from other organizations.

Page 42 of 43
 References

(2017). Annual Report. BATB.

bat.com. (n.d.).

bat.com. (2018). Retrieved from http://www.bat.com/

batbangladesh.com. (2018). Retrieved from www.batbangladesh.com/

http://tobaccoindustrywatchbd.org/

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