Ceylon tobacco company (ctc)


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SWOT ,PEST analysis and other details of CTC

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Ceylon tobacco company (ctc)

  1. 1. M O H A M M E D S H A B I RP A R I N D A R A J A P A K S H AA S H E N I J A Y A W A R D E N AD 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 IA Y Y O O B H A M Z ACeylon Tobacco Company(CTC)
  2. 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 Activities1. 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. 3. Dunhill Pall MallJohn Player Gold LeafCapstanFour Aces Three RosesViceroyCTC Products
  4. 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 BoardKey Executives
  5. 5. VisionTo be the Inspiration for Corporate Excellence inSri LankaMissionTo secure and perpetuate CTCs leadership role inthe Sri Lankan tobacco market by achievingconsumer driven cost/quality leadership in theSouth Asian region.
  6. 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 SriLanka contributing a total of 52.4 billion rupees1. 7.6 percent of the countrys total tax revenue2. Approximately 2.2 percent of the GDP. Shareholders:1. British American Tobacco plc. : 84.13%2. FTR Holdings SA : 8.32%.Facts
  7. 7. Balance SheetTotal Assets : 13,761,491Current Assets : 11,938,156Total Liabilities : 10,197,066Shareholders Equity: 3,564,425Current Liabilities :9,939,141Income StatementTotal Operating Revenue :17,068,395Operational Profit (Loss) :10,728,572Net Profit (Loss) :6,568,831An Audit-2011
  8. 8. Open mindednessWe listen actively, communicate openly and value feedback.We are open and honest in all our dealings and foster a climate of trust andsupport.Strength from diversityWe seek ideas and accept input from a range of sources.We know and value individual abilities and utilize these in improving teamcontribution.Freedom through responsibilityWe are accountable to our people and responsible to the resources they need.We actively coach and develop our people.Enterprising spiritConstantly provide opportunities and experiences to learn and grow to maximizeindividual potential.Values
  9. 9. CTC Services LimitedCTC Exports LimitedCTC Briquettes LimitedCTC Foliage LimitedCTC Eagle Insurance Company LimitedCTC Leaf Exports LimitedSubsidiaries
  10. 10. Management Layers
  11. 11. Future talents – Employees who can train and develop for fulfillingfuture requirements of the company.• Talented enough to catch the knowledge and skills easily.Key players – These employees are the experienced and responsibleemployees of the company.• Have the knowledge, experience and skills on how the currentprocess 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. 12. "Your Voice Survey" –• A diagnostic tool designed to measureorganizational climate, employee satisfaction andmorale. This identifies & prioritizes action andbehavior which would make theorganization a Great Place to Work. It provides an opportunity for theemployees to express their thoughts andfeelings about the workplace.• Not only to identify and celebrate the strengths as aCompany, but also to identify improvements thatcan be made.• As a result of "Your Voice Survey" for 2007, anumber of initiatives and action plans were takenplace at an organizational & functional level.CultureAn environment where people are inspired to perform
  13. 13. SWOT AnalysisByParinda Rajapaksha
  14. 14. Strengths
  15. 15.  Being the only production company inSri Lanka’s top 10 Business rankings2004 – 2005 2011 – 2012(Business Today top 10)
  16. 16.  High share prices and demand at the sharemarket
  17. 17.  Backing from a multinational corporation( British American Tobacco PLC ) Technologically advanced production facility Highly talented workforce Consequent good performances Addiction of people
  18. 18. Weaknesses
  19. 19.  The number of local tobacco farmers reducing, thushaving to put more on imported tobacco fillings Recently experiencing high staff turnover
  20. 20. Opportunities
  21. 21.  Monopoly in local tobacco industry Increasing local tourism industry Increasing local nightlife industry
  22. 22. Threats
  23. 23.  Local movements against tobacco and cigaretteusage
  24. 24.  Local movements against tobacco and cigaretteusage
  25. 25.  High taxation imposed on cigarettes by localgovernment Exchange rate impacting on imported productssuch as Dunhill
  26. 26.  Local “Beedi” production
  27. 27. PEST AnalysisByAsheni Jayawardena
  28. 28. PEST
  29. 29. •To minimize or eliminate threats and exploit opportunities.•Planning to anticipate and respond to volatile and disruptiveenvironmental changes.•Build Strategic Plans of Actions•Avoid taking action that is doomed to failure from thebeginning, 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 orlaunching new ProductsWhy it is important
  30. 30. •Government rules and regulations•Formal and informal rules• Environmental pollution•Trade barriers•Government is imposing taxes on cigarettes andincreasing it at every annual budget.•Regulating marketing, forbidding any marketingcampaigns and avoid sponsorships•Prohibiting smoking in public areasPolitical Factors
  31. 31. •Reduction in sales•Higher Taxes•Economy crisis in the country and the buyingpower or cost of living•Dollar valueEconomical Factors
  32. 32. •People are encouraged to stop smoking•People who work in manufacturing cigarettes areconsidered 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 agedpeople and femalesSocio –Cultural Factors
  33. 33. •The changes of the technology and higher costfor bringing new technology•Cost for training programmes•Arrival of internetTechnological Factors
  34. 34. Being ProactiveByDulanjan Wengappuliararachchi
  35. 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 marketWhy be proactive
  36. 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. 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. 38. Technology Highly technological production process New equipment introduced BAT requiring new tech to beused Training local staff Foreign training trips Off the job training Attitude training
  39. 39. Utilization of ITByAyyoob Hamza
  40. 40. Why Information TechnologyInformation Technology facilitates Decision making Control and Coordination Risk management Organization process Aiming towards organization objectives.
  41. 41.  Information System Strategy Information Technology Strategy Information Management Strategy
  42. 42. Information System StrategyDetermines the long term Information requirement of theorganization and is concerned with acquiring ,storing andmaking available information across the organization To satisfy information needs Quicker Decision Making Pro active approach Easy access to information Ensure efficient organization process
  43. 43. Information Technology StrategyDefines the specific system requirements of thehardware,software,operating systems and backup facilities.Information Management StrategyThis concerns on which information is stored and madeavailable. Control procedures should be in place to ensurerelevant information is being produced for the users andnot redundant information
  44. 44. Collecting InformationElectronic Point of Sale (EPOS)Uses bar code scanning mainly for the purpose of inventorymanagement. Effective and efficienct operations Safeguarding assets Prevention and detection of fraud Accurate and Complete Accounting Information Timely and relevant financial Information
  45. 45. Collecting InformationDocument Managing SystemProcess reduces the amount of tangible materials used inincreasing efficiencies and faster decision Making.Which will help on Periodic reports Transaction reports Briefing books Exception reports
  46. 46. Information System Used in CTC Transaction Processing SystemThe System capture source data about an entity’stransactions the output of the system is more useful forplanning 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 andprocessed further to generate “Standardized reports”.
  47. 47. Information System Used in CTC Enterprise Resource PlanningCTC utilizes the use of ERP systems in an organization widescale. CTC and its parent company and the whole tobaccochain is highly IT oriented where the whole chain is networkedthrough a intranet handled by their IT base located inSingapore. Payroll System Leave Management Work Schedule Task & Production Schedule
  48. 48. Information System Used in CTC Crisis Management Systems Pro Active Approach Deal with threats Continuation of Normal Operation Minimal disruptions
  49. 49. Main ConcernMarketingRegulations against marketing of tobacco products in any of the digitalor printed media within Sri Lanka. and also All forms of television,radio, newspapers, magazines, posters, banners, etc are prohibited oftobacco related campaigning or advertisingCTC has a huge database of their clients email address, which they useas a marketing media within Sri Lanka.
  50. 50. Thank You.