British American Tobacco Investment Strategies: Past 5 Years

This annual report consists of two parts: management’s discussion and analysis (this section) and the basic financial statements. The basic financial statements include a series of financial statements. The Statement of Net Assets and the Statement of Activities (on pages and ) provide information about the activities of the [type of entity] as a whole and present a longer-term view of the [type of entity]’s

New Tobacco Atlas Estimates U.S. $35 Billion Tobacco Industry Profits and Almost 6 Million Annual Deaths. (2012) Retrieved August 2, 2015, from

In Vanguard’s documentary, Sex, Lies, and Cigarettes: Secrets of the Tobacco Industry by director, Alex Simmons, Vanguard sends correspondent, Christof Putzel to Jakarta, Indonesia to investigate the tobacco industry there. The documentary talks about how America no longer allows cigarette and tobacco ads and commercials, instead the country focuses scare tactic ads that stop people from smoking or keeps them from starting. The tobacco industry is losing millions of dollars in America so they’re moving overseas to poorer countries like Indonesia to make their money there. Putzel goes to see what all the tobacco industry is doing and how they’re corrupting the young people like ‘the smoking baby’, Aldi, as well as students of the country.

Tobacco industries are categorized as oligopolies. Oligopoly, according to McConnell Brue Flyyn’s textbook, is “characterized by multiple firms, one or more of which will produce a significant portion of industry output.” Tobacco had been present in Indonesia since the 1600s. It was brought in to Java Island by Portuguese merchants. At first, Indonesia’s cigarettes were handmade at home. They were rolled and wrapped with cornhusks, but that was a long time ago. The Indonesian tobacco industry today is characterized by the dominance of big three tobacco companies---Gudang Garam, Bentoel, and Sampoerna. These

With anti-smoking movement progresses, the cigarette sales are on the decline, Reynolds American coped with this decline through smokeless tobacco products with the American Snuff Company. As the charts below portray, the decrease in the smoke cigarette revenue is offset by the increase in smokeless tobacco and e-cigarette revenue. (Refer to Appendix Figure 2 and 3).

Large tobacco companies are losing money by losing smokers. According to the Center for Disease Control (CDC), in 1965 42 percent of men and women above the age of 18 smoked and in 2010 that number is reduced to 19 percent. Altria, the nation’s largest tobacco company and Reynolds American, the second largest tobacco company are turning to the electronic cigarette market to make up for this drop. Electric cigarettes convert liquid nicotine into vaper which is then inhaled (Montopoli, 2013).

Pricing has long been one of the most important marketing strategies employed by tobacco companies in the USA and around the world. The profits resulting from this monopoly power in the cigarette markets led American Tobacco to move into the markets for other tobacco products, subsidising the same types of aggressive pricing and marketing strategies that eventually gained it a significant share of these markets as well. Perhaps most important among these strategies were the “fighting brands”—very low priced cigarettes and other tobacco products, including some priced below manufacturing costs—that were used to drive competitors from the market. After a relatively short learning period, pricing in US cigarette markets during the 1920s became

An Annual Report is a visible look at the activities of a corporation the can give shareholders and any other individual who may need to look at company finances, a comprehensive understanding of the company performance. This report will take a look at the different information found in an annual report. The Annual Report is customized by companies, but there are components that must be shown in the report which cannot be deviated against. The following are the components that will be discussed in this report, and two companies discussed are Franklin Covey, and The Standard Register Company.

Marketing options for big tobacco companies fizzled after the original Surgeon General report was published which prohibited the mass advertisement of tobacco in America. The push for smoking cessation for all in the United States has become big business. Long gone are the days of tobacco ads showing young adults enjoying themselves on beaches and at parties smoking cigarettes. Now, electronic cigarettes (E- cigs), nicotine patches and gums, and pharmaceutical cessation aids are being marketed. Tobacco companies continue to fight for the freedom to market and enlist consumers, sighting that smoking is voluntary, and the choice should be made by the consumer not the government.

The four primary financial statements found in annual reports include the income statement, balance sheet, statement of retained earnings and statement of cash flows. The data in each statement includes results from the most recent fiscal year-end, as well as historic data that stakeholders use in identifying trends from year to year. The financial statements include data required for stakeholders to calculate a variety of ratios and analysis which are critical in determining corporate levels of efficiency, profitability, liquidity, debt and sustainability. Since financial statements of public corporations are audited by independent firms, the financial data is typically accurate and generally reflects a standardized format following Generally Accepted Accounting Principles

Cigarettes are the most thriving product in American history, all thanks to advertising. After all, 10 million cigarettes are sold each minute (World Health Organization, Western Pacific Region). Tobacco companies spend billions of dollars each

more of their revenues from tobacco. ( Kenneth E Warner ) Tobacco has provided an

In this report the following sources were dwelled upon for guidance in ascertaining facts, extracting

As the leading manufacturer in the moist smokeless tobacco industry, UST Inc. has long been recognized by its ability to generate high profit using low financial leverage. With a dominant market share of 77%, the company maintains a pricing power that allows it to institute annual price increases without losing costumers. However, UST’s market share was eroded significantly in recent years by price-value competitors who enter the market with lower prices. Although UST responded to these threat by introducing new products, market share still decreased by 1.6% over past 7 years. In addition, UST is also exposed to an unfavorable legislative environment, in which the company is under advertising and product promotion

Vital Information gained from financial reports and annual reports provided by the company will aid in determining a strategic plan to