Essay about Business Analysis of Reynolds American Inc

905 Words Nov 1st, 2012 4 Pages
Abstract

Before investing in any business it’s important to conduct a business analysis. This analysis would cover in detail the strengths; weaknesses, opportunities, and threats (SWOT) of a business. This analysis will assist a fund manager with the decision of whether to invest or not. Reynolds is a very dominant company in the tobacco industry. The have various subsidiaries that keeps them on pace with their competitors.

Business Analysis of Reynolds American, Inc.
Introduction
Before investing in any business it’s important to conduct a business analysis. This analysis would cover in detail the strengths; weaknesses, opportunities, and threats (SWOT) of a business. This SWOT will allow an individual or a
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To make this company complete they have the introduction of nicotine replacement therapy products in Sweden under the Niconovum AB label (Reynolds American, Inc., 2012)
The weaknesses include history of deaths due tobacco. Many have died over the years due to tobacco use. Many blame the tobacco industry for this because of its addictive product. This is a weakness that will not go away. It will be a continuous problem.
Opportunities: RAI has had many opportunities to spin off other companies which have helped it to be a powerful force in the tobacco industry. They have capitalized on the use of being more social ably conscious by adding smokeless tobacco and nicotine replacement therapy products. RAI is working on transforming tobacco by focusing on these areas: commercial integrity, tobacco harm reduction and youth tobacco prevention. (Reynolds American, Inc, 2012)
Threats: RAI’s threats include lawsuits, increase in taxation, competition and product regulation. Over the years, there have been many lawsuits file because of deaths due to cigarette smoking. Litigation will continue to be a problem that the company must deal with. The company has to deal with the unknown of increased tobacco regulations by the U.S. Food and Drug Administration. This is a continued processed that a threat to any tobacco company due to the history of this industry.