Financial Analysis Essay

The British American Tobacco company is a multinational company with over 200 brands that they have developed under the guidance; the company is staggeringly successful, selling 694 billion cigarettes in 2012 (bat.com). The worldwide company sees itself, and many would argue, rightfully so, as a powerful forces that has stimulated economies all over the globe in lasting and measurable ways: in 2012, the company's "subsidiaries enabled governments worldwide to gather more than £30 billion in duty, excise and sales taxes on our products, more than seven times the Group's profit after tax" (bat.com). Being a stimulus to the economy and a pillar of economic stability is something that company prides itself on: British American Tobacco has 44 factories in 39 countries, employing 55,000 people worldwide in a massive multicultural workforce (bat.com).

2001 – 2006 revenue 's have fallen by 8.2%, from £9,278m to £8,515m. Revenues fell for 3

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

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

From the explanation provided in MD&A, the decrease in revenue ($690million) is from decreased mainline revenue in U.K and Germany, lower deliveries of region aircraft, lower volume of pre-owned business aircraft sales, which is partially offset by higher deliveries and improved selling prices of business aircraft.

According to world health organization (2014) More than 80% of smokers billion people's globally live in low-income and middle-income countries, where the burden of illness caused by tobacco peak, tobacco caused 100 million deaths in the twentieth century. If they are not combat tobacco-related deaths will increase to more than eight million deaths by 2030 and will happen more than 80% of those deaths are in low- and middle-income countries. The largest country that consumes and produces cigarette in the world is China. According to tobacco Atlas (Michael Eriksen, 2002) Smoking is harmful to a large extent as long as tobacco deaths of nearly 100 million people worldwide in the 20th century, and that the number is higher than the number who

Furthermore, tobacco industry has an ethical obligation to the consumers. Consumer satisfaction is the essence of every business’s strives to achieve its set objectives. Besides profitability, every enterprise is obliged to conform delivering quality products and services in tandem to the international code of conducts. In most cases, the production, processing and packaging is at the discretion of the producer. There exists information asymmetry between the producer and the consumer thus exposing the latter to the unilateral decision making by producers in the market. As a result, the responsibility of ensuring quality products is indirectly conferred to the producers for them to prioritize the effect of their products on the society’s well-being.

The tobacco industry knowingly provides a product that is both addictive and detrimental to the health of their customer. Extensive studies have conclusively confirmed the significant negative health and economic impacts of this product. From a deontological perspective, the tobacco industry has a clear duty to educate their customers, and the public, of the dangers of being exposed to their product. Despite this duty, the industry has illustrated unethical behavior in the past. Over the last several decades, numerous studies have confirmed various health impacts on the users and bystanders. Even today the same unethical behavior continues. As regulations are imposed in developed nations the tobacco industry targets the poor in developing nations, where regulations may be lacking, and the target market may not fully understand the consequences of smoking.

In the article, “Global Effects of Smoking, of Quitting, and of Taxing Tobacco” that was published in January 2014 by Global Health, Prabhat Jha and Richard Peto talked about the effects of smoking, of quitting, and of taxing tobacco. The information that is presented is useful information for my research paper for many reasons. Prabhat Jha and Richard Peto provide a lot of good and useful information backing up their arguments with data, tables, and charts of information. The goal of this argument and article is to provide the information on the effects of long time smoking, and the prices everybody else is having to pay on the taxing of tobacco.

Tobacco has been around in the world for over 2.5 million years. It was not until a few hundred years ago when the tobacco industry decided to put these crops into use and conjure up tobacco products for the community. A popular tobacco product in society is cigarettes, as they are cheap and simple to use. As long as one is over eighteen, acquiring cigarettes is a straightforward process for a reasonable price, albeit the sin tax. It was not until recently when cigarettes became widely controversial due to the plant containing nicotine, an addictive drug to the body. Aside from containing nicotine and other hazardous chemicals to the body, cigarettes also cause a whole host of health implications to the user and the people around him or

It can be argued that tobacco products are one of the deadliest legal drugs in the history of mankind. Most of the countries around the world are making progress to ban the sale of tobacco products and reduce smoking. Over the years, there has been a steady decline in global tobacco use; however, their needs to be steeper taxation on tobacco products, bans on smoking advertisements, incentives towards reduced health care costs for non-smokers, and tougher penalties for smoking around children. Reducing the sale and consumption of tobacco can also help the planet and make cleaner air for everyone.

Every day, more than 3,600 teens smoke their first cigarette and about 900 teens become daily smokers. Over 15 billion cigarettes are sold worldwide daily. Approximately one out of seven people smoke tobacco products which is about 1,142,857,143 people! 5 million of these smokers die every year and it costs them over 4,000 dollars each year to maintain their torturing addiction. Tobacco product consumption is a serous problem that must be resolved. These products are advertised as a product that will make users look cool and sexy to all people including kids. The more children that are attracted to this deadly product, the more deaths the world will have from the diseases that tobacco causes. Although tobacco products are the leading preventable cause of death and should be illegal, it is nearly impossible to achieve this goal. Instead, the tobacco industry should focus its efforts on creating a much healthier product for smokers.

Disclaimer: It is against the The Negotiation Experts' principles to offer its services to the tobacco industry. The Celanese case study has been reproduced for the purposes of study only, and is in no way a condonement of the damage the tobacco is causing.

Tobacco has been a huge part of economic success in many countries for over a century now. Tobacco use has greatly increased since its discovery in the late 1400's by the European settlers in the new world otherwise known as the United States. Tobacco companies are very aware of the health risks of cigarettes, but continue to sell them for the high amount of revenue they make off of them. Cigarettes kill millions of people around the world each year and the death toll gradually increases over time. According to an article by the World of Invention, "tobacco-related disease kills someone every six seconds which brings the global annual death toll to approximately 6 million deaths per year. Growing tobacco use in the developing world will raise that death toll to 8 million per year by the year 2030" ("Tobacco Products"). Smoking cigarettes not only affects the ones who are smoking the cigarettes, but it affects those around them as well. This second hand smoke is just as deadly as first hand smoking. Tobacco companies should be held directly responsible for smoking related deaths and illnesses because they knowingly manufacture a product that has been proven harmful to others.

Based on the data provided, several figures were not as ideal as last year, as their profit decreasing was mainly