SWOT ,PEST analysis and other details of CTC

1. M O H A M M E D S H A B I R
P A R I N D A R A J A P A K S H A
A S H E N I J A Y A W A R D E N A
D 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 I
A Y Y O O B H A M Z A
Ceylon Tobacco Company
(CTC)

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 Activities
1. 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. Dunhill Pall Mall
John Player Gold Leaf
Capstan
Four Aces Three Roses
Viceroy
CTC Products

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 Board
Key Executives

5. Vision
To be the Inspiration for Corporate Excellence in
Sri Lanka
Mission
To secure and perpetuate CTC's leadership role in
the Sri Lankan tobacco market by achieving
consumer driven cost/quality leadership in the
South Asian region.

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 Sri
Lanka contributing a total of 52.4 billion rupees
1. 7.6 percent of the country's total tax revenue
2. Approximately 2.2 percent of the GDP.
 Shareholders:
1. British American Tobacco plc. : 84.13%
2. FTR Holdings SA : 8.32%.
Facts

7. Balance Sheet
Total Assets : 13,761,491
Current Assets : 11,938,156
Total Liabilities : 10,197,066
Shareholders Equity: 3,564,425
Current Liabilities :9,939,141
Income Statement
Total Operating Revenue :17,068,395
Operational Profit (Loss) :10,728,572
Net Profit (Loss) :6,568,831
An Audit-2011

8. Open mindedness
We listen actively, communicate openly and value feedback.
We are open and honest in all our dealings and foster a climate of trust and
support.
Strength from diversity
We seek ideas and accept input from a range of sources.
We know and value individual abilities and utilize these in improving team
contribution.
Freedom through responsibility
We are accountable to our people and responsible to the resources they need.
We actively coach and develop our people.
Enterprising spirit
Constantly provide opportunities and experiences to learn and grow to maximize
individual potential.
Values

9. CTC Services Limited
CTC Exports Limited
CTC Briquettes Limited
CTC Foliage Limited
CTC Eagle Insurance Company Limited
CTC Leaf Exports Limited
Subsidiaries

10. Management Layers

11. Future talents – Employees who can train and develop for fulfilling
future requirements of the company.
• Talented enough to catch the knowledge and skills easily.
Key players – These employees are the experienced and responsible
employees of the company.
• Have the knowledge, experience and skills on how the current
process 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. "Your Voice Survey" –
• A diagnostic tool designed to measure
organizational climate, employee satisfaction and
morale.
 This identifies & prioritizes action and
behavior which would make the
organization a 'Great Place to Work'.
 It provides an opportunity for the
employees to express their thoughts and
feelings about the workplace.
• Not only to identify and celebrate the strengths as a
Company, but also to identify improvements that
can be made.
• As a result of "Your Voice Survey" for 2007, a
number of initiatives and action plans were taken
place at an organizational & functional level.
Culture
An environment where people are inspired to perform

13. SWOT Analysis
By
Parinda Rajapaksha

14. Strengths

15.  Being the only production company in
Sri Lanka’s top 10 Business rankings
2004 – 2005 2011 – 2012
(Business Today top 10)

16.  High share prices and demand at the share
market

17.  Backing from a multinational corporation
( British American Tobacco PLC )
 Technologically advanced production facility
 Highly talented workforce
 Consequent good performances
 Addiction of people

18. Weaknesses

19.  The number of local tobacco farmers reducing, thus
having to put more on imported tobacco fillings
 Recently experiencing high staff turnover

20. Opportunities

21.  Monopoly in local tobacco industry
 Increasing local tourism industry
 Increasing local nightlife industry

22. Threats

23.  Local movements against tobacco and cigarette
usage

24.  Local movements against tobacco and cigarette
usage

25.  High taxation imposed on cigarettes by local
government
 Exchange rate impacting on imported products
such as Dunhill

26.  Local “Beedi” production

27. PEST Analysis
By
Asheni Jayawardena

28. PEST

29. •To minimize or eliminate threats and exploit opportunities.
•Planning to anticipate and respond to volatile and disruptive
environmental changes.
•Build Strategic Plans of Actions
•Avoid taking action that is doomed to failure from the
beginning, 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 or
launching new Products
Why it is important

30. •Government rules and regulations
•Formal and informal rules
• Environmental pollution
•Trade barriers
•Government is imposing taxes on cigarettes and
increasing it at every annual budget.
•Regulating marketing, forbidding any marketing
campaigns and avoid sponsorships
•Prohibiting smoking in public areas
Political Factors

31. •Reduction in sales
•Higher Taxes
•Economy crisis in the country and the buying
power or cost of living
•Dollar value
Economical Factors

32. •People are encouraged to stop smoking
•People who work in manufacturing cigarettes are
considered 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 aged
people and females
Socio –Cultural Factors

33. •The changes of the technology and higher cost
for bringing new technology
•Cost for training programmes
•Arrival of internet
Technological Factors

34. Being Proactive
By
Dulanjan Wengappuliararachchi

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 market
Why be proactive

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. 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. Technology
 Highly technological production process
 New equipment introduced
 BAT requiring new tech to be
used
 Training local staff
 Foreign training trips
 Off the job training
 Attitude training

39. Utilization of IT
By
Ayyoob Hamza

40. Why Information Technology
Information Technology facilitates
 Decision making
 Control and Coordination
 Risk management
 Organization process
 Aiming towards organization objectives.

41.  Information System Strategy
 Information Technology Strategy
 Information Management Strategy

42. Information System Strategy
Determines the long term Information requirement of the
organization and is concerned with acquiring ,storing and
making available information across the organization
 To satisfy information needs
 Quicker Decision Making
 Pro active approach
 Easy access to information
 Ensure efficient organization process

43. Information Technology Strategy
Defines the specific system requirements of the
hardware,software,operating systems and backup facilities.
Information Management Strategy
This concerns on which information is stored and made
available. Control procedures should be in place to ensure
relevant information is being produced for the users and
not redundant information

44. Collecting Information
Electronic Point of Sale (EPOS)
Uses bar code scanning mainly for the purpose of inventory
management.
 Effective and efficienct operations
 Safeguarding assets
 Prevention and detection of fraud
 Accurate and Complete Accounting Information
 Timely and relevant financial Information

45. Collecting Information
Document Managing System
Process reduces the amount of tangible materials used in
increasing efficiencies and faster decision Making.
Which will help on
 Periodic reports
 Transaction reports
 Briefing books
 Exception reports

46. Information System Used in CTC
 Transaction Processing System
The System capture source data about an entity’s
transactions the output of the system is more useful for
planning 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 and
processed further to generate “Standardized reports”.

47. Information System Used in CTC
 Enterprise Resource Planning
CTC utilizes the use of ERP systems in an organization wide
scale. CTC and its parent company and the whole tobacco
chain is highly IT oriented where the whole chain is networked
through a intranet handled by their IT base located in
Singapore.
 Payroll System
 Leave Management
 Work Schedule
 Task & Production Schedule

48. Information System Used in CTC
 Crisis Management Systems
 Pro Active Approach
 Deal with threats
 Continuation of Normal Operation
 Minimal disruptions

49. Main Concern
Marketing
Regulations against marketing of tobacco products in any of the digital
or printed media within Sri Lanka. and also All forms of television,
radio, newspapers, magazines, posters, banners, etc are prohibited of
tobacco related campaigning or advertising
CTC has a huge database of their clients email address, which they use
as a marketing media within Sri Lanka.

50. Thank You.