MOHAMMED SHABIRPARINDA RAJAPAKSHAASHENI JAYAWARDENADULANJAN WENGAPPULIARARACHCHIAYYOOB HAMZA

Ceylon Tobacco Company (CTC)

• 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

Dunhill

Pall Mall

John Player Gold Leaf

Capstan

Four Aces Three Roses

Viceroy

CTC Products

• 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

VisionTo be the Inspiration for Corporate Excellence in Sri Lanka

MissionTo 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.

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 rupees1. 7.6 percent of the country's 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

Balance Sheet

Total Assets : 13,761,491Current Assets : 11,938,156Total Liabilities : 10,197,066Shareholders Equity: 3,564,425Current Liabilities :9,939,141

Income Statement

Total Operating Revenue :17,068,395Operational Profit (Loss) :10,728,572Net Profit (Loss) :6,568,831

An Audit-2011

Open mindednessWe 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 diversityWe 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 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 maximize individual potential. 

Values

CTC Services LimitedCTC Exports LimitedCTC Briquettes LimitedCTC Foliage LimitedCTC Eagle Insurance Company LimitedCTC Leaf Exports Limited

Subsidiaries

Management Layers

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

"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.

CultureAn environment where people are inspired to perform

SWOT Analysis

By Parinda Rajapaksha

Strengths

Being the only production company in Sri Lanka’s top 10 Business rankings

2004 – 2005 2011 – 2012

(Business Today top 10)

High share prices and demand at the share market

Backing from a multinational corporation ( British American Tobacco PLC )

Technologically advanced production facility

Highly talented workforce

Consequent good performances

Addiction of people

Weaknesses

The number of local tobacco farmers reducing, thus having to put more on imported tobacco fillings

Recently experiencing high staff turnover

Opportunities

Monopoly in local tobacco industry

Increasing local tourism industry

Increasing local nightlife industry

Threats

Local movements against tobacco and cigarette usage

Local movements against tobacco and cigarette usage

High taxation imposed on cigarettes by local government

Exchange rate impacting on imported products such as Dunhill

Local “Beedi” production

PEST Analysis

By Asheni Jayawardena

PEST

•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

•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

•Reduction in sales

•Higher Taxes

•Economy crisis in the country and the

buying power or cost of living

•Dollar value

Economical Factors

•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

•The changes of the technology and higher cost

for bringing new technology

•Cost for training programmes

•Arrival of internet

Technological Factors

Being Proactive

ByDulanjan Wengappuliararachchi

Industry at a volatile stateNeed of forecastingIf situation arises will be highly costlyBetter to have reservesBetter management Ensure survival in the market

Why be proactive

Marketing

No marketing means no salesRegulations imposed by governmentSocio-cultural factorsTaking on the cyber marketingAddressing the niche market directly

Environmental Pollution

Local tobacco farmers contributeSafeguarding the environmentBetter living for farmers

CSR activities Re-planting trees and nourishing Green garden concepts Green concept at head office

Technology

Highly technological production processNew equipment introducedBAT requiring new tech to be

usedTraining local staff

Foreign training trips Off the job training Attitude training

Utilization of IT

ByAyyoob Hamza

Why Information Technology

Information Technology facilitates Decision makingControl and Coordination Risk management Organization processAiming towards organization objectives.

Information System Strategy

Information Technology Strategy

Information Management Strategy

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

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

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

Collecting Information

Document Managing System

Process reduces the amount of tangible materials used in increasing efficiencies and faster decision Making.

Which will help onPeriodic reportsTransaction reportsBriefing booksException reports

Information System Used in CTC

Transaction Processing SystemThe 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”.

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

Information System Used in CTCCrisis Management Systems

Pro Active Approach Deal with threats Continuation of Normal Operation Minimal disruptions

Main Concern

MarketingRegulations 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.

Thank You.