TOBACCO

Imperial Tobacco UK

Imperial Tobacco UK

Introduction

Imperial Tobacco is a multinational tobacco company which is ranked as the fourth largest cigarette company of the world. It is a British company, which is also known for being the largest producers of tobacco papers, fine-cut tobacco, and cigars around the world. They have a worldwide presence with their 51 factories in various parts of the globe. Over 320 billions of cigarettes are produced under their brand name each year, which are being sold in 160 different countries (IT PLC, 2012). Their major competitors include Philip Morris International, Japan Tobacco, and British American Tobacco, which are the only companies in tobacco industry that possess higher market share than Imperial Tobacco.

This paper is based on the internal and external environmental analysis of Imperial Tobacco Company. It will analyze the value chain process of the company. It will also explain the SWOT, PESTEL, and TOWS analysis of Imperial Tobacco. A Porter's 5 Forces model will also be explained from the perspective of Imperial Tobacco. The paper will highlight the influence of culture within the organization. A detailed analysis of Imperial Tobacco's competitors and customers will also be presented. Finally, the overall strategies and action plans will also be discussed along with the corporate social responsibilities of Imperial Tobacco UK.

Definition

Environmental analysis is the study of the factors which affect the processes, strategies, and marketing plans of a particular company. It is one of the core functions of the entire marketing plan. Marketers use the information achieved through the environmental analysis to identify what are the recent trends in the market. It also tends to identify that the external forces that are held responsible for impacting the success and/or failure of any particular product in the industry.

Key Elements

The key elements of environmental analysis include the analysis of SWOT, PESTEL, TOWS, and porter's five forces model. It further includes the analysis of factors such as political, economic, social, technological, ecological, legal, competitor, and customer. Furthermore, it also tends to explain the strengths and weaknesses of the organization; part of the internal analysis, while also identifies the external opportunities and threats an organization might have to face.

Core Areas

Being one of the largest manufacturer and seller of tobacco products, it is the core function of Imperial Tobacco analyzing the external environmental factors and their impact on the company. The core areas of the company include the overall strategies of the company, with their action and implementation plans. For implementing a strong action plan, it is necessary for the company to have a better understanding about the external as well as internal factors that pose a major impact on the performance and growth of Imperial Tobacco.

Importance of Strategy

Strategy includes a set of decisions that organizations have to make in order to achieve their goals and objectives. It is designed through a thorough assessment of all the factors (internal and external) to design future plans for the company. Strategies are mostly designed by the managers and higher authorities of the organization for both short-term and ...