British America Tobacco Financial Analysis

FINANCIAL MANAGEMENT

BRITISH AMERICAN TOBACCO MALAYSIA

&

MALAYSIA PACIFIC CORPORATION BERHAD

NAME: CHEAH SUAN LYN

INTAKE: UKTB – 2015

STUDENT ID: 1501

TABLE OF CONTENT

1. INTRODUCTION

The use of financial management as a management discipline is more or less recent and associated to the changes in business and economic environment developed by the advancement of technology, emergence of multi division firms with complex organizational set-ups, increasing global competition and so on. Financial management is an indispensable element of quality corporate governance whereby it forms part of the firm foundation, establishing service quality and improving the basis of accountability to stakeholders. Furthermore, it’s about the performance management and achieving firm’s objectives, as much as it’s about managing money.

1. Company Background:

British American Tobacco

The company was formed in 1902 when the UK Imperial Tobacco company and the American Tobacco Company agreed to a joint venture hence forming the British-American Tobacco Company Ltd. It is one of the world’s five largest tobacco manufacturing companies. They have position themselves in over 50 countries and operates in around 180 countries. Its four largest selling brands are Dunhill, Lucky Strike, Kent and Paul Mall, Kool, Benson & Hedges and Rothmans. BAT is primarily listed on the London Stock Exchange and is a constituent of the FTSE 100 index (Financial Times Stock Exchange 100 Index).