Assessment 3b

Lecturer Name : Ms Joanna

Pooh Bear : Phua Kien Han (3889473) Hu Cheng (3889313) Zhao Yingbo (3889414) Lam Ai Ping (3889837)

COMPANY BACKGROUND

British American Tobacco (BAT)

The worlds second largest tobacco group by global market share, with brands sold in more than 180 markets. Founded in 1902 by James Buck Duke. Joint venture between the UKs Imperial Tobacco Company and the American Tobacco. BAT owns 45 cigarette factories in 39 countries. Have more than 60,000 employees worldwide. Successfully built a strong international reputation due to 100 years of experience.

OBJECTIVE OF PRESENTATION
Explain how the Greenhouse Challenge and Carbon Footprint are impacting on BAT Provide recommendation to BAT on how to reduce carbon footprint.

DEFINITION OF CARBON FOOTPRINT

A measure of the total amount of carbon dioxide emissions that is directly and indirectly caused by an organization, event, product or person.

DEFINITION OF THE 3 RESPONSES

Corporate Governance Response

-

Corporate governance is the set of processes, customs, policies, laws, and institutions that affects the way an organization is governed.

Also include relationship between a companys management, its board, its shareholders and other stakeholders .

Operations & Processes Operation

Ongoing activities that are involved in the running of a organisation for the purpose of producing value for the stakeholders.
Processes A specific event in a chain of structured business activities which normally transfers the state of product and generates some type of output.

Corporate Social Response Organizations integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis

Businesses organizations going beyond the legal obligations to manage the impact they have on the environment and society.

KT SITUATIONAL ANALYSIS
Problem Sub problem Timing (H,M,L) Trend (H,M,L ) Impact (H,M,L ) Next process (PA,DA,PPA ) Ranking

Rising costs from reduce and offset the carbon emissions

Costs rising up because the investment in new technology and pay for carbon emissions Reducing 40% of its carbon dioxide(CO2) emissions by the year 2020 compared to 2005 levels,. Afforestation Programme Multinational Corporation find hard to expand cause higher level environmental protection policy in oversea New strategy to cope with more health conscious market

DA

Fullfill all commitment

DA

Corporation Expand

PA

Strategy Planning

DA

DUNCKER DIAGRAM
Rising costs from reduce the carbon

Reduce and control cost in other parts in manufacture to offset the rising costs Energy saving production

Do not reduce other cost to offset the rising costs

Transportation cost

Increase the price

Green Product

New technology

Advertising

KT SITUATIONAL ANALYSIS
Problem Sub problem Timing (H,M,L) Trend (H,M,L) Impact (H,M,L) Next process (PA,DA,PPA) Ranking

High Carbon Footprint from Operations Response contributes to Climate Change Supply Chain Management

Heating oil from the manufactory, electricity from electronic devices and natural gas from transportation Carbon footprint rise from the number of vehicles

DA

PPA

Customer Range

Carbon footprint rise from the number of smoke people More time needed for the staff to get used to the changes

PA

New Policy

PA

DUNCKER DIAGRAM
High carbon footprint contributes to climate change

Reduce carbon footprint from operations response

Make it OK not to reduce carbon footprint from operations response

Energy Conservation

Renewable Energy

Sustainable Transport

Ignore the carbon footprint problem Keep operating without acknowledging high carbon footprint problem

Remain the current situation Plant Trees No adjustment for Operations Response

High efficient energy use

Solar Energy Hydroelectricity

Low-energy Vehicles Electric Vehicles

Wind Power

KT SITUATIONAL ANALYSIS

Problem

Sub problem

Timing (H,M,L)

Trend (H,M,L)

Impact (H,M,L)

Ranking Next process (PA,DA,PPA )

PA 1

Increase Paper Usage

Deforestation will further reduce carbon offset Does not reduce heat island effect in urban areas Endanger coral reefs

Afforestatio n only in Sabah Pollution on the beach

DA

PPA

DUNCKER DIAGRAM
Increase of paper usage

Overcome the usage of papers

Do not overcome the usage of paper

Communication through emails or mobile phones

Use technology to save documents

Use a lower range of paper quality

Recycle/Reuse Paper

RECOMMENDATION

For Corporate Governance Response, British American Tobacco Malaysia could reduce and control cost in other parts in manufacture to offset the rising costs by transportation cost, energy saving production and new technology. As for Operation Response, British American Tobacco Malaysia could reduce carbon footprint from operation response by energy conversation, renewable energy and sustainable transport. For the Corporate Social Response, British American Tobacco Malaysia could overcome the usage of paper by communicate through emails or mobile phones and by using technology to save documents.

CONCLUSION
In a nut shell, it is vital for British American Tobacco Malaysia to take immediate actions by implementing a series of steps to reduce its carbon footprint.

REFERENCE LIST

Applied corporate governance n.d., viewed 16 October 2011, <http://www.applied-corporategovernance.com/definition-of-corporate-governance.html> British American Tobacco Malaysia 2010, Annual Report 2010, viewed 15 October 2011, < http://www.batmalaysia.com/group/sites/bat_7ryj8n.nsf/vwPagesWebLive/DO7SUKSJ/$FILE/medMD8FAC73. pdf?openelement>. Fogler, HS & LeBlanc, SE 2008, Strategies for Creative Problem-Solving, Pretence Hall: Upper Saddle River, NJ. Time for Change 2007, What is a carbon footprint - definition n.d., viewed 16 October 2011, <http://timeforchange.org/what-is-a-carbon-footprint-definition>. The Financial Times 2011, Corporate Governance n.d., viewed 16 October 2011, < http://lexicon.ft.com/Term?term=corporate-governance >. Wiedmann, T & Minx, J 2008, A definition of Carbon Footprint, Ecological Economics Research Trends, Chapter 1, pp. 1-11. Dahlsrud, A 2006, How Corporate Social Responsibility is Dened: an Analysis of 37 Denitions , viewed 16 October 2011, < http://www.mcxindia.com/csr/newsarticle/pdf/csr_news45.pdf > The Project Management Hut 2010, Role and Responsibilities of the Business Change Manager, viewed 16 October 2011, < http://www.pmhut.com/role-and-responsibilities-of-the-business-change-manager >

Thank You