Free «Denationalization of BAT» Essay Sample

Denationalization of BAT

Denationalization is a very common practice in the world for a business endowment. It is also referred to as privatization. It is indeed a rather viable business idea since it gives room to a variety of commodities to consumers at the expense of the government produced commodities. Basically, it is the transformation of government owned firms into private or individual owned ones. Such a method leads to equitability to consumers in question.

Several products are in the market due to privatization programs. These products indeed help to add value to the common public in one way or another. This paper, however, will dwell on the BAT products in the USA. There has been a series of expansion programs in the last 40 years. Such practices took place both in the services and production sectors. The tobacco industry is not left behind in this noble course of events in the global arena. BAT has its headquarters located in London. The expansion of this company to other countries led to the breakdown of some cooperation internationally. The privatization of this company led to the reestablishment of the global equilibrium as most individuals attained employment both locally and internationally.

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Since this is a highly concentrated cigarette industry, the company has brought in with it a lot of national benefits to the citizens of the USA and Britain. It has also brought with it a lot of hurdles in the plight to compete in the liberalized market. Medics have indeed acted as a real block to the growth and prosperity of these products. Most health institutions consider cigarette smoking as a health hazard. Therefore, sales face some uphill task in fighting such grievances in the society. In addition to these, the BAT faces problems related to competition in the areas factored by the following issues. Cigarette dominance is constantly increasing in most communities. This brings dramatic increase in the demand for the given product.

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