Research
TOBACCO PRODUCTION- British American Tobacco South Africa(BATSA)
GROUP MEMBERS
Topic: Tobacco Production (BATSA)
GROUP MEMBER DETAILS
STUDENT NUMBER INITIALS and SURNAME
224047914 NR HOBYANE
222351640 NL KHUMALO
220169144 N LINDA
221703616 TK MASINA
223192112 GG MNENO
222404329 KK NUKERI
EXECUTIVE SUMMARY:
This research paper provides an in-depth analysis of British American Tobacco South Africa (BATSA), focusing on its business processes and
enterprise systems. The research examines all the business processes namely, sales and collection, acquisition and payment, view integration
and implementation compromises, conversion/manufacturing, HR and Financing, Enterprise system risks and controls as well as ERP systems,
e-commerce and intra & inter-enterprise modelling.
INTRODUCTION:
BATSA is a leading tobacco manufacturer in South Africa, operating since 1904. The company’s success relies on efficient business processes
and effective enterprise systems.
SALES AND COLLECTION:
• BATSA’s sales strategy focuses on building strong relationships with retailers and wholesalers.
• The company uses direct sales force and indirect channels ( e.g. distributors) to reach customers.
• Collection processes involve cash, credit, and electronic payments
ACQUISITION AND PAYMENT:
• BATSA acquires raw materials from local and internation suppliers (e.g. tobacco, paper)
• Payment terms vary, with some suppliers requiring upfront payment and others offering credit.
INTEGRATION AND IMPLEMENTATION COMPROMISES:
• BATSA’s enterprise resource planning (ERP) system integrates various business functions, including sales, procurement and
manufacturing
• Implementation compromises involve balancing standardization with customization to meet specific business needs
CONVERSION/MANUFACTURING:
• BATSA’s manufacturing process involves cigarette production, packaging, and quality control.
• The company uses a combination of automation and manual labour to ensure efficiency and quality.
HR and FINANCING:
• BATSA’s HR function focuses on talent management, training, and development (BATSA, 2022). Financing involves managing
cash flow, investments, and funding for operations and expansion.
ENTERPRISE SYSTEM RISKS & CONTROLS:
• BATSA’s enterprise systems face risks such as database breaches, system failures and unauthorized access (Enterprise system
risks and controls, 2020)
• Controls include access controls, data encryption, and regular system backups.
ERP SYSTEMS:
• The company uses an ERP system to integrate business functions and improve efficiency.
• The system provides real-time data and analytics for informed decision-making.
E-COMMERCE:
• This company has an e-commerce platform for online sales and customer engagement (E-commerce Trends, 2020). The
platform provides a convenient channel for customers to purchase products and access information.
INTRA & INTER-ENTERPRISE MODELING:
• Inter-enterprise modelling involves collaborating with suppliers and partners to improve supply chain management.
• BATSA uses intra-enterprise modelling to optimize internal processes and improve efficiency (Supply chain management,
2020).
CONCLUSION:
British American Tobacco South Africa’s business processes and enterprise systems are critical to its success. By understanding
and optimizing these processes, the company can improve efficiency, reduce costs and enhance customer satisfaction.
