ASSIGNMENT

“TRANSFER OF TECHNOLOGY: AN ANALYSIS ON BRITISH AMERICAN TOBACCO BANGLADESH ’’

ASSIGNMENT“TRANSFER OF TECHNOLOGY: AN ANALYSIS ON BRITISH AMERICAN TOBACCO BANGLADESHCourse Code EIB # 514Course Name: International Managemet

Submitted to:Professor(Dr) Khondoker Bazlul Hoque

Chairman & Course InstructorDepartment of International Business

Faculty of Business StudiesUniversity of Dhaka

Submitted by:Md. Mahabubus Sajjad

ID: 8080207415th Batch Evening MBA Program

Department of International Business

Date: 30 April, 2010

April 30, 2010

Professor(Dr) Khondoker Bazlul HoqueDepartment of International BusinessFaculty of Business StudiesUniversity of Dhaka

Dear Sir:

Here is the assignment on “TRANSFER OF TECHNOLOGY: AN ANALYSIS ON BRITISH AMERICAN TOBACCO BANGLADESH’’ that you authorized me to prepare as the part of course finalization.

In the process of carrying out this research, I have developed a good idea about the technology transfer process of British American Tobacco and also an analysis on a specific topic. It has bestowed me with opportunity to have the experience of arraying out an effective research. Thank you for giving me this opportunity. I sincerely appreciate this and look forward for further chances.

Sincerely yours,

Md. Mahabubus SajjadID: 80802074

I

ContentsMeaning of Technology…….……………………………………………………..

….. 1

Why technology needed ……………………………………………………………………….. ….. 1

Technological environment of international firm………………………………………… ….. 1

Types of technology transfer…..…………………………………………………………….. …… 2

Factor influencing technology transfer…………………………………………………….. ….. 2

Cultural issues in technology transfer……………………………………………………... …..3-5

History of British American Tobacco’s …………………………………………………………… 6

British American Tobacco Bangladesh..………………………………… ………………………..7

Feature of product-embodied technology of BATBC…………………………….............. 8

Tolls for constructing messages.……………………………. ……………………………………...9

Push technologies……………………………………………………………….. ………………………10

Tolls for transmitting message of BATBC…………………………………………………........11

Tolls for collaboration in the BATBC……………………………………………….…. ………….12

Future technologies………………………………………………………………………………………13

Technology enabled communication…..……………………………………………………..13-15

Present orientation of the technology…………………………………………………………….16

Widespread use of various technology practices………………………………………………16

Similarity…………………………………………………………………………………………............17

Differences………………………………………………………………………………….................17

Conclusion………………………………………..…………………………………………………………18

Appendix Biblography…………………………………………………………………………………..19

Meaning of TechnologyTechnology comprises a systemically developed set of information, skills, and processes that are needed to create develop; and innovate products and services. This definition is developed in organization that would like to launch new products or services in order to increase their market share.

Technology transfer is the movement of technology from one person, one to another, one company to another, or from one country to another country.

Why technology needed?

International Management is about the challenge of management is about the challenge of managing the international companies. Among the many activities of international companies the management of technology and knowledge is crucial. An international Company must considered the following

How does the company create new forms of technology that are needed in the manufacturing subsidiary in overseas country?

How does it successfully transfer knowledge created in another country about the emerging market trends to its headquarters in the other country?

However, technological competence is important, not only for sustaining international competitiveness, but also for emerging economies such as India, and china and in less developed countries, such as the African states.

Technological environment of International Firm

The following factors are common stages for environment of International firm.

1. Inventions.2. New-product development.3. New-process innovations4. Internet capabilities

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Types of Technology transfer

There are basically three types of technology1. Transfer of Product-embodied technology2. Transfer of Process-embodied technology3. Transfer of Person-embodied technology:

Transfer of Product-embodied technology: Transferring the physical

product. When the caterpillar company, headquartered in Illions, USA, transfer heavy earth trilling machinery and related products such as bulldozers to a country such as Kuwait, it is engage in the process of product-embodied technology.

Transfer of process-embodied technology:Transfer of blueprint or patent

rights of the actual scientific processes and engineering details. Examples include transfer of chemical technology for the manufacture of synthetic fabrics and offshore oil exploration technology.

Transfer of person-embodied technology:Transfer through continuous

dialogue between the supplier and the recipient organization pertaining to the intrinsic nature of diffusion, and utilization of scientific details that are hard to articulate in the form of either

product or process. The intrinsic nature of person embodied technology makes transfer as one-shot or quick process difficult. It demands a series of exchanges necessary.

Factors Influencing Technology Transfer

1. Similar Language2. Common ancestry and shared history3. Physical proximity4. Technical competence of the workforce5. Complexity of the technology at the time of

transfer6. Number of successful prior transfer

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Cultural Issues in Technology Transfer:The history of technology transfer focused that it was took placed primarily among Western nations. But from time now today’s globalize world, transfer from the united States to various countries in Southeast Asia, Africa, South America, and central and southern Europe are becoming as frequent as transfers between the United States and Western Europe.Technology transfers among developed nations rely on the strategic orientations of the transacting organizations. However, transfer to developing countries in those parts of the world that are culturally dissimilar are likely to difficult. Transferring technology from the headquarters to various subsidiaries of a multinational company can be a mixed blessing.Some subsidiaries are eager to absorb the technology and realize the need for such technologies for improving market share, efficiency, and innovativeness. Other subsidiaries might resist the absorption of differences in strategic orientation or because of repeated failures in past transfers.Difficulties in technology transfer across various subsidiaries of a multinational or global corporation or between two organizations located in dissimilar economies and cultures often arise from the following concerns.

1. Differences in strategic thinking2. Characteristics of the technology involved3. Differences in organizational and corporate

culture4. Differences in social culture

1. Differences in strategic thinking:

At the time of senior managers in companies involved have differing views on the strategic significance of the technology involved in the transfer, the transfer of technology is rarely smooth, as the leading creator of software technology, might not feel inclined to share such technologies with Fijitsu of Japan because both of these companies are competing for global market share.

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2. Characteristics of the technology involved:It is learnt that some technology are

easier than others. Product embodied technologies are easier than process and person-embodied technologies. In transferring product-embodied technology, the supplying organization or the creator of the technology to its needed location. The sophistication of the technical personnel at the recipient organization or other factors that might inhibit its effective absorption and diffusion offer little cause for concern. However, in the case of process- and person- embodied technologies, transferring and diffusing the technology may entail major problems. If the recipient organization does not have well-trained technical personnel who understand the complexities of the technology, or if the infrastructure for diffusing the technology is poor, then product- and person- embodied technologies can not be transferred easily.

3. Differences in organizational and corporate cultures: An organization’s receptivity to absorbing new technology often reflects the dominant values of the organizational and corporate cultures. Some organization’s value what has been termed “process orientation” in their cultures? As a rule, process orientations facilitate absorption of new technology that comes from

another organization. In addition, organizations that are more professional than parochial are better able to absorb technology that is imported from dissimilar national or cultural settings. In professional organizations, the identity of the individuals working for the company comes more from the job than from the organization. In parochial organizations, the social and family backgrounds are more important in defining individuals’ identity. Professional organizations are generally better prepared to understand the complexity of technologies that are being imported for diffusion in the organization.

Page-44. Differences in societal cultures:

Just like organizational cultures, the nature of the societal culture in which the organizations are located greatly influences the success of technology transfer. Consider two organizations that are located in two societies, say, the United States and Greece. One of the hallmarks of Greek culture is its high uncertainty avoidance, as discussed before. On the one hand, managers of Greek work organizations are less likely to be willing to import technologies from other countries because of their need to avoid uncertainty. On the other hand, managers in the United States would be more willing to import technologies from other countries, because their need to avoid uncertainty is not as high as that of Greek managers. The difference between individualist tendencies that managers in different countries exhibit is also important. Managers who are highly individualistic are more effective in their willingness to create, absorb, and diffuse new forms of technology. Naturally, companies located in these cultures are more creative in the way they come up with new technologies and in the way they absorb imported technologies.

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2.0 British American Tobacco’s Global Presence:

British American Tobacco Group is the world’s second largest quoted tobacco group by global market share, with brands sold in more than 180 markets.

With over 300 brands in its portfolio, it make the cigarette chosen by one in eight of the worlds one billion adult smokers. It holds robust market positions in each of its regions and has leadership in more than 50 markets.

In 2007, its subsidiaries enabled governments worldwide to gather over GBP 17 billion a year in taxes, including excise duty on its products, more than 7 times the Group’s profit and tax.

It has sustained a significant global presence for over 100 years. Its business was founded in 1902 and by 1912 had become one of the world’s top dozen companies by market capitalization.

It’s subsidiary companies produce some 684 billion cigarettes through 47 cigarette factories in 40 countries. Four of these and two separate plants also make cigars, roll-your—own and pipe tobacco.

They employ over 53,000 people worldwide. Its workforce is strongly multi-cultural and has a devolved structure, with each local company having wide freedom of action and responsibility for its operations. Decisions are made as made as close as possible to the local stakeholders of each business, within a framework of principles, standards, policies, strategies and delegated authorities.

It believe that because its product poses risks to health, it is all the more important that its business is managed responsibly. Responsibility is integral to its strategy and through dialogue with its stakeholders, they are working to pursue its commercial objectives in ways consistent with changing expectations of a modern tobacco business.

They are the only international tobacco group with a significant interest in tobacco leaf growing, working with thousands of farmers internationally. The companies run leaf programmes providing direct agronomy support to farmers if it is not otherwise available, covering all aspects of crop production and environmental best practice-2007 the companies ran these in 19 countries. The company purchased 460,000 tonnes of leaf 2007, grown by some 280,000 farmers.

Page-62.1 British American Tobacco Bangladesh:

British American Tobacco Bangladesh is one of the oldest and largest blue chip multinational operating in Bangladesh. The British American Group holds 65.91% share in the company. The Government owns 26.57% through several of its agencies, while 7.52% is owned by other stakeholders.

It is a leading business organization in the industrial sector employing more than 1,300 employees directly and a further 40,000 indirectly as farmers, distributors and suppliers. It has business contracts directly with around 32,500 registered farmers who produce high quality tobacco leaf.

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Features of Product-embodied technology of BATBC

Planning Outlining or BrainstormingProject ManagementPersonal Information Managers

Gathering and Collecting Information

PushDatabase

Analyzing and Organizing

StatisticsSpreadsheetGraphicsOutlining or Brainstorming

Product Product Processing/recognition

Spelling Checker/ThesaurusReferenceGraphics and Drawing Information Rights Management (IRM)

Overview

Tools for constructing product process Tools for presenting product Tools for transmitting the product Tools to assist collaboration Future developments

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Tools for Constructing Messages

Writing Active Digital Tools Planning Outlining or Brainstorming

Project ManagementPersonal Information Managers

Gathering and Collecting Information

PushDatabase

Analyzing and Organizing

StatisticsSpreadsheet

GraphicsOutlining or Brainstorming

Writing Word Processing/Voice RecognitionSpelling Checker/ThesaurusGrammar and Style Checker ReferenceGraphics and DrawingInformation Rights Management (IRM)

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Push Technologies

Filtered Channels– my.yahoo.com– my.msn.com– Company portals

Personal Agents– Google news alerts– Journal alerts– Aggregators (RSS)

Some Word Processing Features for Business Writers

Editing/Revising Features Special Function Features

Editing/Revising Features

Insert/Delete Move/Copy Search/Replace Calculating/Sorting Tables Hidden Text or Remarks Hyphenation Formatting/Styles

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Tools for Transmitting Messages of BATBC

Channel Characteristic

Physical Tool

Oral Messages

Mobile PhonesVoice Message SystemsSound Files/Internet Phones

Visual Messages

PaperElectronic MailFacsimile (Fax)HTML DocumentsText and Instant Messaging

Combinations

VideoconferencingSmart Phones/Video EmailVideo Instant MessagingMultimedia BlogsCompound Documents

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Tools for Collaboration in the BATBC

Form ToolsAsynchronous Word Processing

Electronic MailDiscussion Tools (blogs, wikis, and threaded discussions)Groupware

Synchronous Face-to-face Meeting SystemsDistributed Meeting Systems

Examples of Synchronous Collaboration Tools

Face-to-Face Tools– ThinkTank – Polycom – VTEL

Distributed and Web-based Tools– WebEx– Groove/Microsoft Office Live Meeting– GoToMeeting

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Future Technologies

Near Term Miniaturization of hardware Extended battery life Growth of Internet TV and video Improved email Explosion of web services and mash ups Growth of social networking

Future Technologies

Result:

Human mind will continue to control message formulation.

Increased need for more people with good communication skills.

Advances in technology are more likely to increase the demand for people with good writing and speaking skills.

Page-13• Technology assists with both tedious and creative writing tasks

Technology-Enabled Communication

Planning Tools– Outlining and planning various tasks

• Microsoft Project shows the• 1) description of the task to be

completed• 2) person assigned, and• 3) expected start and completion date

Technology-Enabled Communication

Gathering and Collecting Information– Commonly used technology to push

information or data

• Google News• RSS Feeds (Real Simple Syndication is

fairly new technology that is intended to share information in a condensed format (such as a title, brief description and link to a news article).

– Use databases to store information• Organize data by various topics of

interest• Organize client contact information

Page-14Technology-Enabled Communication

Analyzing and Organizing– statistical programs – spreadsheets (MS

Excel)– graphics programs (reveal trends) Word

Processing Software– helps to capture, manipulate (format), edit,

& revise messages• spell checkers• thesaurus• graphics and drawing tools• grammar & style checkers• reference programs (encyclopedias, dictionaries,etc.)• speech recognition

Technology-Enabled Communication• Information Rights Management (IRM)• Writers specify who can access, edit, etc. documents they create• Hardware• Physical machinery & devices that make up a computer system (ex. Webcam)• Software• Programs/instructions used to run computer systems (ex. Adobe photoshop)• Asynchronous• Communication between users independent

of time• Does not require presence of the

participants at thesame time (ex. Email)• Synchronous• Communication between users at the same

time• Requires simultaneous online presence of participants(ex. Instant messaging)

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Result orientation of the technology

1. They encourage a strategic approach to management at the operation level

2. They got the results managers want3. They work equally well for blue-collar and white-

collar processes.4. They allow organizations to take advantage of

several

enabling Developments.5. They fit with an orientation toward inter

organizational Collaboration.

Widespread Use of Various Technology Practices:

1. Tracking customer satisfaction2. Encouraging Employee involvement3. Using competitive Benchmarking4. Engaging in Supplier partnerships5. Time-based competition6. Self managed work teams.

Page-161.Similarities:

a. Both are meant to improve the capabilities of processes to provide customer value.

b. Both consider the needs of internal as well as external customers.

c. Both look for opportunities to simultaneously improve multiple dimensions of competitive advantage.

d. Both are based on a system view of the organization.

e. Both typically intra organizational boundaries.

f. Both typically inter organizational boundaries.

g. Both benefit from benchmarking.h. Both are aimed at achieving and,

possible redefining best-in-class performance.

2.Differences:a. Differences in general orientation.b. Scope and scoring.c. Within versus on Another way of

describing the scope of different technology

d. Direction and staffinge. Involvement and numbers.f. Boundariesg. Degree of continuity.

Page-17Conclusion:Many people see technology as a solution to some of the problems that exist on our planet. It's true that technology can be used for good, but with new developments come new challenges issues. The digital divide is one such issue, one that people are actively trying to overcome. Telecentres aim to bridge the digital divide by providing people access and knowledge about information technologies. A global telecaster movement is

growing right now. Unfortunately, even where computer facilities are readily available, the digital divide persists: even in the world's most wealthy countries, access to the latest and most beneficial technologies is limited for those in rural areas and people with disabilities. There are many other issues to consider when talking about ICTs and their role in our lives, beyond the digital divide and universal accessibility. The internet has created new and innovative ways for people to shape and share their identity, and express themselves. However, to some people, the internet can appear to be a modern day "wild west" or something to fear. The rise of online social networking, shopping, and other online interactions that ask people to share a large amount of personal information have led to a number of risks that every internet user needs to bear in mind. The internet may looked uncontrolled; however, telecommunication companies and governments around the world own the infrastructure behind the internet, and different governments and companies are asserting that ownership in different ways. No sole entity controls the internet, which is making the concept of internet governance or the uniform application of rules a very complicated issue. However, these are not the only observations to be made. Recently, many advances in mobile media and technology have been made, creating a new world of possibilities. Our challenge is to figure out how to use technology - both the existing and the emerging - for good, and how to assure its access in the most democratic way possible.

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Appendix Bibliography

David A. Decenzo and Stephen P. Robbins, Fundamentals of Human ResourceManagement, (8th Edition, Copyright © 2005 by John Wiley & Sons), pp. 130-137, pp.168-188

Harzing, International Human Resource Management(Page:227)

www.batbc.com

Corporate intranet sites

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