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Case study
Publication date: 20 January 2017

Daniel Diermeier and Shail Thaker

Describes the history of the tobacco industry and its emergence as an extremely effective marketer and non-market strategist. After years of success, both publicly and…

Abstract

Describes the history of the tobacco industry and its emergence as an extremely effective marketer and non-market strategist. After years of success, both publicly and politically, the leaders of the tobacco industry are faced with mounting political pressure and the financial threat of litigation from class-action lawsuits. The leaders face an industry-wide strategic decision of whether to acquiesce to government demands in exchange for immunity, focus on judicial success, or develop a new course of action.

To evaluate the formulation and implementation of non-market strategies in the context of regulatory, legislative, and legal institutions. To understand how various aspects of the non-market environment interact and how these environments not only change over time, but change market competition within an industry. Further, to formulate and decide between firm-specific and industry-wide strategies. Finally, to appreciate and reflect upon the potential conflict between non-market strategies and ethical concerns.

Details

Kellogg School of Management Cases, vol. no.
Type: Case Study
ISSN: 2474-6568
Published by: Kellogg School of Management

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Article
Publication date: 1 April 1995

Bernard Frank Kinman and Gerald Vinten

Tobacco has exercised the interest of the nation since Elizabethan times, and the inhalation of its smoke for pleasure has become very widespread. It was not until the…

Abstract

Tobacco has exercised the interest of the nation since Elizabethan times, and the inhalation of its smoke for pleasure has become very widespread. It was not until the mid‐twentieth century, however, that its effects upon health were suspected. It is now widely accepted that tobacco smoke is implicated in a range of dangerous diseases, although the tobacco industry sometimes argues that the link is not proven. The arguments about the conflicting needs of a large, world‐wide industry and the health and prosperity of individuals and society are complex, and often influenced by conflicting vested interests. Government's involvement in the issues is further complicated by its reliance upon large tobacco revenues. The link between advertising and increased smoking, either by existing or new smokers, is not proved by research, although there are strong indications that it exists. The behaviour of most parties involved, including the tobacco companies, indicates that they share the belief of a link. Voluntary controls upon tobacco advertising have had some effect, in that, for example, advertising in the U.K. is no longer overtly directed at children, but various anti‐smoking lobbies believe voluntary control to be ineffective. The present British government has toyed wth the possibility of statutory control, but faces stiff opposition from back‐benchers and within the cabinet; it is also probably philosophically opposed to such measures. More research is needed into the link between advertising and smoking behaviour.

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International Journal of Sociology and Social Policy, vol. 15 no. 4/5
Type: Research Article
ISSN: 0144-333X

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Article
Publication date: 24 March 2020

Ayotunde Adesanya, Biao Yang, Farok Wanes Bin Iqdara and Ying Yang

The purpose of this study is to explore how tobacco manufacturing companies can improve their sustainability performance via effective supplier relationship management (SRM).

Abstract

Purpose

The purpose of this study is to explore how tobacco manufacturing companies can improve their sustainability performance via effective supplier relationship management (SRM).

Design/methodology/approach

This study has adopted a single case study of an international tobacco company. The primary data involved semi-structured interviews with participants from the case company who are familiar with sustainable SRM in the tobacco industry and are engaging in various techniques to improve sustainability performance.

Findings

The drivers for sustainable SRM commonly identified in literature are observable within the case company. There is also clear evidence of integrating sustainability in its SRM processes. However, the perception of sustainability as a requirement to meet stringent regulations limits its scope and drive in pursuing sustainable SRM. It has also limited supplier sustainability evaluation and performance metrics. Furthermore, the findings of this paper reinforce the importance of a procurement team’s ability to work with other functional teams in implementing sustainable SRM. The findings also contribute to the emerging literature on the impact of sustainability on supplier segmentation and multi-tier supplier management.

Research limitations/implications

This study provides insight into the varying SRM methods used in the tobacco industry to ensure compliance and improve sustainability performance. However, further research is required to explore the generalisability of the findings of this study derived from a single case study.

Originality/value

The tobacco industry is an under-researched industry, particularly in terms of sustainable operations and supply chain management practices. The findings of this study seem to be relevant to those comparable industries with stringent regulations as well.

Details

Supply Chain Management: An International Journal, vol. 25 no. 4
Type: Research Article
ISSN: 1359-8546

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Book part
Publication date: 6 August 2018

Ana M. Aranda and Tal Simons

We explore the simultaneous influence of activist organizations and corporations on institutional change. Focusing on protests, campaign contributions, and lobbyists as…

Abstract

We explore the simultaneous influence of activist organizations and corporations on institutional change. Focusing on protests, campaign contributions, and lobbyists as the strategies used by activist organizations and corporations to influence institutional change, we study the dynamics between movements and counter-movements and their influence on the probability of institutional change. In the context of the US tobacco industry, the results shed light on the effectiveness of these strategies and uncover potential moderators of this relationship. Overall, we demonstrate the simultaneous and asymmetric effects of activist organizations and corporations that use conspicuous and inconspicuous strategies to change institutions.

Details

Social Movements, Stakeholders and Non-Market Strategy
Type: Book
ISBN: 978-1-78754-349-2

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Article
Publication date: 1 March 2000

Suzanne Thorpe

Briefly highlights the history of litigation against tobacco companies in the USA. Introduces the legal issues brought before the courts, the parties involved and the…

Abstract

Briefly highlights the history of litigation against tobacco companies in the USA. Introduces the legal issues brought before the courts, the parties involved and the outcome of significant cases. This overview is followed by a guide to relevant legal research tools that are useful for exploring tobacco litigation in depth.

Details

Reference Services Review, vol. 28 no. 1
Type: Research Article
ISSN: 0090-7324

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Article
Publication date: 27 April 2020

Jiawu Dai, Xiuqing Wang and Guang Yuan

The effect of market power on allocative efficiency is one of the most important topics in industrial organization and has undergone rigorous investigation since the…

Abstract

Purpose

The effect of market power on allocative efficiency is one of the most important topics in industrial organization and has undergone rigorous investigation since the 1970s. However, empirical studies based on firm-level data are relatively rare, especially with regard to China's tobacco and food industries. Accordingly, this research measures market power and allocative efficiency loss (AEL) of the main tobacco and food industries in China with micro data at firm level. Subsequently, it conducts a comparative analysis on them.

Design/methodology/approach

This research applies the New Empirical Industrial Organization (NEIO) model, consisting of five pricing and demand simultaneous equations to measure market power, and the AEL model to measure AEL induced by market power. To match with the micro data at firm level, the study implements a change in the traditional NEIO model by abandoning the aggregating process.

Findings

Empirical results show that China's tobacco industry, among five sectors selected, has the largest market power and thus the highest degree of AEL, whereas other sectors have apparently smaller market power and lower levels of AEL. Comparative analysis demonstrates a coarse positive correlation between market power and AEL in the selected industries. In general, the results accord well with the existing empirical findings and the reality.

Research limitations/implications

This study has some deficiencies. First, owing to the limitation of high-quality data, the sectors analyzed in this research are insufficient to sum up all the characteristics and rules of China's whole food industry. Second, this research only analyzes seller market power and leaves out buyer market power, which could be a direction for future research.

Practical implications

The relevant administrations should strictly limit the monopoly behaviors of enterprises and establish a favorable and competitive market environment, especially for the tobacco industry. This suggestion is precisely an important content of China's Supply-side Reform.

Originality/value

The research improves the NEIO model in that it can be estimated with micro data at firm level. To the best knowledge of the authors, very few empirical and comparative analyses exist on market power and AEL for China's tobacco and food manufacturers using micro data.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 10 no. 3
Type: Research Article
ISSN: 2044-0839

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Article
Publication date: 31 December 2010

Anatoliy G. Goncharuk

This paper demonstrates how ways and means of effective development can be determined by analysis and benchmarking tools. It contains the results of efficiency study of…

Abstract

This paper demonstrates how ways and means of effective development can be determined by analysis and benchmarking tools. It contains the results of efficiency study of Ukrainian tobacco companies, defining their key factors and growth potential to identify ways of improving the industry performance. A few key factors are examined for their impact on efficiency. Using analysis and international benchmarking the essential potential to reduce various inputs that provide considerable gain to the companies and enhance industry efficiency is determined. The recommendations that may be practicable for companies’ management, present and potential investors, proprietors and regulative public authority are made.

Details

World Journal of Entrepreneurship, Management and Sustainable Development, vol. 6 no. 1/2
Type: Research Article
ISSN: 2042-5961

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Article
Publication date: 28 April 2020

Hien Thu Thi Nguyen, Long Thanh Giang and Toan Ngoc Pham

The purpose of this study was to evaluate how higher tax on tobacco would influence output and employment in Vietnam.

Abstract

Purpose

The purpose of this study was to evaluate how higher tax on tobacco would influence output and employment in Vietnam.

Design/methodology/approach

The authors used micro-simulation techniques proposed by Walbeeck (2010). Both national data (from Input–Output Table) and household data (Vietnam Household Living Standard Survey) were utilized.

Findings

The results showed that any increase in the excise tax for tobacco would have positive net impacts on both national output and employment. The tobacco industry would not be significantly affected due to its small contribution to national economy and employment. More importantly, money released from reduced tobacco consumption would be reallocated to other goods and services, and thus outputs and jobs in nontobacco sectors would increase.

Research limitations/implications

The key limitation of this study was due to unavailability of updated data, especially Input–Output Table as well as household living standard survey.

Practical implications

This study concluded that government should increase tax on cigarette along with a well-planned roadmap to avoid unexpected consequences on income and employment of laborers in this sector.

Originality/value

This study replicated a popular approach in order to verify an important government policy (i.e. effect of tax on tobacco on output and employment) under Vietnamese context.

Details

Journal of Economics and Development, vol. 22 no. 1
Type: Research Article
ISSN: 1859-0020

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Article
Publication date: 3 April 2017

Timothy Coombs

Graphic novels have a concept known as the origin story. The origin story is background information on how a hero or villain came into being. The purpose of this paper is…

Abstract

Purpose

Graphic novels have a concept known as the origin story. The origin story is background information on how a hero or villain came into being. The purpose of this paper is to explore the origin story of corporate social responsibility at British American Tobacco (BAT). The CSR origin story is unpacked by examining corporate documents from BAT that discuss the initial development of the company’s CSR program. The BAT documents are part of the Legacy Tobacco Documents Library (LTDL), a searchable, digital archive developed and managed by the University of California, San Francisco. It contains 85,569,326 pages in 14,360,422 documents. The library was created as part of the tobacco company settlement of a major law suit in the USA.

Design/methodology/approach

For this case study, the authors searched the archive for documents from BAT that had the key words “corporate social responsibility.” The documents were then analyzed using qualitative content analysis to identify key themes related to BAT’s created of its CSR programs.

Findings

The two dominant themes were business case BAT made for CSR and the environmental factors that shaped CSR. The business case had sub-themes of the new operating environment and reinforcing employees. The environmental sub-themes were the importance of NGOS and the top issues to be addressed in CSR efforts. The themes helped to explain why BAT was engaging in CSR, the factors shaping the start of its CSR programs, and the issues it intended to address through CSR.

Research limitations/implications

The analysis is limited to one organization and does not include interviews to go with the archived documents.

Practical implications

The paper considers the implications of the analysis for theory and practice for internal CSR communication.

Originality/value

The documents provide a rare glimpse inside a corporate decision to begin a CSR program and how the managers “talked” about CSR. Instead of examining external CSR communication, it examines the early days of internal CSR communication at a specific firm. The yields of the document analysis provide insights into how BAT conceptualized CSR and communicated the rationale for creating a CSR program internally. Research has relied primarily upon speculation of corporate motives or corporate public discourse designed to frame their CSR efforts. The internal documents provide an unfiltered examination of the motives for a CSR program. This allows us to better understand why a CSR program was created including the motives, targets, and desired outcomes.

Details

Corporate Communications: An International Journal, vol. 22 no. 2
Type: Research Article
ISSN: 1356-3289

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Article
Publication date: 9 June 2020

Nathalia Christiani Tjandra, Lukman Aroean and Yayi Suryo Prabandari

This article aims to explore the public evaluation of the ethics of marketing tobacco in Indonesia through the theoretical lens of normative ethics.

Abstract

Purpose

This article aims to explore the public evaluation of the ethics of marketing tobacco in Indonesia through the theoretical lens of normative ethics.

Design/methodology/approach

The present study adopted a symbiotic ethical approach which combined normative and positive ethical approaches. The data was collected in Yogyakarta, Indonesia, from six focus groups and thirty photo elicitation interviews with a total of 71 participants.

Findings

The thematic analysis has identified six main themes, economic contribution of the tobacco industry, harmful nature of tobacco products, tobacco marketing targeting vulnerable groups, covering the danger of smoking, intention and integrity of tobacco marketers and infringement of law and social norms. Adopting the theoretical lens of utilitarianism, deontology, contractarianism and virtue ethics, the analysis illustrates that most participants believed that tobacco marketing practices in Indonesia are unethical.

Policy implications

The findings of the study were disseminated in a public engagement event to stakeholders in Yogyakarta. The findings influenced the development of No Smoking Area monitoring instrument and the introduction of “Free from Tobacco Advertisement in No Smoking Area” policy in Sleman Regency, Yogyakarta.

Originality/value

Indonesia, with its lenient regulatory environment, provides a unique setting for investigating public evaluation of the ethics of tobacco marketing. This is one of the first studies that investigates public evaluation of tobacco marketing ethics in Indonesia through the theoretical lens of utilitarianism, deontology, virtue ethics and contractarianism.

Details

Qualitative Market Research: An International Journal, vol. 23 no. 4
Type: Research Article
ISSN: 1352-2752

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