British America Tobacco company was formed in 1902, this happened after American Tobacco Company and Imperial Tobacco Company agreed to form a merger (Cox, 2000). The two companies agreed to do away in trading in each other`s territory and created trademarks, overseas sub diaries and export businesses for the joint business venture (BAT, 2013).

British America Tobacco is an international company with its headquarter in London. BAT is the second in rank amongst other companies known to sale tobacco in the world. The four leading brands of BAT are Lucky Strike, Pall Mall, Kent and Dunhill with others like Hedges, Rothmans, Benson and Kool. BAT operates in     nations an   as a mar et ea in ran  in more t an      countries       itten          itten           e compan  is  iste  in t e  ritain stoc   xc an e   n  u             t e compan    a  a mar et capita i ation o           i ion ster in

poun s     i ins      c r ter 1998). It is the 6th largest multinational company in the Britain stock

Exchange. The company has more than 200 brands and has sustained a market presence of more than 100years. British America Tobacco has 44 cigarette industries in 39 nations and employs fifty five thousand people from different countries (Whitten & Whitten 1990).

Figure 1: BAT Logo

Source: BAT, 1989

In 1937, British America Tobacco was at its peak; it produced and distributed fifty five billion  cigarettes  in  China.  The  company assets  were  Japanese  due  to  invasion  1941.  The

company was ejected from China by the people`s republic foundation. The company is groups were restructured in 1976 under a new holding company called B.A.T. later in 1994, the company regained its previous patent; American Tobacco Company through restructuring after the anti-trust proceedings (Cox, 2000). A merger of 1999 with Rothmans International happened making it the object of condemnation for the human rights groupings. It again sold it share on 2003 due to exceptional request by the United Kingdom government.

Figure 2: BAT products

Source: BAT, 2013

2.1  company`s customers and their expectations (internal and external customers)

Customers of BAT are the consumers of Tobacco product and the services available from the company. The company has branches and offices globally and in the entire United Kingdom hence the major market for the company`s products is the entire world. The company has also many intermediate customers who purchase their products for reselling purposes. Supermarket and shops are the major intermediate clients for the company (Friday & Cotts 1995). The ultimate consumers of the BAT`s products is the entire world. Because of many competitors in the industry, the company has ensured customer satisfaction through ensuring the company`s products or even surpass the customers` requirement. Customer satisfaction is a key performance indication within a competitive market (Friday & Cotts 1995). Satisfaction provides an edge over other companies producing the same goods and services. During the process of designing operations strategy and a company`s overall strategy, it is important to focus on customer satisfaction towards gaining competitive advantage. BAT mana es its costumers’ expectations through designing products of high quality and surpasses all other companies producing Bakery products.
2.2  How the company manages customers’ expectations

Production of explicit products: the company produces high quality product of exceptional standards. Most customers keep running for more because they can never be found any other place.

Encourage customer’s complaints:BAT`s a ents receive in ormation re ar in customers’ queries. This has helped the company improved over time due to the recommendations it receives from its consumers from the entire world (Plunkett, Attner & Allen 2008). The company solicits for feeds from the client whenever new products and standards are put in place. A

comprehensive system for handling the company`s complaints is available in the company`s website.

Understand customers’ expectations: BAT Company is committed in understanding different customers’ nee s rom  time  to  time  un erta in  a  mar  et  researc  o  t e  most  suitable Tobacco products for a given period of time. The company sends a survey to their who have raised complains in the recent to see if they are still dissatisfied with the company`s product. An extensive data collection is undertaken research to understand what the customer would like to have and the new trends in the market (Plunkett, Attner & Allen 2008). The company focuses on clear customers societies especially the high-volume company customers.

Spell out company`s product and expectations: customers usually honor well marketed and well spelt company products. Let the customers know you products and the standards and principles governing your production. It is vital to also information your limitation in terms of your production. Do not lie to your clients about services and products that you do not provide. Your customers will hold you accountable for the failure to live up to their expectation therefore the company strive to ensure they meet their bargain according to what they promised their clients. Submitting late delivery is avoided by ensuring strict adherence to time schedules. The company only markets its production and strictly adheres to product standards set by the organization strategy (Plunkett, Attner & Allen 2008).

Outsmart your competitors: there is a possibility of spoiling the market for your competitors by providing better and unique products than them. BAT knows its competitors and provides better and exceptional products than them.