Japan Tobacco And Salt Public Corporation Case Study

1.Introduction

History of Japan Tobacco

The Government set up a monopoly bureau to the exclusive sale of domestic leaf tobacco in1898. In 1900s, Japanese government extended this monopoly to all tobacco products in Japan and to the domestic salt business. In 1949, the bureau was formed and named as Japan Tobacco and Salt Public Corporation, or JTS. In 1970s, the growth in demand for cigarettes in Japan slowing down because of demographic trends and growing concern about health risks associated with smoking. This issues continued, the growth in industry sales will be affected and essentially stopped. In addition to the structural change, the domestic tobacco market opened up the business to the foreign country.

After 1985

For the international

Their products are sold in more than 120 countries, and their internationally recognized brands include Winston, Camel, Mevius and Mild Seven. The headquarters of the JT are located in Geneva, Switzerland. Their company is become the third largest tobacco manufacturer by market share in the world. They also operating the businesses of pharmaceutical, beverage and processed food businesses, which allow them to diversify their sources of profit and reach future sustainable growth. JT operating their business under the principle of management which is 4S’ model (employees, social, shareholders and consumers). Under the ‘4S’ model, JT contribute to the sustainable growth of societies, by leading socially responsible business operations, as well as addressing today's social and environmental

The JTI applies the “4S” model through they talk to stakeholders on a day-to-day basis, and also engage them in special forums. In 2015, The JTI visited 16 countries to speak with more than 100 managers about the specific challenges that exist in the market. It is one on the ways to communicate with their stakeholders.

The society in “4S” model include suppliers, governments, communities, and retailers. The JTI regularly visit their suppliers, which it is farmers to offer advice and support them improving the standard to help them improve the tobacco production and increase their profit. The JTI is respectful of each country’s government decision, they believe that open and honest engagement results in better is the best interests of all parties. Area of JTI engage with government include illegal trade, youth access to smoking, and the health risks of smoking. JTI has worked with airport authorities to develop more than 205 smoking facilities in 13 international airports. JTI communicate with retailers in various ways, they support retailers in their efforts to prevent youth from buying tobacco, such as the U.K.’s No ID, No Sale! program, which we initiated with other tobacco manufacturers. In international market, JTI focus activities on