Premium Essay

Indian Tobacco Company: a Strategic Analysis

In:

Submitted By sauravgoswami2
Words 24299
Pages 98
Indian Institute of Management, Lucknow

ITC Ltd: A Strategic Analysis
Submitted to: Prof. Arun K Jain

In partial fulfillment of the requirements of the course
Strategic Management I

Submitted by
Saurav Goswami (ABM08012)
Anuj Saraf (PGP27204)
Kaushal Mathur (PGP27219)
Sudhanshu Chawla (PGP27255)
Section “D” Group 1

Letter of Transmission

TO: Prof. Arun K. Jain, Strategy Group
Indian Institute of Management, Lucknow
FROM: Group 1, Section D
Strategic Management Class

DATE: March 23, 2012

SUBJECT: Strategic Analysis of ITC Ltd.

Dear Sir, You had entrusted us with a project to analyze the strategy of any company of our choice using the frameworks given in the prescribed textbook. We chose ITC Ltd. for this project as it is one of India’s oldest and most diversified companies.

This report begins with analyzing the strategic direction of the company which emanates from its vision & mission statements. It then looks at the decisions that the company has taken to achieve its vision by analyzing the environment it operates, the value chain and the core competencies that it has developed over the years and the key factors instrumental in its success. We end by commenting on its future prospects based on our analysis.

We are grateful to you for providing us this opportunity to learn the strategic issues in contemporary businesses and giving us the necessary guidance in completing the project. We would also like to thank the entire faculty who taught us in the first year at this college. Their teaching has given us a holistic perspective which was essential for completing this assignment.

Our primary resource for research has been the ITC Ltd. website and the various reports published by it. We have used the resources of various websites on the internet and would like to thank all of these nameless contributors.

Similar Documents

Premium Essay

Strategic Analysis of Itc

...About ITC * The Company was founded in year 1790 by Henry Overton Wills. It’s current headquarter is in Kolkata. * It is the largest producer of Cigarettes in India with maximum brands of all range. * In the list of world most reputable companies ITC position at 95. * ITC is one of India's foremost private sector companies with a market capitalisation of nearly US $ 9 billion and a turnover of US $ 3 billion. * Rated among the World's Leading Companies by Forbes magazine, ITC ranks third in pre-tax profit among India's private sector corporations.Only Indian FMCG company on Forbes Global 2000 ranking. * ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Branded Apparel, Packaged Foods & Confectionery, Greeting Cards and other FMCG products * ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hoteliering. * ITC's FMCG businesses have one of the largest retail networks in the country, consisting of over 2 million retailers. ITC employs over 31,000 people at more than 60 locations across India * ITC has powerful brands like Wills, John Players, Hotel Grand Maratha, Sunfeast. * ITC have a very successful CRS activity called ‘e-choupal’ ...

Words: 907 - Pages: 4

Premium Essay

Corp

...showcases the growing impact of these factors over time and how the occurrence of World events has intensified the ‘change factors’ which in turn are putting all the more pressure on corporations globally to reconsider their identity. The intensity of these factors would vary from industry to industry, with each industry having a different lifecycle. The model brings out the paradox of shortened lifecycle of corporate identities which itself poses an extraordinary challenge to companies for effectively elongating and managing their identities. Changing ones corporate identity is not only an expensive affair but can also create dissonance in the minds of the stakeholders, if not managed and communicated properly. In order to succeed companies will have to exercise tremendous clarity of thought and understand their purpose of existence. Table of Contents 1. Corporate Identity : Concept and Purpose 2. Corporate v/s product brand identity 3. Corporate Identity Elements 4. Reasons for change : Strategic Inflexion Points 4.1. 4.2. 4.3. 4.4. 4.5. 4.6. 4.7. 4.8. 4.9. 4.10. Change in Technology (Case Study : Intel; Kodak) Change in...

Words: 6689 - Pages: 27

Free Essay

Sales&Distribution

...A Grounded Exploration of Sales and Distribution Channel Structures in Thirteen Industries in India Leading to a Classification Scheme Dr Prathap Oburai, Marketing Area, Indian Institute of Management, Ahmedabad, India. Email: prathap@iimahd.ernet.in, prathapoburai@yahoo.co.in Phone: 0091-79- 2632 4942 Professor Michael J Baker. University of Strathclyde, Glasgow, United Kingdom This paper is a revised version of a competitive paper reviewed and accepted for presentation at the Academy of Marketing 2004 conference, July 06-09, Cheltenham, University of Gloucestershire Business School, England, United Kingdom 1 A Grounded Exploration of Sales and Distribution Channel Structures in Thirteen Industries in India Leading to a Classification Scheme Abstract Innovation is a fundamental virtue of marketing. In this paper, a case is made to promote the use of innovative and novel combinations of research methodologies to derive new insights of business phenomena. This study is an attempt to understand and explain the sales and distribution channel structures in thirteen different industries in India. The investigation adopted a mix of case research and grounded theoretic research methodologies in exploring the subject under scrutiny. The study offers a classification scheme for grouping marketing channels into homogenous clusters based on similarity/dissimilarity using multivariate multidimensional mapping techniques. This scheme offers to explain the...

Words: 4871 - Pages: 20

Premium Essay

Rfid

...PRODUCT AND BRAND MANAGEMENT PROJECT ON Company study of Hindustan Unilever Limited (HUL) Submitted to- Prof. Pitamber Dwivedi Submitted by- Anish Bhattacharyya [FT-09-720] Anurag Kumar Mishra [FT-09-729] Durgesh Tiwari [FT -09-748] Jagat Singh Nagar [FT -09-754] Shwetank Kumar [FT-09-856] Sourav Mukherjee [FT- 09-862] Ravi Kumar Sinha [ FT- 09-813] IILM-GSM-09-11_PBM_SEC-A_ 1 | P a g e We take this opportunity to convey our sincere thanks and gratitude to all those who have directly or indirectly helped and contributed towards the completion of this project. First and foremost, we would like to thank Prof. Pitamber Dwivedi for her constant guidance and support throughout this project. During the project, we realized that the degree of relevance of the learning being imparted in the class is very high. The learning enabled us to get a better understanding of the nitty-gritty of the subject which we studied. We would also like to thank our batch mates for the discussions that we had with them. All these have resulted in the enrichment of our knowledge and their inputs have helped us to incorporate relevant issues into our project. Last but not the least we would like to thank God and our parents for their ...

Words: 6892 - Pages: 28

Premium Essay

Training and Development

...INTRODUCTION People need competence to perform tasks. The nature of the job is constantly changing due to changes in the environment, changes in organizational priorities, goals and strategies, changes in technology etc., higher degree and quality of performance of tasks requires higher level of competence in people of an organization is essential to achieve the organizational goals and objectives. One of the important mechanism of HR Department is that TRAINING, which is a commonly used term which has a wide variety of connotations depending on one’s experience and background. Training and development programs are necessary in any organization for improving the quality of work of the employees at all levels particularly in a word of fast changing technology, changing values and environment. The purpose of both is similar, the main difference between the two is in respect to the level of employees for whom these are meant and contents and techniques employed. HUMAN RESOURCE MANAGEMENT Meaning: Human Resource Management (HRM) is a management function that helps mangers recruit, select, train and develops members for an organization. Obviously, HRM is concern with the people’s dimension in organizations. Human resource management refers to a set of programs, functions and activities designed and carried out in order to maximize both employees as well as organizational effectiveness. It is the process of binding people...

Words: 15905 - Pages: 64

Premium Essay

Case Study

... | | | | | X | X | | | | | | | | 1–2 Nestlé – The Infant Formula Incident | | X | X | X | X | | | X | | | X | X | | | | | | | | 1–3 Coke and Pepsi Learn to Compete in India | | | | X | X | X | | | | | X | X | | | | | | | | 1-4 Marketing Microwave Ovens to a New Market Segment | | | | X | X | | | | | | X | X | | | | | | X | | 2–1 The Not-So-Wonderful World of EuroDisney | | | | X | | X | X | X | | | X | | | | | | | X | | 2-2 Cultural Norms, Fair and Lovely, and Advertising | | | | X | X | | | X | | | X | X | | | | | | | | 2–3 Starnes-Brenner Machine Tool Company – To Bribe or Not to Bribe | | | | | X | | X | | | | | | | | | | X | | | 2-4 Ethics and Airbus* | | | | X | X | X | X | | | | | | X | | | | | | | 2–5 Coping with Corruption in Trading with China | | | | | X | X | X | | | | | | | | | | | | | 2–6 When International Buyers and Sellers Disagree | | | | | | | X | | | | | | | | X | | | | | 2-7 McDonald’s and Obesity | | | | X | X | | | | | | X | X | X | | | X | | | | 3-1 International Marketing Research at Mayo Clinic | | | | | | | | X | | | | | | | | | | | | 3–2 Swifter, Higher, Stronger...

Words: 50890 - Pages: 204

Premium Essay

Hul Analysis

...Training Report ON FINANCIAL ANALYSIS OF HINDUSTAN UNILEVER LIMITED & INDIAN TOBACCO COMPANY Submitted to GURUKUL KANGRI UNIVERSITY,HARIDWAR In partial fulfillment of the requirement for the two years full time post graduate degree in MASTER OF BUSINESS ADMINISTRATION(MBA) Supervised by: Dr. Bindu Arora Submitted by: Akansha Tyagi(MBA) Department of Management Studies Kanya Gurukul Mahavidyalaya, Dehradun 2nd Campus, Gurukul kangri University, Haridwar 2009-2011 ACKNOWLEDGEMENT I wish to thank Indian Tobacco Company Limited, Sidcul and its employees, who gave me their precious time to make me learn some important aspects of the Organization, its Structure, about its functioning. I express my sincere thanks to Mr. Arun Raghav(DGM - HR) for giving me an opportunity to work with them through this summer project. I am very pleased that, I got the opportunity to work under and thank Mr.Kapil(Manager in Finance & Accounts,Sidcul) for his invaluable guidance, constant encouragement & practical suggestions based on the experience to focus my efforts because of which this work has come to the presentable form. Gracious help from Dr. Surekha Rana, have contributed tremendously to the completion of this project work. I offer my sincere thanks to , Dr. Bindu Arora who guided me in the completion of the project. CONTENTS PREFACE…………………………………………………... OBJECTIVES OF STUDY…………………………………. RESEARCH METHODOLOGY……………………………. COMPANY PROFILE • The Indian FMCG sector…………………………....

Words: 6012 - Pages: 25

Premium Essay

Doc, Pdf

...------------------------------------------------- ITC LIMITED: FINANCIAL ANALYSIS Financial Accounting A MANAGERIAL PRESPECTIVE Submitted To: Ram Kesh Gupta Christ University Institute of Management, Bangalore By: Lavanya Gurram (1120754) Anil Kumar Rauniyar (1120743) Lester Mascarenhas (1120702) Annette Stanley (1120744) Anirudddha K.N. (1120737) Ravi Kwatra (1120728) Table of Contents 1. INTRODUCTION 2. KEY FINANCIAL TRENDS 3. PERFORMANCE EVALUATION USING RATIOS 4. PERFORMANCE EVALUATION USING COMMON-SIZE STATEMENTS 5. ANALYSIS OF THE CASH FLOW STATEMENT 6. QUALITY OF EARNINGS 7. ANALYSIS OF THE DIRECTOR’S REPORT 8. STOCK MARKET ASSESSMENT 9. OVERALL EVALUATION 10. REFERENCES Introduction Meaning of financial Analysis The process of evaluating businesses, projects, budgets and other finance related entities to determine their suitability for investment is known as financial analysis. Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to be invested in. When looking at a specific company, the financial analyst will often focus on the income statement, balance sheet, and cash flow statement. In addition, one key area of financial analysis involves extrapolating the company's past performance into an estimate of the company's future performance. Uses of financial Analysis These statements are used by management, labor, investors, creditors and government regulatory...

Words: 6355 - Pages: 26

Premium Essay

Itc Dividend Policy

... INTRODUCTION ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Fast Moving Consumer Goods comprising Foods, Personal Care, Cigarettes and Cigars, Branded Apparel, Education and Stationery Products, Incense Sticks and Safety Matches, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business and Information Technology - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited’, where ‘ITC’ is today no longer an acronym or an initialized form. THE JOURNEY OF ITC The first six decades of the Company's existence were primarily devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco businesses 1925: Packaging and Printing: Backward Integration ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. 1975: Entry into the Hospitality Sector - A 'Welcome'...

Words: 2656 - Pages: 11

Premium Essay

Curency War Between Us and Chiina

...'micro-environment' and the 'internal environment'. [pic][pic][pic][pic][pic] The micro-environment This environment influences the organization directly. It includes suppliers that deal directly or indirectly, consumers and customers, and other local stakeholders. Micro tends to suggest small, but this can be misleading. In this context, micro describes the relationship between firms and the driving forces that control this relationship. It is a more local relationship, and the firm may exercise a degree of influence. The macro-environment This includes all factors that can influence and organization, but that are out of their direct control. A company does not generally influence any laws (although it is accepted that they could lobby or be part of a trade organization). It is continuously changing, and the company needs to be flexible to adapt. There may be aggressive competition and rivalry in a market. Globalization means that there is always the threat of substitute products and new entrants. The wider environment is also ever changing, and the marketer needs to compensate for changes in culture, politics, economics and technology. [pic][pic][pic] The internal environment. All factors that are internal to the organization are known as the 'internal environment'. They are generally audited by applying the 'Five Ms' which are Men, Money,...

Words: 10461 - Pages: 42

Premium Essay

Itc-Synergy in Diversification

...tool that allows classifying and evaluating the products and services of a business. It is a decision making tool in order to balance the activities of a company among those which make profits, those who ensure growth, those which constitute the future of the firm or those who are its heritage. With this tool one is able to define the development policy of the company. The matrix will position the products/services in two axis: * „ the rate of growth of the market ; * „ the market share of a product/service offered facing the competitors | Golden Rules | * Positioning = the company has to place each of its products/services on the matrix. Thus it is able to obtain information on the market share of the product or service and the market growth. * Creating long-term value = the company should have a product portfolio that includes products with high growth where it is necessary to inject cash and products where growth is weaker but which generate a lot of cash. | Structure of the BCG Matrix | * Question marks They do not generate profits unless the company decides to invest resources to maintain and even increase the market share (become potential stars). They have a high demand for liquidity and the company must ask the question: Invest or give up the product? * StarsThese are promising products for the company, they even can be considered as leaders of the industry. The strategy is to boost these products by appropriate investments to monitor the growth and...

Words: 2634 - Pages: 11

Free Essay

Industry Analysis

...3 Industry Analysis: The Fundamentals When a management with a reputation for brilliance tackles a business with a reputation for poor fundamental economics, it is the reputation of the business that remains intact. —Warren Buffett, Chairman, Berkshire Hathaway The reinsurance business has the defect of being too attractive-looking to new entrants for its own good and will therefore always tend to be the opposite of, say, the old business of gathering and rendering dead horses that always tended to contain few and prosperous participants. —Charles T. Munger, Chairman, Wesco Financial Corp. OUTLINE n n n n n INTRODUCTION AND OBJECTIVES FROM ENVIRONMENTAL ANALYSIS TO INDUSTRY ANALYSIS THE DETERMINANTS OF INDUSTRY PROFIT: DEMAND AND COMPETITION ANALYZING INDUSTRY ATTRACTIVENESS Porter’s Five Forces of Competition Framework Competition from Substitutes Threat of Entry Rivalry Between Established Competitors Bargaining Power of Buyers Bargaining Power of Suppliers APPLYING INDUSTRY ANALYSIS Describing Industry Structure Forecasting Industry Profitability Strategies to Alter Industry Structure 66 INTRODUCTION AND OBJECTIVES 67 n n n n DEFINING INDUSTRIES: WHERE TO DRAW THE BOUNDARIES Industries and Markets Defining Markets: Substitution in Demand and Supply FROM INDUSTRY ATTRACTIVENESS TO COMPETITIVE ADVANTAGE: IDENTIFYING KEY SUCCESS FACTORS SUMMARY NOTES INTRODUCTION AND OBJECTIVES In this chapter and the next we explore the external environment of...

Words: 14708 - Pages: 59

Free Essay

Industry Analysis

...3 Industry Analysis: The Fundamentals When a management with a reputation for brilliance tackles a business with a reputation for poor fundamental economics, it is the reputation of the business that remains intact. —Warren Buffett, Chairman, Berkshire Hathaway The reinsurance business has the defect of being too attractive-looking to new entrants for its own good and will therefore always tend to be the opposite of, say, the old business of gathering and rendering dead horses that always tended to contain few and prosperous participants. —Charles T. Munger, Chairman, Wesco Financial Corp. OUTLINE n n n n n INTRODUCTION AND OBJECTIVES FROM ENVIRONMENTAL ANALYSIS TO INDUSTRY ANALYSIS THE DETERMINANTS OF INDUSTRY PROFIT: DEMAND AND COMPETITION ANALYZING INDUSTRY ATTRACTIVENESS Porter’s Five Forces of Competition Framework Competition from Substitutes Threat of Entry Rivalry Between Established Competitors Bargaining Power of Buyers Bargaining Power of Suppliers APPLYING INDUSTRY ANALYSIS Describing Industry Structure Forecasting Industry Profitability Strategies to Alter Industry Structure 66 INTRODUCTION AND OBJECTIVES 67 n n n n DEFINING INDUSTRIES: WHERE TO DRAW THE BOUNDARIES Industries and Markets Defining Markets: Substitution in Demand and Supply FROM INDUSTRY ATTRACTIVENESS TO COMPETITIVE ADVANTAGE: IDENTIFYING KEY SUCCESS FACTORS SUMMARY NOTES INTRODUCTION AND OBJECTIVES In this chapter and the next we explore the external environment of...

Words: 14781 - Pages: 60

Premium Essay

Dlf Strategic Analysis

...STRATEGIC ANALYSIS OF DLF DLF INDIA PRIVATE LIMITED DLF INDIA PRIVATE LIMITED INTRODUCTION: DLF Limited (Delhi Land & Finance) is the largest commercial real estate developer in India. It was founded by Raghuvendra Singh in 1946 and is based in New Delhi, India. The company operates through three reportable segments, namely, residential, commercial, and retail. It is associated with the development of residential, commercial and retail properties. The company caters to three segments of the residential market - Super Luxury, Luxury and Mid-Income. The Annuity business of the company comprises mainly of rental businesses of offices and retail. The company is headed by Indian billionaire Kushal Pal Singh. Kushal Pal Singh, according to the Forbes listing of richest billionaires in 2009, was the 98th richest man in the world and the world's richest property developer. The company's US$ 2 billion IPO in July, 2007 was India's biggest IPO in history. In its first quarter results for the period ending 30 June 2007, the company reported a turnover of Rs. 3,120.98 Crore and profits after taxes of Rs. 1,515.48 Crore. VISION MISSION AND VALUES DLF Vision To contribute significantly to building the new India and become the world’s most valuable real estate company. DLF Mission To build world-class real-estate concepts across six business lines with the highest standards of professionalism, ethics, quality and customer service. DLF Values    Sustained efforts to...

Words: 2244 - Pages: 9

Premium Essay

The Making of a Successful Duty-Free Retail in the Newly Privatised International Airports in India – ‘Major Challenges and Strategies’

...The Making of a Successful Duty-Free Retail in the newly privatised International Airports in India – ‘Major Challenges and Strategies’ Vinay Bhuwania M.M.S., University of Mumbai Dissertation presented in partial fulfilment of the requirements for the degree of MSc. In Retail Management, University of Stirling University of Stirling 2006-2007 Declaration VINAY BHUWANIA 1. I confirm I have submitted an electronic version of the dissertation and give my permission for the Department of Marketing to run this through a programme which will check for plagiarism. I also give my permission for the Department of Marketing to reserve the right to place my dissertation on the University website for future students to access and view. 2. Signature: ………………………………… Date: ………………………………………. i Acknowledgements Firstly I would like to thank to my parents for their unwavering trust and wholehearted support; thanks to them I had the opportunity to live one of the most wonderful and unforgettable year of my life. Many thanks, to all my seniors and colleagues in all the organisations that I have worked, for their encouragement. I am also deeply grateful to my wife Preeti (Tofu), for her heartfelt support all throughout. I take this opportunity to express my gratitude to my supervisor, Dr. Paul Freathy, for his support and guidance and enhancing my knowledge on the subject of airport-retailing. Also wish to thank Cathy Butts - Resource Centre Manager, University...

Words: 25932 - Pages: 104