...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...
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...Our Profile | | ITC is one of India's foremost multi-business enterprise with a market capitalisation of US $ 40 billion and a turnover of US $ 8 billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine and as 'India's Most Admired Company' in a survey conducted by Fortune India magazine and Hay Group. ITC also features as one of world's largest sustainable value creator in the consumer goods industry in a study by the Boston Consulting Group. ITC has been listed among India's Most Valuable Companies by Business Today magazine. The Company is among India's '10 Most Valuable (Company) Brands', according to a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week. Multiple Drivers of Growth ITC’s aspiration to create enduring value for the nation and its stakeholders is manifest in its robust portfolio of traditional and greenfield businesses encompassing Fast Moving Consumer Goods (FMCG), Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, and Information Technology. This diversified presence in the businesses of tomorrow is powered by a strategy to pursue multiple drivers of growth based on its proven competencies, enterprise strengths and strong synergies between its businesses. The competitiveness of ITC’s diverse businesses rest on the strong foundations of institutional strengths...
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...Porters 5 forces analysis for hotel industry BARGAINING POWER OF SUPPLIERSThe term 'suppliers' comprises all sources for inputs that are needed in order toprovide goods or services.The high class hotels are operating by few hotel chains like-TAJ, EIH, ITC&THELEELA PALACE so they have a control over the industry.There are no substitutes for spas and five star hotels.The hotels customers are fragmented, so they have to reduce their bargaining powerto attract the customers.The Taj, ITC& Oberoi are having various rates and tariffs. Because they are havingtheir own brand image.The hotel chains are operating different services like Spas, Boatels, Resorts, CityCenters, Heritage HOTELS, etc.2 . BARGAINING POWER OF CUSTOMERSSimilarly, the bargaining power of customers determines how much customers canimpose pressure on margins and volumes.The hotel industry is one of the most invested in its fixed assets. So they are tryingto recover their amount quickly.The suppliers are providing better information about them to attract the customersHere the buyers are highly informed.If the hotel price changes are moderate, the Customers have low margins and areprice-sensitive.Some unseasoned timings the hotels are offering discounts and incentives toreduce the bargaining power of buyers.3. THREAT OF NEW ENTRANTSThe competition in an industry will be the higher; the easier it is for other companies toenter this industry. In such a situation, new entrants could change major determinants of the marketenvironment...
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...BINGO Since its launch period in March, 2007, BINGO as a brand has been though a lots of ups and downs. Both Branding and sales and Distribution aspects of marketing for BINGO have been explored and matured to a large extent. Though the product itself is considered to be in a growth stage with a market share of 16% in the branded snacks food category, it has been successful to a large extent in creating the required Brand recall for the category INDIAN SNACK INDUSTRY: Snacks are a part of Consumer Convenience/ Packaged Foods segment. Snack is describes as a small quantity of food eaten between meals or in place of a meal. Snack food generally comprises bakery products, namkeen, ready-to-eat mixes, chips and other light processed foods. According to Ministry of food processing, the snack food industry is worth Rs 100 billion in value and over 4,00,000 tonnes in terms of volume. Though very large and diverse, the snacks industry is dominated by the unorganized sector. According to a survey almost 1,000 snacks items and 300 types of savouries are sold across India. The branded snacks are sold at least 25% higher than the unbranded products. Though there is no particular time for snacks, normally they are consumed at teatime. There is large no. of varieties with specialities from all regions, which have gained national acceptance. The industry has been growing around 10% for the last three years, while the branded segment is growing around 25% per annum to stand at Rs.6000-Rs...
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...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’ ...
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...ITC Limited One of India’s Most Admired and Valuable Companies 1 ITC Performance Track Record The last 16 years ` crs CAGR 95-96 to 11-12 95-96 11-12 2,536 24,798 15.3% PBDIT 584 8,849 18.5% PBT 452 8,898 20.5% PAT 261 6,162 21.8% Capital Employed 1,886 19,754 15.8% ROCE % 28.4 45.4 Market Capitalisation Total Shareholder Returns % 5,571 177,361 Net Revenue 24.1% 25.7% * Market Cap and TSR for '11-12 based on BSE price on 30 Mar 2012 Sensex (CAGR 95-96 to 11/12) : 10.8% 2 ITC’s ranking Amongst all listed private sector cos. PBT: No. 5 PAT: No. 6 Market Capitalisation: No. 3 3 ITC Consistently in the Market Cap. Top League Mar-96 Rank July-12 * Rank Tata Motors 1 Hindustan Unilever 2 9 Reliance Industries Tata Steel 3 4 1 Bajaj Holdings & Invst. 5 Larsen & Toubro Hindalco Industries 6 7 ITC 8 Grasim Industries 9 HDFC 10 3 8 New entrants in the list: IT, Financial Services & Telecom * As on 19th July 2012 4 ITC ranked 6th amongst global consumer goods companies in sustainable value creation during 2005-09 (Boston Consulting) 5 One of India’s most valuable and admired companies Ø One of the foremost in the private sector in terms of : l Sustained value creation (BT-Stern Stewart survey) l Operating profits l Cash Profits Ø Only Indian FMCG Company to...
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...deteriorates rapidly. Some FMCGs – such as meat, fruits and vegetables, dairy products and baked goods – are highly perishable. Other goods such as alcohol, toiletries, pre-packaged foods, soft drinks and cleaning products have high turnover rates. An excellent example is a newspaper- every day's newspaper carries different content, making one useless just one day later, necessitating a new purchase every day. The following are the main characteristics of FMCGs:[1] • From the consumers' perspective: • Frequent purchase • Low involvement (little or no effort to choose the item – products with strong Brand loyalty are exceptions to this rule) • Low price • From the marketers' angle: • High volumes • Low contribution margins • Extensive distribution networks • High stock turnover Examples include non-durable goods such as soft drinks, toilees, and grocery items.[1][2] Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be substantial. Fast-moving consumer electronics are a type of FMCG and are typically low priced generic or easily substitutable consumer electronics, including lower end mobile phones, MP3 players, game players, and digital cameras, which have a short usage life, typically a year or less, and as such are disposable....
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...TRAINING PROJECT REPORT ON ANALYSIS OF PACKAGING STRATEGIES OF ITC Submitted for partial fulfillment of award of Master of Business Administration (MBA) From Uttar Pradesh Technical University, Lucknow UNDER THE GUIDANCE OF SUBMITTED BY ABHISHEK KUMAR SAXENA ROLL NO.1380170008 Session: 2013-15 DECLARATION I ABHISHEK KUMAR SAXENA (ROLL NO.: 1380170008) student of MBA IIIrd semester , Year 2013-15, hereby declare that the Research Project Report titled “ANALYSIS OF PACKAGING STRATEGIES OF ITC” being submitted in partial fulfillment for the award of MBA degree by UPTU is my original work of Research and it has not been submitted to any...
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...Marketing Project on ITC Ltd. Ciggarette Industry Submitted to: Dr. Kavita Pathak Submitted by : Ajitesh Kumar Soni(012) Anuj Tripathi(033) Ashish Kumar(042) Avi Shankar(052) Akash Yadav(017) Dheeraj Suri(060) Table of Contents Introduction 3 Cigarettes: 3 The Global Tobacco Market 3 ITC 4 MARKETING MIX 5 Product 5 Price 5 Promotion 5 Place 5 VISION AND MISSION (/www.itcportal.co) 6 VISION 6 MISSION 6 PEST ANALYSIS 6 POLITICAL ANALYSIS 6 SOCIAL ANALYSIS 6 SWOT ANALYSIS (itc-hikes-gold-flake-prices) 8 SEGMENTATION 9 FUTURE GROWTH PROSPECTS 9 Bibliography 11 APPENDIX 12 Introduction Cigarettes: Cigarette is a product consumed via smoking and manufactured out of cured and finely cut tobacco leaves and reconstituted tobacco, combined with other additives, then rolled or stuffed into a paper-wrapped cylinder (generally less than 120 mm in length and 10 mm in diameter). The cigarette is ignited at one end and allowed to smolder for the purpose of inhalation of its smoke from the other (usually filtered) end, which is inserted in the mouth. They are sometimes smoked with a cigarette holder. The term cigarette, as commonly used, refers to a tobacco cigarette but can apply to similar devices containing other herbs, such as cannabis. Approximately 5.5 trillion cigarettes are produced globally each year by the tobacco industry, smoked...
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...ITC Limited One of India’s Most Admired and Valuable Companies A Profile One of India’s most Admired and Valuable company - Market Capitalisation: over US$ 40 Billion A USD 8 Billion enterprise by Revenue - ~58% of Net Revenue from non-Cigarette segments Leading Fast Moving Consumer Goods (FMCG) marketer in India - Established several world-class brands in the last 10 years 10 year Value addition ~ Rs. 2.2 lakh crore (US$ 43 billion) with ~75% accruing to the Exchequer - Among the top tax payers in the country (Private sector) - Excise payments represent ~7% of Government of India’s total Excise collection ITC & its Group Companies employ over 31,000 people directly; supports livelihoods of ~6 million people A global exemplar in sustainable business practices - Only Company in the world of comparable dimensions to have achieved the global environmental distinction of being Carbon positive (10th Year), Water positive (13th Year) and Solid waste recycling positive (8th Year) 2 ITC Performance Track Record Rs. cr. 1995-96 2014-15 19-yr Cagr 95-96 to 14-15 Gross Revenue 5,115 49,965 12.7% Net Revenue 2,536 36,083 15.0% PBT 452 13,998 19.8% PAT 261 9,608 20.9% Capital Employed 1,886 32,420 16.1% ROCE % 28.4 43.4 Market Capitalisation 5,571 2,60,865 Total Shareholder Returns % 22.4% 24.3% Market Cap and TSR based on FY-end prices for FY96...
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...| | | ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, it has a leadership position in every segment of the market. It's highly popular portfolio of brands includesInsignia, India Kings, Lucky Strike, Classic, Gold Flake, Navy Cut, Players, Scissors, Capstan, Berkeley, Bristol and Flake, Silk Cut and Duke. The Company has been able to build on its leadership position because of its single minded focus on value creation for the consumer through significant investments in product design, innovation, manufacturing technology, quality, marketing and distribution. All initiatives are therefore worked upon with the intent to fortify market standing in the long term. This in turns aids in designing products which are contemporary and relevant to the changing attitudes and evolving socio economic profile of the country. This strategic focus on the consumer has paid ITC handsome dividends. ITC's pursuit of international competitiveness is reflected in its initiatives in the overseas markets. In the extremely competitive US market, ITC offers high-quality, value-priced cigarettes and Roll-your-own solutions. In West Asia, ITC has become a key player in the GCC markets through growing volumes of its brands. ITC's cigarettes are produced in its state-of-the-art factories at Bengaluru, Munger, Saharanpur, Kolkata and Pune. These factories are known for their high levels of quality, contemporary technology and work environment. ITC Limited...
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...PESIT 2013 TENTS.aisnet.org : www.ijric.orgSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS APPLICTION OF MIS IN ITC LTD [Type the document subtitle] SURESH L I SEM, MBA D-SECTION ,ROLL NO:33 PESIT. CONTENTS Headings Page no 1.APPLICATION OF MIS IN ITC LTD 01 2. CONTENTS 02 3.ABSTRACT 03 4.ITC LTD PROFILE 04-05 5.OVERVIEW 06 6. COMPANY 07 7.VISION 08 8.WHY SAP? 09 9. IMPLEMENTATION 10 10.SOLUTION 11 11.BENEFITS 12 12.REFERENCES 13 ABSTRACT Management Information System (MIS) provides information for the managerial activities in an organization. The...
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...26,863 crores and Profit after tax of Rs. 4061 crores. The company continues its impressive record of financial performance. 2. Products Portfolio: ITC’s portfolio of products and services is represented by over 50 energetic Brands in a range of more than 650 stock keeping units (SKUs). 3. Distribution Network: ITC’S products are available in over 6 million retail outlets in the country. Its formidable Distribution organisation directly services more than 2 million of these retail outlets. It used its experience of transporting and distributing tobacco products to remote and distant parts of India to the advantage of its FMCG products. 4. Environmental Friendly: ITC has a status of being ‘Water Positive’ for the 8th consecutive year, ‘Carbon Positive’ for the 5th year in succession and ‘solid waste recycling positive’ for 3 years in a row. ITC is the only enterprise in the world of its size to have achieved and sustained these three global environmental distinctions. As consumers and investors become more environment friendly, these considerations will provide the organisation an opportunity to create USPs and stronger brand loyalty and brand equity. 5. Research & Development: ITC recognises that cutting edge R&D can foster breakthrough innovation and create powerful sources of sustainable competitive advantage. This vision has led to the establishment of a state of the art R&D centre at Bengaluru with over 50 world- class scientists. Its R&D program will create new game...
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...Industry: Tobacco, foods, hotels, stationery, greeting cards Products: Cigarettes, packaged food, hotels, apparel Employees: over 25,000 (2009) Website: http://www.i tcp ortal.com/ Forbes Global 2000 List: 987 rank (2009) * Sales ($ billion):3. 65 Profits($ billion):0.79 Assets($ billion):4.43 Market Value($ billion):13.48 * ITC S VISION | | Sustain ITC's position as one of India's most valuable corporations through world class performance, creating growing value for the Indian economy and the Company’s stakeholders. * ITC S MISSIONTo enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value | | ITC is one of India's foremost private sector companies with a market capitalization of over US $ 30 billion and a turnover of US $ 6 billion. ITC is rated among the World's Best Big Companies. ITC ranks among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging...
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...Group of Companies selected for in depth analysis – ITC Ltd. Introduction ITC is counted as one of India's topmost private sector companies. It has a market capitalisation of USD 45 billion and a turnover of USD 7 billion. The company is involved in most diversified businesses i.e. Fast Moving Consumer Goods (FMCG), Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business and Information Technology. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine and among India's Most Valuable Companies by Business Today. ITC ranks among India's '10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week. Its competitiveness diverse businesses rest on the strong foundations of institutional strengths derived from its product development capability, cutting-edge Research & Development, best in-class manufacturing facilities, brand-building capability, extensive rural linkages, deep consumer insights, efficient trade marketing, dedicated human resources and well managed distribution network. Within a relatively short span of time, ITC has established vital brands like Aashirvaad, Sunfeast, Dark Fantasy, Delishus, Bingo!, Yippee!, Candyman, mint-o, Kitchens of India in the Branded Foods space; Essenza Di Wills, Fiama Di Wills, Vivel, Vivel Cell Renew, Engage and...
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