Organisation Study On Itc
Organisation Study On Itc
Organisation Study On Itc
EXECUTIVE SUMMARY
As per the curriculum of visvevarya technological university belagavi for the post graduate degree
master of business administrative I had undertaken internship project on organization study of
established and growing business organization
I have undertaken the internship work at organization study at ITC LIMITED COMPANY I HAD
TIME DURATION of 4 weeks which helped me again insight the type of work they do and study the
functions and role of each department in the organization and describing their vision mission and
purpose
This report is an endeavor to cover the overall organization structure department’s procedure and
functions of the organization and also covers industry profile and company profile with their
objectives that the company have
This report gives an inside view about managerial functions operative functions of the organization
this report also features the McKinney’s 7s framework with reference to the organization and SWOT
analysis in the present scenario as result of the study it has been able to get hands on
CHAPTER: 1
ITC Ltd is one of India's foremost private sector companies. 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 and Agri-
Exports it is rapidly gaining market share even in its nascent businesses of Packaged Foods
& Confectionery Branded Apparel Personal Care and Stationery.ITC's wholly owned
Information Technology subsidiary ITC InfoTech India Ltd provides IT services and
solutions to leading global customers.ITC InfoTech has carved a niche for itself by
addressing customer challenges through innovative IT solutions. ITC's production facilities
and hotels have won numerous national and international awards for quality productivity
safety and environment management systems. ITC was the first company in India to
voluntarily seek a corporate governance rating.ITC was incorporated on August 24 1910
under the name Imperial Tobacco Company of India Ltd. As the company's ownership
progressively Indianised the name of the company was changed from Imperial Tobacco
Company of India Ltd to India Tobacco Company Ltd in the year 1970 and then to
I.T.C.Ltd in the year 1974.In recognition of the company's multi-business portfolio
encompassing a wide range of businesses - Cigarettes & Tobacco Hotels Information
Technology Packaging Paperboards & Specialty Papers Agri-business Foods Lifestyle
Retailing Education & Stationery and Personal Care - the full stops in the company's name
were removed effective September 18 2001. The company now stands rechristened ITCLtd.
During the year first six decades of the company's existence were primarily devoted to the
growth and consolidation of the Cigarettes and Leaf Tobacco businesses the seventies
witnessed the beginnings of a corporate transformation that would user in momentous
changes in the life of the company in the year 1925 the company set up Packaging &
Printing business as a strategic backward integration for ITC's Cigarettes business .It is
today India's most sophisticated packaging house. IN the year 1975 the company launched
its Hotels business with the acquisition of ahotelin Chennai which was rechristened 'ITC-
Welcom group Hotel Chola'. In the year 1979 they entered the Paperboards business by
promoting ITC Bhadrachalam Paperboards Ltd which today has become the market leader
in India .In the year 1985 the company set up Surya Tobacco Co .in Nepal as an Indo-Nepal
And British joint venture. In the year 1990 the company acquired Tribeni Tissues Ltd a
Specialty paper manufacturing company and a major supplier of tissue paper to the
cigarette industry. The merged entity was named the Tribeni Tissues Division (TTD).
1.3 LIMITATIONS:
1.4 INDUSTRYPROFILE:
The Indian FMCG sector is the fourth largest sector in the economy. FMCG is also
known as consumer-packaged goods they are low value relatively non-durable
household goods such as packaged beverages and other consumables sell quite fast
perspective low margins.
The launch of new products and increasing rural area market, a good established
distribution network, competition between the organized sector and un-organized
sector.
In the Indian FMCG sector major important role is contributing to the country GDP.
Recently the industry came up with the operations, supply chain production, general
management, penetration price and per capita level consuming product categories like
biscuit, skin care, cosmetics. The FMCG industry is highly competitive and along
with less operating cost to the distribution network.
By distribution channel:
By region:
In 2018, in terms of region, North America is expected to remain dominant and grow
at a steady pace in the FMCG market. However, Asia-Pacific is expected to grow at
the highest CAGR of 8.0%owingtochangesinlifestyles, which is led by globalization
and increase in working population. The rise in the affluent population and increased
penetration of internet and social media has increased the consumption of processed
and packaged food, which makes way for the growth of the FMCG market in the
region. Furthermore, an innovation in current products and introduction of new
products with attractive pricing is expected to provide growth opportunities for the
FMCG market in future.
The leading players in the FMCG market focus on providing customized solution to
consumers as their key strategies to gain a significant share in the market. Strategies
such as product launch and acquisition have also helped the key players to gain a
significant share in the global FMCG market. The key players profiled in the report
include Procter And Gamble, Unilever Group, The Coca Cola Company, PepsiCo Co.
Inc., Kimberly-Clark Corporation, Patanjali Ayurveda Ltd., Dr Pepper Snapple
Group, Inc., Revlon, Inc., Johnson & Johnson, and Nestle.
The main challenges companies must face up to in the future if they wish to grow
sustainably and profitably:
Innovation: The perception of innovation should not only focus on the product or
Growth of e-commerce:
By 2020, e-commerce revenues are expected to be more than USD 4 trillion. More
digitally savvy consumers will spend more time online. Messaging apps will also be
increasingly used within the context of sales and marketing.
E-commerce is growing four-times faster than offline sales, with global online sales
predicted to double within the next five years .By 2022, FMCGe-commerce is
forecast to make up around ten to twelve percent of global FMCG sales, creating a
USD 400 billion opportunity.
With more consumers leading an on-the-go lifestyle, the demand for convenience is a
bigtrendin2019.A greater appetite for convenience food and drinks that are ready-to-
consume and a desire for restaurant-quality foods at home will drive growth in this
sector.
The existing trend for ‘clean’ foods continues, inspired by greater awareness, interest
and understanding of wellbeing. There will be a greater emphasis on health and
wellness products, many of which combine research on nutrition and longevity with
traditional, ancient therapies.
Millennial consumers are seeking out new brands that they perceive as innovative
product lines and have their own distinct FMCG demands. They prefer to research
products by sharing information with their peers online and are much more
influenced by peers than a mass-brand channel approach.
Sustainability is set to take a more central role within FMCG in 2019 and beyond.
Consumers are becoming more aware and interested in how sustainability relates to
products across the whole supply chain, from the sourcing of ingredients to the
packaging.
The world is growing up, and whilst the millennial are exerting their influence, the
population landscape is being dominated by post-retirement FMCG shoppers. This is
particularly evident in Asia, where e.g. Japan tops the tables with predictions that the
over-60s will account for 37.3 percent of the population by 2030. Other rapidly aging
populations include Vietnam, Thailand and Sri Lanka.
ITC is the country's leading FMCG marketer, the clear market leader in the Indian
Paperboard and Packaging industry, a globally acknowledged pioneer in farmer
empowerment through its wide-reaching Agri Business, a pre-eminent hotel chain in
Indiathatisatrailblazerin'ResponsibleLuxury'.ITC'swholly-ownedsubsidiary,ITC
InfoTech, is a specialized global digital solutions provider.
Over the last decade, ITCs new Consumer Goods Businesses have established a
vibrant portfolio of 25 world- class Indian brands that create and retain value in
India. World class FMCG brands including Aashirvaad, Sun feast, Yippee! , Bingo! ,
B Natural, ITC Master Chef, Fabelle, Sun bean, Fiama, Engage, Vivel, Savlon,
Classmate, Paper raft, Mangaldeep, Aim and others have garnered encouraging
consumer franchise within a short span of time. While several of these brands are
market leaders in their segments, others are making appreciable progress.
CHAPTER 2
ORGANIZATION PROFILE
500875NSE:
Traded as
ITC
Indian subcontinent
Area served
Gulf countries
Sanjiv Puri
Key people (Chairman & MD)
Consumer
goodsCigarettes
Apparel
Education
Packaging
Agribusiness
Information technology
ITC Hotels
ITC Paperboards and Specialty Papers
Subsidiaries Division
ITC InfoTech
Sunrise Foods
Website www.itcportal.com
Footnotes / references
A Modest Beginning
The Company's beginnings were humble. A leased office on Radha Bazaar Lane, Kolkata,
was the centre of the Company's existence. The Company celebrated its 16th birthday on
August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed
J.L.NehruRoad) Kolkata, for the sum of Rs310, 000.This decision of the Company was
Historic in more ways than one. It was to mark the beginning of a long and eventful journey
into India's future. The Company's head quarter building, ‘Virginia House’, which came
upon that plot of land two years later, would go on to become one of Kolkata's most
venerated landmarks.
Though the first six decades of the company existence were primarily devoted to the
growth and consolidation of the Cigarettes and Leaf Tobacco businesses, ITC's Packaging
&Printing Business was setup in 1925 as a strategic backward integration for ITC's
Cigarettes business. It is today India's most sophisticated packaging house.
The Seventies witnessed the beginnings of a corporate transformation that would usher in
momentous changes in the life of the Company. In 1975, the Company launched its Hotels
business with the acquisition of a hotel in Chennai which was rechristened 'ITC- Welcom
group Hotel Chola' (now renamed My Fortune, Chennai). The objective of ITC's entry into
the hotels business was rooted in the concept of creating value for the nation. ITC chose the
Hotels business for its potential to earn high levels of foreign exchange, create tourism
infrastructure and generate large scale direct and indirect employment. Since then ITC's
Hotels business has grown to occupy a position of leadership, with over 100 owned and
managed properties spread across India under four brands namely, ITC Hotels - Luxury
Collection, WelcomHotels, Fortune Hotels and WelcomHeritage.
ITC Hotels recently took its first step toward international expansion with an upcoming
super premium luxury hotel in Colombo, Sri Lanka. In addition, ITC Hotels also recently
tied up with RP Group Hotels & Resorts to manage 5hotels in Dubai and India under ITC
Hotels'5- star 'Welcom Hotel' brand and the mid-market to upscale 'Fortune' brand
march13
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture.
In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was
changed to Surya Nepal Private Limited (Surya Nepal). In 2004, the company diversified
into manufacturing and exports of garments.
In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company
and a major supplier of tissue paper to the cigarette industry. The merged entity was named
the Tribeni Tissues Division (TTD).To harness strategic and operational synergies TTD
were merged with the Bhadrachalam Paperboards Division to form the Paperboards &
Specialty Papers Division in November2002.
Alsoin1990, leveraging its Agri-sourcing competency, ITC set up the Agri Business
Division for export of Agri-commodities. The Division is today one of India's largest
exporters. ITC's unique and now widely acknowledged e-Chou pal initiative began in 2000
with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million
farmers. Also, through the 'Chou pal Pradarshan Kept 'initiative, the Agri services vertical
DMS- BITM, BALLARI Page 22
ORGANISATION STUDY ON ITC LTD
On improving productivity of crops while deepening the relationship with the farming
community.
ITC launched line of premium range of notebooks under brand Paper Kraft in 2002. To
augment its offering and to reach a wider student population, the Classmate range of
notebooks was launched in 2003. Classmate over the years has grown to become India's
largest notebook brand and has also increased its portfolio to occupy a greater share of the
schoolbag.Years2007-2009sawthelaunchofPracticalBooks,DrawingBooks,Geometry Boxes,
Pens and Pencils under the' Classmate 'brand .'Paperkraft 'offers a diverse portfolio in the
premium executive stationery and office consumables segment.
ITC also entered the Lifestyle Retailing business with the Wills Sport range of international
quality relaxed wear for men and women in 2000. In 2006, Wills Lifestyle became title
partner of the country's most premier fashion event - Wills Lifestyle India Fashion Week –
that has gained recognition from buyers and retailers as the single largest B-2-B platform
for the Fashion Design industry. To mark the occasion, ITC launched a special 'Wills
Signature', taking the event forward to consumers.
In 2000, ITC spun off its information technology business into a wholly owned subsidiary,
ITC InfoTech India Limited, to more aggressively pursue emerging opportunities in this
area. Today ITC InfoTech is one of India's fastest growing global IT and IT-enabled
services companies and has established itself as a key player in offshore outsourcing,
providing outsourced IT solutions and services to leading global customers across key focus
verticals- Banking Financial Services & Insurance (BFSI), Consumer Packaged Goods
(CPG), Retail, Manufacturing, Engineering Services, Media & Entertainment, Travel,
Hospitality, Life Sciences and Transportation &Logistics.
ITC's foray into the Foods business is an outstanding example of successfully blending
multiple internal competencies to create a new driver of business growth. It began in
August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet
dishes .In 2002, ITC entered the confectionery and staples segments with the launch of the
brands mint-o and Candy man confectionery and Aashirvaad Atta (wheat flour). 2003
witnessed the introduction of Sun feast as the Company entered the biscuits segment. ITC
entered the fast growing branded snacks category with Bingo! In 2007. In 2010, ITC
launched Sun feast Yippee! To enter the Indian instant noodles market. In September2014,
ITC launched Gum on Chewing Gum marking the entry into the category of gums. The
Company entered the Fruit-based juices and beverages market with the launch of B Natural
Fruit beverages in January 2015. ITC's forayed into the dairy segment with the launch of
Aashirvaad Svasti Ghee in November 2015. Launched in April 2016, Fabelle chocolates are
ITC's premier offering in the luxury chocolate space. ITC forayed into the branded coffee
category in July 2016 with the launch of Sun bean Gourmet Coffee. In February 2017, ITC
launched ITC Master Chef super safe spices –the first –of -its-kind spices launched in India,
offering export quality super safe spices to the Indian homemaker. ITC Master Chef Prawns
were launched in June 2017 as the Company entered the Frozen foods segment .ITC's first
foray into fresh fruits and vegetables segment was marked with the launch of Farmland
Potatoes in November 2017 .In 2018, ITC forayed into the packaged milk segment with the
launch of Aashirvaad Svasti pouch milk and into dairy-based beverages with the Sun feast
Wonders’ range of milkshakes. The ITC Master Chef Frozen Snacks range was also
introduced the same year, making the Company's first venture into the frozen snacks
segment. In July 2020, ITC acquired spices maker Sunrise Foods, looking to augment its
product portfolio.
In just over a decade and a half, the Foods business has grown to a significant size under
numerous distinctive brands, with an enviable distribution reach, a rapidly growing market
share and a solid market standing.
2002: Agarbattis & Safety Matches - Supporting the Small and Cottage Sector
ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the
manifestation of its partnership with the cottage sector. Mangaldeep is a highly established
national brand and is available across a range of fragrances like Rose, Jasmine, Bouquet,
Sandalwood and 'Fragrance of Temple'.
ITC entered the Personal Care Business in 2005 and the portfolio has grown under 'Essenza
Di Wills', 'Fiama', and ‘Vivel’ Superia brands which have received encouraging consumer
response and have been progressively extended nationally. In May 2013, the business
expanded its product portfolio with the launch of engage deodorants. ITC marked its foray
into the health’s pace with the acquisition of the brand Savlon and Shower to Shower in
2015. In 2017, the business acquired the brand Charm is to enhance its skincare portfolio.
In 2018, ITC acquired the brand Nimyle to enter the floor cleaner space. In 2018, the
business also launched the Derma fique brand, foraying into the premium skincare product
territory. In 2020, the Personal Care Product Business launched multiple personal and home
hygiene products and entered the fruit and vegetable wash category with the launch of
brand Nimwash. In 2021, dish wash gel Nimeasy was launched.
In 2010, ITC launched its hand rolled cigar, Armentieres, in the Indian market. Armentieres
cigars are available exclusively at tobacco selling outlets in select hotels, fine dining
restaurants and exclusive clubs.
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
DMS- BITM, BALLARI Page 27
ORGANISATION STUDY ON ITC LTD
Removed effective September 18, 2001. The Company now stands rechristened
'ITC Limited'
Enduring value for the nation provides the motive force to sustain growing
shareholder value. ITC practices this philosophy by not only driving each of its
businesses towards international competitiveness but by also consciously
contributing to enhancing the competitiveness so the larger value chain of
which it is apart."
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. Over
time, the strategic forays into new businesses are expected to garners
significant share of these emerging high-growth markets in India.
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 Mission
Trusteeship
As professional managers, we are conscious that ITC has been given to us in 'trust' by all our
stakeholders.
We will actualize stakeholder value and interest on a long term sustainable basis.
Customer Focus
We are always customer focused and will deliver what the customer needs in terms of value,
quality and satisfaction.
We are result oriented, setting high performance standards for ourselves as individuals and
teams. We will simultaneously respect and value people and uphold humanness and human
dignity.
We acknowledge that every individual brings different perspectives and capabilities to the
team and that a strong team is founded on a variety of perspectives.
Excellence
We do what is right, do it well and win. We will strive for excellence in whatever we do.
Innovation
We will constantly pursue newer and better processes, products, services and management
practices.
Nation Orientation
We are aware of our responsibility to generate economic value for the Nation. In pursuit of
our goals, we will make no compromise in complying with applicable laws and regulations at
all levels.
2.4Workflow model
2.6 OWNERSHIPPATTERN:
Sanjiv Puri
Chairman & Managing Director
Sanjiv Puri (59) is the Chairman & Managing Director of ITC Limited.
Puri was appointed as a Whole time Director on the Board of ITC with effect from December
6,2015,Chief Executive Officer in February 2017 André-designated as the Managing Director
in May 2018.He was also appointed as the Chairman effective May13,2019.He is an alumnus
of the Indian Institute of Technology, Kanpur, and Wharton School of Business.
Nakul Anand
Executive Director
Nakul Anand (64), was appointed as a Whole time Director on the Board of ITC effective
January 3, 2011. In addition to overseeing the Hospitality, Travel & Tourism Businesses of
ITC.
Sumant Bhargavan
Executive Director
Sumant Bhargavan (57), was appointed as a Whole time Director on the Board of ITC
effective November 16, 2018. He is responsible for overseeing the FMCG Businesses...
Rajiv Tandon
Executive Director
Rajiv Tandon (67), was appointed as a Whole time Director on the Board of ITC effective
January 22, 2016. He is responsible for Finance, Accounting, Internal Audit & IT Functions...
2.7 Achievements/Awards:
Global Honors
Savlon Grand Prix 2018....
SABRE Awards South Asia 2018....
Travel Leisure India & South Asia 'India's Best Awards 2018'...
Porter Prize 2017 for 'Excellence in Corporate Governance and Integration'...
ITC's Savlon wins big at Cannes 2017....
Safaigiri Award 2016. ...
World Business Development Award 2012, RIO.
ITD's Manger factory won the Excellence in Practice Award given by the Association
for Talent Development (ATD), USA, 2020, for designing a system to correlate skill-
development inputs with business out comes.
ITC Limited has been adjudged 'Best Governed Company' at the 20th ICSI National
Awards for Excellence in Corporate Governance, 2020 in the Listed Segment: Large
Category
Mr. Nakul Anand, Executive Director, won 'The Corporate Hotelier of the World'
Award 2019 from HOTELS, USA
ITC has been globally ranked no.1 amongst peers and no.3 overall by ~sustainably', a
global Environmental, Social and Governance (ESG) rating company, for ESG
performance in the ~Food Products Industry'.
ITC's Agri Business received the Global Good Agricultural Practices (GAP)
certification, for its efforts in implementing sustainable agricultural practices with
chilli farmers in Andhra Pradesh, Karnataka and Telangana.
ITC received 2 Effie Awards in the ~Integrated Marketing Campaign' and ~Foods'
Categories (Silver Awards highest honors) for Aashirvaad Atta's ~Tarun's Tiffin'
advertisement campaign.
The Savlon 'Healthy Hands Chalk Sticks' campaign was listed among 'Iconic Work' of
the decade in Cannes Lions Creativity Report,2019
ITC won the' Break through Innovations Award 'in the Super star category from
Nielson, a global provider of market research, for its Engage ON product,2019
ITC Head Office, Kolkata received the ~LEED Platinum' Certification in Existing
Building Operation & Maintenance category from the U.S. Green Building Council.
ITC Medak Unit received the ~IGBC Green Factory Building PLATINUM'
Certification 2019 in new factories category from the Indian Green Building Council.
ITC's Kovai Paperboards factory only facility in India to be awarded the Alliance for
Water Stewardship Platinum-level Certification - the highest recognition for water
stewardship in the world in2019.
ITC Green Centre, Guntur received LEED PLATINUM Rating by the US Green
Building Council (USGBC) in2019
ITC's Paperboards Business was recognized as the Best Performer in the pulp & paper
sector by the Bureau of Energy Efficiency under the Perform, Achieve and Trade
Scheme in2018
ITC's Agri Business Division, Chirala Unit conferred the 'Sarvashreshtha Suraksha
Puraskar' by National Safety Council of India in2018
ITC's Spices Business won the Award for Excellence in Export from the Spice Board
of India in2018.
ITC to invest around ₹14,851cr under Next strategy, to look for acquisitions. NEW DELHI:
Business conglomerate ITC Ltd on Thursday said it plans to invest around USD 2 billion
(around ₹14,851 core) as part of its 'ITC Next' strategy, under which it will explore
opportunities to craft "disruptive business models".
CHAPTER 3
1. Hard elements
The hard elements of the McKinsey7s model comprise of strategy, structure, and systems.
The hard elements of the model are easier to identify, more tangible in nature, and directly
controlled and influenced by the leadership and management of the organization.
1.1 Strategy
The strategic direction and the overall business strategy for ITC Limited India First are
clearly defined and communicated to all the employees and stakeholders. This helps the
organization manage performance, guide actions, and devise different tactics that are aligned
with the business strategy. Moreover, the business strategy’s definition and communication
also make operations for ITC Limited India First more transparent and aligns the
The strategic direction for ITC Limited India First is also important in helping the business
guide employee, staff, and stakeholder behavior towards the attainment and achievement of
goals. SMART Goals are set with short and long term deadlines in accordance with the
business strategy. The business strategy helps employees decide tactics and behaviors for
attaining the set goals and targets to help the business grow.
1.2. Structure
ITC Limited India First has a flatter organizational hierarchy that is supported by learning
and progressive organizations. With lesser managerial levels in between and more access to
the senior management and leadership, the employees feel more secure and confident and
also have higher access to information. Moreover, the flatter hierarchy also allows quicker
decision- making processes for ITC Limited India First and increases organizational
commitment in the employees.
ITC Limited India First has high coordination between different departments. The company’s
departments often form inter-department teams for projects and tasks that require multiple
expertise. All coordination between different departments is effective and organized. ITC
Limited India First has a systematic process for initiating and monitoring coordination
between departments to ensure smooth work operations and processes – and goal attainment.
1.3. Systems
ITC Limited India first has defined and well-demarcated systems in place to ensure that the
business operations are managed effectively and that there are no conflicts or disputes. The
systems at ITC Limited India First are largely departmental in nature, and include, for
example:
- Finance
- Marketing
- Operations
- Sales
2. Soft elements
The soft elements of the McKinsey 7s model, in turn, include shared values, staff, skills, and
strategy. These elements are less tangible in nature and are more influenced by the
organizational culture. As such, the management does not have direct influence or control
over them. These elements are also harder to describe and directly identify – but are equally
important for an organization’s success and improved performance.
The core values at ITC Limited India First are defined and communicated to foster a creative
and supportive organizational structure that will allow employees to perform optimally, and
enhance their motivation and organizational commitment. The core values at ITC Limited
India First include, but are not limited to:
- Creativity
- Honesty
- Transparency
- Accountability
- Trust
2.2. Style
ITC Limited India First has a participative leadership style .Through a participative
leadership style, ITC Limited India First is able to engage and involve its employees in
decision-making processes and managerial decisions. This also allows the leadership to
The employees and different managerial groups to identify any potential conflicts for
resolution, as well as for feedback regarding strategic tactics and operations. Through its
participative leadership, ITC Limited India First is able to enhance employee motivation, and
increase organizational commitment and ownership amongst employees as well as other
stakeholders.
2.3. Staff
ITC Limited India First has a sufficient number of employees employed across its global
operations. Employees for different job roles and positions are hired internally as well as
externally – depending on the urgency and the skill levels required. Based on this, it is seen
that ITC Limited India First has employees who are skilled as per there requirements of their
job roles and positions. All employees are given in house training to familiarize themselves
with the company and its values. External training along with in-house training is provided
for skill level enhancement.
All job roles and positions are designed to facilitate the achievement of business goals, and as
such, employee skill level at ITC Limited India First is sufficient to achieve the business
goals of the company.
2.4. Skills
ITC Limited India First has a commendable workforce, with high skills and capacities. All
employees are recruited based on their merit and qualifications .ITC Limited India First
prides itself on hiring the best professionals and grooming them further to facilitate growth
and development.
ITC Limited India First has defined tasks and job roles and hires and trains employees for
skill levels accordingly with respect to those. The company ensures that all its job
requirements are met and that employees have the sufficient skills to perform their respective
jobs in accordance with the values and culture as well as the business goals and strategy of
Consumer faces low buying power because of fragmented and have little influence
on product price. Comparing the buyer power retailers it is very high since they are
needed to negotiate the price with their competitors.
ITC Consumer product faces few quantity of supplier power simply due to the cost
they effected when switching supplier. Suppliers are doing high volume of business
with these companies are also positive value to their customers.
The amount of capital investment required to enter in certain house hold consumer
products needs more, so the threat of new entries may results fairly low.
Threat of substitutes
With in the business sector, brand name proceeds to get success with building a
competitive advantage, but even though the pricing power of the products can be
eroded.
Industry rivalry
For most industries the intensity of competitive rivalry is the major determinant of
the competitiveness of the industry
CHAPTER 4
SWOT ANALYSIS
Strengths
ITC’s hotel and property businesses area also doing well. With a portfolio like this,
ITC has become one of India’s most dominant conglomerates and is revered all over
the world.
Weaknesses
High Proportion of Tobacco Product Revenues: ITC has made continuous efforts
to separate the FMCG sector from over-dependence on tobacco products and has
been successful in doing so to some degree. Nonetheless, tobacco products remain
the biggest source of revenue contributing more than 60 percent to FMCG’s
overall revenue.
Tobacco Products Association has an impact on the brand: ITC has made a great
deal of effort to enhance its corporate image, but the fact that ITC has many
tobacco products in its portfolio has an impact on its corporate image. The
increase in the Tobacco Tax has an effect on revenue: due to the rise in the tax on
tobacco products, rates and, subsequently, profits are affected.
ITC is still dependent on its tobacco sales, and people have cheaper alternatives
and other brands.
The hotel industry has not been able to build an enormous market share.
Opportunities
should use its distribution channel in the Personal Hygiene and Food Processing
Industry to capitalize on the growth of categories and thus increase revenue.
Tap opportunities created in the rural sector: the rising rural sector in India and
other developing nations are generating enormous opportunities to boost the
company’s bottom line.
Mergers and acquisitions are planned to reinforce the brand.
Increased people’s buying power, thus rising competition. More exposure to hotel
chains to increase market share.
Threats
CHAPTER -5
ANALYSIS OF FINANCIAL STATEMENTS
Non-Current Investments
3,465.92 3,091.69 2,882.13 2,432.64 2,191.52
Unquoted Book Value
CURRENT INVESTMENTS
Current Investments Quoted
4,302.03 3,122.85 4,624.25 1,792.59 2,380.97
Market Value
Current Investments Unquoted
9,774.63 14,061.11 7,885.76 8,111.65 7,723.02
Book Value
RAW
MATERIALS
STORES, SPARES
AND LOOSE
TOOLS
C
N
N
N
N
F
A
N
C
C
2021 = 31,815.42/10,174.17
= 3.13
2020 =36,506.91/9,089.41
=4.02
Interpretation; - the good current ratio is between 1.2 to 2 but in the company the
Current ratio is 3.13 times more current assets than current liabilities to cover its debts
2021
Quick ratio = current assets –stock / current liabilities
2020
=3.13
Interpretation; - the position of the company is better as the quick ratio is more than
1 higher the quick ratios better the position of the company
= 9,470.87
= 8,038.07
Interpretation; - in both the years it is noticed that the current assets are more
When compared to current liabilities
FINAL ANALYSIS
The overall financial stability, solvency and liquidity position of the company is
Satisfactory and good.
CHAPTER - 6
LEARNING EXPERIENCE
I had collected all details about their business from the Google and company
website of the “ITC”, Articles, Magazines, websites helped by giving guidance to
know about the profile of the company new experience with online internship.
During the organization study we felt fear about whether we complete our
project work or not? But after. When we taken guidance from faculties we are
able to complete my project work successfully. We learnt about the company
profile, and all other their competitors around them.
At lastly, we are remembering the ITC Company who had informed some
suggestion and give me some information about the company and their work.
I also learnt that participative leadership style motivates each and every
employee to great extent possible. It boosts up the morale of the employees.
Apart from these things, I applied MC Kinsey’s 7S Frame work and Porter Five
force Model with special reference to organization under study namely structure,
strategy, style, staff, shared values, skills and systems and lastly the SWOT
analysis of the organization
At last I thank our Institute as well as the University for providing such an
opportunity in learning and understanding the various departments of ITC.
BIBLIOGRAPHY
I BOOKS
• Fred R .David
Strategic management, 13th edition, publishers Pearson education Part 5 key strategic
management topics page. No 308.
• C. Paramasivan and T. Subramanian
II WEBSITES
• http://www.economywatch.com/
• https://economictimes.indiatimes.com/