Premium Essay

Indian Tobacco Company: a Strategic Analysis

In: Business and Management

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

Free Essay

British American Tobacco Company Overview

...Company Overview B ritish American Tobacco is a British multinational tobacco company headquartered in London, United Kingdom. It is the world’s second-largest quoted tobacco company by market share (after Philip Morris International), and has a leading position in over 50 countries and operations in more than 180 countries. Its brands include Dunhill, Kent, Lucky Strike and Pall Mall. BAT has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. As of 26 December 2011 it had a market capitalization of £59.2 billion, the sixth-largest of any company listed on the London Stock Exchange. It has a secondary listing on the Johannesburg Stock Exchange. They are leading more than 50 countries and have their presence in more than 180 countries with approximately 50,000 employees. BAT is committed to providing consumers with pleasure through excellent products, and to demonstrating that they are meeting their commercial goals in ways that are consistent with reasonable societal expectations of a responsible tobacco group in the 21st century. BAT is designed to deliver their vision and build shareholder value. It is based on growth, funded by productivity and delivered by a winning organization that acts responsibly at all times. History Born international O n 29 September 1902 the UK’s Imperial Tobacco Company and the American Tobacco Company of the United States form a joint venture, the British American Tobacco Company,......

Words: 5892 - Pages: 24

Premium Essay

Strategic Analysis of Nike Inc as a Company in the Sport Equipment Industry

...times the sports sectors have began to see the importance of strategic marketing and planning. Researchers have said that if strategic marketing activities are not improved sports would not be able to endure the competition from the entertainment industry. This purpose of research is to: (A) Evaluate the conditions of the Marketing environment of Nike INC as a sports equipment company (B) Evaluate the recourse capability of Nike INC using appropriate analytical tools, highlighting its thresholds and unique resources and core competences (C) Evaluate the strategic fit of Nike INC using the analysis gather highlighting its strength and weakness. Company’s Profile. Nike INC is a sport Equipment company, It was founded on the 25th of February 1964 by Bill Bowerman as at then it was known as Blue Ribbon Sports. Its named was official changed on the 30th May 1978 to Nike INC. It is said that Bill Bowerman developed his interest in starting up a business while in Stanford. He believed his business would grow because as at then most Sport Shoes companies spent a fortune on labour by cost by manufacturing their Athletic Sports Footwear in countries like the USA were labour cost were high. He was convinced that by out sourcing production to Japan where labour is cheaper, Blue Ribbon prices would be cheaper than its contributor and thus it break into the Athletic Foot Ware industry and this was the beginning of the company which later became Nike INC. Nice INC logo is an......

Words: 2896 - Pages: 12

Premium Essay

Smoking and Tobacco Companies

...Reflective Journal 3 For our third Reflective Journal, we will be analyzing an article that interests us on the dangers of smoking, and reading two articles from the monograph provided, named, “The Role of Media in Promoting and Reducing Tobacco Use,” published in Health Volume 98. From the readings, we will comment and discuss whether or not there should be policy regulating tobacco industry advertising. The article chosen for discussion is, “Cigarette Smoking Among Adults and Trends in Smoking Cessation,” published in the Morbidity and Mortality Weekly Report by CDC.gov, November, 2009. This article explores percentages of cigarette smoking in adults during the period from 1998 to 2008, including their demographics and characteristics. Data was gathered from the 2008 National Health Interview Survey (NHIS). Smoking population was defined as non-institutionalized adults, eighteen years and older, who reported smoking daily; the demographics of this population were identified as smokers being predominantly male, of American Indian/Alaska Native ethnicity, followed by Black non-Hispanic and White non-Hispanic. Regarding their education, this population shows low educational attainment (GED or high school); the largest age group of twenty-five through forty-four years old was followed closely by the eighteen- through twenty-four-year-old group. The income level of the majority of smokers is found to be just below poverty levels (Dube, Asman, Malarcher, & Carabollo, 2009)...

Words: 675 - Pages: 3

Premium Essay

Adr Gdr on Indian Company

...performance of Indian Corporations International Corporate Finance By Group 10 Shaurya Anand 11P047 Hemant Chawla 11P079 Ishan Agrawal 11P081 Narsinha Jawalgaonker 11P082 Table of Contents 1. Introduction 3 2. Regulatory Framework 3 3. Why should there be any impact on liquidity or volatility 4 4. Analysis 5 5.Impact on Liquidity 10 Conclusion: 13 References 14 1. Introduction Increasing globalization in the last decade has made Indian financial markets more integrated with the rest of the world. As a result, many Indian companies have gone for raising funds in foreign capital markets by way of issuing ADRs and GDRs. Though cross listing is viewed positively by many corporations, many researchers have shown that changes in liquidity and volatility may affect quality negatively in the domestic markets. Since companies from emerging markets go for raising funds from foreign liquid markets, some policymakers fear that if allowed unrestricted, this may impact the development of local equity markets and hence prove disastrous for emerging markets. Existing studies show that effect of foreign listing depends on factors specific to firms, market and country. Indian GDRs trade on European exchanges and ADRs trade on US exchanges. Also, since US requires higher quality disclosures than Europe, cost of listing in US markets is higher. 2. Regulatory Framework As part of its economic liberalization policy in 1992, Indian government allowed......

Words: 1629 - Pages: 7

Premium Essay

Strategic Human Resource Management Case Analysis at Home Depot Company

...Strategic Human Resource Management Case Analysis at Home Depot Company By Musalia Doughty Table of Contents Executive Summary 3 1.0 Overview of the Organization 3 1.1 Corporate Hierarchy of Home Depot 4 2.0 Strategic Human Resource Management at Home Depot 5 2.1 Workforce Diversity Management at Home Depot 5 2.2 Disadvantages of Workforce Diversity 7 3.0 Strategy to Counter Diversity Issue at Home Depot 7 3.1 Employee Relations 8 4.0 Implementing Employee Relations at Home Depot 8 4.1 Team-working 9 4.2 Functional flexibility 10 4.3 Employee Involvement 10 4.4 Reward Mechanisms 10 5.0 Recommendations 11 6.0 Conclusion 11 7.0 List of references 12 Executive Summary Human resource management is a sensitive issue in an organization. The performance of any organization is determined by the workforce management practices in place. Owing to the competitive nature of workforce management, human resources are managed strategically (Aghazadeh 2003, p. 201). In this paper, a case study of strategic human resource management has been done. The company considered is called Home Depot. The paper briefly explores the company and its human resource strategy that was found to be diversity management. Thereafter, the paper has explored possible problems that company faces as a result of its diversity strategy. In response to the problems, the paper suggests inclusion of employee relation model in the diversity strategy already...

Words: 2918 - Pages: 12

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......

Words: 907 - Pages: 4

Premium Essay

Indian River Citrus Company (a)

...Brief Introduction Indian River Citrus Company is a leading producer of fresh, frozen, and made-from-concentrate citrus drinks. Currently, the company has three projects which are introduction of a new product known as lite orange juice; two mutually exclusive projects, Project S and Project L; and a fleet of delivery trucks with an engineering life of three years. All projects have its advantages and drawbacks. Hence, capital budgeting for each project is made for decision-making purpose. Benefits and Drawbacks of each project Project 1: Introduction of lite orange juice The advantage of lite orange juice is that there are currently no similar products in the market. Orange juice offered in the current market is high in calorie and results many consumers reluctant to drink it. However, lite orange juice is 35% lesser calories. This product is not offered in the current market yet, hence the company is in a strong position to monopolize the lesser calories orange juice market. Furthermore, the second advantage is that it will utilize the section of the main plant which has been unused for several years and causing some deterioration. The utilization of the unused section will also remove the rehabilitation expense. Besides that, used machinery that would be purchased is inexpensive, and it would be depreciated under the MARCS 3-year class, which is a special tax ruling. Lastly, lite orange juice would reduce regular orange juice production costs by $20,000 per year, on a...

Words: 1664 - Pages: 7

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......

Words: 2244 - Pages: 9

Premium Essay

Indian It Industry Internal Analysis

...Indian IT Industry Internal Analysis Ravi Rajan Vinod Mahajan Arun S Madhava Gopal Praveen Waychal. Firms considered 1. Infosys Technologies Ltd. TABLE OF CONTENTS INFOSYS TECHNOLOGIES LTD 4 Brief History 4 Firm Profile 6 Financial Summary 6 Financial growth over the years 6 Peer Comparision over the years 7 Revenue Growth from Different Geographical segments 8 Revenue growth from industry segements over the years 8 Services Offered by Infosys 9 Revenue Breakup by service offerings 10 Organization Size 11 SWOT Analysis 12 PSPD model 12 Strengths : 13 Weaknesses: 13 Threats: 13 Opportunities : 13 Value Chain Analysis 14 Core Competencies 16 Infosys Global Delivery Model 16 Infosys brand equity and talent search 17 Process and quality compliance standards. 18 INFOSYS TECHNOLOGIES LTD Brief History • Founded in 1981 by Narayana Murthy and six others. • Second Largest IT company • Offices in 22 countries • Development Centers in India, China, Australia, UK etc. • Went Public in 1993 • Total No:......

Words: 1159 - Pages: 5

Premium Essay

“Starbucks Coffee Company: the Indian Dilemma”

...Ateneo De Zamboanga University School of Management and Accountancy CASE ANALYSIS “Starbucks Coffee Company: The Indian Dilemma” Prepared by: Barbaso, Jan Paulo E. Bejerano, Hyacinth Vienne A. Deogracias, Scepter Jr. O. March 14, 2014 Background of the Case With a rich history, in 1994, Starbucks Coffee Company was formed and Howard Schultz became its President. Since then the company was the number one coffee retailer and continuously expands its business globally. It pursued international expansion with three objectives in mind: to prevent competitors from getting a head start, to build upon the growing desire for Western brands, and to take advantage of higher coffee consumption rates in different countries. And so seeing that the Asian market is in its developmental stage, it took this opportunity to be a leader in a new industry and so it concentrated its expansion efforts mainly in Asia starting with Japan and China. In 2002, Starbucks announced for the first time that it was planning to enter India. Later it postponed its entry as it had entered China recently and was facing problems in Japan. In 2003, there was news again that Starbucks was reviving its plans to enter India. In 2004, Starbucks officials visited India but according to sources they returned unconvinced as they could not agree on an appropriate partner for its entry. A statement coming from Starbucks said that “Without sounding arrogant, we are looking at our own strategy. There is......

Words: 2291 - Pages: 10

Premium Essay

Advertising and Communication at the Tobacco Company

...The Case of the Tobacco Company: The Best Tobacco Company (BTCO) is a public company, which has been traded on the Trinidad and Tobago Stock Exchange since 1970, with 20% of its shares being held by local investors. Among its many offerings of top quality tobacco products to the region, BTCO has the following brands: Wenson & Sedges, de Boehme, Sunhill, Pallisades and Dunway, but there are at least eight other less popular ones. In addition to manufacturing for its other Caribbean business partners, BTCO also markets its products in Trinidad, where it is domiciled. During its long history, the company has, at various times, invested in the activities of tobacco farmers, but now obtains most of its leaf from Brazil. There have been challenges in recent times, though, as there is a growing anti-tobacco lobby in the region. The Tobacco Control Act (2009) has been enacted in phases in Trinidad and Tobago since February 2010, and has effectively outlawed smoking in public spaces. Similar legislation exists in other Caribbean islands, such as Barbados, Puerto Rico, the Cayman Islands and Jamaica. Prior to the furore over smoking, the Best Tobacco Company had been heavily involved in sports promotions, as evidenced by its long term sponsorship of the Trinidad and Tobago Sports Foundation and its annual awards. Heavy criticism of its billboard ads followed this furore and soon, all of its advertising in all media was under attack, despite claims of “responsible product......

Words: 578 - Pages: 3

Premium Essay

Analysis of Indian Pharmaceutical Industry

...Executive Summary 6 5) Chapter 1: Economic Analysis 7 6) Chapter 2: Industry Analysis 9 * Industry Life Cycle * Porters 5 Forces * SWOT * PESTLE * Correlation 7) Chapter 3: Company Analysis 24 * Company Profiles (10 Companies) * Financial Ratio Analysis * DCF Valuation * Valuation Shares 8) Conclusion 74 9) Bibliography 76 RESEARCH OBJECTIVES Research Project Topic: “Analysis and Valuation of the Indian Pharma Sector” The research objectives of this specialization project are: 1) Identifying the key indicators of the Global Pharma Industry 2) Understand and analyze the Indian Pharma Industry and identify the prominent players. 3) To examine the trends in the pharma industry 4) Fundamental and Technical Analyses of the Top 10 pharma companies in India. The main objective of this study is: 1) Valuation of the Top 10 Pharma companies 2) Finding the correct share price of the company 3) Making investment decision of- Buying, Selling or Holding the stocks of the respective pharma company. EXECUTIVE SUMMARY * Global Pharma......

Words: 11741 - Pages: 47

Free Essay

Analitical Analysis on British American Tobacco

..._______________________________________________________________ 6 Literature Review Company Background _______________________________________________________ 7 Company Mission and Vision __________________________________________________ 8 Organization Chart ___________________________________________________________ 9 How the Business was formed Articles and By Laws of Corporation ____________________________________________ 10_ Advantages and Disadvantages of Business _______________________________________ 12 Detains of number and types of product __________________________________________ 15 Industry Analysis Major Competitors __________________________________________________________ 17 SWOT Analysis ____________________________________________________________ 19 Conclusion ________________________________________________________________ 21 References _________________________________________________________________21 Executive Summary Bangladesh is Asia Pacific’s most promising opportunities for Tobacco cultivation due to vast cultivable lands and suitable weather. BAT symbolizes a name - a state of mind. From the beginning, it has today burgeoned into one of the top line conglomerates in Bangladesh There are currently two leading Tobacco corporations which are British American Tobacco(BAT) and Philip Morris International(PMI). Also there are few more local companies like Akij group, Abul khair & Tobacco, Husna Tobacco etc. At the end of......

Words: 3067 - Pages: 13

Premium Essay

Case Analysis of Ban of Tobacco Advertising in India

...Case Analysis of ban of tobacco advertising in India Here is the brief background information. On Feb 6, 2001 Indian government announced they were going to enforce a ban regarding tobacco advertising in their country. Banning included barring tobacco industries from advertising their products, sponsoring sport or cultural events. The ban was aimed to discourage young mind in India to take part in smoking. The ban, however, heated a debate between the supporters of tobacco companies and the opposition parties. In this paper, I will summarize the arguments that support the ban on tobacco advertising in India and the arguments that oppose the ban. In addition, I will discuss the conflict of interest issue pertaining to Indian government as well as I will describe my opinion on what governments should do in regards to tobacco advertising. 1. Summarize the arguments in favor of the ban on tobacco advertising in India To begin with, the advocates of the ban argued that this action of government was nothing unconstitutional. The government, in fact, has the right to interfere since their main concern was their citizen well-being. They gave this example. We know that guns are bad, so every nation has banned the public advertisement against guns so why tobacco should has a special privilege? Secondly, they used statistic from World Health Organization (WHO). They pointed out that over 3 million were killed by consuming tobacco products in 1990 and the death rate increased to......

Words: 927 - Pages: 4

Free Essay

Strategic Analysis

...UNIVERSITY OF STRATHCLYDE GRADUATE SCHOOL OF BUSINESS MASTER OF BUSINESS ADMINISTRATION STRATEGY ANALYSIS & EVALUATION ASSIGNMENT 2005 The VSM Group Prepared by: Name Intake Reg No. Ivan HO MacNab 200455775 Vui Soon HO MacMaster 200352369 Franco LEE MacNab 200492442 Kim Loong NG MacNeil 200459087 Roland TAN MacNeil 200459176 1 EXECUTIVE SUMMARY 1 2 VSM GROUP 1 2.1 Organisational Purpose 1 2.2 Corporate Governance 2 2.3 Stakeholders 2 2.4 Organisational Performance 2 3 MACRO ENVIRONMENT 2 3.1 PESTEL Analysis 2 3.2 Scenario Building 3 4 SEWING MACHINE INDUSTRY 3 4.1 Global Business Environment 3 4.2 Market Analysis & Structure 3 4.3 Industry Analysis 4 4.4 Competitor Analysis 4 4.4.1 Market Segmentation 4 4.4.2 Strategic Group Analysis (SGA) 5 4.4.3 Customer Value 5 5 STRATEGIC CAPABILITIES 6 5.1 Resources and Competencies 6 5.2 Diagnosing Strategic Capability 6 5.3 Development of New Competencies 7 6 COMPETITIVE/BUSINESS STRATEGY 7 6.1 Basis of Competition 7 6.2 Sustaining Competitive Advantage 7 6.3 Basis of Future Competitive Strategy 7 7 STRATEGIC OPTIONS 8 7.1 Improvement on Operating Profits 8 7.1.1 Production Relocation 8 7.1.2 Revenue Growth 8 7.2 Long-term Growth and Strategies 8 7.2.1 Market Diversification 9 7.2.2 Revenue......

Words: 12176 - Pages: 49