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A Case Analysis on Itc Limited

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A Case Analysis on Itc Limited

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A Case Analysis on ITC Limited

Submitted by

          Ashok Kumar            13AC06

          Raveen Selvan            13AC28

          Revathi Priya            13AC30

          Stanley Jebakumar   13AC36

          Vinoth Kumar            13AC44

Submitted to : Ms. B. Uma Maheswari

Introduction

  • An Indian Conglomerate (103 years old)
  • Has Five Diversified Segments (FMCG, Hotels, Paperboards, Paper & Packaging, Agri Business)
  • 2012-2013 Revenue – US$ 8.31 Billion
  • One of Forbes 2000 list
  • Only company in the world to be Carbon Positive, Water Positive, Solid Waste Recycling Positive

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.

Mission

        To enhance the wealth generating capability of the enterprise in a globalising environment, delivering superior and sustainable stakeholder value.

Corporate Strategies

  • Continue to focus on their existing portfolio
  • Ensure that their business is world class and internationally competitive
  • Enhance competitive power of the portfolio
  • Create distributed leadership within the organization
  • Continuously strengthen & refine Corporate governance process

Developed Vision

        To make ITC as the world’s most valuable corporations through developing technology, many more new innovative products that add value to the customers and the company’s stakeholders.

Developed Mission

        To enhance the wealth generating capability of the enterprise in a digital environment and create a new superior digital way to reach the customers, delivering sustainable stakeholder value.

Porter’s Five Force Model

Rivalry Among Competitors

Attractiveness

Remarks

Low

High

1

2

3

4

5

No of Competitors

Large

ü

Small

Competitors like HUL, Cadbury, P&G

Industry Growth

Slow

ü

Fast

FMCG sector grows 17.3% every year (IBEF)

Fixed Cost

High

ü

Low

Economies of Scale avoids most of the fixed costs

Differentiation

Low

ü

High

Not much differentiation is found unless they have varieties

Switching Cost

Low

ü

High

No cost involved

Openness in terms of sales

Secret

ü

Open

The process is known

Excess Capacity

Large

ü

Small

Demand is always high in FMCG sector

Strategic Stakes

High

ü

Low

FMCG sector is stable, so people invest more

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