A Case Analysis on Itc Limited
By: stanley22 • Research Paper • 1,473 Words • August 11, 2014 • 1,085 Views
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 |