Corporate Strategy ITC ITC is a board-managed professional company, committed to creating - PowerPoint Presentation

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Corporate Strategy

ITC

ITC is a board-managed professional company, committed to creating enduring value for the nation and the shareholder. It has a rich organisational culture rooted in its core values of respect for people and belief in empowerment. Its philosophy of all-round value creation is backed by strong corporate governance policies and systems.

ITC

Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organisational capability with opportunities in domestic and export

markets

Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging,

Agri

Business and Information TechnologyBenchmark the health of each business comprehensively across the criteria of Market Standing, Profitability and Internal Vitality

Corporate Strategy

Ensure that each of its businesses is world class and internationally competitive

Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities residing in ITC’s various

businesses

Create distributed leadership within the organisation by nurturing talented and focused top management teams for each of the

businessesContd

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Continuously strengthen and refine Corporate Governance processes and systems to catalyse the entrepreneurial energies of management by striking the golden balance between executive freedom and the need for effective control and accountability.

Contd

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Analysis

SWOT

ITC has a strong and experienced management

Strong brand presence, excellent products advertising

Diversified product and services portfolio which includes FMCG, Hotel chains, paper & packaging and agri-business

Over 6500 E-

Choupal CSR activities and sustainability initiatives enhance ITC’s brand image reaching over 4 million farmersITC limited employees over 25,000 people

Excellent research and development facilities

Strength

ITC is still dependant on its tobacco revenues and people have cheaper substitutes and other brands

Hotel

industry has not been able to create a huge market share

Weakness

Tap rural markets and increase penetration in urban areas

Mergers

and acquisitions to strengthen the

brand

Increasing purchasing power of people thereby increasing demandMore publicity of hotel chains to increase market share

Opportunity

Strict government regulations and policies regarding

cigarettes

Intense

and increasing competition amongst other FMCG companies and hotel

chainsFDI in retail thereby allowing international brands

Threat

VRIO approach to human resources was given by Jay Barney in 1991

VRIO framework is resource-based view or an economic tool used to determine the strategic resources available to a

firm

The fundamental principle of this approach is that competitive advantage of a firm lies primarily in the application of the bundle of valuable resources at the firm s

disposalAnalysis of ITC through VRIO approach

Must employ talented and skilled work pool who will be experienced enough to implement the business level strategies by controlling the

operations

This is looked after by the Human Resources department,

which

is able to create VALUEOnly value-adding resources can lead to competitive advantage, whereas non-value-adding capabilities may lead to competitive disadvantageTo

separate the value adding employees from the others companies like ITC have a excellence performance monitoring system in place paired with a reward for performance

policy

Value

ITC in itself offers the kind of experience which makes all its employees rare in the industry

The company also visits the best management schools every year to pick up the rarest resource in the country

Talent

It trains and develops it s staff at all hierarchical levels to foster competent leaders who will be able to take on more responsibility in the future, this makes it s HR a distinctive

resourceIs the Human Capital available to ITC, Rare?

Due to the support of a strong Training and Development module it becomes difficult to imitate the talent at ITC

Due to In-House Training and OJT’s,

Roleplay’s

at the T&D department, it becomes difficult to imitate

Imitability

For people to provide competitive advantage, organizations systems and practices must be exploited to the maximum

This involves a complex task of creating synergies between different departments and units in order to exploit the resources available to the

company

The organizational structure of ITC is not the simplest, as it has multiple units across industries and

regionsOrganization

This does lead to confusion and wastage of resources

It is an area where there is room for improvisation as more synergies and harmonies between different business units can create more wealth for the company and its

stakeholders

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You

Thank