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 amp Packaging ID: 929286
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Slide1
Corporate Strategy
ITC
Slide2ITC 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
Slide3Create 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
Slide4Ensure 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
…
Slide5Continuously 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
…
Slide6Analysis
SWOT
Slide7ITC 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
Slide8ITC 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
Slide9Tap 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
Slide10Strict government regulations and policies regarding
cigarettes
Intense
and increasing competition amongst other FMCG companies and hotel
chainsFDI in retail thereby allowing international brands
Threat
Slide11VRIO 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
Slide12Must 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
Slide13ITC 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?
Slide14Due 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
Slide15For 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
Slide16This 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
Contd
…
Slide17You
Thank