ITC LIMITED CASE STUDY

A case study on ITC (imperial Tobacco Company)

1. (Imperial Tobacco Company)
ITC LIMITED
CASE STUDY
Virginia House,
37 Jawaharlal
Nehru Road
Kolkata WB IN
700071
-By Sanskriti Tomar

2. Organisation Profile
01
Business Overview
02
Micro Environment Analysis
05
SWOT Analysis
06
Table of contents
Product/Service Portfolio
03
PESTLE Analysis
04
07
08 09
Problem / Solution Bibliography Conclusion

3. Mission and Vision
statement
To enhance the wealth
generating capability of the
enterprise in a globalising
environment, delivering
superior and sustainable
stakeholder value.
Sustain ITCs 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
VISION

4. 02 Business Overview
 

Year of establishment : 1910
ITC Founder : British owned company registered in Kolkata


Number of Employees (2022): 23,829


Type: Public
Category: Consumer Products, Hotel and Services
Sector : FMCG


Annual Revenue (FY2022):  ₹ 90,104 crore

Profit | Net income (FY 2021): ₹ 15,058 crore
Number of countries present in : 90 countries & 60 Locations in
India

5. Incorporated under the
name Imperial Tobacco
Company
Entrance into hotel
industry
Entrance into FMCG and
infotech
Entrance into personal care
industry
ITC’S Timeline
1910
1975 2005 2022
ITC enters the Paperboard
business via the promotion of
Bhadrachalam Paperboards Ltd.
1979
1990
ITC acquires Tribeni Tissue Ltd
and sets up the Agri business
Division for export of agri-
commodities
2000
ITC replaces Tata Consultancy
Services as the most admired
business in India
2014
On March 31, 2022, Limited
India was one of the most
profitable FMCG
businesses in India, with
gross sales of 90,104
crores and a net profit of
15,058 crores

6. 03 Business Portfolio
FMCGPaperboard &
Packaging
Information
Technology
Agri
Business
HotelsITC Limited has over 50 FMCG products,
across categories such as Foods,
ITC's Packaging & Printing Business is
the largest value added converter of
paperboard packaging in South Asia
ITC Infotech is one of India’s fastest
growing global IT and IT–enabled
services companies and has established
itself as a key player in offshore
outsourcing, providing outsourced IT
solutions and services to leading global
customers across key focus verticals
ITC Hotels is one of India’s largest and
fastest-growing luxury hotel chains
offering comprehensive hospitality
solutions through more than 100 iconic
hotels in over 70 destinations in the
country.With ‘Responsible Luxury’ as
its guiding premise,
ITC's Agri Business is the
country's second largest
exporter of agri-products.
It currently focuses on exports
and domestic trading of: Food
Grains, Marine Products,
Processed Fruits, Coffee

7. 04 PESTEL Analysis
P E S T E L
Political Economical Social
•Government
regulations and
restrictions on the
tobacco industry.
•Taxation policies
affecting
profitability and
pricing strategies.
•Trade policies
influencing export-
import activities.
•Income levels and
purchasing power of
consumers.
•Government economic
policies, such as fiscal
and monetary
measures, that can
impact ITC's cost of
capital and investment
decisions.
•Profit margin is high
and thus, it will yield
higher level of returns
over comparatively
lesser input
•Demographic trends,
such as population
growth, aging
populations, and
urbanisation, that can
shape market size and
target segments
•Increasing demand for
sustainable and
socially responsible
products
•Social media trends
and digital platforms
that impact marketing
and advertising
strategies.
•Disruptive technologies
and innovations that may
pose opportunities or
threats to ITC's existing
business models.
•Cybersecurity risks and
data protection
regulations that impact
ITC's digital operations
and customer privacy.
•Infrastructure
development and digital
connectivity that can
affect distribution
channels and reach to
consumers
Technological
•Natural resource
availability and
sustainability practices
that impact ITC's sourcing
and supply chain
management.
•Climate change resilience
strategies and
environmental impact
assessments that
influence ITC's operations
and product development.
• Shifts in consumer
attitudes towards
environmentally friendly
products and social
responsibility initiatives.
•Product safety
regulations and product
liability laws that affect
ITC's manufacturing
processes and quality
control measures
•Because of the smoke
and tobacco law, the
company production
was affected
•Intellectual property
protection and
enforcement measures
to safeguard ITC's
brands and innovations.
Environmental Legal

8. 05 MICRO ENVIRONMENT ANALYSIS
Customers
Competitors
Suppliers
Distributors & Retailers
Shareholders
•Understanding consumer preferences across sectors like FMCG, hotels,
agri-business, paperboards, and packaging.
•Analysing customer behaviour, needs, and changing trends to tailor
products and services accordingly.
•Identifying and analysing competition within each business segment.
•Competitors include Hindustan Unilever, Nestle, Britannia, Marriott, Taj, and
other domestic and international companies.
•Establishing strong relationships with suppliers for raw materials,
packaging materials, agricultural produce, and other inputs.
•Ensuring a steady supply of high-quality inputs at competitive
prices.
•Working closely with distributors, wholesalers, and retailers to ensure
effective distribution and availability of products.
•Strengthening partnerships and optimising logistics to enhance market
reach and sales.
•Maintaining strong financial performance and meeting investor expectations.
•Building relationships with financial institutions for funding and investment
opportunities.
Marketing and Sales
•Impactful marketing and sales strategies for brand positioning, product
promotion, and customer engagement.
•Analysis of market trends, consumer insights, and campaign effectiveness.

9. 06 SWOT Analysis
OWS T
•Diversified business portfolio.
•Strong brand portfolio.
•Extensive distribution network.
•Strong research and
development capabilities.
•Growing FMCG market.
• Diversification into new
sectors
•Expansion in
international markets
•Intense competition.
•Government
regulations.
•Changing Consumer
preference
•Dependence on the
domestic market
•Limited international
presence
•High dependence on
tobacco segment
Strength Weakness Opportunities Threats

10. Problems Solution
ITC operates in multiple sectors which are subject to
various regulatory frameworks. Hence changing regulations
can pose challenges
ITC faces increasing pressure to address sustainability
issues such as carbon emissions, water usage, waste
management & deforestation which can be challenging
•Develop a comprehensive sustainability strategy
•Invest in renewable energy and water conservation
measures
•Adopt eco-friendly packaging and responsible sourcing
practices
ITC operates in highly competitive sectors including FMCG &
hospitality where it faces competition from both domestic and
international players which can impact market share
•Invest in a dedicated regulatory affairs team
•Proactively engage with regulatory authorities and
industry associations
•Diversify product portfolio to mitigate regulatory risks
•Focus on product innovation and consumer trend analysis
•Enhance marketing and branding efforts for differentiation
•Stay ahead of competition through continuous R&D
investments
Managing a complex and diverse supply chain can be a
significant challenge for ITC especially in the agribusiness
sector, where it sources various agricultural commodities
•Implement advanced supply chain management systems
•Utilise technologies like blockchain for transparency and traceability
•Foster strong supplier relationships and invest in capacity building
07

11. —Conclusion
In conclusion, ITC Limited is a resilient and dynamic conglomerate company based in India.
With its diverse portfolio, commitment to sustainability, and strategic investments, ITC has
established itself as a leader in multiple sectors. Through its social initiatives and
community development programs, the company has made a positive impact on society.
Despite challenges in a competitive market, ITC is well-positioned for future growth and
success.
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12. Bibliography
ITC Ltd.
www.groww.in
www.itcportal.com
www.bstrategyhub.com
www.ukessays.com
www.mbaskool.com
www.academia.edu.com
www.angelone.in
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