Management foundation, ITC Company Organizational Structure ,AMITY UNIVERSITY JHARKHAND

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This is my another presentation on management foundation subject.. learn about ITC Company , its organizational structure.
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1. MANAGEMENT FOUNDATION PROJECT COURSE :- BBA “A” GUIDED BY :- MADHURI MAHATO MA’AM

2. ITC INDIAN TOBACCO LTD.

3. ABOUT THE COMPANY:- ITC is one of India's foremost multi-business enterprise with a market capitalisation of US $ 50 billion and a turnover of US $ 8 billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine and as 'India's Most Admired Company' in a survey conducted by Fortune India magazine and Hay Group. ITC also features as one of world's largest sustainable value creator in the consumer goods industry in a study by the Boston Consulting Group. ITC has been listed among India's Most Valuable Companies by Business Today magazine. The Company is among India's '10 Most Valuable (Company) Brands', according to a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week.

4. ITC COMPANY Type Public Traded as BSE :  500875 NSE :  ITC BSE SENSEX Constituent CNX Nifty Constituent Industry Conglomerate Predecessor W.D. & H.O. Wills  . Founded 24 August 1910 [1] [2] (as Imperial Tobacco Company of India) Headquarters Kolkata ,  West Bengal , India [3] Key people [Y C Deveshwar](Chairman) Products Consumer goods Tobacco Hotels Agribusiness Paperboards & specialty papers Packaging Information technology Revenue ₹60,493 crore  (US$9.4 billion) (2017) [4] Operating income ₹15,037 crore  (US$2.3 billion) (2015) [4] Net income ₹10,471 crore  (US$1.6 billion) (2017) [4] Total assets ₹32,159 crore  (US$5.0 billion) (2015) [4] Number of employees 25,959 (Mar 2013) [5] Divisions ITC Infotech , Surya Nepal Pvt. Ltd. Website www.itcportal.com

5. ITC’S 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.

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

7. ORGANISATIONAL STRUCTURE An  organizational structure  defines how activities such as  task allocation , coordination and supervision are directed toward the achievement of organizational aims .  Organizations need to be efficient, flexible, innovative and caring in order to achieve a sustainable competitive advantage .  Organizational structure can also be considered as the viewing glass or perspective through which individuals see their organization and its environment. There are many types of organisational structure:- Tall structure Flat structure Divisional structure Functional structure

8. Organisational structure of company ITC Company has both divisional organizational structure and functional organisational structure. A divisional organisational structure gives a larger business enterprise the ability to segregate large sections of the company's business into semi-autonomous groups. These groups are mostly self-managed and focused upon a narrow aspect of the company's products or services. As with any organization structure, divisions have both strengths and weaknesses. I n this organisation is divided on basis of products like FMCG products i.e ciagrettes , life style, food etc , hotels sector , paper boards and packaging sector, IT sector and agri - business. A functional structure is one of the most common organizational structures. Under this structure, the organization groups employees according to a specialized or similar set of roles or tasks. While functional structures operate well in stable environments where business strategies are less inclined to changes or dynamism, the level of bureaucracy makes it difficult for organizations to respond to changes in the market quickly . In this organisation is on basis of functions like marketing, finance, sales, production , IT Department etc.

9. ADVANTAGES OF DIVISIONAL STRUCTURE Accountability .  This approach makes it much easier to assign responsibility for actions and results. In particular, a division is run by its own management group, which looks out for the best interests of the division. Competition .  The divisional structure works well in markets where there is a great deal of competition, where local managers can quickly shift the direction of their businesses to respond to changes in local conditions. Culture . You can use this structure to create a culture at the divisional level that most closely meets the needs of the local market. For example, a retail division could have a culture specifically designed to increase the level of service to customers. Local decisions . The divisional structure allows decision-making to be shifted downward in the organization, which may improve the company's ability to respond to local market conditions. Multiple offerings . When a company has a large number of product offerings, or different markets that it services, and they are not similar, it makes more sense to adopt the divisional structure. Speed . This approach tends to yield faster responses to local market conditions .

10. DISADVANTAGES OF DIVISIONAL STRUCTURE Cost .  When you set up a complete set of functions within each division, there are likely to be more employees in total than would be the case if the business had instead been organized under a purely functional structure. Also, there must still be a corporate organization, which adds more overhead cost to the business. Economies of scale . The company as a whole may not be able to take advantage of economies of scale, unless purchases are integrated across the entire organization. Inefficiencies . When there are a number of functional areas spread among many divisions, no one functional area will be as efficient as would have been the case if there had instead been one central organization for each function. Rivalries . The various divisions may have no incentive to work together, and may even work at cross-purposes, as some managers undercut the actions of other divisions in order to gain localized advantages. Silos . All skills are compartmentalized by division, so it can be difficult to transfer skills or best practices across the organization. It is also more difficult to cross-sell products and services between the divisions. Strategic focus . Each division will tend to have its own strategic direction, which may differ from the strategic direction of the company as a whole.

11. ADVANTAGES OF FUNCTIONAL STRUCTURE Benefits of Specialisation : The whole company is divided into many departments on the basis of major activities to be performed. Each department is headed by an expert manager. This results in more and better work being accomplished in much lesser time. Hence, the benefits of specialisation become available . Coordination is established : All the persons working within a department are specialists of their respective jobs. It makes coordination easier at the departmental level. Managerial Efficiency is increased : It helps in increasing managerial efficiency because of performing the same work again and again. Further, this results in increased profit. Minimal Duplication of Efforts : In this type of organisation unnecessary duplication of efforts is eliminated. For example, the function of finance is only carried out by the finance department. There is no need to establish two or more departments. It makes it possible to utilise the human and other resources effectively. Training is facilitated : It facilitates the training of personnel as the focus is only on a limited range of skills. For example, the employees of finance department are given training of financial issues. Equal Weight age to All Functions : It ensures that all the functions/activities get equal weight age.

12. DISADVANTAGES OF FUNCTIONAL STRUCTURE Ignorance of Organisational Objectives : Each departmental head works according to his sweet will. They always give more importance to their departmental objectives. Hence, overall organisational objectives suffer. For example, to establish its image, the production department may produce quality product ignoring the fact that market trend favours accepting medium quality product . Difficulty in Interdepartmental Coordination : All departmental heads may work as per their own wish. No doubt this facilitates coordination within the department but it makes interdepartmental coordination difficult. Conflict of Interest: Every departmental head wants to become a functional empire. To satisfy their ego every one demands maximum resources for their department. This situation leads to conflicts among the various departmental heads. Hurdle in Complete Development : This system is a hurdle in the way of the complete development of the employees. Each employee specialises only in a small part of the whole job.

13. GROUP MEMBERS ADITI BHADANI A36106417043 POOJA SINGH A36106417109 ANKITA KEDIA A36106417071 SOMNATH SARKAR A36106417032 PRASHANT KUMAR A36106417092 KISLAY RAJ A36106417120 RAHUL RAJ A36106417009 ASHISH BHADANI A36106417105