Itc Stretegic Management

8/7/2019 Itc Stretegic Management

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COMPANY BACKGROUND

ITC Limited which previously stood for Imperial Tobacco Company one ofIndia'sforemost private sector companies with a market capitalization of nearly US $ 18 billion

and a turnover of over US $ 4.75 billion.

ITC's diversified status originates from its corporate strategy aimed at creating multipledrivers of growth anchored on its time-tested core competencies: unmatched distribution

reach, superior brand-building capabilities, effective supply chain management and

acknowledged service skills in hoteliering.continues in its traditional businesses ofCigarettes, Hotels, Paperboards, Packaging and

Agri-Exports, it is gaining market share in its nascent businesses of Packaged Foods &

Confectionery, Branded Apparel and Greeting Cards.

ITC's wholly owned Information Technology subsidiary, ITCInfoTech India Limited, ispursuing emerging opportunities in providing end-to-end IT solutions, including e-

enabled services and business process outsourcing.

ITC's Agri-Business is one ofIndia's largest exporters of agricultural products. ITC's Agri-Business is one ofIndia's largest exporters of agricultural products.


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VISION:

Sustain ITCs position as one ofIndias most valuable corporations through world classperformance, creating growing value for the Indian economy and the Companysstakeholders.

MISSION:

To enhance the wealth generating capability of the enterprise in a globalizingenvironment, delivering superior and sustainable stakeholder value.

VALUES

ITC's Core Values are aimed at developing a customer-focused, high-performanceorganization

Customer Focus we are always customer focused and will deliver what the customerneeds in terms of value, quality and satisfaction.

ITC. Working for you. Working forIndia.TrusteeshipCustomer FocusRespect For PeopleExcellence InnovationNation Orientation


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PRODUCTS:--

1. 2. 3. 4. 5. 6. 7. 8. 9.

10. 11. 12. 13. 14. 15. 16. 17. 18.

19.


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PROFILEITC in FMCG

Cigarettes

ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, ithas a

leadership position in every segment of themarket. It's highly popular portfolio ofbrands

includes Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut,

Scissors, Capstan, Berkeley, Bristol and Flake.

The Company has been able to build on its leadership position because of its singleminded focus

on value creation for the consumer through significant investments inproduct design, innovation,

manufacturing technology, quality, marketing and

distribution.

All initiatives are therefore worked upon with the intent to fortify market standing in the

long term. This in turns aids in designing products which are contemporary and relevant

to the changing attitudes and evolving socio economic profile of the country. This

strategic focus on the consumer has paid ITC handsome dividends

FOODS

ITC made its entry into the branded &packaged Foods business in August 2001 with thelaunch of the

Kitchens ofIndia brand. A more broad-based entry has been made sinceJune 2002 with brand launches in

the Confectionery, Staples and Snack Foods segments.The Foods business is today represented in 4

categories in the market. These are:

* Ready To Eat Foods

* Staples

* Confectionery

* Snack Foods

In order to assure consumers of the highest standards of food safety and hygiene, ITC isengaged

in assisting outsourced manufacturers in implementing world-class hygienestandards through


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HACCP certification. The unwavering commitment to internationallybenchmarked quality

standards enabled ITC to rapidly gain market standing in all its 6brands:

* Kitchens ofIndia

* Aashirvaad

* Sunfeast

* mint-o

* Candyman

* Bingo!

Lifestyle Retailing

ITCs Lifestyle Retailing Business Division has established a nationwide retailingpresence

through its Wills Lifestyle chain of exclusive specialty stores. Wills Lifestyle,the fashion

destination, offers a tempting choice of Wills Classic work wear, Wills Sportrelaxed wear, Wills

Clublife evening wear, fashion accessories and Essenza Di Wills anexclusive range of fine

fragrances and bath & body care products and Fiama Di Wills - arange of premium shampoos

and shower gels. Wills Lifestyle has also introduced WillsSignature designer wear, designed by

the leading designers of the country.

Wills Classic work wear was launched in November 2002, providing the premium

consumer a distinct product offering and a unique brand positioning.

ITC forayed into the youth fashion segment with the launch ofJohn Players inDecember 2002

and John Players is committed to be the No. 1 fashion brand for the youth.

Education & Stationary products

ITC made its entry into the stationery business in 2002 with its premium range ofnotebooks,

followed in the year 2003 with the more popular range to augment itsoffering.

ITC's stationery Brands are marketed as "Classmate" and "Paperkraft", with Classmateaddressing

the needs of school goers and Paperkraft targeted towards college students andexecutives


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Agarbattis

As part ofITC's business strategy of creating multiple drivers of growth in the FMCGsector, the

Company commenced marketing Agarbattis (incense sticks) sourced fromsmall-scale and

cottage units in 2003.

Hotels

ITC entered the hotels business in 1975 with the acquisition of a hotel in Chennai, whichwas

then rechristenedITCChola. Since then the ITC-Welcomgroup brand has becomesynonymous

with Indian hospitality. With over 90 hotels in 77 destinations.

Packaging

ITC's Packaging &Printing Business is the country's largest convertor of paperboardinto

packaging. It converts over 50,000 tonnes of paper and paperboard per annum into avariety of

value-added packaging solutions for the food &beverage, personal products,cigarette, liquor,

cellular phone and IT packaging industries. It has also entered theFlexibles and Corrugated

Cartons business

Agri Business

e-Choupal

The unique e-Choupal model creates a significant two-way multi-dimensional channelwhich can

efficiently carry products and services into and out of rural India, whilerecovering the associated

costs through agri-sourcing led efficiencies. This initiative nowcomprises about 6500

installations covering nearly 40,000 villages and serving over 4million farmers.


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LeafTobacco

ITC is the largest buyer, processor and exporter of leaf tobaccos in India - creating aglobal

benchmark as the single largest integrated source of quality tobaccos. Servingcustomers in 50

countries across more than 70 destinations, ITC co-creates and deliversvalue at every stage of the

leaf tobacco value chain.

Information Technology

ITCInfotech offers IT services and solutions across five key industry verticals:

Banking,Financial Services & Insurance (BFSI), Consumer Packaged Goods (CPG) &

Retail,Manufacturing & Engineering Services, Travel, Hospitality & Transportation and Media&

Entertainment.ITCInfotech, a global IT services company, is today one ofIndias fastest growing IT

services and solutions providers

Initiatives taken -Lets put India first

ITC is committed to a national agenda of raising agricultural productivity and making therural

economy more socially inclusive. ITC believes that the urgency and scale of thesetasks make

market linked solutions and innovations more effective and sustainable thancapital intensive

approaches.

Social & farm ForestryITC has helped to bring nearly 13,000 hectares of wasteland under social forestry

benefiting more than 16,000 poor households in 466 villages.

ITCs social forestry programme simultaneously addresses the livelihood problems ofmarginal

farmers and the ecological imperative of regenerating biomass and nurturingdepleted soils.

Watershed Development

ITCs watershed initiatives have led to an improvement in soil and moisture regimes there is

more land under irrigation, water tables have risen and farmers can harvest morethan one crop,

making it possible to live off the land round the year.


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Agricultural Development

ITC offers facilitation to farmers to form agri-business societies, pool knowledge andresources,

improve productivity and quality, and reach out beyond local markets to sell atbetter margins.

Women Empowerment

The confidence and skills generated among women by forming credit groups and

managing businesses become assets to their communities.

Livestock Development

The milk marketing co-operatives represent exemplary change in rural enterprise, away

from dependence on agriculture and local markets.

Primary Education

School going becomes an empowering process for the child and the community. Theawareness

of entitlements like education and health grows, along with a sense of thecommunity s

responsibility.

Agricultural Development

ITC offers facilitation to farmers to form agri-business societies, pool knowledge andresources,

improve productivity and quality, and reach out beyond local markets to sell atbetter margins.


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CORPORATE STRATEGIES:

Sustain multiple drivers of growth, matching internal capabilitieswith emerging market opportunities

Pursue World class competitiveness in all businesses and acrossthe entire value chain

Best-in-class in terms of:Internal VitalityMarket StandingProfitability

Strategy of Organization and Governance processes geared tomanage multiple businesses

Blend core competencies and leverage ITC umbrella strengths tocreate new avenues of growth


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ANALYSIS ON DIVERSIFICATION

ITC has been a leader in the tobacco business, but it realize from the up coming trendsthat

remaining with a single business is not a noble thought, moreover the company wasthreatened of

the anti-tobacco campaign. Therefore the company decided to venture intoInfoTech with ITC

InfoTech, foods via Kitchens ofIndia, greeting cards throughExpressions and lifestyle retailing

through Wills Sport. Each of these is intended to drawrevenues of at least Rs. 250 crore by 2005.

ITC was a cash rich company with a liquidity of Rs.8816 million in the cigarettebusiness, even

though the company understood the need and usefulness of diversification.The writer in the

article is mainly concerned with the way ITC spreads its wings in thelifestyle segments, he

writes: forty-five stores in 34 cities in just under a year, selling anexpensive fashion brand of

relaxed-wear. If retail swamp-out and brand salience were thegoals, ITCs Wills Sport would be

on a victory lap already.

The company has started its retail stores not only in Indian metros but also in the smalltowns like

Ranchi, Jabalpur, Gwalior, Belguam, Ernakulam etc. the article also talksabout the strong market

campaign done by the company, it also describe how thecompany has used its brand image to

attract the Indian youth. It also tells about thestrategy adopted by the company to differentiate

itself in this segment, like the companyis outsourcing its designs formthe American Design

Intelligence Group (ADIG), a SanFrancisco, US-based garment and retail consultancy. Now it

has its own six-memberteam, even as it continues a tie-up with Science & Designs, an Italian

fashion designhouse through which it keeps a watch on hot western labels such as Banana

Republicand Armani Exchange


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PEST analysis

Political

Huge burden of VAT

Excise duty raised by union budget by 5 %Ban on communicationLuxury tax in 10 statesSmuggling100% FDI allowed

Economical

Bidee : cigarette ratio-10:1Profit margin is highOther forms of cheap tobacco intake

Socio-culture

Becoming status symbolCompanions mounted by W.H.O.Changing attitudes towards tobaccoMay 31 is no tobacco dayChange in life style

Technological

State-of-the-art factoriesCheap labour supplyDevelopment ofIQMSAdapting other concepts like QC,TQM, KSS, 5 S, 6 sigma


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INTERNAL ANALYSIS:

Boston Consulting Growth Matrix [BCG]

The BCG matrix (aka B.C.G. analysis, BCG-matrix, Boston Box, Boston Matrix, Boston

Consulting Group analysis) is a chart that had been created by Bruce Henderson for the

Boston Consulting Group in 1970 to help corporations with analyzing their business units

or product lines. This helps the company allocate resources and is used as an analytical

tool in brand marketing, product management, strategic management, and portfolio

analysis.

ANALYSIS:

Stars

HotelsPaperboards/

Packaging.Agri business.

?

FMCG- OthersITCInfotech

Cows

FMCG-CigarettesDogs

ITC`s cigarette business:

Market leadershipPowerful brands across segmentsLeadership in all segments - geographic & price


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Extensive FMCG distribution networkDirect servicing of 1,00,000 markets & 2 million retail outlets

World-class state-of-the-art technology and productsInvestment - Rs.10 billion in six years

Exciting long term growth potentialGrowth Potential:

Cigarettes account for only 15% of tobacco consumed in India unlike worldpattern of 85% due to prolonged punitive taxation

Cigarettes (15% of tobacco consumption) contribute nearly 85% ofRevenue to the Exchequer from tobacco sector

Of the 58% of adult Indian males who consume tobacco, barely 15% can affordcigarettes

Biri : Cigarettes ratio = 10 : 1Annual per capita adult cigarette consumption in India is appx. one tenth world

average : 141Future growth depends on relative rates of growth of per capita income and

moderation in taxes

ITC`s Paperboard Industries:

Market leader in growth segment - value added coated boardsWorld-class contemporary technology

Elemental Chlorine Free (ECF) Pulp Mill fully operational only one of itskind in India meeting world-class environmental standards

Internationally competitive quality and costSocial farm forestry in mill command area to improve access to cost effective fibre

& to attain self-sufficiencyBiotech research based high yielding Clones effectiveness tested in nearly

68,000 hectaresFully integrated operations with in-house pulping capacity at appx. 1.10 lac MT

Expansion programme underway; source of sustainable competitiveadvantage


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ITC`s Agri commodity Business:

Farm linkages in 14 states covering Soya, Wheat, Rice, Marine products, Coffee

etc.Unique CRM programme in commodity exportsLeveraging IT for the transformational e-Choupal initiative

Rural Indias largest Internet-based interventionOver 38000 villages linked through around 6400 e-Choupals servicing

over 3.5 million farmersDistinctive sourcing capability forITCs Foods business

ITC`s Hotel Business:

ITC-Welcomgroup : a leading hotel chain inIndia

Strategy to establish presence in key business locations to complete thechain achieved in end 2004

Over 5200 rooms under 4 distinct brands

CATEGORY BRAND POSITIONING

Luxury ITC Hotel: Luxury

Collection

Mansions of Luxury

Upper Scale Welcome Hotel: Sheraton Passion forQuality

Upper- mid- scale Fortune Hotels Promise ofTrue Value

Heritage Welcome Heritage Unique Experiences

Capacity expansion underway at Bangalore and Chennai; plans for other locationsalso being progressed

Fastest growing hotel chain with highest operating efficiency (PBDIT/Net Income@ 45%) amongst the 3 leading chains

Leverages unique service proposition and international alliance with StarwoodHotels & Resorts

Luxury Collection / Sheraton


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SWOT AnalysisITC is one ofIndia's biggest and best-known private sector companies. In fact it is one of

the World's most high profile consumer operations. Its businesses and brands are focused

almost entirely on the Indian markets, and despite being most well-known for its tobaccobrands such as Gold Flake, the business is now diversifying into new FMCG (Fast

Moving Consumer Goods) brands in a number of market sectors - including cigarettes,

hotels, paper, agriculture, packaged foods and confectionary, branded apparel, personal

care, greetings cards, Information Technology, safety matches, incense sticks and

stationery. Examples of its successful new FMCG products include:

Aashirvaad - India's most popular atta brand with over 50% market share. It is also

present in spices and instant mixes.

Mint-o - Mint-0 Fresh is the largest cough lozenge brand in India.

Bingo! - a new introduction of finger snacks.

Kitchens ofIndia - pre-prepared foods designed by ITC's master chefs.

Sunfeast - is ITC's biscuit brand (and the sub-brand is also used on some pasta products).

Strengths

yWell known brand nameyRespected companyyGood distribution network and skillsyGood product quality(business has been awardedywith ISO 9001:2000 by Det Norske Veritas.)

yDiversified company trading in a number of business sectorsyNew Brands for New segements.

Still the company is dependent on tobacco for its revenue generation.

Weaknesses

yStill people connectITC with a tobacco brand which is related with poor health andpremature death.


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Opportunities

yNew product discoveriesyITC is moving into new and emerging sectors including Information Technology,

supporting business solutions

yPer capita consumption of personal care products in India is the lowest in the worldoffering an opportunity forITCs soaps, shampoos and fragrances under their Wills

brand.

e-Choupal- project that has a goal of reaching 10 million farmers in 100,000 villages.

Threats

yChanging customer needs and preferencesyThreats from rival firms- domestic and international.yWestern companies see India as an exciting opportunity for themselves to find newmarket segments for their own offerings


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PORTERS FIVE FORCES- FMCG SECTOR OF ITC

With likert scale 1- high unfavourable,2-low unfavourable,3-nutrel,4-low unfavourable,5-high

favourable

PORTERSFIVE

FORCES:

BUYERPOWER:- HIGH-UNFAVOURABLE . (1)

*Low switching cost

*Buyers are numerous and fragmented

*Considering buyer power retailers , they are abletonegotiate the price withthe company.

SUPPLIERPOWER:-LOW-FAVOURABLE(4)

*Largenumber of suppliers inthe country

*Costof switching suppliers is low

*Pricesof substitutes are low

THREATOF NEWENTRANTS:-HIGH-UNFAVOURABLE(1)

*Tomany small firms

*Nodominating firm

*Little product

differentiation

*Customer switching costs

are low

DEGREEOF RIVALRY:-HIGH-

MODERATELYUNFAVOURABLE(3)

*Consumer inthis category enjoymultitude ofchoices.

*Itdoes notcost anything for aconsumer to buyone brandof

shampooinsteadof another, makingthe industry quite competitive.

THREATOF SUBSTITUTES:-HIGH-MODERATELYUNFAVORABLE(3)

Numerous substitutes are

available


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ITC introduces each product with a strategy. The following

gives details of the strategy that ITC had kept in mind, while

launching the product.

1.Though the first six decades of the Company's existence were primarily devoted to thegrowth and consolidation of the Cigarettes and LeafTobacco businesses, theSeventies witnessed the beginnings of a corporate transformation that would usher inmomentous changes in the life of the Company.

2.ITC's Packaging & Printing Business was set up in 1925 as a strategic backwardintegration forITC's Cigarettes business. It is today India's most sophisticated packaginghouse.

3.In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennaiwhich was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective ofITC's entry intothe hotels business was rooted in the concept of creating value for the nation.ITC chose the hotels business for its potential to:

yearn high levels of foreign exchange,ycreate tourism infrastructure and ygenerate large scale direct and indirect employment.

Since then ITC's Hotels business has grown to occupy a position of leadership, with over 90owned and managed properties spread across India.

4.In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam PaperboardsLimited, which today has become the market leader in India. Bhadrachalam Paperboardsamalgamated with the Company effective March 13, 2002 and became a Division of theCompany, Bhadrachalam Paperboards Division. In November 2002, this division mergedwith the Company's Tribeni Tissues Division to form the Paperboards & Specialty PapersDivision. ITC's paperboards' technology, productivity, quality and manufacturing processes

are comparable to the best in the world.It has also made an immensecontribution to the development of Sarapaka, an economically backward area in the state ofAndhra Pradesh. It is directly involved in education, environmental protection andcommunity development. In 2004, ITC acquired the paperboard manufacturing facility ofBILTIndustrial Packaging Co. Ltd (BIPCO), nearCoimbatore, Tamil Nadu. The Kovai Unit

allows ITC to improve customer service with reduced lead time and a widerproduct range.


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5.In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing companyand a major supplier of tissue paper to the cigarette industry. The merged entity was namedthe Tribeni Tissues Division (TTD). To harness strategic and operationalsynergies, TTD was merged with the Bhadrachalam Paperboards Division to form the

Paperboards & Specialty Papers Division in November 2002.

6.Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri BusinessDivision for export of agri-commodities. The Division is today one ofIndia's largest

exporters.ITC's unique and now widely acknowledged e-Choupal initiative began in 2000with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million

farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in August2004 at Sehore. On the rural retail front, 24 'Choupal Saagars' are now operatonal in the 3

states of Madhya Pradesh, Maharashtra and Uttar Pradesh.

7.In 2000, ITC launched a line of high quality greeting cards under the brand name'Expressions'. In 2002, the product range was enlarged with the introduction of Giftwrappers, Autograph books and Slam books. In the same year, ITC also launched'Expressions Matrubhasha', a vernacular range of greeting cards in eight languages and'Expressions Paperkraft', a range of premium stationery products. In 2003, the companyrolled out 'Classmate', a range of notebooks in the school stationery segment. This way it

established itself as a brand for students and is performing excellently due to its qualityand price strategy.

8.ITC also entered the Lifestyle Retailing business with the Wills Sport range of internationalquality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive

stores later expanded its range to include Wills Classic formal wear (2002) and WillsClublife evening wear (2003). ITC also initiated a foray into the popular segment with itsmen's wear brand, John Players, in 2002. In 2006, Wills Lifestyle became title partner of thecountry's most premier fashion event - Wills Lifestyle India Fashion Week - that has gained

recognition from buyers and retailers as the single largest B-2-B platform for theFashion Design industry. To mark the occasion, ITC launched a special 'CelebrationSeries', taking the event forward to consumers. In 2007, the Company introduced 'Miss

Players'- a fashion brand in the popular segment for the young woman.

9.In 2000, ITC spun off its information technology business into a wholly owned subsidiary,ITCInfotech India Limited, to more aggressively pursue emerging opportunities inthis area. Today ITCInfotech is one ofIndias fastest growing global IT and IT-enabledservices companies and has established itself as a key player in offshore outsourcing,

providing outsourced IT solutions and services to leading global customers across key


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focus verticals - Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R(Consumer Packaged Goods & Retail), THT (Travel, Hospitality and Transportation) andMedia & Entertainment.

10.ITC's foray into the Foods business is an outstanding example of successfully blendingmultiple internal competencies to create a new driver of business growth. Itbegan in August 2001 with the introduction of 'Kitchens ofIndia' ready-to-eat Indiangourmet dishes. In 2002, ITC entered the confectionery and staples segments with the launchof the brands mint-o and Candyman confectionery and Aashirvaad atta (wheat flour). 2003witnessed the introduction of Sunfeast as the Company entered the biscuits segment. ITC'sentered the fast growing branded snacks category with Bingo! in 2007. In just seven years,the Foods business has grown to a significant size with over 200 differentiated products

under six distinctive brands, with an enviable distribution reach, a rapidly growingmarket share and a solid market standing.

11.ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked themanifestation of its partnership with the cottage sector. ITC's popular agarbattisbrands include Spriha and Mangaldeep across a range of fragrances like Rose, Jasmine,Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.

12.ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & bodycare products for men and women in July 2005. Inizio, the signature range under Essenza DiWills provides a comprehensive grooming regimen with distinct lines for men (InizioHomme) and women (Inizio Femme). Continuing with its tradition of bringing world classproducts to Indian consumers the Company launched 'Fiama Di Wills', a premium range ofShampoos, Shower Gels and Soaps in September, October and December 2007 respectively.

The Company also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment at select markets in October 2007 and Vivel De Wills & Vivel range ofsoaps in February and Vivel range of shampoos in June 2008.


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HRM POLICY

ITC believes that all its employees must live with social and economic dignity andfreedom, regardless of nationality, gender, race, economic status or religion.

ITC upholds international human rights standards, does not condone human rightsabuses, and creates and nurtures a working environment where human rights are

respected without prejudice.

The Corporate Human Resources function conducts non-discrimination reviews annuallyon a sample basis with unit heads and through on-site assessments.

ITC Unit has appropriate systems and checks to ensure compliance with the Policy andstatutory provisions, including means for filing of grievances, collective bargaining

agreements and minutes from worker meetings.

ITC does not employ any person below the age of eighteen years in the workplace. ITCprohibits the use of forced or compulsory labour at all its units. No employee is made to

work against his/her will or work as bonded/forced labour.

All major changes in operations involving work processes, manning norms and otherproductivity linked issues are carried out after discussions with the employees and the

recognized unions at each location.

ITC is committed to providing a safe and healthy work environment to all its employees.These policy guidelines on HIV/AIDS are an endorsement of this commitment and, in

particular, of the Company's commitment to specific programmes and actions in response

to the HIV epidemic.

OPERATIONS AND LOGISTICS

Operation management emphasis the current programs of an organizations and planningwhich essentially deals with the future and two intimately related activities.

A distinction should be made between planning and forecasting .Planning departments are key in critiquing strategies ,crystallizing goals ,setting

objectives, maintain control.

NEEDS FOR STRATEGY:


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1) resources are finite

2) uncertainty about competitive strength and behavior

3)when commitment is irreversible

Logistic/supply chain management enabling technologies cover a wide spectrum oftechnology that facilitates smooth flow of goods and services and related information as

well as integration of business processes.

The overall competitiveness of industry would increase by having proper operations andlogistic managements.

RESEARCH AND DEVELOPMENT

ITC is committed to delivering world class product and services. this requires clear focuson continuously striving to create a higher value to customers by achieving excellence in

all companies operations.

ITC development of its integrated quality management system (IOMS) is based on itsstrong foundation of implementing

ISO9001:2000,ISO14001,OHSAS18001,SA8000,HACCP(for foods) and

IQRS(Performance rating and benchmarking of the quality management system.

ITC R&D centre are at bengalure,hyderabad,bhadrachalam,rajamundry,the company hasassembled a pool of world class scientist focused on providing the requiste R&D support

system.

ITC research and developed facilities Rajahmundry in AP cover all aspects of tobaccocrop cultivation. its collaboration with the central tobacco board research institute and

tobacco board ITC pioneered FCV tobacco cultivation in India and introduced the burley

and HDBRG varieties.


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INFORMATION SYSTEM IN ITC

IT plays a very critical role in driving the ITC business strategies. IT is an enabler of the business process to ensure business growth through efficient

management of operations in the value chain.

IT creates new business process or restructure the current business process to enhancecustomer service availability , efficient manufacturing / supply chain operations etc

HI-TECHSUPPLY SOLUTIONS

Thousands of small retailers in India who sell cigarettes and confectionery supplied byITC Ltd, and who have thus far had to wait for the next arrival of the companys delivery

van.

Place orders through mobile phonesVans go without knowing actual demand so after using this they can save cost as well as

time.

Mobility based applications can bring down the cost of operation by 20-30% from themanual basis of operation


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Future Of Cigarettes

An average of 2,800 people die every day in India with tobacco-related diseases.Cancer of lungs, lips, tongue, oral cavity, throat and larynx, uterus and urinary bladder

are some of the common tobacco-related diseases.

Adding some 184 million people consume cigarettes, beedis and gutka every day. ITC researchers are continuously doing research on ayurvedic cigarette which would be

harmless.

Itc Can Be A Follower

Guardian pharmacy has launched a herbal cigarette named HONEYROSE which is 100%

harmless.

Nicotine-free, tobacco-free cigarette seemed like an oxymoronCigarettes are made with naturally grown Marshmallow herb, Red Clover and RoseAs ITC has got more experience and brand image it can improve its quality and thus can

tab the health consious people FORTRESS STRATEGY

CERTIFICATIONS,HONOURS & AWARDS

All the Environment, Health and Safety (EHS) Management systems & SustainabilityReporting in ITC conform to the best international standards.

SA 8000 - Social AccountabilityLeaf processing plants at Chirala and Anaparti, Cigarette factory at Kolkata and SNPL

factory at Simra have achieved this certification.

OHSAS 18001- Occupational Health & Safety Management SystemsAll the manufacturing units ofITC and Corporate EHS Department have achieved this

certification.

ISO 14001- Environment Management SystemsAll manufacturing units ofITC, all the major hotels, Corporate EHS Department & ITC

R&D Centre at Bengaluru have achieved this certification.


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CONCLUSION

ITC promoting their brands through advertisement campaign as well as door to doorpromotion.

ITC is also focusing on Retailers and Wholesalers to promote their brand.The demand of their product in very low, because people dont KNOW about their

brands very well.

ITC knows their strength and weakness in the personal care market, so they are applyingnew concept to overcome their weaknesses.

ITC now offering more margins, exiting offers and long credit period to retailers andwholesalers.

Itc Stretegic Management

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