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August 24, 1910
1925 Packaging & Printing Business
1975 Hotels business - ITC-Welcome group Hotel Chola
1979 Paperboards business
1985 Surya Nepal Private Limited (Surya Nepal)
2000 Greeting, Gifting and Stationery
1990 Agri Business Division
2000 Lifestyle Retailing business2000 InfoTech India Limited
2001 Food business
2002 Paperboards & Specialty Papers Division
And the list goes on..
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Market capitalization of over US $ 33 billion and a turnover of US $ 7
billion
Rated among the World's Best Big Companies, Asia's 'Fab 50' and the
World's Most Reputable Companies by Forbes magazine
Among India'sMost Resp Companies Business World
Among India'sMost Valuable Companies by Business Today. ITC ranksamong India's `10Most Valuable (Company) Brands', in 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.
ITC has a diversified presence in Cigarettes, Hotels, Paperboards &
Specialty Papers, Packaging, Agri-Business, Branded Apparel, Packaged
Foods & Confectionery, Greeting Cards and other FMCG products
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ITC made its entry into the branded & packaged Foods business in August2001 with the launch of the Kitchens of Indiabrand.
A more broad-based entry has been made since June 2002 with brand
launches in the Confectionery, Staples and Snack Foods segments.
ITC has over the last 98 years established a very close business relationship
with the farming community in India and is currently in the process of
enhancing the Indian farmer's ability to link to global markets, through the e-
Choupal initiative, and produce the quality demanded by its customers.
This long-standing relationship is being utilized in sourcing best quality
agricultural produce for ITC's Foods business.
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The Foods business is today represented in 4 categories in the market.These are:-
Ready To Eat Foods:- Aashirvaad ReadyMeals
Staples:- Aashirvaad Atta, Aashirvaad Salt
Confectionery:- "Mint-O" and "Candyman"
Snack Foods:- Sunfeast, bingo.
In order to assure consumers of the highest standards of food safety and
hygiene, ITC is engaged in assisting outsourced manufacturers in
implementing world-class hygiene standards through HACCP certification.
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Ready to Eat food:-
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Confectionery food:-
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Staples:-
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Snacks:-
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Good distribution network.
Market differentiation.
Variety in offerings.
Extensive advertisement.
Quality product.
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SALES MAN
SUPERVISOR
AREA EXECUTIVE
3 CIRCLE INCHARGE (CITY, METRO & UP COUNTRY)
ASSISTANT BRANCH MANAGER
BRANCH MANAGER
REGIONAL BRANCH MANAGER
DISTRICT MANAGER
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Physical Transformation Process
Raw cereals and vegetables are processes to obtain
various fast foods
Geographical Transformation Process
The snacks so obtained are transported throughout
the country.
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Breadth
Increasing product presence across the stores and also
increasing number of stores.
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Centralization High
A system driven organization so Every main decision is
taken from central head office.
Formalization High
Set of rules and procedures to be followed
Differentiation Vertical
A long hierarchy for increased distribution
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Analysers
Having integrated their vast experience across
industry sectors with world-class technology and
state-of-the-art infrastructure, and havingunderstood how the market operates, they are now
trying to grab the food market with both hands
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Threat of New entrants -Moderate Easy entry in the Food industry.
Bargaining Power of buyers High More option available in the market for customers in PACKED
FOOD so customer is King of the market. Bargaining Power of Suppliers Low
No. of suppliers are very high in this segment.
ITC has its own E-chaupal Value Chain
Substitutes threat High No. of choices available in Food industry.
Inter-firm Rivalry High In food industry number of competitors exist in the market.
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ST Approach
Strength-Threat:Maxi-Mini approach
Using the brand name of ITC and using the resources
and experience accumulated over the years in the
various businesses entered in, ITC food is trying to
avoid the threats faced by the competition.
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Feedback:
Using the knowledge of the pre launch survey, ITC Foods
designed round shaped noodles to attract its customers.
Cyclical: The output of the agriculture business is used as an input
for the Foods business and the revenue from the foods
business is used to pay for the inputs from the agriculture
business. Negative Entropy:
ITC foods has a negative entropy as the raw material will
be continually supplied by ITC agribusiness.
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Movement towards growth and expansion:
Continual lanuch of brands like Kitchens of India,
Ashirwad, Candyman, Sunfeast & Bingo.
Balance ofMaintenance and Adaptive activities:
Keeps on improving the current brands as per customer
feedback and launching new brands as per changingcustomer preferences.
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Divisional Bureaucracy:-
Different divisions are there for the various products.
Each division has routine work in stable environment.
The divisional managers are responsible for performance andhold complete strategic and operating decision-makingauthority.
The top management provides support services to thedivisions. It acts as an external overseer, evaluating andcontrolling performance.
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Divisional Bureaucracy:-
Hence the top management is free from being concerned
with the day-to-day operating details so they can pay
attention to the long term. Big picture, strategic decision
making is done at the top level.
Decision making power lies with the middle management
as to what changes to make in the distribution orprocurement of raw materials or finished goods.
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Leadership
in 2004 itc foods launched product which name is spiced jams and
this product was not success due to poor leadership.
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Input:-
General Environment:-
The PESTEL factors being dynamic, the general environment
is dynamic. and org run under uncertain environment.
Industry structure :-
is complex
Organization structure:-
org structure is complex so decision is non- routine.
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Design components Strategy:-
Strategy dimension is breadth and so here Itc food businessincreasing product preference across the store and also
increasing the number of stores across the country.
Technological interdependence: - The organization follows Long Linked Technology
classification, so the technological interdependence is high.
Differentiation of an organization:-
Vertical differentiation with the high integration.
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Conclusion:-
Strategy dimension is breadth; technological interdependence is
high, vertical differentiation with the high integration, dynamic
factor so org run under uncertain environment and org structure
is complex.
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Department:- Sales & Distribution.
Input
Technology Structure: Long-linked technology. Structure : Divisional Bureaucracy.
MeasurementManagement:
based on achieved sales target.
HR System:Medium retainment.
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DesignComponent:-
Goal Clarity: medium
Task Structure: Well defined
Co-ordination: High Composition
Regional sales manager > Area sales manager >
Sales officer> Sales executive.
Group Function
Each employee do their work accordingly target
given by top order.
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Output:-
Organization structure: complex
Employee is responsible for the achieve given target by
top order. Appraisal is done based on the employee performance.
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Skill Variety:Medium
Not much different skill required.
Task identity: High
Gets full credit in the sales of his area. Task significance: High
Having powerful network.
Autonomy: Medium
Responsible for area wise decision.
Feedback: Low
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Thank you