CHAPTER 1

COMPANY PROFILE
 1.1 INDUSTRIAL PROFILE

ITC is among the leading Companies in India in the private sector. The company is a
diversified conglomerate with business interests in Fast Moving Consumer Goods, Hotels,
Paperboards and Packaging, Agri Business and Information Technology. The company is
recognized as weighing one of the most valuable business corporations in India with the gross
revenue of ₹ 69,446 crores and a net profit of ₹ 20,422 crores (as on 31.03.2024). According
to the survey, Fortune India with Hay group and in general public complained that ITC was
other most admired company in India.

ITC is the number one company in the fast-moving consumer goods market in the country
which does it with a big margin along with being a market leader in the Indian Paperboard
and Packaging Market, as one of the most cherished advancements in farmer’s upliftment via
agricultural business, the company owns in India, resorts chain in the country which redefines
luxurious accommodation as ‘Responsible Luxury’. ITC Infotech, a wholly owned subsidiary
of ITC, offers global digital solution services.

In the recent decade, new Consumer Goods Businesses of ITC have contributed significantly
towards establishing an enticing portfolio of over 25 Indian brands of international standards
which percolate profit within this region. ITC dominated the Indian FMCG market and
established many high-profile brands like Aashirvaad, Sunfeast, Yippee! Bingo! B Natural,
ITC Master Chef, Fabelle, Sunbean, Fiama, Engage, Vivel, Savlon, Classmate, Paperkraft,
Mangaldeep, Aim and many more in a notable short period. While many of these brands have
a significant presence in the formative years of their respective segments, a few others are on
course to achieve it.
 1.2COMPANY PROFILE

ITC is a large diversified group and one of the leading private sector companies in India, with
businesses including Fast Moving Consumer Goods, Hotels, ITC Paperboards and Packaging,
Agri Business and Information Technology. The Company is also rated among the top-notch
business corporations in India it’s Gross Revenue being ₹69,446 crores and Net Profit of
₹20,422 crores (as of 31.03.2024). Fortune India and Hay Group’s survey named ITC as the
most admired company in India on behalf of the respondents.

ITC is the number one Fast Moving Consumer Goods (FMCG) company in India and also the
predominant player in India’s paperboard and packaging market, a highly rated agri business,
in which she empowers farmers across the globe, and a responsible luxury hospitality service
provider in India. Also, ITC has an IT services company ITC Infotech, which has its
operations across the globe and offers digital led solutions.

In a span of a decade, ITC new consumer goods businesses extend to more than 25 world-
class Indian brands that help in creation and retention of value in India. The international
standard image of Fast-Moving Consumer Goods (FMCG) products from ITC has helped
come up with brands like Aashirvad, Sun Info and many others which cuts across diverse
market segments like Kitchen Ware, Chocolates and others. Many of these brands are market
leaders in their segments while, most of them are on the way to success as well.

ITC has many business lines, and all of them demonstrate unique competencies supported by
strengths of institutions such as understanding consumer needs, investing in and embracing
innovation, differentiated product development, advertising and promotion, operationalizing
production, reaching out to consumers in various geographies, and hiring qualified personnel.
There is also a clear competitive advantage associated with the potential for cross feed
synergies that exist between ITC’s distinct business entities.
 1.3VISION

With its headquarters in Kolkata, ITC Limited is one of the largest companies in India,
involved in activities such as selling Fast Moving Consumer Goods, Hospitality, Packaging
materials and Systems, Paperboards and Agribusiness, among others. Sustainable
development and innovation have become the core of all activities ITC is implementing and
receives high attention especially in connection with its automobile vision. This vision is a
subset of ITC’s philosophy of creating wealth whilst disturbing the environment as little as
possible; a philosophy that is fast taking root in most parts of the world.

2.4.1 SUSTAINABILITY AS A FUNDAMENTAL PRINCIPLE

The automobile industry is on the brink and it is clear that environmental sustainability is not
optional anymore. ITC’s auto vision incorporates sustainable practices in the entire value
chain with a purpose of mitigating the carbon emissions related to transport and logistics. The
organization is also focused on developing green packaging technologies for automotive parts
which will help prevents littering and encourage use of these materials into new products
after their useful life.

2.4.2 TECHNOLOGICAL INNOVATION

ITC has also acknowledged that the technological development is also paramount in the
realisation of its automotive vision. The enterprise has also focused on making the efficiency
of its operations through spending resources in research and development especially on
economics of high technology modernisation of manufacturing and supply chains. This
includes data analytics, AI and IoT technologies put into practice to improve logistics and
effectively minimise the downtimes in all systems in business for enhanced operational
effectiveness.

2.4.3 FOCUS ON CIRCULAR ECONOMY

Speaking of the existing universal trends which support a circular economy, ITC’s auto
vision contains all options which suppress the linear scale of buying and using materials. The
company actively investigates the possibility of applying recycled materials for the purposes
of its packaging solutions which can apply to the automotive sector as well. This type of
approach not only helps to use up existing resources more efficiently but also helps lessen the
amount of waste generated which is consistent with the global drive towards sustainability.
 1.4MISSION

To enhance the wealth generating capability of the enterprise in a globalising

environment, delivering superior and sustainable stakeholder value.
As professional managers, we are conscious that ITC has been given to us in "trust"
by all our stakeholders. We will actualise stakeholder value and interest on a long
term sustainable basis.
We are always customer focused and will deliver what the customer needs in terms of
value, quality and satisfaction.
We are result oriented, setting high performance standards for ourselves as
individuals and teams.
We will simultaneously respect and value people and uphold humanness and human
dignity.
We acknowledge that every individual brings different perspectives and capabilities
to the team and that a strong team is founded on a variety of perspectives.
We want individuals to dream, value differences, create and experiment in pursuit of
opportunities and achieve leadership through teamwork.
We are aware of our responsibility to generate economic value for the Nation. In
pursuit of our goals, we will make no compromise in complying with applicable laws
and regulations at all levels.
 1.5OBJECTIVES AND STRATEGIES

The organization study was carried out in ITC, situated at banglore city, is to achieve the
following objectives:
 To familiarize with the organization structure and its functioning
 To familiarize with the different departments in the organization and their functions
and activities including documentation.
 To understand how the key business processes are carried out in an organization
 To understand how information is used in organization for decision making at various
levels including data flow diagram.
 to understand the extent of technology adoption including ICT, in the organization for
various functions/activities.
 To understand the growth and diversification stratigies, portfolio structure of the
organization.
 To study the overall performance of the organization.
 To understand the performance measurements of employees and various employee
welfare activities, Training activities.
 To understand the steps taken to increase the productivity in the organization.
 To conduct a SWOT analysis of the organization.
 1.6 POLICIES AND PROCEDURES

As a responsible corporate citizen, we pay utmost attention to issues such as corporate ethics,
transparency and sustainability. We believe in setting exemplary standards of ethical
behaviour, both internally within the organisation, as well as in external relationships. All ITC
policies are based on the abiding principles of trusteeship, transparency, empowerment and
accountability, control and ethical corporate citizenship.

3.2.1 Corporate governance

 Vision and mission.

ITC seeks to act in an ethical manner and it also hopes to give an appropriate
return to the stakeholders in the areas it operates in.

 Board structure

The board of the company contains members from different specialists with
independent members whose role is to promote transparency and accountability
in the decision-making processes of the board.

 Code of Conduct

There exists a code of conduct in ITC which incorporates many other principles
including appropriateness, equity, and dignity in the course of business activities.
Other aspects include managing conflicts of interest, maintaining secrecy, and
abiding by the law.

3.2.2 Human resources policy

 Recruitment and selection

ITC is committed to building a diverse workforce following mainly a merit and

equality basis as while recruitment processes focus on skills and experience only.

 Employee Development

At ITC, the emphasis on continuous development is transcended as a philosophy

to all employees. Training, leadership and development, and even careers
progression opportunities are offered by the company such that the employees
embrace the mode of learning throughout their lives.
  Diversity and Inclusion

ITC embraces diversity and seeks to provide a workplace that is free of all forms
of discrimination. Policies exist to promote gender equality and substantial
respect for different demographic groups, which make it possible for each
employee to appreciate his or her worth.

3.2.3 Environmental Sustainability

 Sustainability A Way Of Life

ITC’s cognizance of its environmental concerns and its aim towards achieving carbon
neutrality in its operations as well as advocating for the responsible use of resources is
commendable.

 Waste Disposal
The company has efficient waste processes in place which also include the use of less single-
use plastic as well as recycling, all of which practices are adapted to the circular economy.

 Water Preservation
The organization invests on technologies that ensure efficient use of water as well as
participates in watershed management programs to avoid depletion of the existing water
resources within the Region.

3.2.4 Social Responsibility

 Community Participation
ITC is committed to the well-being of the community where it operates and therefore invests
in education, health and rural development programs to uplift the society.

 Community Services
Volunteering for community activities is encouraged by the company by providing employees
with chance to get involved in a number of activities that assist local people.
3.2.5 Business Integrity

 Compliance and Ethics

ITC has made efforts to meet the legally binding rules and regulations of every country it
operates in. It also had put in place mitigation policies aimed at eliminating the risks of fraud
and corrupt practices amongst others.

 Whistleblower Policy
For purposes of enhancing accountability, ITC has developed a whistleblower policy whereby
any employee can report any unethical behavior without being afraid of any repercussions.

3.2.6 Health and Safety

 Employee Well-being
ITC places great concern on the health and safety of its employees, which is why the
company complies with high safety standards and regulations so as to enhance the working
conditions.

 Occupational Health Programs

The organization has very good health; regular health assessment, psychological assistance to
employees, and leisure activities are all offered to aid in the health of the workers.
 1.7MILESTONES

ITC Limited is one of the most established Indian conglomerates and has achieved significant
milestones in its journey.
Some of the major milestones in the company’s journey are as follows:

1910 – The Imperial Tobacco Company of India Limited is founded by ITC in Kolkata,
operating primarily in the tobacco sector.
1954 – Diversification: it diversified by entering the FMCG sector of activity; The first
other product outside the cigarettes was the “Sunfest \” cookie.
1975 – Entry into hotels: ITC indulged in the hotel sector by opening its first luxury hotel,
ITC Windsor Manor in Bangalore.
1982 – ITC Agro Tech Itc Agro Tech has been created.
His attack on the agricultural industry was announced in the treatment and marketing plan of
various agricultural products.
1990s – Strong FMCG Portfolio ITC consolidated its FMCG portfolio across
brands like Aashirvaad (get your flour), Bingo! (snacks) and Sunfeast (cookies and pasta).
2000 – Creation of e-Choupal: e-Choupal was created as a technology-enabled information
solution to empower farmers.
2001- Branding: The company changed its name from Imperial Tobacco Company to ITC
Limited and removed the name of tobacco from the company label,
signaling a move beyond smoking.
2010 – Commitment to Sustainability: The company committed to sustainability,
prioritizing initiatives that preserve the environment and society.
2019 – Net Zero: Highlighting its commitment to sustainability, ITC has committed
to becoming a carbon, water and solid waste positive company by 2030.
2021 – Largest FMCG Company: ITC has emerged as one of the largest players in the
Indian FMCG sector with a diversified portfolio focused on multiple categories such
as personal care, food and grooming at home.
2022 – Entering plant-based foods: The company has launched a portfolio for plant-based
meat products that marks the rapid expanding alternative protein market.
 1.8PRODUCT OR SERVICE PROFILE

In 1910, a company named Imperial Tobacco Company of India Limited was founded, which
has now metamorphosed into one of the multi-business corporate giant ITC Ltd in India.
Amalgamated in Kolkata, the company ventures into several other industries such as fast-
moving consumer goods (FMCG), hotels, paperboards and packaging, agro-based business,
and information technology. Holding firmly to their values of eco-friendly business practices,
innovative developments, and concern for people ITC has pictured herself in the Indian
market and even expanded to other countries in the world.

3.4.1 Business
In terms of income, the FMCG sector of ITC is the most expansive, with a wide variety of
products within the sector.

A. BEVERAGES AND FOOD

The foods and beverages section of ITC features a wide variety of products to suit different
customers and their unique needs.
Wheat Flour and Atta: ITC does not just stop at premium quality wheat flour. It has also
introduced other types of wheat flour like multigrain and besan. For Indian customers, the
‘Aashirvaad’ brand has been a promise and synonymous with faith and quality for the very
many households.
Packaged Snacks: One of ITC’s chief brands for snacks – biscuits, cookies, noodles and
other snacks is the Sunfeast brand. These products Sunfeast Marie Gold, Sunfeast Bounce,
and Sunfeast Eating Noodles are the favorite of many.
Ready-to-Eat Meals: In its brand ITC Master Chef offers several assortments of ready to
cook and eat meals such as curries and rice dishes among other products to keep up with the
increasing demand for food that can be prepared in a very short time.
Beverages: With the likes of Aashirvaad and ITC Master Chef, ITC has focused on quality
coupled with taste to build its branding presence in the beverage category.

B. Grooming Product
The personal care division of ITC caters attention to the products that make a difference in
people’s everyday functioning. The prominent ones are:
Fiama: A luxurious brand associated with body washes, soaps and shampoos which claim to
have great fragrance, and include skin care properties.
Vivel: A mass market me too brand for economic soaps and personal care products
containing herbal ingredients.
Mangaldeep: This range has fragrances including the incense sticks among several other
conventional items that epitomizes India.

C. College Supplies
ITC with its Classmate brand has a substantial share of the stationery market. Types of
products under this brand include notebooks, pens and art materials for all school and
working-class environments. The brand is Quality and innovation centric and incorporates
green materials in its products.
General Merchandise
Additionally, it takes part in the production and selling of matches, incense sticks, and other
products – thus expanding its offerings too.

B. Hotels
Indian Hotels Company Limited (the parent company of Taj Hotels) operates under the
trademark “ITC Hotels” and is one of the leaders in the hospitality industry focused more on
luxury services and accommodation.

1. Luxury and Premium Hotels: ITC has a number of hotels that are under the ITC Hotels
umbrella and include luxury hotels such as ITC Grand Chola in Chennai, ITC Maurya in
Delhi and ITC Mughal in Agra among others. These hotels provide state of the art facilities
along with fine dining and more importantly, seek to go green.
2. Sustainable Hospitality: ITC Hotels looks beyond hotel business and strives to be
environmentally responsible and pro-active.
3. Culinary Excellence: ITC Hotels are often renowned because of the… cuisine diversity
and the unique dining experiences, which cover the range from classical Indian cuisine to
international cuisines.

C. Paperboards and Packaging

Again, ITC is one of the frontrunners within the paperboards and packaging segment while
being conscious about the environment.
1. Sustainable Sourcing: ITC is also conscious about the sustainability in its
paperboards & packaging division. As a result the company manages to use wood
sourced only from well-managed forests without causing any disturbing effects to the
environment.
2. Product Range: The packaging solutions offered by ITC are designed with variety of
industries in mind such as food and beverage, personal care and household goods. The
company devotes its attention to development of the indigeneous and effective packaging
design solutions for its production and focuses both on functional and artistic aspects of the
design.
3. Recycling Initiatives: ITC aims at enhancing the level of recycling and minimizing the
level of waste generation with aim of achieving a circular economy in the use of the
company's packaging. Further, the use of alternative materials is another area of
concentration.

D. Agriculture through Business Concepts

ITC’s agri-business unit is a significant part of the supply chain of the company because it
also supports most of the company’s sustainability policies.
1. E-Choupal Initiative: This new initiative seeks to transform the way farmers operate
through information access on best practices, price and agricultural information through the
internet. This increases farmer efficiency and earnings.
2. Sustainable Sourcing: ITC procures various agricultural items such as wheat, rice and
even spices while focusing more on quality and sustainability. Direct participation of the
company is also in place in the sourcing process to promote fair trade ethics.
3. Value Addition: Value Addition in this case is processing and packaging of the agricultural
products which in turn allows the company for use of quality raw materials in its FMCG
products range.

E. Information Technology
The IT Division at ITC still renders indispensable assistance in all the business units.
1. Digital Transformation: ITC is constantly investing in technological advancement with a
view of improving functioning, cut down on lead times in the supply chain and increase
customer interaction. These digital initiatives take a central piece in the strategic growth of
the company.
2. IT Services: In addition to these, the company also provides IT services in support of its
internal operations and facilitating improved customer service for activities such as e-
commerce and data processing.

F. Sustainability and Corporate Social Responsibility (CSR)

The case of ITC Limited is an interesting one because the company has mandated eco-
sustainable practices in all its undertakings. Some of the strategies include:
1. Water Conservation: ITC is water positive which means that it causes replenishment of
water, and even to the extent of the company’s operations. Thus, the company carries out rain
water harvesting, recycling of waste water and employing other practices such as drip
irrigation in its operations.
2. Sourcing from Sustainable Forestry: within the sustainable lifecycle of forestry
resources, the company actively participates in tree plantation and sustainable management of
forests in order to enrich or sustain the biodiversity within its operations and to seek climate
change mitigation.
3. Waste Management: ITC has adopted ambitious goals on waste generation with particular
emphasis on waste to landfill volumes through recycling and other waste management
practices.
4. Community Development: This covers the areas of Education, health and, rural
development as part of ITC’s CSR. The corporation works in programs that provide for
inclusive development, income generation, and community development.

G. Financial Performance and Market Position

ITC Limited has maintained a commendable financial performance over the years and
recorded increased revenue from its various business units. Thanks to the orientation of the
company on innovation, sustainability, and quality, it has been able create a sustainable
competitive advantage.

1. Revenue Contributions: The greater portion of revenue is generated by the FMCG

segment, followed by hotels, paperboards and agri-business. ITC’s wide ranging operations
help to reduce risks and ensure gradual growth.
2. Dividend Policy: ITC is particularly popular with investors since it regularly pays out
yummy dividends. The company aspires to pay a reasonable dividend payout ratio compared
to its earnings while still ploughing back some of its earnings to fund growth.
3. Market Recognition: ITC has won several awards due to its commitment on various
fronts such as quality and sustainability.
 CHAPTER 2
ORGANISATIONAL STRUCTURE
 2.1 MEANING

Organization studies (also called organization science or organizational studies) is the

academic field interested in a collective activity, and how it relates to organization,
organizing, and management. It is "the examination of how individuals
construct organisational structures processes, and practices and how these, in turn, shape
social relations and create institutions that ultimately influence people".
Organizational studies comprise different areas that deal with the different aspects of the
organizations, many of the approaches are functionalist but critical research also provide an
alternative frame for understanding in the field. Fundamental to the study of management is
organizational change.
Historically, facilitating organizational change has proven to be a difficult subject, which is
why different theoretical frameworks have evolved in an attempt to strategically streamline
this process, such as utilizing external actors, or interim organizations, where it is important
to define the expectations of the outcome of change before initiating it, so as to
provide measurability.
2.2 TYPE OF ORGANISATIONAL STUDY
2.3 ORGANISATIONAL STUDY OF THE COMPANY
2.4 KEY PERSON
 CHAPTER 3
FUNCTIONAL DEPARTMENT
 3.1 VARIOUS DEPARTMENTS

ITC Limited offers a wide range of products & services and therefore operates through
separate units which lead to different businesses. Some of the key working departments of the
company are as follows:

1. Research and Development (R&D)

The R&D division plays an integral role in business for ITC especially in enhancing quality
and innovation of the products offered by the company. This group also assists in the launch
of new products, improvement of existing products as well as processes management of
safety adherence. In their works and materials, they strive to be sustainable, an objective that
ITC also stands for.

2. Marketing
The Marketing department coordinates brand equity and consumer interaction, in particular
for Aashirvaad and Sunfeast range of products among others. The unit also undertakes
marketing research on the target audience and develops advertising strategies to connect with
them. The brand also emphasizes on digital marketing and social media platforms which are
very important aspects in winning the war of loyalty in the market.

3. Sales And Distribution

Sales and Distribution is an activity that performs a key function of product availability in
diverse formats of retailing. This enhances the development of sales strategies and logistics
management in the supply chain. It makes use of various methods including direct sales,
internet sales or e-commerce and selling to retailers to ensure coverage of the markets.

4. Supply Chain Management

This section manages the process of supply chain from procuring raw materials in order to
avail the finished products. More than that, Supply Chain Management team ensures that
efficiency is practiced in the procurement and logistics processes, and achieved sustainably
by minimizing waste and maximizing the use of resources.

5. Human Resources (HR)

HR department recruits, develops, and retains employees to create a conducive environment.
It handles recruiting, training, and how employees are involved in the organization. Strong
commitment to equal opportunity and the promotion of diversity and inclusion Characterizes
ITC and providing growth and wellness activities to the employees.
6. Finance
The Finance section coordinates the financial aspect of ITC which includes, among others,
budgeting, reporting and financial planning including strategies. They also analyze data to
assist decision making in compliance with regulations but also looking at growth in the long
term through management of risks.

7. Legal and Compliance

This department addresses issues relating to the law and corporate governance which the
company upholds. They also handle contracts as well as compliance issues and aim to reduce
possible legal risks and seek to provide legal advisory on doing business.

8. Information Technology (IT)

IT department renders assistance to all the other units of business by overseeing the
telecommunications network and information technology security. They use the latest means
of technologies to improve the operational process and implement the change in technology
within the organization.

9. Corporate Communications
The Corporate Communications department manages a wide range of communication, both
internally and externally, contributing to the public perception of ITC. This team deals with
public relations and corporate identity, striving for honesty and trustworthiness among
stakeholders.

10. Sustainability and CSR (Corporate Social Responsibility)

The corporate social responsibility unit emphasizes actions that contribute positively towards
society and the environment. ITC is firmly rooted in sustainability goals, with community
and environmental preservation initiatives strengthening its position as a responsible business
actor.
 3.2 ACTIVITIES OF EACH DEPARTMENT

1. Research and Development (R&D

Product Development: Creating new items or enhancing the current ones, depending on the
market response and trends.
Prototype Testing: Carrying Out Tests to ascertain the safety of the product and adherence to
quality standards.
Greener Alternatives: Researching the use of greener materials and practices in the making
of the products and services offered.
2. Marketing
Marketing Analytics: Interpreting consumers’ tastes and current market position to
formulate plans for products.
Brand Strategy: The Process of Design and Communication of the Brand to the Target
Market.
Promotional Activities: Organization of Advertising Campaigns and Media Buying for the
Purposes of Advertising through Different Media, including the Internet.
3. Sales and Distribution
Sales force management: Designing strategies for enhancing sales performance in various
markets, and sales channels.
Coordination of distribution: Management of the distribution aspect of the business so as to
facilitate the delivery of the product to the stores and the end customers with ease.
Managing Retail Relations: Customer Recognition, Acquisition & Retention in a fashion
that helps in maximizing product placement and visibility with respect to the retailers.
4. Management of the Supply Chain
Procurement: The process of obtaining the necessary raw materials and maintaining
effective suppliers quality and environmental assurance.
Inventory Management: Supervision of stocks and improvement of being short of stock in
order to save on waste and cost.
Logistics Coordination: Ensures that the overall process of delivering the products to the
customers in due time is conducted effectively by organizing the movement as well as the
storage of the goods.
5. Human resource (HR)
Recruitment: This is the process of attracting and engaging the individuals into an
organization in an appropriate time using suitable strategies and processes.
Training & Development: This is the aspect of administrating training sessions to
employees to improve their competences and for the good of their career aspirations.
Employee Engagement: This includes ensuring a healthy culture in the working
environment by undertaking activities such as feedbacks and wellness programs among
others.
6. Spending and Harvesting
Budget and Planning: Departmental management of control and performance reports of
respective budgets to all stakeholders.
Statutory Reporting and These financial statements will be made available to the public and
most importantly for regulatory bodies.
Asset Management: The process of assessment, approval and oversight of the internal
investments made by the company to achieve its strategy.
7. Law and Regulation
Contract Management: includes all the processes around drafting, editing and negotiations
of contract with purpose of minimizing risk.
Regulatory Compliance: the avoidance of infringement of laws and standards pertaining to
the organisations line of business.
Risk Assessment: Incorporation of Legal Risks and the Pursuit of Legal Risk Management
Steps.
8. Information Technology (IT)
Management of IT Resources: Involves running and improving the organization’s systems,
networks and all other technology-related devices
Cybersecurity: which involves providing protective measures against the information and
property of the organization.
Digitalisation: Application of technology in operational procedures to enhance efficiency
and creativeness.
9. Organizational Communication
Public Relations: Creating and distributing press materials to establish and maintain credible
relationships with the media.
Corporate Communications: Assisting in smooth communication within the organization to
ensure that every employee is informed and kept active.
Crisis Management: Preparing plans to contain possible public relations disasters.
10. Environmental Sustainability and Corporate Social Responsibility.
Self-help Groups: Initiatives that aim to develop capacity building in education, health and
poverty alleviation in society.
Waste Management: Establishing systems and practices to minimize negative
environmental consequences such as waste generation and usage of raw materials.
Consultation with Stakeholders: Involvement of different groups in the working of social
and environmental programs.
 3.3 INTER DEPARTMENT CO-ORDINATION

1. Regular Meetings and Communication

 Cross-Functional Teams: ITC encourages the establishment of cross-functional teams
which bring together members from different departments to work on a particular
project so as to enhance teamwork and encourage different view points.
 Scheduled Meetings: Regular meetings which entail R & D, Marketing, Sales and
other organs aim at taking off on the same direction, providing progress reports and
even discussing issues affecting the organization.

2. Shared Goals and Objectives

 Unified Vision: Departments also seek to achieve the objectives within the strategic
vision of ITC. This means that all the teams are pursuing the same objectives which
leads to better cooperation and little conflicts.
 Performance Metrics: Adopting the use of key performance indicators in the
department which are reflective of the progress of the whole unit motivates the
departments by promoting collective responsibility

3. Integrated Technology Platforms

 Collaboration Tools: ITC makes use of different types of digital collaborative
tools and platforms that improves communication and the management of
projects in a department and among other departments. This comprises of
shared databases, management of projects software and communication
applications.
 Data Sharing: Integrated systems permit, departments to exchange information
quickly, thereby improving managerial and operational activities.

4. Feedback Mechanisms
 Feedback Loops: Feedback Loops: Constant-feeding arrangements allow
formations such as the Sales unit to give information on customer feedback to
the Marketing department, which can then relay the information to R&D in
regard to enhancing existing products.
 Surveys and Reports: Communication on the requirements, problems and
achievements of a department is promoted by frequent surveys and reports.

5. Common Training and Development

 Inter-Departmental Seances: These are modes which ITC crosses the boundaries
of departments and organizes workshops as a means of enabling member
departments appreciate one another’s functions and processes; hence, fostering
a spirit of togetherness.
 Skill Development: Training is aimed at all departments without exception so as
to share ideas and overcome problems together.
6. Crisis Management Protocols
 Coordinated Response Plans: In times of a crisis, there are existing and agreed
upon plans within departments for working together which eases
communication and getting things done fast so as not to hamper activities.
 Crisis Exercises: Such combined endeavours are conducted from time to time to
equip the teams with the skills of deploying effective and cohesive response to
any such situations that may arise.

7. Joint Projects And Initiatives

 Sustainability Programs: There are focused projects on sustainability which
often cuts across the scopes of operation of the R&D, Marketing, Supply Chain
and CSR in these cases for the completion of the projects.
 Product Launches: The departments are in close coordination especially during
product launches where the Marketing, Sales and R & D departments work
together to ensure entry in the market takes place successfully.

8. Leadership Engagement
 Top Management Participation: Team building activities are very important for
the team management but the upper bosses provide a completive understanding
and promote the spirit of the group through allowing inter department works
and appreciating their efforts.Departmental Liaisons: A Liaisons officer is
elected from each department who acts as a communication and coordination
officer for the department and contacts whenever there are collaborative
assignments.

9. Cultural Alignment
 Shared Values: ITC encourages a people’s culture whereby employees work
across different departments and with each other as they appreciate and
understand the importance of team work.
 Recognition Programs: When employees are provided incentives to be team
players, and work together, they do.
 CHAPTER 4
SWOC ANALYSIS

4.1 SWOC OF THE COMPANY

Strengths
 Diverse Portfolio: ITC has a presence in several sectors such as FMCG, hotels,
paperboards and packaging, agribusiness thus minimizing reliance on any one
particular sector.
 Strong Brand Recognition: ITC has developed some highly sought after brands such
as Aashirvaad, Sunfeast and Wills Lifestyle which promotes customer loyalty as well
as enhances their market share.
 Sustainability Commitment: As it adheres to sustainable ways of conducting
business by caring for the environment as well as the people, it has gained a positive
perception as a corporate.
 Robust Distribution Network: The company has a wide distribution network which
guarantees the availability of its products in both the urban and rural markets.
 Research and Development: High level of Research and Development proves useful
since it assists ITC in coming up with relevant products depending on the ever
changing tastes and preferences of the consumers.

Weaknesses
 Dependence on Tobacco: A considerable share of revenues earned by ITC is
derived from the tobacco segment, which is often subject to various regulations
and treading at decreasing consumption patterns.
 High Competition: The FMCG sector as well as the hospitality sector is known
to be cut-throat with numerous incumbents and new entrants, which dilute the
market share and price-setting policies.
 Market Perception: The company’s participation in the tobacco business may,
however, result in negative perceptions, especially among the health-conscious
consumers.
 Slow Growth in Certain Segments: A number of segments of ITC, for example,
hotels, may have slow growth rates that could be attributed to the downturn in the
economy or inability to adapt to current travel patterns.

Opportunities
 FMCG Expansion: There are opportunities for ITC to widen its FMCG portfolio
due to increased consumer demand for packed food and personal care items.
 E-commerce Growth: The growing trend towards online purchasing offers an
opportunity for ITC to improve its sales and reach new customers base via online
marketing.
 International Markets: Exploring international markets more especially those
that are still developing can stimulate growth and promote diversification.
 Health and Wellness Trends: There is the potential for ITC to create and sell
cleaner products owing to increased consumer interest in health and wellness.

Challenges
 Regulatory Changes: The imposition of strict rules governing tobacco products
as well as restrictions on their advertising can undermine revenues and operational
plans.
 Economic Fluctuations: Changes in the economy, such as recessions or shifts in
consumer behavior can lead to poor sales in several segments.
 Supply Chain Disruptions: Global supply chain challenges, especially those
caused by pandemics or political conflicts, can hinder printing and distribution
processes.
 Changing Consumer Preferences: The fast pace of consumer preference
changes calls for constant inventiveness and flexibility as a challenge for ITC.

4.2 INTERPRETATION
A SWOC analysis of ITC Limited shows that the company is fast-growing and global in
nature as it has presence in several industries such as FMCG, tobacco, hotels, paper boards
and agribusiness. With a strong brand portfolio, sustainability strategies and a large
distribution network, ITC is well entrenched as the market leader in the economic sectors. In
tune with the changing dynamics of the society, the company is also investing more in the
development of new products especially those that are more health correct which stregthin
inres’s competitiveness.
Nonetheless, Itc has glaring weaknesses and one of them is the fact that hard decisions have
to be made due to the fact that the company makes a lot of money out of its tobacco segment
which is unstable because of both regulation and consumer dislike of tobacco. This over-
reliance especially on such entrenched products and services raises questions about the
viability of such a revenue stream for such a period. In addition, because of the fierce rivalry
within the FMCG Industry, innovation and flexibility must be consistent in order to retain
their market share.
There are several avenues which ITC can pursue without much difficulty especially in the
Virginia market which has a very promising FMCG industry and developing e-commerce.
Based on health and wellness, ITC can introduce new product ranges, thus expanding its
appeal to different consumers. Lastly, there is the option of considering external markets
which would also be growth oriented.
Nonetheless, challenges such as regulatory pressures, economic fluctuations, and supply
chain disruptions could impact ITC’s operations. To navigate these complexities, ITC must
remain agile and proactive, leveraging its strengths while addressing vulnerabilities.
In conclusion, ITC is well-positioned for continued growth, provided it focuses on
innovation, sustainability, and strategic diversification. By balancing its strengths and
opportunities against its weaknesses and challenges, ITC can maintain its leadership role and
achieve long-term success in an ever-evolving marketplace. This strategic approach will not
only enhance its competitive edge but also reinforce its commitment to corporate
responsibility and sustainability.
 CHAPTER 5
BEST PRACTICES

5.1 BEST PRACTICE OF THE COMPANY

ITC Limited is known for adopting many best practices in different areas of its operation.
Some best practices among them which have propelled its success, are:

1. Sustainability Initiatives.
 Sustainable Agriculture: ITC helps farmers cultivate the land using better methods
without damaging resources by training them and providing farm inputs which assist
in growing more and better crops.
 Water Stewardship: The company self-imposes strict water usage and management
policies not only within its operations but also in the supply chain, employing water
saving techniques.

2. Innovative Product Development

 Consumer Centric R&D: ITC has consistently been putting in mirrors in learning
and development which incisions on consumer cum market based trends. This
resulted into introducing many inventions in the areas of fast foods.
 Health and Wellness Focus: With a great focus on health as well as healthy eating
habits amongst the majority of the consumers, ITC has on the other hand diversified
its range of products to include healthy as well as beauty products.

3. Integrated Supply Chain Management

 End-to-End Supply Chain Optimization: ITC utilizes modern equipment and
employs data analysis to improve the supply chain of the Company from procurement
to distribution.
 Sustainable packaging: The focus for the Company centers on the use of packing
materials which do not lead to waste and degradation of the environment.

4. Effective Brand Management

 Wide Brand Range: ITC has created a lot of popular brands in many categories
which are also available to the urban and rural markets respectively.
 Useful Marketing: The firm’s integrated approach to marketing allows it to
effectively reach and interact with consumers, especially using the digital facilities.

5. Corporate Social Responsibility (CSR)

  Community Development Programs: It is true that ITC is committed to corporate
social responsibility by engaging in community development programs centered on
education, health, and income generation, and as a result, it benefits the communities.
 Environmental Protection: The firm takes part in programs that focus on planting
trees and conserving existing ecosystems, which is consistent with its sustainability
policy.

6. Employee Engagement and Development

 HR Activities: The company supports learning and growth on the job and encourages
the employees to take courses to advance their professional standing.
 Creating all inclusive culture: The organization values and respects different people
by creating and providing an environment that enables all the employees to excel.

5.2 KEY RESEARCH AREAS (KRA’S)

Key Result Areas of ITC Limited are determined to include elements of its functioning that
are responsible for performance and overall efficiency. The primary KRAs are as follows:

1. Financial performance
 Revenues: More emphasis is placed on increasing sales of all business
divisions-- especially of the FMCG division--and thus driving overall gross
sales.
 Profit: Reaching and sustaining the highest profit margins possible through
restraining costs and improving processes.

2. Market and Brand Development

 Market Share Volumes: Development of brand strength across its product
range so that consumers can easily relate to the brand, whereby consumer
loyalty is captured.
 Market Expansion: Increasing the already existing markets both urban and
rural, and specifically gaining market share in the targeted segments.

3. Corporate Governance and Social Responsibility CSR

o Development of Corporate Governance: Taking steps towards sustainable
sourcing, reduction in use of water and waste generation.
o Community Outreach Programs: Addressing the needs of the local
communities through health, education and income generating activities.

4. Innovation and Development of New Products

 Research and Development: Commitment to R&D, to come up with unique
products that appeal to the changing tastes of consumers.
 New Product Development: Launching new products in the market and also
new categories which the market needs.

5. Efficiency in Operations
 Supply Chain Strategy: Improvement of supply chain function includes
logistics and inventory management with cost reduction.
 Process Improvement: Enhancing productivity in all operations through the
application of lean and critically, technology.

6. Engagement of the Employees and their Growth

  Talent Acquisition and Retention: Ensuring skilled human resource management
through retention strategies and developing careers.
 Training Programs: Promoting continuous learning and development to keep
employees engaged and sharpen their skills.

7. Digital Development
 E-commerce Growth: Extension in sale channels over the internet to wider
audiences and coping with new shopping patterns of consumers.
 Data Analytics: Using data for improvements in decision-making processes, market
development, and customer comprehension.

8. Management of Risks
 Risk Assessment: The process whereby the operational, supply chain, and market
risks are identified and ways to lessen their effect are looked at.
 Crisis Preparedness: How to prevent a crisis and have an action plan in place for the
time of a crisis? Procedures when such situations arise should be clearly established.

5.3 SIGNIFICANT FACTOR OF SUCCESS

There are various reasons as to why the performance of ITC Limited has been successful.
Some of which include, strategic management and branding, and operational efficiency. The
factors are listed below;

1. In the broaden horizon of business

ITC is not confined to one revenue-generating activity as its business diversification
encompasses activities such as FMCG, hotels, paperboards and agribusiness. Such
diversification eases the burden of an investor who fears economic slowdown risk.

2. Marked Brand Value

ITC has a strong collection of brands of all times with the likes of Aashirvaad, Sunfeast, and
Wills Lifestyle. ‘Branding’ is an essential aspect for sales increase and for any company that
intends to keep hold of the market.

3. Pursuance to the Preservation of Nature

ITC is also credited as a sustainable business practitioner. For instance the strategy to source
sustainably, conserve water and manage waste effectively helps the organization to create a
positive image among consumers who support environmentally friendly products.

4. Creativity and Research

The company is research and development oriented and encourages innovativeness in the
process of developing new products. This gives ITC an edge in effectively launching
products that meet the changing needs and trends of the markets.

5. Effective Distribution Channels

ITC has established a strong distribution system that guarantees the availability of products in
all the cities as well as the rural parts of the country. Such wide coverage improves market
penetration and consumers’ ability to access the products.
 CHAPTER 6
CONCLUSION

6.1 LEARNING FROM THE STUDY