Scribd Logo
Upload

Welcome to Scribd!

  • 143 views

    BCG Matrix For Itc LTD 3536

    Uploaded by

    sc950
    This document analyzes ITC Ltd. using the BCG matrix. It first provides background on ITC's governance structure, vision, mission and business segments. It then analyzes the sales and growth data of different business segments from 2005-2008. Using this analysis, it classifies the business segments in the BCG matrix as stars, cows, question marks or dogs. It finds hotels, paperboards/packaging and agri-business as stars. FMCG-cigarettes are cows. FMCG-others are question marks. It concludes by discussing the learning points around ITC's corporate strategy of creating multiple growth drivers and embracing difficult challenges.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd

    BCG Matrix For Itc LTD 3536

    Uploaded by

    sc950
    143 views15 pages
    This document analyzes ITC Ltd. using the BCG matrix. It first provides background on ITC's governance structure, vision, mission and business segments. It then analyzes the sales and growth data of different business segments from 2005-2008. Using this analysis, it classifies the business segments in the BCG matrix as stars, cows, question marks or dogs. It finds hotels, paperboards/packaging and agri-business as stars. FMCG-cigarettes are cows. FMCG-others are question marks. It concludes by discussing the learning points around ITC's corporate strategy of creating multiple growth drivers and embracing difficult challenges.

    Original Title

    Bcg Matrix for Itc Ltd 3536

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document analyzes ITC Ltd. using the BCG matrix. It first provides background on ITC's governance structure, vision, mission and business segments. It then analyzes the sales and growth data of different business segments from 2005-2008. Using this analysis, it classifies the business segments in the BCG matrix as stars, cows, question marks or dogs. It finds hotels, paperboards/packaging and agri-business as stars. FMCG-cigarettes are cows. FMCG-others are question marks. It concludes by discussing the learning points around ITC's corporate strategy of creating multiple growth drivers and embracing difficult challenges.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    143 views15 pages

    BCG Matrix For Itc LTD 3536

    Uploaded by

    sc950
    This document analyzes ITC Ltd. using the BCG matrix. It first provides background on ITC's governance structure, vision, mission and business segments. It then analyzes the sales and growth data of different business segments from 2005-2008. Using this analysis, it classifies the business segments in the BCG matrix as stars, cows, question marks or dogs. It finds hotels, paperboards/packaging and agri-business as stars. FMCG-cigarettes are cows. FMCG-others are question marks. It concludes by discussing the learning points around ITC's corporate strategy of creating multiple growth drivers and embracing difficult challenges.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 15

    BCG Matrix for ITC Ltd.

    BY Subrata chakraborty

    Structure

    Act I
    Act II Act III

    Lights!

    ITC- A Background

    Camera! The BCG matrix Action!


    Learning points and conclusions

    Act I [Lights!]

    Governance structure Strategic supervision Strategic management Executive management Core values Nation Orientation; Trusteeship; Excellence; Customer focus; respect for people; Innovation

    Vision & Mission statements

    Vision: Sustain ITCs position as one of Indias most valuable corporations through world class performance, creating growing value for the Indian economy and the Companys stakeholders. Mission: To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value.

    Business Mix of ITC Ltd.


    FMCG Cigarettes

    Foods Lifestyle Retailing Greeting, Gifting & Safety Matches Agarbattis

    Stationery

    Paperboards & Packaging Paperboards & Specialty Papers Packaging

    Business Mix (Contd)


    Agri - Business Agri-Exports

    e-Choupal Leaf Tobacco

    Hotels Group Companies ITC Infotech; etc.

    Business wise Sales data


    Business/ Year Growth Value (Rs in Crore) % 2005 2004 10002.54 9230.27 563.39 304.16

    FMCG-Cigarettes 8.4 FMCG-Others 85.2

    Hotels
    Agribusiness Paper & pkg. Net revenue

    124.1
    4.2 24.9 12.99

    577.25
    1780.07 1565.31

    257.53
    1708.77 1253.29

    13349.58 11815.04

    CAGR during FY 2005-2008


    Category CAGR Growth parameters Pricing power Inward traffic, occupancy Cigarettes 10.9 % Hotels 22.7%

    Paper
    Agri business FMCGOthers

    17.2 %
    34.3 % 60.2 %

    Capacity utilization, value added products E-choupal, choupal sagar,


    Fast track, decent share.

    Market share of ITC Ltd.

    Outstanding market leader Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports. Gaining market share Nascent businesses of Packaged Foods & Confectionery, Branded Apparel and Greeting Cards.

    Segment Cigarettes Paper & Packg.

    Dominance 70% share Packaging board No. 1 in Asia

    Contribution % Revenue PBIT 77.0% 87.7% 7.3% 7.0% 4.3% 4.4% 10.7% 3.7% 5.4% -7.5%

    Agri 1of the largest xporters business from India Hotels ITC Group ranks No.2 FMCG (Others) 20% share of greeting cards market, 'Aashirvaad' atta is No.1 in branded segment

    A c t 2

    Market attractiveness & Competitive strength is also important.

    Limitations

    Assumes market growth rate. A firm may grow the market. A Dog may be helping other products. High market share/Growth is not the only success factor. Linkage between market share and profitability is questionable.

    Stars Hotels Paperboards/ Packaging. Agri business. Cows FMCG-Cigarettes

    The BCG Matrix for ITC Ltd.


    ? FMCG- Others

    Dogs

    Act III

    - Action- Learning points


    and conclusions

    ? - To be handled with care. Strategic forays into emerging high growth markets. E-Choupal is a transformational strategy. Strong brand building capability will be tested.

    Learning points (Contd)

    Corporate strategy of creating multiple drivers of growth anchored on its core competencies and distribution reach. Embracing difficult and challenging corporate strategy. (Ex: Paperboards). EHS philosophy: Contribution to the triple bottom line- Economic, Environment and social capital.

    You might also like