Strategic Management, Itc Ltd

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Strategic Management|
On ITC’s e-Chaupal|
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This project report is all about the strategies of ITC for spreading in rural market rapidly| |
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10/18/2012|
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Project 2012

Subject
Strategic Management
Title
Understand the strategy of ITC

Submitted to
Prof. SP Singh
Rai Business School, New Delhi

Submitted by
Shail Kunj Joshi, Enroll. No:
PM4, Rai Business School
New Delhi

Acknowledgement
I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them.

I am highly indebted to Prof. SP Singh for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project.

I would like to express my gratitude towards my parents & member of Rai Business School for their kind co-operation and encouragement which help me in completion of this project.

I would like to express my special gratitude and thanks to industry persons for giving me such attention and time.

My thanks and appreciations also go to my colleague in developing the project and people who have willingly helped me out with their abilities.

Shail Kunj Joshi

Contents

* Project Description
* Overview on ITC-regarding e-Choupal
* Evaluation of ITC through SWOT Analysis
* Evaluation through BCG Matrix
* Suggestion to ITC-for strategy
* Conclusion
* Bibliography

Project Description
The success story at ITC is driven by strong fundamentals. The first being ITC’s diverse proven capabilities. Is it sourcing high quality agri-produce, robust FMCG distribution infrastructure and the decade’s old tradition of building enduring brands which exceed consumer expectations? ITC has also leveraged the exponentially growing potential of branded packaged food market in India. In addition the different segments of its business such as FMCG products such as (Cigarettes, Life Style Retailing, Greeting, Gifting and Stationary business, Safety matches), Hotels, Paperboards, Paper and Packaging, Agri Business including Agri commodities has allowed the firm to ensure that the business risk of being in the tobacco products does not hamper its growth. Innovative business models such as ITC’s e-Choupal has become popular that many others are also in the process of emulating the same. By diversifying its businesses into different unrelated areas has ensured that the future for this firm is bright and continues to remain at the top among Indian Business Houses. We have to:

1. Evaluate each of ITC’s business using a SWOT analysis. 2. Evaluate the SWOT analysis developed map the different business on to a BCG or any other relevant portfolio matrix. 3. Suggest the different strategies that ITC should adopt for each of the businesses.

Overview on ITC-regarding e-Choupal
The ITC group of companies has a yearly turnover of Rs 7.5 billion (US$162 million), and its activities span tobacco and cigarettes, paper and packaging, paperboard, hotels and tourism, information technology, and agricultural exports. For its agri-export division, ITC procures various agricultural commodities such as soybeans, coffee, and oil seeds. Typically, a farmer sells his produce to a small trader called a kaccha adat, who sells the produce to a larger trader called the pakka adat, who in turn takes the produce to a local mandi, where a larger trader buys the produce. The mandi traders then operate through brokers to negotiate sales to companies such as ITC. This long supply chain results in high procurement costs for ITC and in lost profit opportunities for the farmers. Because this long supply chain is a very time-consuming system, it also results in deterioration in the quality of the products. E-choupal

E-choupal is a Hindi word which...
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