1. Strategic analysis using various
tools
(ITC Limited)
Submitted by-
Md. Shakir

2. Introduction about ITC LIMITED:
• ITC LIMITED (Indian Tobacco Corporation) is one of
the India’s major private sector companies which
hold a powerful place in the market with a huge
capital of US $ 19 billion and a turnover of over US
$ 5 billion. It owns many awards like Asia’s fab 50
and world’s most reputable companies given by
Forbes magazine and Business world.
• ITC LIMITED enters into the hotel industry as ITC
welcome group in the year of 1975 with the aim to
promote India’s rich tourism heritage. ITC hotels
have unique value and fine art of hospitality which
emerged as one of the India’s premier hospitality
sector. It has over 100 hotels in more than 80
destinations with good standard services.

3. Contd…
• Beyond hotel industry, it involves in some other
business too. The following are some of the business
of ITC LIMITED,
• Cigarettes
• Foods
• Lifestyle retailing
• Personal care
• Education and stationary
• Safety matches
• Agricultural business
• Information technology

4. • Vision:
Sustain ITCs position as one of the India’s most valuable
corporations through the world class performance, creating
growing value for the Indian economy and the companies
stakeholders.
• Mission:
To enhance the wealth generating capability of the enterprise with
the globalizing environment, delivering superior and sustainable
stakeholder value.
• Values:
ITC is a demand-driven organization responsive to national
development objectives and programmes. It endeavors to deliver
relevant and cost-effective services for sustainable development
ends. Its staff is committed to providing information and advice
according to criteria implicit in the United Nations Charter: the
highest standards of efficiency, competence, integrity and
neutrality.

5. • Objectives:
• Enterprises: Strengthen the international competitiveness of enterprises
• Trade support institutions: Develop the capacity of trade service providers to support
businesses.
• Policymakers: support policy makers in integrating the business sector into the global
economy.
• Stakeholders:
• The following table shows us the stakeholders of ITC limited,
• It shows us that the company has strong stake holders; hence it is also a key point to
survive in the market.
• Market position:
• ITC hotels can be broadly classified in four major sectors such as,
• The luxury collection,
• Welcome Hotels,
• Fortune Hotels,
• Welcome Heritage.
• With some of its unique techniques and design of the hotel, ITC welcome groups is now
one of the best five star hotels with the true essence of Indian hospitality. And it started
its special gateways to its new destinations. ITC welcomes groups are also getting a good
reputation for its fortune hotels which show the well done survival in the market.

6. Tools and techniques of strategic
analysis:
The following are the tools and techniques of strategic
analysis of ITC,
• Investment map: It helps the investment agencies identity
such as priority sector for foreign investments, competing
countries and potential foreign investors.
• Market asses’ map: It helps to find out the national tariff
level of different countries.
• Product map: It is an online product context which
includes the overall study of the market, price indications
and product information of different organizations which
helps to comparison of the services.
• Trade map: It is also an online data base which helps to
find the flow of goods and services and the barriers in the
international market.

7. Internal analysis:
• According to (Centre, ITC Strategic plan, 2008), Though ITC has a good
strategic approach in all ways, it has four major challenges such as,
• Leveraging more unearmarked resources: ITC has been trying to develop a
capacity to manage their large portfolio which will result in a need of huge
funds.
• Upgrading financial management: As ITC is being received funds from
various different sources; it needs to maintain a proper flow of cash and
proper project budget control. As flow of cash is important for every
organization, the decisions taken by the management must be very
accurate and flexible according to the fluctuations.
• Investing in people: ITC consider their staff as their heart of the
organization in order to achieve the business goals and objectives which
need a good personal management.
• Improving communications and information system: ITC is expanding its
level in the market; it should maintain a proper communication level in
order to maintain a smooth flow of business.

8. Financial performance:
• The financial performance of the ITC limited is
excellent when compared to the market situation. The
balance sheet as on 31st march 2009 shows that the
total value of source of funds which includes share
holders funs, loan funds and deferred tax is 14779.82
(Rs in crores) where the 31st march 2008th value is
12817.17 (Rs in crores). It is clear that the funds seem
to be increasing.
• On the other hand the net current assets which
includes inventories,debtors,cash in hand and bank is
3456.10 (Rs in crores) where the previous year was
2586.97 (Rs in crores) which seems to be increasing
too.

10. BCG MATRIX
• Stars:
ITC Ltd has a very strong market position in the sectors such
as Hotels, Paperboard/packaging and agricultural business.
They are very famous for Hotels and Agri business.ITC is very
strong in these positions as these sectors are considered as
stars in BCG matrix which means these sectors generates a
huge amount of profit because of the market shares.
• Question marks:
ITC Ltd FMCG sectors such as automotive companies,
furniture companies, financial companies, tobacco
companies, food companies are in the stage of question mark
in the BCG matrix which means these sectors growing rapidly
fast and consumes a large sum of cash because of low market
shares. But there is a chance that these sectors may become
stars.

11. • Dogs:
ITC InfoTech are now the Dogs in the BCG matrix
as they have very low market share and doesn’t
produce lot sum amount of cash which indicates
the weakest sector of ITC Ltd.
• Cash cows:
ITC Ltd FMCG-Cigarettes are now in the position
of Cash Cows in the market as they produce a
stable cash flow which makes a good growth rate
in the market shares. As there is a good profit, it
is a hope that this sector may move to the
position of Stars or Question marks in the near
future.

12. SWOT analysis of ITC Ltd:
The SWOT analysis can be broadly classified into major two sections which are the
internal analysis and the external analysis.
• Internal analysis:
Internal analysis of ITC Ltd is the strength and weakness of the
organization. The strength of the organization is nothing but its
brand and the powerful management. ITC Ltd brands are very
popular in India. Their beauty products such as Fiama Di Wills
and Vivel are more popular in the market. And the ITC
Welcome group hotels have a powerful position in the market
as well. This is the positive side for the ITC Ltd.
On the other hand, the weakness of the organization is their
unrelated diversification. They have major hotel sectors and as
well as Agri sectors and so on. As there is no connection
between the different sectors, there may arise a problem in the
future of handling the business in the smooth way as the
fortune of the market is always unpredictable. This is the
negative side for the ITC Ltd.

13. External analysis:
• The external analysis of ITC Ltd is the opportunity and
threats for the organization. The opportunities for the
organizations such as rural market and E-choupal are a big
boon to the organization. Investing in the rural areas helps the
development of rural markets and the Government lays a very
less tax on the rural markets which helps the ITC to save their
save their expenses on tax. This is one of the biggest
advantage and the positive side for the organization.
• Another external factor is the Threats to the ITC Ltd is
that the increasing level of tax in Cigarettes which lead to loss
the huge amount of cash on tax. The other threat is that the
health hazard which the public is very well aware off. So the
ITC Cigarettes industry which is doing very well in the present
market may face some serious problems in the future market.

14. Conclusion:
• It is a clear fact that so far ITC Ltd holds a good
reputation in the market and a well slandered position.
Even though there is an un-related diversification of
ITC, the powerful and the good management help the
smooth flow of business which is a successful key
factor to survive in the market. Though ITC Ltd has
some weak industrial sector, it keeps an overall
slandered position in the market even in the recession
period where lots of organizations are thrown out of
the market. With the level of present status, there is a
bright fortune for ITC Ltd after this dark recession
which is very near and crystal clear.