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TRANSCRIPT
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Submitted by-
MOHD ARIF KHAN
MASOOD AHMAD
NIKITA BISHT
MANJUL KRISHNAN
KRISHNA KUMAR
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Incorporated on August 24, 1910 under the
name Imperial Tobacco Company of India
Limited.
Name of the Company was changed from ImperialTobacco Company of India Limited to India
Tobacco Company Limited in 1970and then
to I.T.C. Limited in 1974.
Deals in FMCG goods,Hotels, Paperboards &
Specialty Papers, Packaging, Agri-Business and
Information Technology, education.
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Vision- Sustain ITC's position as one of India's most
valuable corporations through world class
performance, creating growing value for the Indian
economy and the Company's stakeholders. Mission - To enhance the wealth generating
capability of the enterprise in a globalising
environment, delivering superior and sustainable
stakeholder value
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Social factors: The aspirations of the tobacco consumers to upgrade the consumption
can multiply the shares of cigarettes. However, growing public concern
with regard to the consumption of tobacco has led the government to banall sorts of advertisements like the commercials, print media and
pamphlets. This may act as a setback for the company. For the hospitalitybusiness, the society is now turning more towards an individual orientedculture which means that people spend only for themselves. The rise inthe per capita income and the working population in the country is also agood sign for the company because the number of people willing tospend more on leisure increases with per capita income.
Technological factors: ITC came a long way on the technological front. With state of the art
factories and cheap labor supply from the second largest tobacco
producing country in the world, India, the supply chain management ofthe ITC follows the latest trend. ITC also has the great inventory controland logistics support. They have also been adapting other qualityconcepts such as quality control, total quality management and 6-sigma concepts.
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Strengths:
Managing diverse business. ITC has 105 subsidiaries connected with itsvarious operations.
Wealth of local knowledge & international expertise helps it to be globallycompetitive.
High quality standard products & services
Excellent export earnings. Highly professional management.
Excellent distribution network.
Excellent brand making capability helping it to diversify it into Retailing, IT& Hotel segments
Agro-export segment showing excellent growth of 28 % & earning Rs. 4
billion foreign exchange. A lasting impression by catchy ads.
ITC ltd is one of the most liquid scripts in the capital market. With domesticinstitutions having a considerable stake this is likely to improve liquidity inDe-mat trading.
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Weakness:
Diversification into various lines in which it does not
have much knowledge would be very risky proposition. High competition from established brands which has
resulted in reduction in profit margins.
Steep increase in cigarette taxes has adversely affected
the revenue earned. Due to high price of cigarette, consumers are switching
to other cheaper forms of tobacco.
Its hotel industry has still not created a big share in the
market size.
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Opportunities:
Big untapped market available. For cigarettes,
hotels, it, retail garment, packaging & agriculturalproducts.
High growth potential could be achieved.
Good source of revenue & foreign exchange
available by way of exports of agricultural products,hotels & cigarettes.
Its competitors dont have the financial banking likeit so it can take advantage of this.
Proper publicity of the hotels would increase itsbrand image & revenue.
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Threats:
Negative publicity for smoking could affect its
cigarette segment.
Government is under huge pressure from public
organizations for banning tobacco products which
could affect it adversely. High competition from established brands.
Competition from unbranded products.
Due to terrorist attacks the tourism industry hastaken a back seat which would affect the hotel
segment.
Poor monsoon leads to poor agricultural growth
which would affect the agro-exports
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ITC believes that its core values of trusteeship, customerfocus, respect for people, excellence, innovation andnation orientation have been the guiding principles
behind the Company's phenomenal growth, helping it tobecome one of India's most admired and valuedenterprises.
Only a handful of companies can boast of having notonly traversed a hundred years but also of having grownfrom strength to strength, transforming themselves from
single product entities to multi-business conglomerates.Our values help the organisation in building a culturethat drives a constant yearning for excellence andinnovation. When you join ITC you imbibe these valuesand make them your own.