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BCG Matrix for ITC Ltd. Ranjan Varma. Structure. 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 .
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BCG Matrix for ITC Ltd. Ranjan Varma
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 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 globalizing environment, delivering superior and sustainable stakeholder value.
Business Mix of ITC Ltd. FMCG • Cigarettes • Foods • Lifestyle Retailing • Greeting, Gifting & Stationery • Safety Matches • AgarbattisPaperboards & Packaging • Paperboards & Specialty Papers • Packaging
Business Mix (Cont’d) Agri - Business• Agri-Exports• e-Choupal• Leaf Tobacco Hotels Group Companies • ITC Infotech; etc.
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.
Act 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.
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 (Cont’d) • 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.