Categorizing

Decisions
Submitted by Group 1
Navodaya Chourasia (14PGP013)
Rahul Ranjan (14PGP033)
Suryakant (14PGP048)
Ankit Kumar Varsaney (14PGP071)
Kumar Prashant (14PGP085)

ITC Limited
This exercise discusses the categorization of decisions at ITC Limited. Before, we do
so, let us look at companys mission and vision, which will be helpful in drawing
correlation with its strategic decision making.

Mission: 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.

Vision: To enhance the wealth generating capability of the enterprise in a

globalizing environment, delivering superior and sustainable stakeholder value.
ITC was incorporated as a Private Limited Company under the name, Imperial
Tobacco Co. of India Ltd in 1910. The Company manufactured and distributes
cigarettes and smoking tobaccos and specialty papers including cigarette tissue
papers.

Significant change
Insignificant change
Sig.

R
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Strategic
On analyzing the companys
mission and vision, we notice that
they want to want to build a
valuable corporation, specifically
there is no mention of any
aspiration to become a market
leader in any specific segment,
this implies that company believes
in expanding its scope with time
that may or may not create new
synergies with its existing business
units. Subsequent examples
demonstrate this argument
2. The company realized potential in
hospitality business in India and
ventured into hotels business in
1972 in the name of Welcome
Hotels ( now ITC Grand Maratha
Sheraton)
3. In 1988, company formed a new
division called Agribusiness
Division for carrying out research
and development on production

Commitment
Neo-strategic

1.

1) In 1953, the company decided to

backward integrate and acquired
the manufacturing business of
Tobacco Manufacturers (India)
Ltd., and the Complementary
Lithographic printing business of
Printers (India) Ltd. By doing so,
the company did not alter its
scope; however, it required
significant commitment of
resource.
2) To increase its penetration into
the cigarette segment, in 1987 it
launched premium cigarette
brands viz - Wills Flake Premium
Filter and Scissors Filter.
3) In 1983, It also entered into
partnership with Gujarat
Industrial corporation to create
hotels across Gujarat and in
1987 acquired Nedov hotels to
increase its presence in

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S

Insi
g.

and distribution of high yielding

cultivars with emphasis on oil
seeds, marketing of edible oils in
bulk and consumer packs and
export of agricultural produce.
4. In 1993, ITC started ITC Classic
Finance Ltd to commence
investment banking and brokerage
services business
5. In 2000, ITC launched Wills Sport, a
full range of internationally styled
premium wear for men and women
6. In 2010, it decided to enter into
soap and fairness cream segment
and has planned to achieve 1Lakh
crore turnover of its FMCG
business by 2025.

Tactical
1. In 1978, Subsequently, it entered
joint venture with Sheration
International Incorporated and
started providing marketing
services and reservation
agreement in hospitality business
2. ITC was already producing filters
for its own cigarette, in 1986, they
decided to form a JV with Filtrona
International Ltd. UK to
manufacture high tech. filters for
the industry this decision did not
alter the scope of the firm,
however, it required significant
commitment in terms of resources
3. In 1991, ITC Agrotech, started
exporting tea to Iran and Tehran
and Egypt to increase its reach in
this segment.
4. To benefit from special incentives
relating to Central excise duties, in
ITC 2000, ITC decided to set up
units in the north-eastern states by
infusing a lot of investments.
5. In 2006, It also acquired Australian
bio-tech firm to build its

Rajasthan and Kashmir

4) In 2002, It decided to open
franchises of Bukhara
restaurants in Hong Kong.
5) In 2004, ITC foods, forayed into
Atta market and ready to cook
food segment, without
committing significant resources
6) In 2006, it decided to tip-up with
Marubeni ltd for its food
business.

Operational
1. In beginning of 2000, ITC
decided to improve its
distribution system and its
supply chain. This resulted in
significant cost reduction. They
also started providing supply
chain solutions to other
companies through ITC Infotech.
2. In 2015, ITC, in a bold move,
decided to fire 60 middle and
senior managers as its cigarette
business was not growing as
expected in last two years.
3. The company started
sustainability initiatives from
2000 and focused on economic (
creating eduring institutions),
environmental (water
management, recycling, air
emissions etc.) and social
sustainability (labor practices,
social investments, e-choupal) of
the company
4. In 1998, ITC Ltd undertook a
comprehensive exercise to

capabilities in food segment.

restructure all its wholly-owned

subsidiaries to align them with
the four thrust areas viz.,
tobacco, hotels, paper and
paperboards and printing and
packaging
5. In 2005, ITC decided to go for
Quality Management
certification and was one of the
first companies in India to do so.