Published on September 12, 2009
BCG Matrix for ITC Ltd. : BCG Matrix for ITC Ltd. Ranjan Varma Structure : Structure Act –I [Lights!] : 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 & 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. : 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) : Business Mix (Cont’d) Agri - Business• Agri-Exports• e-Choupal• Leaf Tobacco Hotels Group Companies • ITC Infotech; etc. Business wise Sales data : Business wise Sales data CAGR during FY 2005-2008 : CAGR during FY 2005-2008 Market share of ITC Ltd. : 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. Slide 11: Market attractiveness & Competitive strength is also important. Act 2 Limitations : 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. The BCG Matrix for ITC Ltd. : The BCG Matrix for ITC Ltd. Act III - Action- Learning points and conclusions : 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) : 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.