Strategy and Process

Introduction- concept of strategy Strategy making process

Concept of Strategy
What is strategy??? Why ??? When ??? For Whom ???

 Purpose of a business is to create a customer . Drucker

ITC Future Ready

Diversification Strategy Established in 1910 Single Product to Multi Business Other than Tobacco -40 % turnover In 1985 Sales USD :160 million Profit : 1.6 million In 2010 Sales USD :6 Billion Profit: around 900 million

The ITC Vision & Mission

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 Companys stakeholders

Mission

To enhance the wealth generating capability of the enterprise in a globalising environment, delivering superior and sustainable stakeholder value

ITCs corporate strategies are

Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organisational capability with opportunities in domestic and export markets. Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri Business and Information Technology. Benchmark the health of each business comprehensively across the criteria of Market Standing, Profitability and Internal Vitality. Ensure that each of its businesses is world class and internationally competitive

ITCs corporate strategies arecontd

Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities residing in ITCs various businesses Create distributed leadership within the organisation by nurturing talented and focused top management teams for each of the businesses. Continuously strengthen and refine Corporate Governance processes and systems to catalyse the entrepreneurial energies of management by striking the golden balance between executive freedom and the need for effective control and accountability.

Business of Tomorrow:
Diversification Strategy market leader -paperboard & packaging industry second largest hotel chain, agri-business player E-Choupal ITC Infotech

Diversification strategy
synergies and competencies Aashirvaad atta e-Choupal network,
cost effective sourcing of wheat traceability of the commodity

customized blending, (practice of tobacco blending) support local tastes and preferences (ITC Hotel Chef)

ITC: Financial Highlights 19962011

ITC: Financial Highlights 1996-2011 Rs in crores

1996

2011

Gross Income

5,188

31,423

Profit After Tax

261

4,988

Return on Capital Employed (%) *As at 22nd July, 2011 Net Assets Employed

28

43

1,886

16,854

Net Worth

1,121

15,953

Market Capitalisation*

5,571

1,60,636

CAGR in Total Shareholder Returns in the period 1996-2011 : 25.6%

FMCG- Milk Products

ITCs Animal Husbandry Programme has reached out to nearly 5,00,000 milch animals leading to a significant increase in milk yields. form part of Companys value chains in the FMCG sector. first few products likely to be introduced by the company are skimmed milk powder, ghee and butter. In Bihar.

Strategy -definintion