The Vision And Mission Of ITC

The trance And Mission Of ITCITC is 1 of Indias for the first time private empyrean companies with a market capitalisation of over US $ 30 billion and a disco biscuitover of US $ 6 billion. ITC is rated among the Worlds vanquish Big Companies, Asias Fab 50 and the Worlds c draw backly Reputable Companies by Forbes magazine, among Indias Most appreciateed Companies by business fundamental law World and among Indias Most Valuable Companies by Business Today. ITC ranks among Indias 10 Most Valuable ( bon ton) Brands, in a national deal outed by Brand Finance and published by the Economic Times. ITC ilkwise ranks among Asias 50 outstrip performing companies compiled by Business Week.ITC has a modify presence in Cig atomic number 18ttes, Hotels, Paperboards Specialty Papers, Packaging, Agri-Business, Packaged Foods Confectionery, Information Technology, Branded App bel, in the flesh(predicate) Care, Stationery, Safety Matches and opposite FMCG products. As one of Indi as most blue-chip and reckon corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this first of inspiration a commitment beyond the market. ITC practices this school of thought by non only driving each of its businesses towards burynational warlikeness but by also consciously contributing to enhancing the competitiveness of the larger contend to be range of a function of which it is a part.ITC employs over 26,000 people at more than 60 locations crossways India. The Company continuously endeavours to enhance its wealth generating capabilities in a globalising surround to consistently reward more than 4,05,000 shareholders, finish the aspirations of its stakeholders and meet societal expectations. (assis, 2003)The ITC Vision MissionSustain ITCs smudge as one ofIndias most valuable corporations with world class performance, cr annihilateing growing mensurate for the Indian prudence and the companys stakeholders.THE ITC MISSIONTo enhance the wealth generating capability of the enterprisingness in a globalising surround, delivering superior and sustainable stakeholder value.The ITC WayITC is a board-managed professional company, committed to creating lasting value for the shareholder and for the nation. It has a rich organisational culture rooted in its vegetable marrow values of respect for people and belief in empowerment. Its philosophy of all-round value creation is backed by strong incarnate governance policies and systems.ITCs CORPORATE STRATEGIES are Create triple begetrs of offshoot 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.C reate distributed leadership deep down the organisation by nurturing talented and foc employ top trouble teams for each of the businesses. forever strengthen and refine embodied governing body processes and systems to catalyse the entrepreneurial energies of direction by striking the golden balance between executive immunity and the need for effective control and accountability.CORE VALUESITCs consequence determine are aimed at developing a customer-focused, high-performance organisation which creates value for all its stakeholdersTrusteeshipAs professional managers, we are conscious that ITC has been addicted to us in authority by all our stakeholders. We forget realize stakeholder value and interest on a long term sustainable basis.Customer FocusWe are always customer focused and will deliver what the customer needs in terms of value, quality and satisfaction.Respect for PeopleWe ac familiarity that every individual brings diverse perspectives and capabilities to the team and that a strong team is founded on a variety of perspectives.We want individuals to dream, value differences, create and experiment in hobby of opportunities and achieve leadership through with(predicate) teamwork.ExcellenceWe do what is right, do it well and win. We will strive for integrity in whatever we do.InnovationWe will constantly pursue newer and purify processes, products, services and vigilance practices.Nation OrientationWe are aware of our right to generate economic value for the Nation. In pursuit of our goals, we will act no compromise in coincideing with relevant laws and regulations at all levels.globalizationITCs mission is to sustain and enhance the wealth-generating capacity of its portfolio of businesses in a progressively globalising environment. As one of Indias premier corporations employing a vast quantum of societal re rises, ITC seeks to fulfil a larger role by enlarging its contribution to the society of which it is a part. The trusteeshi p role related to social and environmental resources, aligned to the pursuit of economic objectives, is the cornerstone of ITCs surround, Health and Safety philosophy.In the multi-business context of ITC, unified Strategies are designed to create enduring value for the nation and the shareholder, through leadership in each business and the attainment of world-class competitive capabilities across the value chain.To contribute to sustainable development through the instauration and implementation of environment standards are scientifically tested and meet the prerequisite of relevant laws, regulations and codes of practice.To take account of environment, occupational health and rightty in planning and decision-making.To provide and maintain facilities, equipment, operations and functional conditions which are safe for employees, visitors and contractors at the Companys premises.To institute and implement a system of regular EHS analyze in order to assure compliance with laid do wn policy, benchmarked standards, and requirements of laws, regulations and relevant codes of practice.SWOT ANALYSISSTRENGTHSMANAGEMENT experienced broad base of interests and k without delayledgePRODUCT LINE unique, tastes good, competitive price, and convincement.MARKETING diverse and global awareness. force supranational, diverse positions, high sakes revenue, high sale growth, large capital base.MANUFACTURING dispirited costs an liabilities referable to outsourcing of bottling.RESEARCH AND t come downing continuous efforts to research trends an reinforce creativity.CONSUMER/ mixer huge market in the healthy products and growing market for specialized foods for ethic groups.COMPETITIVE distinctive name, product and packaging in with regards to its markets.technical internet promotion much(prenominal) as banner ads and keywords butt increase their sales and more computerized manufacturing their efficiency.ECONOMIC consumer income is high, more tend to eat out, co nvenience is important to us.WEAKNESS MANAGEMENT large size whitethorn lead to conflicting interests.PRODUCT LINE new one kilocalorie product have no existing customer base generic have brands laughingstock make similar product.MARKETING may lose focus, may not be segmented enough.PERSONAL possible conflicts due to so many people, possible trouble staying focused.FINANCE high expenses may have trouble balancing cash-flow of such a large operation.RESEARSH DEVELOPMENT may concentrate too much on existing product, inter apreneuralship may not be welcomed.CONSUMER/ neighborly more expensive products, such a high price may limit lower income family from purchase on ITC product.COMPETITIVE not entrails patentable, constant reliability by competitors.TECHNOLOGICAL computer break downs, viruses and hackers can reduce efficiency and essential constantly update products or other competitors will be more advanced.ECONOMIC very elastic demand, almost pure competitor.OPPORTUNIT IESExpected 30% CAGR in organized market to result in better stair and conversion rates.Entry into Tier 2 Tier 3 cities. collaborationism with foreign player because of a national brand.An opportunity to diversify its operations in e-relating.As big company of India can go globally.THREATSEmployee dearth and attrition due to rapid growth in the whole market. concern of slowdown in consumer spends to be felt in FMCG market.Opening up of economy for free entry of foreign players. (Anon., n.d.)PEST ANALYSISPOLTICAL sexual relation DominancePolitically active unionsGovt. took over sick companies.MNCs urged to liquidate uprightness with a cap of 40%Multiparty coalitions causing political uncertainty arcadian job program launched in 2006Reduced economic control candid economy to importsGovt. Approved 51% FDI provided company engaged in one branding.ECONOMICFavoured capital goods, increased black marketLow competition in domestic market none competent enough for international levelL ower purchasing power of consumerForeign investment discourageIndias rapid GDP growth led to increase in outlay powerIncrease income 56% demand for FMCG product from rural sector.SOCIALAbundance of low wage sector88 % of rural tribe below poverty lineRural access hampered by paltry road ,rail telecommunication linksNGOs to assist smaller level cooperatives crew of low wage relatively high skilled labourtechnical foulIT sector grew rapidlyInternet usage access to rural sectorIncreased mediums to selective information available ITC provided web portalLimited mediums avaible to push brand building.Corporate GovernancePreambleOver the eld, ITC has evolved from a oneness product company to a multi-business corporation. Its businesses are spread over a wide spectrum, ranging from cigarettes and tobacco to hotels, packaging, paper and paperboards and international commodities trading. Each of these businesses is vastly different from the others in its type, the state of its evol ution and the basic nature of its activity, all of which invite the choice of the form of governance.Globalisation will not only importantly heighten business risks, but will also compel Indian companies to adopt international norms of hydrofoil and good governance. ITCs governance policy recognises the scrap of this new business reality in India.Corporate Governance bug out the cornerstones of ITCs governance philosophy, namely trusteeship, transparency, empowerment and accountability, control and ethical bodied citizenship.Core PrinciplesITCs Corporate Governance initiative is based on two core article of beliefs. These are Management must have the executive freedom to drive the enterprise forward without undue restraints andThis freedom of management should be exercised within a model of effective accountability.ITC deliberates that any meaningful policy on Corporate Governance must provide empowerment to the executive management of the Company, and simultaneously create a mechanism of checks and balances which visits that the decision making powers vested in the executive management is not only not misused, but is used with conduct and indebtedness to meet stakeholder aspirations and societal expectations.TrusteeshipITC believes that large corporations like itself have both a social and economic purpose. They represent a coalition of interests, namely those of the shareholders, other providers of capital, business associates and employees. This belief therefore casts a responsibility of trusteeship on the Companys Board of Directors. They are to act as trustees to protect and enhance shareholder value, as well as to ensure that the Company fulfils its obligations and responsibilities to its other stakeholders.TransparencyITC believes that transparency nitty-gritty explaining Companys policies and actions to those to whom it has responsibilities. Therefore transparency must lead to maximum appropriate disclosures without jeopardising the Compan ys strategic interests. Internally, transparency means openness in Companys relationship with its employees, as well as the get of its business in a manner that will bear scrutiny.potency and AccountabilityEmpowerment is an essential concomitant of ITCs first core prescript of governance that management must have the freedom to drive the enterprise forward. ITC believes that the Board of Directors are accountable to the shareholders, and the management is accountable to the Board of Directors. holdControl is a necessary concomitant of its second core rationale of governance that the freedom of management should be exercised within a framework of appropriate checks and balances. Control should prevent misuse of power, facilitate timely management response to change, and ensure that business risks are pre-emptively and effectively managed.Ethical Corporate CitizenshipITC believes that corporations like itself have a responsibility to set exemplary standards of ethical behaviour, bo th internally within the organisation, as well as in their external relationships. We believe that unethical behaviour corrupts organisational culture and undermines stakeholder value.The Governance organiseFlowing from the philosophy and core principles, Corporate Governance in ITC shall take place at three interlinked levels, namely Strategic super mountain by the Board of DirectorsStrategic management by the Corporate Management committeeExecutive management by the Divisional Chief Executive aided by the Divisional Management CommitteeThe 3-tier governance grammatical construction therefore ensures thatStrategic supervision being free from involvement in the childbed of strategic management of the company, can be conducted by the Board with objectivity, thereby sharpening accountability of management.Strategic management of the Company, uncluttered by the day-to-day tasks of executive management, remains focused and energised andExecutive management of the divisional busine ss, free from collective strategic responsibilities for ITC as a whole, gets focused on enhancing the quality, efficiency and force of its business.CODE OF addPreambleITCs Code of Conduct was circulated to the employees more than cinque years back and is posted on the Companys bodied website. This Code has now been re-drafted for better presentation. This Code is derived from three interlinked fundamental principles, viz. good corporate governance, good corporate citizenship and exemplary personal conduct.PhilosophyITC is a professionally managed organisation and the core value underlying our corporate philosophy is trusteeship. We believe this organisation has been handed to us by the various stakeholders in trust and we as professionals are the trustees of these stakeholders. It is therefore our responsibility to ensure that the organisation is managed in a manner that protects and furthers the interests of our stakeholders.Corporate Governance PolicyThe Corporate Governance P olicy is the apex level instrument guiding conduct of the personal matters of the Company and clearly delineates the roles, responsibilities and authorities of the key entities in the governance structure of the Company. This Code forms an integral part of the Companys Governance Policy.Good Corporate CitizenshipIn the conduct of the Companys business, the practice of good corporate citizenship is a prerequisite and embraces the quest Relationships with Suppliers and CustomersAll directors, aged(a) management and employees shall ensure that in their dealings with suppliers and customers, the Companys interests are never compromised. Accepting gifts and presents of more than a nominal value, gratuity payments and other payments from suppliers or customers will be viewed as serious breach of retard as this could lead to compromising the Companys interests.Legal ComplianceIt is the Companys policy to comply fully with all applicable laws and regulations. Ensuring legal and regulat ive compliance is the responsibility of the Chief Executives of the Businesses and the Divisional Management Committees. Divisional Management Committees must remunerate themselves that sound and adequate arrangements exist to ensure that they comply with the legal and regulatory requirements impacting each business and identify and respond to developments in the regulatory environment in which they operate.Health and SafetyThe Company attaches great importance to a healthy and safe work environment. ITC is committed to provide good somatogenic working conditions and encourages high standards of hygiene and housekeeping. Particular attention should be paying to training of employees to increase safety awareness and adoption of safe working methods, particularly designed to prevent serious or fatal accidents.Environment PoliciesThe Company believes that commitment to sustainable development is a key function of responsible corporate citizenship and therefore deserves to be accord ed the highest priority. In addition to complying with applicable laws and regulations, Businesses must establish procedures for assessing the environmental effects of their present and future activities. own(prenominal) ConductAll directors, superior management and employees have the obligation to conduct themselves in an honest and ethical manner and act in the best interest of the Company at all times. They are expected to install exemplary personal conduct through adherence to the following shunning of Conflict of InterestAll directors, senior management and employees must annul situations in which their personal interest could conflict with the interest of the Company. This is an area in which it is impossible to provide comprehensive guidance but the guiding principle is that conflict, if any, or potential conflict must be disclosed to high management for guidance and action as appropriate.Transparency and Audit-abilityAll directors, senior management and employees shall e nsure that their actions in the conduct of business are tout ensemble transparent except where the needs of business security dictate otherwise. It shall be necessary to voluntarily ensure that areas of operation are open to examine and the conduct of activities is totally auditable.Protection of Confidential InformationNo director, senior management and employee shall disclose or use any confidential information take uped in the course of participation/ association with the Company for personal gain or for the advantage of any other person. No information all formally or informally shall be provided to the press, other publicity media or any other external agency except within canonical policies.Company FacilitiesNo director, senior management and employee shall misuse Company facilities. In the use of Company facilities, care shall be exercised to ensure that costs are originable and there is no wastage. (Deveshwar.Y.C, 2002)CORPORATE SOCIAL RESPONSIBILITIESCSR activitiesEN VIRONMENTITC has been cytosine Positive three years in a row (sequestering/storing doubly the amount of CO2 than the company emits).Water Positive six years in a row (creating three times more rain water harvesting potential than ITCs net consumption).Close to 100 % real waste recyclingAll Environment, Health and Safety Management Systems in ITC conform to the best international standards.SOCIALITCs businesses generate livelihoods for over 5 million peopleITCs globally recognised e-Choupal initiative isthe worlds largest rural digital infrastructure benefiting over 4 million farming families.ITCs Social and conjure Forestry initiative has greened over 80,000 hectares creating an estimated 35 million person days of employment among the disadvantaged.ITCs Watershed Development Initiative brings precious water to nearly 35,000 hectares of wry lands and moisture-stressed areas.ITCs Sustainable Community Development initiatives include women empowerment, supplementary education, int egrated fauna husbandry programmes.PRESERVING NATIONAL HERITAGEAs a socially responsible corporate citizen, ITC endeavours to create value for the Indian society in multiple ways, one of them being preservation ofIndias rich cultural heritage. ITC has made prodigious contribution to the promotion of Indian classical music, theatre, art and cuisine.ENVIRONMENTAL AND SOCIAL PERFORMANCEIn the past, I have shared with you the abiding vision that inspires us to create sustainable stakeholder wealth and enlarge our contribution to the Indian society. This commitment goes far beyond the market to create simultaneously financial, environmental and social capital for the nation.This year, ITC joined the United Nations Global Compact, the worlds largest global corporate citizenship initiative. (Anon., n.d.)REFLECTIONRenounced company always follows all the issues and regulation to reach at the top most point that is appraise by the organization, follower and peoples one of the company that follow all issues and have a brand encounter in all areas and all people internally and externally apologize this company and ITC is one of that company that have many follower and as a customer I also follows ITC as a source of inspirations .It have done many CSR activities to communicate with the people of different role to capture a wide market area that in turn increase their market share.Corporate governance of ITC is very strong and come home and takes all from stakeholder to shareholder governing body to make its company no-hit in every aspect to achieve it target point.So, this is the main reason why i am very much influenced from ITC company sleep together to follow it point to implement in my organization to make it successful. reference pointAnon., n.d. www.echoupal.com. Online.Anon., n.d. www.itcportal.com. Online.assis, c.g., 2003. ITCS RURAL SYMPHONY. BUSINESS WORLD.Deveshwar.Y.C, 2002. THE INDIAN TABACOO COMPANY.CONCLUSIONITC ltd. is a leading FMCG Company in In dia and from last three consecutive years has shown accelerated growth in FMCG portfolio. Customer in India also spending more in FMCG as their standard of living is growing. ITC has placed itself successfully in the position of market leader in FMCG product, though there was some ruin in sales and profit of company in beginning of this ten but after that ITC has shown considerable rise in both sales and profit.ITC promoting their brands through advertisement campaign as well as gateway to door promotion.The demand of their product in very low, because people dont kip down about their brands very well.ITC knows their strength and weakness in the personal care market, so they are applying new concept to overcome their weaknesses.ITC now offer more margin, exiting offers and long credit period to retailers and wholesalers.The future of the company is looking bright as FMCG market in India is still expanding and so we can safely conclude that ITC will be able to secure it No. 1 p osition in FMCG product.POLITICALDATETOPICS COVERED key fruit ISSUE COVEREDRELATION OF KEY ISSUES WITH THE CASE28MARCHGLOBALIZATION launch of GlobalizationSocial and Economic Implications.31MARCHSWOT ANALYSISINTERNAL ANALYSIS-STRENGTHS,WEAKNESS impertinent ANALYSIS-OPPORTUNITIES,THREATS5APRILPESTEL ANALYSISPEST ANALYSIS POLITICALECONOMICALSOCIOCULTURALTECHNOLOGICAL9APRIL12APRILCORPORATE GOVERNANCECSR(corporate social responsibility)CORE PRINCIPAL,THE GOVERNANCE STRUCTURE poster OF DIRECTORSCORPORATE MANAGEMENT COMMITTEECODE OF CONDUCT CITIZENSHIPPERSONAL CONDUCTCORPORATE GOVERNANCE POLICYGOOD CORPORATE CITIZENSHIPIMPROVED assimilationREPUTATIONENVIRONMENTAL PRESERVATIONCORPORATE RESPONSIBILITYEnvironmental preservationResettlement of War VictimsWelfare of the neighbouring communities.Environmental Preservation