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OB

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Determine the current life cycle stage of your company (chosen

for group project) by documenting as many of the characteristics

listed in the background reading

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Cigarette business- Late growth/Early Maturity

FMCG- Early growth stage

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Determine the current life cycle stage of your company (chosen

for group project) by documenting as many of the characteristics

listed in the background reading

Organizational birth- 1910 in Kolkata

Population density- very high in fmcg sector and comparatively less in cigarette

First mover advantage in cigarette (R-strategy)

K-Strategy for other businesses (Not an issue)

Specialist to Generalist strategy (R specialist- to r generalist for cigarette) and K

Specialist to K generalist for other industries

Organizational isomorphism- unique set of businesses (but fmcg sector normative

over time)

Coercive isomorphism (bringing in more ready to eat food to suit the society

needs)

Normative isomorphism exists between fmcg firms and itc (switching of

employees, distribution channel, price wars)

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Growth through Delegation

In 1975, the company entered Hotel business with the acquisition of a hotel in

Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'

In 1979, ITC entered the Paperboard business by promoting ITC Bhadrachalam

Paperboards Limited,which today has become the market leader in India.In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepali and British joint

venture. Since inception, its shares have been held by ITC, British American Tobacco

and various independent shareholders in Nepal. In 2002, Surya Tobacco became a

subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited.

Growth through Coordination

ITC's foray into the Foods business began in August 2001 with the introduction

of Kitchens of Indiaready-to-eat Indian gourmet dishes.In 2002, ITC entered the

confectionery and staples segments with the launch of the brands Mint-o and

Candyman confectionery and Aashirvaad atta (wheat flour).[2003 witnessed the

introduction of Sunfeast as the Company entered the biscuits segment. ITC's enteredthe fast growing branded snacks category with Bingo! in 2007

Growth through Collaboration

ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at

Sehore. On the rural retail front, 24 'Choupal Saagars' are now operational in the 3states of Madhya Pradesh, Maharashtra and Uttar Pradesh

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ITC Over The Years

Started in 1910 in the tobacco business

Saw growth throughout the coming decades

High growth saw backward integration into Packaging

business in 1925

Reached an elongated maturity stage in this business

Starting 1975, as a conglomerate, entered the growth stage Ventured into multiple businesses, went international in 1985

Owing to constant diversification a good part of the company

was in the growth stage owing to moves through the 90s and

early 2000s Cigarette business under health regulations, threatening

minor decline

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Thank you