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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.
Significant change
Insignificant change
Sig.
R
E
S
O
U
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.
R
C
E
S
Insi
g.
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
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