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 MANAGEMENT SCIENCES

EDEXCEL BTEC

HND - Level 5 Business (Management)

Assignment

Module: Unit 16: Managing Communications,

Knowledge & Information

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Deadline:

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Managing
Communications,
Knowledge & Information

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Learning outcome #01

AC1.
1 Discuss the range of decisions to be taken in an organisation
of your own choice.

Firm taken for analysis: Indian Tobacco Corporation

Annual Turnover : Forty Eight Billion USD

Based on the survey results from Boston Group and Forbes ITC is rated as
one of the most valuable organizations among top 10 in India.

It’s in to production of high valuable and most wanted consumer goods like
food items, biscuits, stationery items, Hotels, paper boards, packaging, IT
companies, Agro business. It has a dedicated R&D team, brand building
teams, product development work force, marketing & distribution network,

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efficient linkage to all the rural parts of India, world standard infrastructure,
manufacturing units and highly empowered human resources and HR
department.

It’s now into production of world class bath solutions like soaps – Fiama de
Willis, shower gels, energy gels, chocolates and personal care solutions with
high quality standards. It’s now planning to expand globally and move directly
into European markets – with high quality and affordable pricing as its motto.

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The main Stakeholders of ITC are:

Internal Stakeholders:

1. Founder (High level management)

2. Board of Directors (High level management)
3. CEO (High level management)
4. Head of departments based on functions – HR Head, Marketing
Department Head, etc…(High level management)
5. Regional managers for each region (Midlevel management)
6. Employees in various functions (Midlevel management)
7. Low level employees involved in production processes – factory
workers

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Stakeholders in connection with the organization under study:

1. The end customers who buy the product. The products of ITC are
mostly sold to the Indian national clients and also exported other
countries. Now they are looking to increase the international client base
2. Logistics Containers, Lorries, Trucks mostly owned by them and few
are outsourced for the domestic transportation
3. For out bound exports they transport using the Ships
4. The company share holders
5. Suppliers
6. Governing bodies

External stake holder of ITC:

1. food safety and standards authority of India (FSSAI)

2. ISO 9001:2015 Quality management system audit
3. BSI Bureau of Indian standards
4. ISO 14001:2015 Environment based management auditing
5. ISO 22000 Food safety management
6. FSSC22000 Food safety systems
7. HACCP
8. BRC which is the global standards set for the safe and efficient storage
and transportation, distribution and supply of the food
9. Safe quality food
10. Globally acclaimed Good Agricultural Processes

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It is highly essential for the organization to maintain a smooth relation
with all the internal and the external stakeholders.

Maintaining good will of the stakeholders of ITC:

1. Employees: Any successful organization will ensure they never lose

their trained employees. Hence its the role of the management to frame
policies and ensure that their top level management and the regional
managers adhere to their policies and standards. (Huber, G. 1991)
Employee satisfaction and motivation – has a direct proportional
relation with the employee retention. Hence by use of appropriate and
earnest methods the employees must be rewarded and motivated.
.(Argyris, C., 1978)
2. Offering promotions and periodic incentives will trigger involvement in
them. it’s the responsibility of the ITC to ensure that they create high
skill working force by periodically training them, assessing to improve
them, provide safe working environments, maintain all the safety
equipment, and offer their employees proper insurance in case of any
emergency known and unknown risks. At all the ITC branches in India
they offer most affordable foods cooked from their own hotels for the
employees at concession rate – by giving special tokens to all their
employees monthly.
3. BSI Bureau of Indian standards – is responsible for giving and
maintaining all the safety and quality standards and ITC has a strong
bond with these people to ensure they periodically maintain all their
certifications ISO and BAR standards.
4. No employee in ITC is outsourced and they all are directly recruited
and in concern to this they ensure they maintain strict policies for direct
employees and never outsource jobs to 3rd parties to reduce the cost.

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5. Logistics: ITC maintain 80% their own logistics and only 20% depend
on other third party logistic companies for their needs. Since they have
been 100 years in the Indian segment they have maintained strong
bonding with the existing current transportation carriers. They have no
dues in respect to the payments on time and also maintained strong
good will with them hence they had no issues with respect to this.
6. The external stake holders like Government, Indian Import and
export regulations body, local COC are taken care by their public and
external relations department by constantly updating on the latest laws,
regulations, new taxes imposed, etc... These separate wings with in ITC
take care of all the associated work and issues with these external
bodies.
7. The Tobacco exporters association and Indian chamber of
commerce: Paying these associations ensure in the smooth
organizational runs and in case of any problems they will receive
external help from them. they also take care of all the issues with the
suppliers

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Applying innovation in communication with the internal and external
stakeholders:

Modifying the existing communication process:

Modern technology can easily bring in all the Suppliers, Distributors,

Customers and managers globally spread –making them flat. (Merali, Y.,
1997)

Emergence of mobile communications have shrunk the world within the

palms and high speed devices like desktop, palmtop, smartphones and
smart devices enable easy, reliable and fast communications. (Brown, J.
S.et al. , 1991)

Modern technologies like ;

1. Social networking: creating separate pages in Facebook for ITC and

joining only their employees as members to share their views. In similar
methods Twitter and WhatsApp handle also can be deployed. Care
should be taken to ensure the organizational secrets never leak out
2. Separate Video conferencing systems powered by high speed
internet communication. The advents of latest 4G android and IPhone
have paved way for this. ITC has already enabled 3G routers in only
their key branches but they should move forward and ensure all their
offices across India and globally are connected by high speed
networks to ensure faster and trustworthy information exchanges
3. Separate groups can be created in WhatsApp for their clients,
suppliers, transportation companies – ensuring secured group
communication and get live updates on function related messages –
from the external stakeholders like levy of new tax rise on Container
transportation in a specific state in India, etc..
4. Virtual conferencing facilities: all their current traditional board rooms
must be converted to virtual conference rooms with big screens,

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 projectors and high speed internet, lap tops – to support the process of
conducting virtual conference with the clients. It paves way for reducing
the operational cost at ITC. All computers must be installed with VOIP
applications which are free and help in free and secure
Communications within the group.

Range of decisions to be taken:

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