ITC Company

ITC Limited is a leading company with a wide portfolio of businesses including FMCG, hotels, agriculture, packaging, information technology, and Agri business. This article provides an in-depth analysis of the company's history, external analysis, and internal analysis.

Running head: ITC COMPANY
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ITC LIMITED COMPANY

ITC COMPANY
 Location
The Headquarter of the company is in Kolkata. The company has the large market share due to
which high profit margin is maintained in the highly competitive business environment (ITC
LIMITED, 2019).
History
ITC was established on August 24, 1910 under the brand name Imperial Tobacco Company of
India Limited. The ownership of the company is of India but the name was changed to Indian
Tobacco Company Limited in 1970 and then to ITC Limited in 1974. It has been analyzed that
the business has a wide portfolio that encompass the different businesses. The office of the
company was in Radha Bazar lane and it is examined that 16th birthday of the company was
celebrated in August 24, 1926 by purchasing the plot of the land located at 37, Chowringhee,
Kolkata for the sum of 310,000. In 1925, packaging and printing business was started in 1925 as
the strategic integration in relation to the ITC’s business of cigarette. In 1975, the company
entered into the hospitality sector. The hotel business of the company was launched in Chennai
by the name “ITC Welcome group Hotel Chola”. In 1979, the company entered into paperboards
business by promoting the ITC Bhadrachalam paper boards limited. In 1985, the company set up
Surya Tabacco Company in Nepal. In 2010, the company decided to enhance towards the
portfolio of Tobacco (ITC LIMITED, 2019). Name of Businesses
There are different businesses of the company such as FMCG portfolio is designed by the
company to satisfy the customers. There are different brands in this such as Savlon, Bingo and
Vivel. There are other businesses of the company such as of hotels, agriculture, packaging,
information technology and Agri business (ITC LIMITED, 2019). Rationale justification of selecting the company
This company is selected for the task as it is one of the biggest companies. It will offer in-depth
analysis of the different factors that are related with overall functioning of the activities. This
company is one of the companies that have a brand image in the market and due to this the large
market share in the highly competitive business environment. This company is selected because
there is wide information available that can help in conducting the assessment 2. External analysis
Pestle analysis
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ITC COMPANY
Political factor
1. Impact has been seen due to rules and regulations of the government.
2. The political structure is instable of India due to which the direct impact has been seen on
the overall activities of the company.
3. Fear from the investors.
4. Affected revenue of the company
5. There are many different factors such as protection law, competitive regulations and also
terrorist attacks that impact the overall operations of the company.
Economic factor
1. Rapid economic growth helped the company to attain success.
2. The value addition of the company has been enhanced at the annual rate of more than
12% to over 68, 0000 cr.
3. The investment of the company of 6,000 cr has enhanced the competitiveness of the
direct employment in relation to the overall value chain of 5 Million people.
4. The business has achieved success by taking into consideration the Indian economy (ITC
LIMITED, 2019).
Social factor
1. The company partnered with the Indian farmers.
2. ITC E- choupal initiative has been considered.
3. The company created alternative employment for the labor that is surplus and also it
minimizes the non farmer’s income.
Technological factor
 Latest technologies have been considered by the company in terms of farming and
production of the products. Focused more towards the technologies that helps to save the natural resources. Focuses on proper utilization of the resources.
Legal factor
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ITC COMPANY
1. There are different legal aspects such as IT acts 2000 which is important to be considered
by the companies in the highly competitive business environment.
2. Digital signatures has not been legal validate and sanction under the act.
3. The companies have to face the legal laws related to income tax that affect the overall
growth ratio in the business world.
Environmental factor
1. The company has to make zero solid waste company in the next 2 years.
2. Impacted bio chain adversely.
3. Invested towards maintaining sustainability. Companies are now emphasizing more reducing the carbon footprints and also the water
consumption. So, it can be stated that these all are the factors that affect the overall growth of the
company in the highly competitive market area (Agrawal and Sahasranamam, 2016). Internal analysis
Strength
1. There are highly qualified employees.
2. Strong brand image
3. Large market area: it has been that the market area of the company is large that helps to
attain success in the competitive market.
4. Dedicated employees towards the work.
Weakness
1. Debt
2. Declining industry trend
3. Outdated technology
4. High staff turnover
5. Lack of scale
6. Ineffective customer’s service: it can be seen that company lacks in offering effective
services to the customers in the high competitive market.
7. Dependence on Tobacco products
Opportunities
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ITC COMPANY
1. It has been seen that the company has the opportunity to enhance the market share.
2. International expansion
3. New markets.
4. Emerging markets.
5. Innovation is also the approach that should be considered so that growth can be attained
in the market.
6. Online marketing.
7. New services should be offered to the customers so that customer base can be
maintained.
Threats
1. High competition level in the market as there are many competitors who are present in
the market.
2. GST has been imposed on the different activities of the company.
3. In 2017, the fuel price has been enhanced to 5.56%and due to this the transportation
prices has been enhanced.
4. Disruption because of demonetization has affected the Indian economy (Pandey and
Sharma, 2019).
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ITC COMPANY
References
Agrawal, A. and Sahasranamam, S., 2016. Corporate social entrepreneurship in India. South
Asian Journal of Global Business Research, 5(2), pp.214-233.
ITC LIMITED., 2019.HISTORY.[Online].Available from:
https://www.itcportal.com/about-itc/profile/history-and-evolution.aspx [Accessed on 14 April
2019].
ITC LIMITED., 2019. Key Impacts, Risks and Opportunities.[Online].Available from:
https://www.itcportal.com/sustainability/sustainability-report-2006/html/itc-impacts.aspx
[Accessed on 14 April 2019].
Pandey, S. and Sharma, J., 2019. Growth of Farm Forestry and Agroforestry in India after
1988. Indian Forester, 145(1), pp.7-14.
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