It is not the actual case solution. Published by … And also it allows you to take some action toward 26 4,00,000 crores. With any changes in the policies relating to income, there will be a sharp change in the consumption of necessity goods. PESTEL Analysis Imperial Tobacco Company A PESTEL analysis of any industry serves to identify the major factors prevalent in the macroeconomic environment that affect the performance of businesses operating in that sector. Learn More; Get Started; Disclaimer: The below article is for sample formatting of case solution only. ITC has been ranked 772 on Forbes magazine list of top 2000 companies globally. With the ban of e-cigarettes in India, ITC expects a higher sale, with more economic benefits for the company. If under any circumstances the company, creates an issue, concerning violation of the laws, it will have to face major reputation damage along with certain monetary damage. The organization boasts about 41% of its energy consumption to be derived from renewable sources. PESTEL / STEP / PEST Analysis of ITC Limited: India First Case Study Solution of ITC Limited: India First SWOT Analysis and Solution of ITC Limited: India First References & Further Readings. MBA Skool is a Knowledge Resource for Management Students & Professionals. ITC also features at 239ranksk in worlds best employers list of Forbes Magazine and Asia’s 50 biggest performing companies list compiled by Business Week. Enter the email address you signed up with and we'll email you a reset link. SWOT Analysis ITC. The trade wars between countries are expected to affect the business of the organization, but yet the recent trade agreements signed by India with various countries may rule out the intensity of the trade war. The brand has been valued at $51.5 billion as of June 2018. It saw the highest quarterly profit in the second quarter of 2019. As a result of its diverse operations, the organization needs to follow various policies that apply across the regions of its operations. To learn more, view our. analysis. Its well being out of the waste program (WoW) covers about 89 lakh people across the country. A PESTEL analysis is used as a strategic tool to measure industry dynamics through recognition of the core political, economic, social, technological, legal and environmental forces/changes having influence on the industry (Henry, 2007, p.23). PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. Academia.edu uses cookies to personalize content, tailor ads and improve the user experience. All this euphoria gives rise to the doubt about whether Sri Lanka Tourism is well on the way to recovery and growth or not. Through this venture, the company believes in creating a more sustainable environment through the use of advanced technology. Any deviation from the standard quality that the society expects, is a major setback for the company. Some Economic Factors ITC had to face in some previous years are mentioned as below: Bidee : cigarette ratio = 10:1 which means they are the producers of a very less level of tobacco products as compared to overall consumed. ITC uses selective and differentiated targeting strategyis used by the company for offerings of the different group of companies. One major advantage that ITC has is its brand name. This tool is especially useful when starting a … This has been worsened by the rise in VAT notwithstanding the fact that only 5.7% of all adults smoke cigarettes while almost 35% adults consume tobacco. Combating Recession 8. The company has undertaken various CSR initiatives to empower the impoverished farmers, with one of its initiatives being the e-Choupal. PESTEL analysis is mainly the assessment of macro environment factors. The industry in India is known to employ 4.5 crore people with a total valuation of 11.79 lakh crore. I know that the SWOT analysis Analyze lets you look objectively at your role and your performance, to see what you can change it to get the desired results. My understanding about PESTLE [1] factors is all about Vietnam only, below are summaries of my knowledge prior to the class. PESTEL Analysis (cont. Published by MBA Skool Team, Last Updated: April 20, 2020. This report is shared in order to give you an idea of what the complete SWOT & PESTLE analysis report will cover after purchase. The regulations that need to be followed involve various aspects including the quality of the product. SWOT analysis and SWOT Matrix will help you to clearly mark out - Strengths Weakness Opportunities & Threats that the organization or manager is facing in the ITC LTD.: Toward a Triple Bottom Line Performance A PESTEL analysis or PESTLE analysis (formerly known as PEST analysis) is a framework or tool used to analyse and monitor the macro-environmental factors that may have a profound impact on an organisation’s performance. Since the concern for these products has increased in the society, and with the need for overall health status improvement of the society, the company needs to make sure that it clearly states the use of any sort of harmful products across its entire product line. As the Company's ownership progressively As the Company's ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to … Another way of understanding the external environment of the firm in ITC LTD.: Toward a Triple Bottom Line Performance is to do a PESTEL - Political, Economic, Social, Technological, Environmental & Legal analysis of the environment the firm operates in. With continuous efforts in the field of research and development, the organization seems to have many more products in the pipeline. Since these products are seen as a negative element in the society, the company needs to take due care that it does not promote such products actively. SWOT analysis of ITC Limited analyses the brand/company with its strengths, weaknesses, opportunities & threats. You can use our pestle analysis examples and get good grades in your marketing assignment at the university. Below are the economic factors in the PESTLE Analysis of ITC: The economic stability of a country is one of the major factors that affect the business in the region. In fact it is one of the World’s most high profile consumer operations. PESTLE analysis is also referred to as PESTEL analysis. Table of Content: 1. Further a change in the capital controls, government currency policies such as demonetization in India, or others, increase the restrictions to the trade of raw materials or finished products to and from different countries. Compliance includes not just the regulations related to the product, but also compliances related to the health and safety of the employees, labor laws established in different countries and the social benefits that need to be provided to the employees. There are various opportunities that ITC can utilize, and thus making it a strength rather than just a policy to be followed. Political factors can affect the organization in many ways. A recent example of policy change that has affected the operations of the organization is the lowering of the percentage of corporate tax in India. In fact it is one of the World’s most high profile consumer operations. The business gets affected when the market changes are anywhere across the world. Marketing mix – Here is the Marketing Mix of ITC. PESTEL ANALYSIS OF ITC LIMITED HISTORY AND EVOLUTION ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. ITC PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. A major impact on the development and growth of the company comes from the level of talent of the workforce employed. The company has reduced the use of single-use plastic and with continuous adoption of the latest technologies, it believes in doing its part to keep the environment safe and sound. Our experts Analysis the needs of your paper & then starts working on your case study. It helps them to identify both the opportunities and threats coming their . This will benefit the company since it believes in the development of all. ITC has 6 different businesses. Conclusion : In conclusion, it is a must for Apple to look into all the matters that we discussed in the pestle analysis of it. The PESTLE Analysis highlights the different Since ITC wishes to expand into newer regions, it needs to make sure that the entire team is up to date with the various patents that exist in the segment and the laws that govern these patent rights. SWOT analysis is a strategic tool to map out the strengths, weakness, opportunities and threats that a firm is facing. Artificial Intelligence is another area where the organization can try its luck. SWOT analysis – Here … The hotel and travel Colombo Stock Exchange (CSE) index has been increased by almost 200% for 2009… The ban on advertising products on social media platforms keeps a check on the promotional activities of the company. HP is one of the largest PC brands in the world. For the last seven months that ended July this year (2010), arrivals are up almost 50% year-on-year (YOY) (341,991), with income also keeping pace at 69% growth (Quarter 2; US$ 244.5 million). PESTEL ANALYSIS OF ITC LIMITED HISTORY AND EVOLUTION ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. Once the finalization of the particulars of the deal is undertaken the company may be affected positively or negatively depending on the intricacies of the deal. Uber. Discriminatory central taxes are levied on the cigarettes. Define the purpose of PESTLE analysis and spell out some of the main constituents of each factor.PESTLE analysis “Political, Economic, Social, Technological, Legal and Environmental analysis” is used to evaluate the many factors in the macro environment that will affect the decisions of managers in any organisation. Do the SWOT analysis of the ITC in Rural India. The company preaches this thought through its tagline “sab sath me badhein”. In light of the changing Market dynamics, the PC maker underwent a major restructuring and broke itself into two separate divisions- HP and HPE. Internal analysis: Internal analysis of ITC Ltd is the strength and weakness of the organization. In the ITC PESTLE Analysis, the environmental elements affecting its business are as below: The company has undertaken various initiatives to preserve the environment, and work in a sustainable manner. The company has recently launched the first multi-layer plastic collection and recycling unit in Pune. The quality of its products is of prime concern to ITC. The ability of the company to success lies in its capability to analyze the changing trends and grasp the requirements of the consumers. Following are the social factors impacting ITC PESTLE Analysis: The huge scale of operations of the company has positive as well as negative effects attached to it. ITC as a brand caters to the needs of a diverse range of consumersegments which is done by segmenting the population based on similar sorts of characteristics. Pestel of Itc ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri Business, Packaged Foods & Confectionery, Get Full Essay Get access to this section to get all the Competitors 9. You can click the link to directly to go to the relevant section. It also markets and promotes its various products through the utilization of media to create an emotional connect with its consumers. The better the stability of the government, the higher is the ease of working in that region. It may be higher or lower depending upon the new policy. ITC has invested over 6000 crores in the last decade and created employment for over 20,000 employees directly and approximately 5 million people indirectly. Here is the SWOT analysis of ITC Limited which is an Indian conglomerate involved in diversified businesses. Product Lines 4. A team of experts needs to be in constant check for compliance related to the changes brought about. Market analysis in the Marketing strategy of ITC – SWOT analysis is a strategic tool to map out the strengths, weakness, opportunities and threats that a firm is facing. PESTLE Analysis Political ITC faces stiff restrictions from the government on its tobacco business because of the nature of the product. Quizzes test your expertise in business and Skill tests evaluate your management traits. A slight change in the operations of the company can affect its profitability of a large scale, thus staying updated with the recent trends popular among the population is a must. The companies are not associated with MBA Skool in any way. Innovation is something that the consumers expect of the company. PESTEL ANALYSIS OF ITC LIMITED HISTORY AND EVOLUTION ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited.As the Company's ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. You can also read more detailed and latest PESTEL Analysis of Apple and SWOT Analysis of Apple on our site. ITC employs over 25,000 people at more than 60 locations across India. This report will help you to learn about:- 1. Pestel Analysisexample PESTEL Analysis In this part all factors, which influence the company as a whole but are out of their direct control including wider social, political and Get Full Essay Get access to this section Following are the legal factors in the ITC PESTLE Analysis: The legal requirements that the company needs to meet are huge. The strength of the organization is nothing but its brand and the powerful management. Itc In Rural India PESTEL Analysis Get your Case Studies. I know how to use SWOT tool to stakeholders’ analysis. This report is shared in order to give you an idea of what the complete SWOT & PESTLE analysis report will cover after purchase. Discriminatory central taxes are levied on the cigarettes. Apart from these, trademark and IPO rules need to be kept under constant watch, along with environmental laws. Genesis of Hindustan Unilever Limited (HUL) 2. The company has carried out afforestation over 7,30,000 acres of land, and 10,12,000 acres of covered with watersheds. How you can use PESTEL Analysis for Godrej Consumer Products Ltd. (B) At EMBA PRO , we specialize at providing professional PESTEL analysis & other strategic management MBA resources. It is one of the most famous soft drink producers in the world. We invest deep in order to bring you insightful research which can add tangible value to 31 | P a g e FMCG INDUSTRY CHAPTER 4 32 | P a g e FMCG INDUSTRY 4.1 DATA ANALYSIS 4.1.1 Net Sales Mar-14 Mar-13 Mar-12 Mar-11 Mar-10 ITC LTD.; NET 33,238.6 29,901 Core Competency and Business Strategy 5. SWOT analysis and SWOT Matrix will help you to clearly mark out - Strengths Weakness Opportunities & Threats that the organization or manager is facing in the ITC in Rural India Any event that causes a currency devaluation or fluctuation in the currency values, especially in the developing markets. ADVERTISEMENTS: An exclusive project report on Hindustan Unilever Limited (HUL). Industry analysis, for an entrepreneur or a company, is a method that helps to understand a company’s position relative to other participants in the industry. Academia.edu no longer supports Internet Explorer. By using our site, you agree to our collection of information through the use of cookies. • Wafers have high customer brand switching, hence difficult to understand customers SWOT ANALYSIS OF ITC 12. ITC is one of India’s biggest and best-known private sector companies. fPEST ANALYSIS OF ITC (India Tobacco Company) PEST Analysis: The scan of the macro-environment in which the firm operates can be expressed in terms of Political, Economic, Social or Technological factors. The company needs to make sure that it runs proper awareness programs, and proper information is transmitted through various platforms, to prevent minor people from consumption of these products. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. In this post, we will share with you some of the key Pestle analysis examples. Though the company has many products, it's the most prominent product since its inception has been tobacco-based products and this is the area where it faces maximum restriction and regulation. Through GST has reduced the effect of discriminatory taxation, the products continue to be taxed. The company believes in effective growth for the country and believes in strengthening the rural areas in the country. To conclude, the above ITC PESTLE Analysis highlights the various elements which impact its business performance. Pestle Analysis Application of PESTLE analysis 1. Case Description of ITC Limited: India First Case Study The case traces the evolution of ITC Limited (ITC) from its inception as a marketing subsidiary of British American Tobacco (BAT) in 1910 to one of India's most valued diversified corporations. PESTLE Analysis of ITC analyses the brand on its business tactics. ITC is a strong house of brands with most of its products leading the segments This understanding helps to evaluate the criticality of external business factors for any brand. Companies we have covered in this article are given below. This section covers many brands and companies. With these attempts to strengthen the economy of the country while making profits for all its stakeholders the company seems to have come a long way from its initial phase and will definitely achieve major targets in the coming years. On the bright side, the FMCG market in India is expected to triple in size by 2020, to Rs. The technological factors in the PESTLE Analysis of ITC are mentioned below: The company has undertaken various initiatives on the technological end to stay relevant in the market. The SWOT analysis can be broadly classified into major two sections which are the internal analysis and the external analysis. To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to upgrade your browser. With a higher level of skills and education, the company can employ more people and thus enrich society as well as increase its profitability. The company has set up established new systems to constantly monitor all its operations and supply chain related processes. Pestle analysis of Coca- Cola: When you think about a soft drink, the first brand that comes to your mind is Coca- Cola. • Cambodia gains benefits from the EU’s Generalized Scheme of Preferences (GSP) as a Least Developed Country (LDC), which enables the duty … Since inception, the company has expanded into various sectors and various markets. Step 6 - PESTEL, PEST / STEP Analysis of ITC LTD.: Toward a Triple Bottom Line Performance. With such a glorious past, it becomes people to accept the company in new regions. Since the world is moving towards digital, and advancement in technology will help the organization increase its hold in the fields of consumer engagement and insight discovery, smart manufacturing, agri-value chains, supply chain agility, etc. This has increased the expenditure of the company, to monitor the changing cost of raw materials and the different tax slabs they fall into. Limited in 1974.In recognition of the … Evaluation by Political Analysis, Economic Analysis , Technological, Legal , and Environmental from 2017 to 2022. helpdesk@Lucintel.com +1-972-636-5056 My … PESTLE Analysis Political ITC faces stiff restrictions from the government on its tobacco business because of the nature of the product. It has been reviewed & published by the MBA Skool Team. You can download the paper by clicking the button above. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. Similarly, to prevent water wastage, it has undertaken various wastewater management initiatives and also has expanded into solid waste management. ITC also ranks among Asia's 50 best performing companies compiled by Business Week. SWOT Analysis ITC ITC is one of India’s biggest and best-known private sector companies. The political factors in the ITC PESTLE Analysis can be explained as follows: ITC is a multinational conglomerate that is headquartered in Kolkata. The society is concerned with the growing consumption of these products by minor-aged i.e. This SWOT analysis is about ITC. This report is shared in order to give you an idea of what the complete SWOT & PESTLE analysis report will cover after purchase. Browse analysis of more brands and companies similar to ITC PESTLE Analysis. With India being a developing country, the more stable the economic policies higher will be the disposable income, and better will be the standard of living. • The main markets of Cambodia’s exports are North America and EU (ITC by Country Report, 2014). The issues related to discriminatory taxation policy were eradicated and a new taxation system, that classifies these products in a better way was introduced in India. History of HUL 3. people below the age of 18. )• Technological Analysis• ITC cigarettes have came a long way and that can be concluded by the fact that the supply chain management that the ITC employs now is of the latest trends- they have a great inventory control, logistics support etc.• Environmental Analysis• The gap between urban and rural households in cigarette consumption is the highest in low and lower-middle … When operating in a country like India, the need to maintain a continuous tab on the changing regulations is a must. Lucintel, a leading global management consulting and market research firm, has analyzed the political, economic, social, technological, legal, and environmental factors of Belgium and has come up with a comprehensive research report, “PESTLE Analysis of Belgium 2017”. India is the largest producer and exports account to 6000 crore annually. Keeping a tab on the changing policies is a mandate that the company needs to undertake, be it local or national. A PEST analysis can be performed to identify the external forces affecting an organization .This is a simple analysis of an organization’s Political, Economic, Social and Technological environment. Godrej Consumer Products Ltd. (B) case study PESTEL analysis includes macro environment factors that impact the overall business environment – Political, Economic, Social, Technological, Environmental, … The biggest threat as of now is the Brexit. Problems Faced […] By concerning about the Sri Lankan market of tourism there can be seen growth in the tourist market. In ITC Limited SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. ITC has been the only company in the world to be carbon positive for 14 years, water positive for 17 years, and solid waste recycling positive for 12 years. PESTLE analysis is a framework which is imperative for companies such as ITC, as it helps to understand market dynamics & improve its business continuously. Sorry, preview is currently unavailable. While using this as an advantage to increase its profitability, the company needs to keep in mind to clear all the local legislative requirements. This provides the company with an opportunity to seize the opportunity of becoming a market leader in various segments, by working in close ties with the local governments as well as the central governments. ITC PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The names and other brand information used in the PESTLE Analysis section are properties of their respective companies. Innovative Campaigns 6. ITC uses a mix of geographic demographic and psychographic segmentationvariables such as profession, income class, gender, age, region, behavior etc. With major changes in the paperboards and packaging industry, ITC stands out with its latest innovations of antifungal coated cartons, micro-perforation for specific laminates, braille features for labels and cold seal laminates for chocolates. Only through continuous analysis can the organization maintain its status in the market. This SWOT analysis is about ITC. J Ramachandran, K S Manikandan (2018), "ITC Limited: India First Harvard Business Review Case Study. It utilizes the various social media platforms to describe the various changes that are being brought about by the company for the betterment of society. Spread of HUL to Villages 7. The acronym PEST is used to describe a framework for the analysis of these macro-environmental factors. To reduce its carbon footprint, the company has undertaken a two-fold strategy “reduce specific energy consumption in its operations through improved technology and processes; and (b) sequester greenhouse gases, especially carbon dioxide, through a large-scale forestry program”. MARKETING MIX PRODUCT STRATEGY PRICE STRATEGY PROMOTION PLACE PRODUCT PRICE • Bingo positioned itself as chips with an Indian twist There are 16 flavours with different segments • Company introduces the specific flavours for the region as per the market … A PEST/PESTLE/PESTEL analysis of HP . The content on MBA Skool has been created for educational & academic purpose only. However, the rise of cloud computing and mobile computing has imposed new demands on the PC industry. PESTLEanalysis.com is an educational website collecting all the information and resources related not only to PESTLE but also SWOT, STEEPLE and other analysis that will come useful to business owners, entrepreneur, and students alike. This article has been researched & authored by the Content & Research Team. We invest deep in order to bring you insightful research which can add tangible value to