INTRODUCTION

Best Business practice includes discovering and utilizing the optimal ways of

operating to reach your business objectives. The process involves staying on top

of the newest operating trends of successful businesses and comparing them to

your ways of handling those same operations. Using best practices in business

means learning how to manage various business operations from the experience of

other companies.The most common way of doing this is through benchmarking. It

allows you to measure your business against other profitable businesses and

discover areas where your company needs improvement.

MEANING

Best practice describes a method of technique that is known to consistently

produce optimal and efficient results. Best practice represents the most efficient

course of action in a particular setting or scenario. Generally, best practices are

dictated by a higher level authority, such as management.

IMPORTANCE

Best practices are important for processes that you need to work correctly. They

are simply the best way to do things and have been worked out through trial and

error, and are found it to be the most sensible way to proceed. It establish baseline

standards for skill, competency and efficiency that takes nothing for granted. To

adequately support the employees, the organization is responsible for providing

them with everything they may need for success, including reliable process

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documentation. Besides, the individuals success is the organization’s success and

the organization may do well with supporting that possibility for success as

comprehensively as possible.

Best practices are important for processes that you need to work correctly. They

are simply the best way to do things and have been worked out through trial and

error, and are found to be the most sensible way to proceed.

Value chains as a best business practice help increase a business’s efficiency so

the business can deliver the most value for the least possible cost. The end goal of

a value chain is to create a competitive advantage for a company by increasing

productivity while keeping cost reasonable.

OBJECTIVES

 Getting and staying profitable.

 Productivity of people and resources in an organization.

 Excellent customer service.

 Dealing with the change in the business environment.

 Staying ahead of the competition.

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INTRODUCTION
ITC Limited is an Indian conglomerate company headquartered in Kolkata.ITC

has a diversified presence across industries such as FMCG, hotels

software, packaging, paperboards, specialty papers and agribusiness. The

company has 13 businesses in 5 segments. It exports its products in 90 countries.

Its products are available in 6 million retail outlets.

As of 2019–20, ITC had an annual turnover of US$10.74 billion and a market

capitalization of US$35 billion.] In December 2022, their market cap stood at Rs.

4,22,447.30 crore. It employs 36,500 people at more than 60 locations across

India.

"ITC Limited" was originally named "Imperial Tobacco Company of India

Limited", succeeding W.D. & H.O. Wills on 24 August 1910 as a British-owned

company registered in Kolkata Since the company was primarily based on

agricultural resources, it ventured into partnerships in 1911 with farmers from the

southern part of India to source leaf tobacco Under the company's umbrella, the

"Indian Leaf Tobacco Development Company Limited" was formed in Guntur

district of Andhra Pradesh in 1912.] The first cigarette factory of the company was

set up in 1913 in Bangalore

In 1928, construction began for the company's headquarters, the 'Virginia House'

at Calcutta. ITC acquired Carreras Tobacco Company's factory at Kidderpore in

1935 to further strengthen its presence. ITC helped set up an indigenous cigarette

tissue-paper-making plant in 1946 to reduce import costs significantly. Then, a

factory for printing and packaging was set up in Madras in 1949. The company

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acquired the manufacturing business of Tobacco Manufacturers (India) Limited

and the complementary lithographic printing business of Printers (India) Limited

in 1953.

The company was converted into a Public Limited Company on 27 October 1954.

The first step towards Indianization was taken in the same year with 6% of the

Indian shareholding of the company. ITC also became the first Indian company to

foray into consumer research during this time. During the 1960s, technology was

given more focus on setting up cigarette machinery and filter-rod manufacturing

facilities aimed at achieving self-sufficiency in cigarette-making.

Ajit Narain Haskar became the company's first Indian chairman in 1969 and this

was crucial in building up the Indian management for the company. As the

company's ownership was progressively Indianised, under Haskar's leadership, the

name of the company was changed from "Imperial Tobacco Company of India

Limited" to "India Tobacco Company Limited" in 1970. ITC also became the first

company in India to start from the 1971 Scissor's Cup. Innovative market

campaigns and electronic data processing were started in the 1970s.

In 1973, ITC set up its integrated research center in Bangalore, aimed at

diversification and venturing into newer businesses with research and

development. With the unfolding diversification plans, the name of the company

was changed to 'I.T.C. Limited' in 1974.

Y.C. Deveshwar took over as the company's chairman in 1996 and the corporate

governance structure was re-crafted to support the effective management of

multiple businesses. ITC exited from edible oils business and financial services;

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sold the ITC Classic Finance Limited to ICICI Limited and handled the Sundrop

business to ConAgra Foods Limited in 1998. In the year 2000, an innovative

initiative for farmers called "e-Choupal" was started in Madhya Pradesh 2000.

The same year witnessed the launch of ITC's Wills Sport range of casual wear

with its first retail outlet in New Delhi and ITC's entry into stationery products

and gifting business introducing the 'Expressions' range of greeting cards and

Classmate notebooks. A wholly owned information technology subsidiary, ITC

Infotech India Limited was also started in 2000 and the ITC Bhadrachalam

Paperboards Limited was merged into ITC Limited. The name of the company

was changed to "ITC Limited" omitting the dots and adapting the strategy "No

stops for ITC" in 2001. An employee stock option scheme was introduced for the

first time and a web portal for the company was launched. Subsidiaries for ITC

Infotech were set up in the United Kingdom and the USA.

MISSION

To enhance the wealth generating capability of the enterprise in a globalising

environment, delivering superior and sustainable stakeholder value.

VISION

Sustain ITC's position as one of India's most valuable corporations through world

class performance, creating growing value for the Indian economy and the

Company's stakeholders

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 BEST BUSINESS PRACTICES BY ITC

 VALUE CHAIN ANALYSIS:

The effective value chain analysis required ITC to realize that all activities or

functions do not require same security level. Hence, the first step of adapting the

Porter value chain framework is to identify the importance of activities according

to their role in product and service delivery process.

 DISTRIBUTION CHAIN:

Its tremendous reach through extensive distribution chain has been a competitive

advantage.

 E-CHOUPAL MODEL:

The companies e-choupal model for direct procurement is well known

under which ITC partners with over 1,00,000 farmers for spices and wheat

procurement and an even larger number for oilseeds. This kind of rural pedigree is

hard to beat.

 BACKGROUND INTEGRATION:

ITC’S backward integration to ensure that its products pass efficiently from the

farms to consumers has helped it to cut down supply and procurement cost.

 MARKETING AND SALES

ITC will highlight the points of offer products to pursuit the customers that its

offering is better than competitors only producing a high quality product at

affordable cost and distinctive features cannot create value until ITC invest on the

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 marketing and sales activities the sales agents and marketers place an important

role here.

 FIRM INFRASTRUCTURE:

Before infrastructure denotes a range of activities, such as- quality management,

legal matters handling, accounting, financing, planning and strategic management.

Effective infrastructure management can allow ITC to optimize the value of the

whole value chain. ITC can control the infrastructure activities strengthen the

competitive positioning in the market.

 HUMAN RESOURCE MANAGEMENT:

ITC can analyse human resource management by evaluating different HR aspects

including recruiting, selecting, training, rewarding, performance management and

other personal management activities. The effective HR management can allow

ITC to reduce competitive pressure based on motivation commitment and skills of

its work force.

 TECHNOLOGY DEVELOPMENT:

In a modern technological advanced era almost all value chain activities

depend on technological support. The technological integration in production,

distribution, marketing and human resource activities requires ITC to realize the

importance of technology development. It can be divided into product and process

technological development activities.

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 OPERATIONS:

The importance of analyzing operational activities rises when raw material

arrives and IC is ready to process the raw material into the end product and launch

it in the market

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OUTCOMES OF BEST BUSINESS PRACTICE

 Procure high quality inputs to offer high quality finished product.

 Effective incoming input handling to reduce damage.

 Improved customer satisfaction through lower defeat rate.

 Improved product performance due to conformance to technical

specializations.

 Timely product delivery.

 Enhance the communication with customers by offering high quality

information.

 Brand awareness reputation and image development due to extensive and

effective advertising.

 Effective coordination among product research and marketing department.

 Superior service quality.

 Extensive database development for effective marketing.

 Personal training for effective interaction and superior customer service.

 Procure high quality raw material and replacement parts.

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FINDINGS

 Its goal is to recognize, which activities are the most valuable to the firm

and which ones could be improved to provide competitive advantage.

 Value chain to understand where opportunities for improved lie.

 An effective value chain enables a small businesses to reduce cost for

production or resale.

SUGGESTIONS

 It is evident that there is still room for improvement through using

coupons and all souvenirs to attract customers.

 Build healthy supplier relationship.

 Focusing on customer service increasing options to customize products or

services offering incentives and adding product features are some of the

ways to improve activity value.

 Businesses should identify that can be maintained and which adds the

most value.

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CONCLUTION

ITC Limited is an FMCG, Hotels, Packaging, Paperboards, Specialty Papers, and

Agri-Business company. The company has its headquarters in Kolkata, India. It is

listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of

India Limited (NSE).

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