STRATEGIC

MANAGEMENT
TERM 3

ASSIGNMENT:
ITC BANGLORE

SUBMITTED BY:
Kush Kumawat
PGDM(2023-25)

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 SUMMARY:
1. The recent gathering of the ITC Limited Board sparked thorough conversations concerning the company's
strategy for diversification and the requisite capital investments.

2. During the discussions, J.M. Khanna, a Technical Member, advocated for investing capital to expand
operations, emphasizing the significance of perseverance and resolve in addressing diversification hurdles.

3. D.P. Barua, serving as the Finance Member, proposed a practical approach towards expanding production
at the Bangalore facility, suggesting a phased resolution of inefficiencies and negotiations with labor.

4. The Board demonstrated its dedication to comprehensive deliberation by entrusting further discussions to
Technical Member Khanna, Personnel Member Keki Randeria, and the Bangalore Team.

5. Founded in 1910, ITC Limited has diversified across various sectors since then, with its primary division
remaining a notable contributor to profits.

6. Detailed metrics from the Bangalore factory shed light on its production capabilities, costs of conversion,
average selling prices, and workforce demographics.

7. Additional details provided insights into the needs for scaling up production, workforce distribution across
different machine types, absenteeism rates, and the company's recruitment policies.

8. The management cadre at Bangalore comprised senior executives from diverse backgrounds, prioritizing
internal talent grooming and periodic rotations across roles.

9. The departure of Personnel Member Keki Randeria and the appointment of Vinod Suri added layers of
complexity to strategic decision-making and execution, demanding meticulous consideration.

Problem Analysis:
The Board discussions at ITC Limited centered on the challenges and prospects of diversification, with
Khanna advocating for a long-term vision and strategic investment to navigate these complexities.
Barua emphasized a practical approach to production expansion, focusing on rectifying inefficiencies
and negotiating with labor. The company's commitment to nurturing talent and maintaining
organizational flexibility was evident in its emphasis on internal talent development and periodic
management transfers. The HR team's proactive approach to promoting management credibility and
accommodating diverse skill sets reflected their efforts to manage human resources amidst
organizational changes. However, the departure of a key Board member and the appointment of a
new member introduced uncertainty, highlighting the importance of careful risk management and
strategic planning in decision-making. Detailed operational insights provided opportunities for
enhancing efficiency and productivity, while the company remained focused on sustainable growth
through strategic investments and prudent decision-making despite short-term challenges.

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Solution:
To tackle the various challenges faced by ITC Limited, the company can take a
combination of strategic and operational steps. Here's a proposed plan:
1. Improve Operations:
- Review production processes to find and fix inefficiencies.
- Use lean manufacturing principles to make operations smoother and cut waste.
- Invest in technology to work more efficiently and reduce reliance on manual work.
- Train workers to keep their skills sharp and boost productivity.
- Use performance tracking to spot areas needing improvement.

2. Better Manage the Workforce:

- Deal with high absenteeism by offering rewards for good attendance and improving
work conditions.
- Keep employees engaged to boost morale and cut turnover.
- Plan ahead for when workers retire to avoid shortages of skilled staff.
- Keep communication open with unions to address worries and keep things positive.

3. Handle Leadership Changes and Strategy:

- Train and support new leaders to help them fit in smoothly.
- Encourage teamwork and openness among leaders for better decision-making.
- Set clear goals and timelines for putting strategies into action.
- Keep checking and adjusting strategies as things change.

4. Expand and Improve Production:

- Get more machines to make more products and meet demand.
- Study the best ways to expand, considering costs and where to get equipment from.
- Manage production schedules and stock better to save time and money.
- Think about teaming up with others to get help with growing production.

5. Push for Innovation and Focus on Goals:

- Encourage new ideas and taking smart risks.
- Make sure plans match long-term goals and what customers want.
- Learn about the market and what customers want so products can keep improving.
- Get teams together to work on new ideas that fit with the big plan.

6. Develop People and Keep Them Engaged:

- Train workers to keep them skilled and address any gaps.
- Keep workers happy with recognition, chances to grow, and open talks.
- Make the workplace welcoming to everyone to keep the best people around.
- Work with schools and training centers to help workers keep learning and growing.

*****END OF DOCUMENT*****
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