Strategic Management Cia 1

Strategic Management
CIA -1
Component 2
Institute of Management
CHRIST (DEEMED TO BE UNIVERSITY), Bengaluru
Submitted to Submitted by
Dr. Krishna Kishore Lavkush Tamrakar
1927314
1. ITC LTD.
Vision
“Sustain ITC’s positions as one of India’s most valuable corporations through world class
performance, creating growing value for the Indian economy and the company’s stakeholders.”
From the vision of the ITC it is clear that ITC wants to sustain it’s position as India’s most
valuable brand in the market and also grow value for the Indian economy. It also values the
stakeholders interest.
Mission
“To enhance the wealth generating capability of the enterprise in a globalising environment,
delivering superior and sustainable stakeholder value.”
From the mission of the ITC it is clear that it wants to do business and generate wealth, being
present globally and delivering the superior quality keeping in mind the stakeholder’s value.
Goal/Objectives
‘Our Goal is to be the #1 FMCG Company'.
Goal of the ITC is become the no. 1 FMCG company in the world. ITC has been ranked as the
most admired company in India in 2014 (Fortune-Hay Group survey).
ITC ranked 3rd amongst leading corporates in India in terms of Corporate Reputation (Nielsen
Corporate Image Monitor 2014-15)
ITC'S CORPORATE STRATEGIES ARE

• Create multiple drivers of growth by developing a portfolio of world class businesses that best
matches organisational capability with opportunities in domestic and export markets.
• Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging,
Agri Business and Information Technology.
• Benchmark the health of each business comprehensively across the criteria of Market Standing,
Profitability and Internal Vitality.
• Ensure that each of its businesses is world class and internationally competitive.
• Enhance the competitive power of the portfolio through synergies derived by blending the
diverse skills and capabilities residing in ITC's various businesses.
• Create distributed leadership within the organisation by nurturing talented and focused top
management teams for each of the businesses.
• Continuously strengthen and refine Corporate Governance processes and systems to catalyse
the entrepreneurial energies of management by striking the golden balance between executive
freedom and the need for effective control and accountability.
Activities reflecting strategy of ITC

Yes, the activities of the ITC reflect their strategic intent. A brief comment of the same is given
below.
ITC is a board-managed professional company, committed to creating enduring value for the
nation and the shareholder. It has a rich organisational culture rooted in its core values of
respect for people and belief in empowerment. Its philosophy of all-round value creation is
backed by strong corporate governance policies and systems.
The following activities performed by ITC reflect their strategy:
• ITC has been developing world class portfolios of the product continuously in FMCG,
Hotel, Education etc.
• They have been continuously focusing on the portfolio of the business and expanding
the product line. Their recently launched products include Fiama Handwash, Fiama
Bodywash , Engage perfume etc.
• Each of the business of the ITC is showing a healthy business. Their PAT for the year
2018-19 is around 12464cr.
• The product and the services of the ITC is in global reach.
• Each of the business has been distributed with different leadership in ITC Ltd. They
are focusing on 3 tier governance strategy.
1. Board of Director
2.Corporate Management Committee
3. Business management committee.
2. THE COCA-COLA COMPANY
Vision
“our vision is to craft the brands and choice of drinks that people love, to refresh them in body
& spirit. And done in ways that create a more sustainable business and better shared future that
makes a difference in people’s lives, communities and our planet.”
With the above vision of the Coca-Cola company it is clear that they want to become a
synonym of refreshment in the world. And they want to do this sustainability and want to make
a positive impact in the lives of people alongside contributing to the planet Earth. Coca-Cola
aims to maximise their profits while maintaining a long-term sustainable growth within the
beverage industry.
• People: Be a great place to work where people are inspired to be the best they can be.
• Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and
satisfy people's desires and needs.
• Partners: Nurture a winning network of customers and suppliers, together we create
mutual, enduring value.
• Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.
• Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.
• Productivity: Be a highly effective, lean and fast-moving organization.
Mission
• To refresh the world...

• To inspire moments of optimism and happiness...
• To create value and make a difference.
In order to put the company’s mission into perspective, the organization conducts their business
in a unique fashion and is quite distinguished from its competitors. Rather than going through
direct marketing programs and traditional channels to the consumers, Coca-Cola utilizes
various bottling partners in order to focus more on beverage creation and marketing.
It is called “The Coca-Cola system”. The company starts by manufacturing the concentrates,
beverage bases and syrups then distribute them to their bottling partners while keeping
ownership of the brands. The company itself is more involved in the marketing activities such
as print and television advertising, retail store displays as well as contests and package designs
Goals/objective
• Similar to other multi-national companies, Coca-Cola aims to maximise their profits
while maintaining a long-term sustainable growth within the beverage industry.
• Coca-Cola aim to collect and recycle a bottle or can for every one we sell by 2030.
• Through their actions, they aim to reduce the carbon footprint of the drink in one’s
hand by 25% by 2020.
COCA-COLA’s Strategy
Cost leadership
Cost leadership is a term used when a company projects itself as the cheapest manufacturer or
provider of a particular product or commodity in a competition. It is difficult to deploy the
strategy because the management must constantly work on reducing cost at every level to
remain competitive.
Differentiation
Product differentiation is a marketing strategy that strives to distinguish a company's products

or services from the competition. Successful product differentiation involves identifying and
communicating the unique qualities of a company's offerings while highlighting the distinct
differences between those offerings and others on the market. Product differentiation goes
hand-in-hand with developing a strong value proposition to make a product or service attractive
to a target market or audience.
Activities reflecting strategy of Coca-Cola
Coca cola is using a combination of cost leadership and differentiation strategy. The purpose
is because of the business is often required facing a variety of segments of the value chain.
Coca cola production system is the most efficient in the world therefore it gives them a low
cost strategy in the global beverage industry. Moreover, Coca cola has differentiated its
products from those competitors on top of the basis of drink designs and flavours. This
advantage gives the company ability to charge it price for many of its popular products.
Recently we can see there is a lot of Coca cola advertising in the summer time. The
differentiation strategy is being used by the Coca Cola, which they spends large amount of
money to advertise for differentiating and creating a unique image for their products. The
different products toward the customers as a result it has been successful in increasing and
gaining a leading position against the competitors.
The Coca Cola Company aims to be a low cost leader, which will increase unit sales and gain
buyer loyalty. However, the expense for covering up the low cost products is difficult to
achieve. Therefore, it is very important for the company to communicate its differentiation to
its customers. Moreover, the Coca cola needs to implement focused differentiation strategy,
which is the way of selecting and choosing profitable markets to them. (Knowledge Resource
Centre)

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Strategic Management

‘Our Goal is to be the #1 FMCG Company'.

ITC'S CORPORATE STRATEGIES ARE

Activities reflecting strategy of ITC

• To refresh the world...

Product differentiation is a marketing strategy that strives to distinguish a company's products

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