SWOT Analysis

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SWOT Analysis ITC.Formerly Imperial Tobacco Company of India

Limited (ITC).

ITC is one of India's biggest and best-known private sector companies. In fact it is one of the World's most high profile consumer operations. Its businesses and brands are focused almost entirely on the Indian markets, and despite being most well-known for its tobacco brands such as Gold Flake, the business is now diversifying into new FMCG (Fast Moving Consumer Goods) brands in a number of market sectors - including cigarettes, hotels, paper, agriculture, packaged foods and confectionary,

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branded apparel, personal care, greetings cards, Information Technology, safety matches, incense sticks and stationery. Examples of its successful new FMCG products include:

Aashirvaad - India's most popular atta brand with over 50% market share. It is also present in spices and instant mixes.

Mint-o - Mint-0 Fresh is the largest cough lozenge brand in India.

Bingo! - a new introduction of finger snacks. Kitchens of India - pre-prepared foods designed by

ITC's master chefs. Sunfeast - is ITC's biscuit brand (and the sub-brand is

also used on some pasta products).

StrengthsITC leveraged it traditional businesses to develop new brands for new segments. For example, ITC used its experience of transporting and distributing tobacco products to remote and distant parts of India to the advantage of its FMCG products. ITC master chefs from its hotel chain are often asked to develop new food concepts for its FMCG business.

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ITC is a diversified company trading in a number of business sectors including cigarettes, hotels, paper, agriculture, packaged foods and confectionary, branded apparel, personal care, greetings cards, Information Technology, safety matches, incense sticks and stationery.

WeaknessesThe company's original business was traded in tobacco. ITC stands for Imperial Tobacco Company of India Limited. It is interesting that a business that is now so involved in branding continues to use its original name, despite the negative connection of tobacco with poor health and premature death.To fund its cash guzzling FMCG start-up, the company is still dependant upon its tobacco revenues. Cigarettes account for 47 per cent of the company's turnover, and that in itself is responsible for 80% of its profits. So there is an argument that ITC's move into FMCG (Fast Moving Consumer Goods) is being subsidised by its tobacco operations. Its Gold Flake tobacco brand is the largest FMCG brand in India - and this single brand alone hold 70% of the tobacco market.

OpportunitiesCore brands such as Aashirvaad, Mint-o, Bingo! And Sun Feast (and others) can be developed using strategies of market development, product development and marketing penetration.

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ITC is moving into new and emerging sectors including Information Technology, supporting business solutions.e-Choupal is a community of practice that links rural Indian farmers using the Internet. This is an original and well thought of initiative that could be used in other sectors in many other parts of the world. It is also an ambitious project that has a goal of reaching 10 million farmers in 100,000 villages. Take a look at eChoupal here http://www.itcportal.com/agri_exports/e-choupal_new.htm ITC leverages e-Choupal in a novel way. The company researched the tastes of consumers in the North, West and East of India of atta (a popular type of wheat flour), then used the network to source and create the raw materials from farmers and then blend them for consumers under purposeful brand names such as Aashirvaad Select in the Northern market, Aashirvaad MP Chakki in the Western market and Aashirvaad in the Eastern market. This concept is tremendously difficult for competitors to emulate.Chairman Yogi Deveshwar's strategic vision is to turn his Indian conglomerate into the country's premier FMCG business.Per capita consumption of personal care products in India is the lowest in the world offering an opportunity for ITC's soaps, shampoos and fragrances under their Wills brand.

Threats

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The obvious threat is from competition, both domestic and international. The laws of economics dictate that if competitors see that there is a solid profit to be made in an emerging consumer society that ultimately new products and services will be made available. Western companies will see India as an exciting opportunity for themselves to find new market segments for their own offerings.ITC's opportunities are likely to be opportunities for other companies as well.

PRODUCT DETAILS OF I.T.C

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List of products & brands

ITC has a diversified presence in-

Cigarettes : W. D. & H. O. Wills, Gold Flake, Navy Cut, Insignia, India Kings,

Classic Verve , Classic, Silk Cut, Scissors, Capstan, Berkeley, Bristol and

Flake

Hotels : ITC Welcomgroup Hotels, Palaces and Resorts is India's second

largest hotel chain with over 80 hotels. Based out of Hotels Division

Headquarters at the ITC Green Centre in Gurgaon, ITC Welcomgroup is also

the exclusive franchisee of The Luxury Collection brand of Starwood Hotels

and Resorts in India

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Paperboards & Specialty Papers : ITC Bhadrachalam Paperboards Limited &

ITC Tribeni Tissues Division are now under one roof --> Paper Boards and

Specialty Papers Division. There are 4 Units under one umbrella -

Bhadrachalam, Tribeni, Bollarum and Kovai.ITC PSPD

Packaging & Printing Business : India's Largest Packaging Solution provider

with In-house film manufacturing capabillty. Multi-locational manufacturing

facilities to cater to domestic and export requirements.Product Range

includes Cartons (Folding & Fluted), Flexibles (Reels & Pouches), Shoulder

Box, HL's & CBO, Printed Cork Tipping, Gaywraps. ITC PPB

Agricultural Industry : Agri-Business, Leaf Tobacco, Gold Ribbon, Blue

Ribbon, Aqua Kings, Aqua Bay, Aqua Feast and Peninsular

Packaged Foods & Confectionery: Kitchens of India, Aashirvaad, Sunfeast,

Mint-O, Candyman, Bingo Snacks

Branded Apparel : Wills Lifestyle, John Players, Miss Players

Toiletries : Essenza Di Wills, Fiama Di Wills, Superia, Vivel Di Wills, Vivel

Education & Stationary Products : Expressions,Classmate, Paperkraft

Information Technology : ITC Infotech

Safety Matches : iKno, Mangaldeep, VaxLit, Delite(Discontinued) and Aim

Brands acquired from Wimco (Western India Match Company): Ship ,

Homelite (Swedish Matches)

Incense Sticks : Mangaldeep, Spriha,Yantra

While ITC continues in its traditional businesses of Cigarettes, Hotels, Paperboards,

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Packaging and Agri-Exports, it is gaining market share in its nascent businesses of

Packaged Foods & Confectionery, Branded Apparel and Greeting Cards..

Forbes ranking -

ITC features on the Forbes Global 2000 rankings for 2007 at position 1256 [2].

OUTLOOK OF THE FUTURE

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DIFFERENT OUTLOOK’S OF I.T.C

Local Outlook -

ITC envisions a growth in sales volume of its local and

international brands of cigarettes for the upper-segment market. Today, ITC

dominates the lower-segment market with its local brands. Within one year,

it aims to secure100% of the local brands sales and 50% of the international

brands sales, thus acquiring 60% of total market share

Regional Outlook -

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ITCs advantage in the highly competitive regional

market lies in its pursuit of consistent quality, service, and price. Once ITC

has built a firm base in its numerous export markets, it aims to expand its

operations and develop brands with further improved quality and innovative

designs.

International Outlook -

ITC aims to enhance the quality of its products,

to increase its sales volumes. ITC will develop its brands to international

tastes, and compete in a consistent manner.

SECTION-2

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RESEARCH OBJECTIVES

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Major Objectives

To gain insights of and to get acquainted with the appraisal system in

the organization.

To study the policies and procedures regarding the appraisal system in

the organization.

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To critically evaluate the appraisal system in the organization.

Minor Objectives

The appraisal method used in the organization and its components.

The appraisal process and the related policies and procedures.

The appraisal’s involvement in the appraisal process.

The role of the appraisers in the appraisal process.

About the selection and training of the appraisers.

About the purpose of the appraisal.

Whether the appraisal system match the respective job positions for

which it is intended.

Whether the appraisal system contributes to the professional and

personal growth and development if the employees.

The efficiency and effectiveness of the appraisal process.

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RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Research type : Descriptive Research

Data Sources : Primary data

Research approach : Personal interview

Research instrument : Questionnaire

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Type of questions : Structured Non-Disguised

Type of questions : Close-Ended Questions

Research Unit : ITC Ltd. Saharanpur

Contact method : Personal

Ode of data collection : The respondent is requested to grant

Interview and the questions are

Asked in a predetermined sequence.

Other primary data are collected

From Quality Manuals, Departmental

Handbooks and Files of the

Company.

Analysis of data : (i) In-depth observations were made

to bring out the main

characteristics of the data

collected.

(ii) Inferences to be drawn from these

Observations.

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RESEARCH DESIGN

EMPLOYEE APPRAISAL SYSTEM FOR NON-

EXECUTIVE EMPLOYEES ITC Ltd. Saharanpur

PREFACE

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Performance Appraisal is made at the Company to systematically assess non-executive’s

ability to perform the takes assigned to him, with a focus on removing weaknesses, If any,

and improving his strengths. It is also dine to identify potential and gainful utilization of the

employee on the company in the higher assignments.

The appraisal is one of the essential tools that help in checking out the career growth of the

employees with proven potential. The potential appraisal of the employee helps in

identifying employees who can be groomed to occupy key positions in the company and

thus ensure smooth succession.

OBJECTIVES

Following are the objectives of the performance Appraisal System for non-executive

employees at the unit:

To contribute to the growth and development of the employees.

Enable employees to developing standards of self-assessment and mechanism for

further self-evaluation and self-development.

Help employees in developing standards of self-assessment and mechanism for

further self-evaluation and self-development.

To provide an atmosphere of openness between immediate superior and the

employee.

Planning for systematic training and development of employees.

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METHOD OF APPRAISAL

For the purpose of performance appraisal of its employees, “Rating Scale Method” is used the

rating system is as given below:

Outstanding (OS) 3

Very Good (VG) 2

Good (G) 1

Poor 0

Above rating system is used to rate the various traits of the employees in the performance

appraisal.

Attempts are made to accomplish the rating by the immediate superior (Reporting officer) and

the superior’s superior (Reviewing Officer). Reporting Officer will evaluate the individual

employees performance in terms of achievements, plans, evaluation of behavioral attributes.

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Initiation of Appraisal Reports

0.1 The person to whom he reports will do the annual assessment for each supervisory/

workman. However, the minimum level of the reporting person will not be less than a

supervisor for assessment, of a workman, and executive for assessment of a supervisor.’

0.2 The officer to whom the reporting person in turn reports will further review the annual

report. The minimum level of reviewing authority both incase of supervisors & workman

will be that of an Executive.

The multi-level evaluation, it is believed will provide checks and greater objectivity.

0.3 The report will further be seen & signed by the Sectional Head in case he is not the

Reviewing officer, and countersigned by the HOD who may enter remarks, if any.

0.4 In the event of the ‘overall assessment, being rated ‘Unsatisfactory’ a written

Communication will be issued to the concerned employee by the H.O.I);

The communication will be accompanied with specific-facts and figures

Substantiating the adverse remarks.

In case of representation by the concerned employee the dame will be examined

By the HOI who will record his final decision along with reasons.

The final decision will be communicated to the employee with regards to:

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The earlier assessment being retained.

After due consideration the earlier remarks are expunged and the same being

Noted in the annual assessment form.

0.5 Annual assessment formats incorporating the above features are given in.

Annexure I

0.6 If an employee has worked with more than one reporting person for 3 months or more, he

will be assessed by all concerned reporting persons.

0.7 As in the case of Executive, an important outcome of the follow up of annual

Assessment will be counseling in case of ‘unsatisfactory performers, will be done

The heads of the Department.

PURPOSE OF APPRAISAL

The research revealed following the general purpose of appraisal:

1. To facilitate organizational planning placement, promotion, demotion,

Termination and transfer.

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2. To provide guidelines for training and development.

CRITERIA OF APPRAISAL

The research provides three categories o9f criteria for appraisal of non-executive

employees.

1. Appraisal of actual qualitative and quantitative performance.

2. Appraisal of development/training/future potential and growth

3. Accomplished during the period review.

FREQUENCY OF APPRAISAL

Appraisal is made every year to systematically assess the employee’s ability to

perform the tasks assigned to him, with a focus on removing the weaknesses, if any,

and improving his/her strengths.

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DATA COLLECTION

METHOD

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Designing a Questionnaire

(Type of information)

In the research the type of information used are as following:

Facts Quasi Facts, Awareness of information, Opinion, Attitude, Reason.

(Type of questions)

The questions were mixed comprising the following.

Open-ended question.

Dichotomous or close-ended question.

Multiple-choice question.

(Phrasing of the questions)

In the phrasing of the question difficult word vague words technical terms and

Lengthy questions, which an average respondent may not understand has

Been avoided.

(Order of the questions)

The question at the beginning are kept simple, general type and thereby helpful in

establishing rapport with, the respondent. Questions, which are specialized. Needing

some in-depth information from the respondent from the respondents is kept at the

questionnaire. Proper care has been taken to sustain the interest of the respondent Up to

the last question so that he is able to answer specialized questions in a natural manner

fatigue and indifference.

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SAMPLING

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Sample:

Sampling Unit

ITC Ltd., Saharanpur Different departments were sampling unit for research as per

requirement of project. The company was interested to know that employees are

satisfied with their performance appraisal system and what is the image of ITC Ltd.

among the population.

Sample size

Due to budgetary trine and other constraints the research was confined to the sample size

of 50 respondents in different departments. It has been kept in mind while selecting the

sample elements that the greater representation can be made from the population.

Sampling Procedure

For the proposed research plan the non-probability sampling has been adopted for the

selection of sample. In non-probability sampling the type chosen was judgmental

sampling keeping in mind to put more emphasis on different departments.

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A. The sample size being small.

B. Selection of sample is adjusted on in accordance with the object of

inquiry so that insignificant element may be ignored and representation

preserved.

ANALYSIS

AND

INTERPRETATION

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1. How do you rate the performance appraisal system of the company to

evaluate the performance of the employees?

INTERPRETATION

EMPLOYEES SATISFACTION LEVEL `

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16% Poor

42% Good

42% Very Good

0% Outstanding

2. Are you aware of the existing performance appraisal system in ITC Ltd?

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86%

14%

Yes

No

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INTERPRETATION

EMPLOYEES AWARENESS LEVEL

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86% Yes

14% No3.

3. Are you satisfied with the procedures of performance appraisal system?

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6%18%

62%

14% Poor

Good

Very Good

Outstanding

INTERPRETATION

EMPLOYEES SATISFACTION LEVEL

`

6% Poor

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18% Good

62% Very Good

14% Outstanding

4. Do the superiors in ITC Ltd. take initiative to coach/council & providing

sufficient training to sub-ordinates regularly?

INTERPRETATION

EMPLOYEES SATISFACTION LEVEL

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` 89% Yes

11% No

5. Do you think that the current performance appraisal system of ITC Ltd.

helpful in the growth of employees?

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86%

14%

Yes

No

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INTERPRETATION

EMPLOYEES SATISFACTION LEVEL

` 86% Yes

14% No

6. Do you think the training & development programmes are helpful enough

for the employees in ITC Ltd. ?

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98%

2%

Yes

No

INTERPRETATION

EMPLOYEES SATISFACTION LEVEL

` 98% Yes

02% No

7..Do you think the counseling in ITC Ltd. is an effective measure/tools for

the unsatisfactory performers and the superiors help and support the related

employee for the improvement of performance?

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93%

7%

Yes

No

INTERPRETATION

EMPLOYEES SATISFACTION LEVEL

` 93% Yes

07% No

8. Do the employees feel comfortable whenever they visit a meet to HR

people?

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INTERPRETATION

EMPLOYEES SATISFACTION LEVEL

` 82% Yes

18% No

9. Do you think that the behavior and attitude of HR department is positive

& friendly in ITC Ltd?

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80%

20%

Yes

No

INTERPRETATION

EMPLOYEES SATISFACTION LEVEL

` 80% Yes

20% No

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10. Do you think the criteria & parameters used to judge the performance of

an employee are adequate in ITC Ltd?

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92%

8%

Yes

No

INTERPRETATION

EMPLOYEES SATISFACTION LEVEL

` 92% Yes

18% No

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11. Do you think that the persons who appraise the performance in the

company provide their full support for the improvement in the performance

of an employee?

INTERPRETATION

EMPLOYEES SATISFACTION LEVEL

` 95% Yes

05% No

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12. Do you think that the management treats all employees equally without

any biasness while judging the performance of the employees?

INTERPRETATION

EMPLOYEES SATISFACTION LEVEL

` 78% Yes

22% No

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13. Do you think that the schemes & policies introduced by HR department

after appraising performance, beneficial for the employees?

INTERPRETATION

EMPLOYEES SATISFACTION LEVEL

` 85% Yes

15% No

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14. Do you think that the manpower of HR department solve the grievances

of employees as early as possible?

INTERPRETATION

EMPLOYEES SATISFACTION LEVEL

` 91% Yes

09% No

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15. Do you think that the ITC Ltd. is a learning organization and motivates

employees to enhance their skills for better performance?

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88%

12%

Yes

No

INTERPRETATION

EMPLOYEES SATISFACTION LEVEL

` 88% Yes

12% No

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Overall satisfaction level of the employees

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87%

13%

Yes

No

INTERPRETATION: -

87% of the non-executive employees are satisfied with

the performance appraisal system of ITC Ltd. while remaining 13% are unsatisfied.

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RESULT AND FINDING

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