Professional Documents
Culture Documents
PEST ANALYSIS
of
Introduction on ITC:
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. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Fast Moving Consumer Goods comprising Foods, Personal Care, Cigarettes and Cigars, Branded Apparel, Education and Stationery Products, Incense Sticks and Safety Matches, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business and Information Technology. The full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited'.
PEST ANALYSIS of ITC POLITICAL FACTORS : The political arena has a huge influence upon the regulation
of businesses, and the spending power of consumers and other businesses. The Indian polity is increasingly seen by political observers as the problem. When populist political appeals stir the passions of the masses, government institutions appear less capable than ever before of accommodating conflicts in a society mobilized along competing ethnic and religious lines. Budget impact - Among the FMCG stocks, ITC is one of the biggest gainers. Due to Govt. new conditions, ITC Maurya won the 'Best eco-friendly hotel Special Prize' award by the Ministry of Tourism, Government of India. Some recent Political Factors ITC had to face in some previous years are mentioned as below: Huge burden of VAT increase in prices may affect the sales. Excise duty raised by union budget by 5 %. Ban on communication. Luxury tax in 10 states making it difficult for ITC to maintain the consistency level in prices for different places. Smuggling - regarding Tobacco products.
100% FDI allowed - as it will allow several Foreign Brands to enter the Indian Markets, and thus, may affect the share of ITC in the Indian Markets.
SOCIAL FACTORS : The social influences on business vary from country to country.
It is very important that such factors are considered Envisioning a larger societal purpose has always been a hallmark of ITC. As a corporate citizen with enduring relationships in rural India, ITC has a history of collaboration with communities and government institutions to enhance farm productivity and the rural resource base. Some Social Factors ITC had to face in some previous years are mentioned as below: Becoming status symbol for many, intake of tobacco is a status symbol. They feel that the usage of Cigars and high-branded Cigarettes gives an increase to their status in the society. ITC banks on it and makes highly-prices tobacco products as well in addition to the cheaper ones. Companions mounted by W.H.O. Changing attitudes towards tobacco Many people are becoming aware about the ill-effects of intake of Tobacco. This may lead to the industry suffering some amount of loss in the years to come. Restrictions by government Several restrictions on tobacco and it advertising has made the promotion of tobacco brands almost impossible, thus leading to a decline in their sales.
Miscellaneous along with good Hardware and Software investment, ITC also possesses a great Logistic as well as Inventory support.