Hey guyzz... This is my another presentation on management foundation subject.. learn about ITC Company , its organizational structure. @students

1. MANAGEMENT FOUNDATION
PROJECT
COURSE :- BBA “A”
GUIDED BY :- MADHURI
MAHATO MA’AM

3. ABOUT THE COMPANY:-
• ITC is one of India's foremost multi-business enterprise with a market
capitalisation of US $ 50 billion and a turnover of US $ 8 billion. ITC is
rated among the World's Best Big Companies, Asia's 'Fab 50' and the
World's Most Reputable Companies by Forbes magazine and as 'India's
Most Admired Company' in a survey conducted by Fortune India
magazine and Hay Group. ITC also features as one of world's largest
sustainable value creator in the consumer goods industry in a study by
the Boston Consulting Group. ITC has been listed among India's Most
Valuable Companies by Business Today magazine. The Company is among
India's '10 Most Valuable (Company) Brands', according to a study
conducted by Brand Finance and published by the Economic Times. ITC
also ranks among Asia's 50 best performing companies compiled by
Business Week.

5. ITC COMPANY
Type Public
Traded as BSE: 500875
NSE: ITC
BSE SENSEX Constituent
CNX Nifty Constituent
Industry Conglomerate
Predecessor W.D. & H.O. Wills .
Founded 24 August 1910
[1][2]
(as Imperial Tobacco Company of India)
Headquarters Kolkata, West Bengal, India
[3]
Key people [Y C Deveshwar](Chairman)
Products Consumer goods
Tobacco
Hotels
Agribusiness
Paperboards & specialty papers
Packaging
Information technology
Revenue ₹60,493 crore (US$9.4 billion) (2017)
[4]
Operating income ₹15,037 crore (US$2.3 billion) (2015)
[4]
Net income ₹10,471 crore (US$1.6 billion) (2017)
[4]
Total assets ₹32,159 crore (US$5.0 billion) (2015)
[4]
Number of employees 25,959 (Mar 2013)
[5]

6. ITC’S 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.

7. ITC’S MISSION
•To enhance the wealth generating
capability of the enterprise in a
globalising environment, delivering
superior and sustainable stakeholder
value.

10. ORGANISATIONAL STRUCTURE
• An organizational structure defines how activities such as task
allocation, coordination and supervision are directed toward the
achievement of organizational aims. Organizations need to be
efficient, flexible, innovative and caring in order to achieve a
sustainable competitive advantage. Organizational structure can also
be considered as the viewing glass or perspective through which
individuals see their organization and its environment. There are
many types of organisational structure:-
• Tall structure
• Flat structure
• Divisional structure
• Functional structure

11. Organisational structure of company
• ITC Company has both divisional organizational structure and functional
organisational structure.
• A divisional organisational structure gives a larger business enterprise the ability
to segregate large sections of the company's business into semi-autonomous
groups. These groups are mostly self-managed and focused upon a narrow aspect
of the company's products or services. As with any organization structure,
divisions have both strengths and weaknesses. In this organisation is divided on
basis of products like FMCG products i.e ciagrettes , life style, food etc , hotels
sector , paper boards and packaging sector, IT sector and agri- business.
• A functional structure is one of the most common organizational structures. Under
this structure, the organization groups employees according to a specialized or
similar set of roles or tasks. While functional structures operate well in stable
environments where business strategies are less inclined to changes or dynamism,
the level of bureaucracy makes it difficult for organizations to respond to changes
in the market quickly. In this organisation is on basis of functions like marketing,
finance, sales, production , IT Department etc.

12. ADVANTAGES OF DIVISIONAL STRUCTURE
• Accountability. This approach makes it much easier to assign responsibility for actions and
results. In particular, a division is run by its own management group, which looks out for the
best interests of the division.
• Competition. The divisional structure works well in markets where there is a great deal of
competition, where local managers can quickly shift the direction of their businesses to
respond to changes in local conditions.
• Culture. You can use this structure to create a culture at the divisional level that most closely
meets the needs of the local market. For example, a retail division could have a culture
specifically designed to increase the level of service to customers.
• Local decisions. The divisional structure allows decision-making to be shifted downward in
the organization, which may improve the company's ability to respond to local market
conditions.
• Multiple offerings. When a company has a large number of product offerings, or different
markets that it services, and they are not similar, it makes more sense to adopt the divisional
structure.
• Speed. This approach tends to yield faster responses to local market conditions.

13. DISADVANTAGES OF DIVISIONAL STRUCTURE
• Cost. When you set up a complete set of functions within each division, there are likely to be
more employees in total than would be the case if the business had instead been organized
under a purely functional structure. Also, there must still be a corporate organization, which
adds more overhead cost to the business.
• Economies of scale. The company as a whole may not be able to take advantage of economies
of scale, unless purchases are integrated across the entire organization.
• Inefficiencies. When there are a number of functional areas spread among many divisions, no
one functional area will be as efficient as would have been the case if there had instead been
one central organization for each function.
• Rivalries. The various divisions may have no incentive to work together, and may even work at
cross-purposes, as some managers undercut the actions of other divisions in order to gain
localized advantages.
• Silos. All skills are compartmentalized by division, so it can be difficult to transfer skills or best
practices across the organization. It is also more difficult to cross-sell products and services
between the divisions.
• Strategic focus. Each division will tend to have its own strategic direction, which may differ
from the strategic direction of the company as a whole.

14. ADVANTAGES OF FUNCTIONAL STRUCTURE
• Benefits of Specialisation: The whole company is divided into many departments on the
basis of major activities to be performed. Each department is headed by an expert
manager. This results in more and better work being accomplished in much lesser time.
Hence, the benefits of specialisation become available.
• Coordination is established: All the persons working within a department are specialists
of their respective jobs. It makes coordination easier at the departmental level.
• Managerial Efficiency is increased: It helps in increasing managerial efficiency because
of performing the same work again and again. Further, this results in increased profit.
• Minimal Duplication of Efforts: In this type of organisation unnecessary duplication of
efforts is eliminated. For example, the function of finance is only carried out by the
finance department. There is no need to establish two or more departments. It makes it
possible to utilise the human and other resources effectively.
• Training is facilitated: It facilitates the training of personnel as the focus is only on a
limited range of skills. For example, the employees of finance department are given
training of financial issues.
• Equal Weight age to All Functions: It ensures that all the functions/activities get equal
weight age.

15. DISADVANTAGES OF FUNCTIONAL STRUCTURE
• Ignorance of Organisational Objectives: Each departmental head works according to his
sweet will. They always give more importance to their departmental objectives. Hence,
overall organisational objectives suffer. For example, to establish its image, the
production department may produce quality product ignoring the fact that market trend
favours accepting medium quality product.
• Difficulty in Interdepartmental Coordination: All departmental heads may work as per
their own wish. No doubt this facilitates coordination within the department but it makes
interdepartmental coordination difficult.
• Conflict of Interest: Every departmental head wants to become a functional empire. To
satisfy their ego every one demands maximum resources for their department. This
situation leads to conflicts among the various departmental heads.
• Hurdle in Complete Development: This system is a hurdle in the way of the complete
development of the employees. Each employee specialises only in a small part of the
whole job.

16. GROUP MEMBERS
ADITI BHADANI A36106417043
POOJA SINGH A36106417109
ANKITA KEDIA A36106417071
SOMNATH SARKAR A36106417032
PRASHANT KUMAR A36106417092
KISLAY RAJ A36106417120
RAHUL RAJ A36106417009
ASHISH BHADANI A36106417105