OL 326 Milestone Two Guidelines and Rubric
The final project for this course is the creation of a case study analysis and strategy proposal. In Milestone Two, submit Section II: Analysis of Social
Responsibility and Section III: Ethical Decision-Making of the final project.
The purpose of this project is to analyze and critique an organization based on what is expected within a corporate strategy in regard to social responsibility.
Prompt: Submit Sections II and III of the final project, which are the analysis of social responsibility and ethical decision making.
Specifically, the following critical elements must be addressed:
II. Analysis of Social Responsibility. In this part of the project, you will begin your analysis of the case study, examining how the strategy plan of the
organization in the case study considers social responsibility.
a) Analyze the organization’s strategy plan for compliance with the current acceptable standards or norms relative to social responsibility today.
b) Analyze the organization’s strategy plan for any gaps in social responsibility that might be potential risks to internal and external stakeholders.
c) Predict the potential positive and negative impacts to internal and external stakeholders regarding social responsibility that would result from
the strategy plan. In other words, what might happen to the employees and/or people involved in the company regarding social responsibility
from this strategy plan? You could consider both the present and future impacts.
d) Critique the evolution of strategy planning related to social responsibility within the organization. In other words, what may have influenced the
evolution of strategy planning related to social responsibility unique to this organization?
e) Explain how this organization is or is not consistent with regard to social responsibility when compared within its own industry and when
compared to outside industries. Be sure to justify your response.
III. Ethical Decision-Making. In this part of the project, you will continue your analysis of the case study, examining how the strategy plan of the organization
considers ethics in decision-making processes.
a) Analyze the organization’s strategy plan for decision-making processes that it employs. In other words, based on the strategy plan, how does the
organization make decisions?
b) Explain how aspects of ethics were considered in the decision-making processes of the organization. In other words, what were the ethical
considerations related to social responsibility in the decisions made by the organization? You could consider the connection between ethics and
organizational decision making and how ethics influence those decisions.
c) Analyze the organization’s strategy plan for any gaps in the decision-making process that could be considered potential risks to internal and
external stakeholders.
Rubric
Guidelines for Submission: Your paper must.
OL 326 Milestone Two Guidelines and Rubric The final p.docx
1. OL 326 Milestone Two Guidelines and Rubric
The final project for this course is the creation of a case study
analysis and strategy proposal. In Milestone Two, submit
Section II: Analysis of Social
Responsibility and Section III: Ethical Decision-Making of the
final project.
The purpose of this project is to analyze and critique an
organization based on what is expected within a corporate
strategy in regard to social responsibility.
Prompt: Submit Sections II and III of the final project, which
are the analysis of social responsibility and ethical decision
making.
Specifically, the following critical elements must be addressed:
II. Analysis of Social Responsibility. In this part of the project,
you will begin your analysis of the case study, examining how
the strategy plan of the
organization in the case study considers social responsibility.
a) Analyze the organization’s strategy plan for compliance with
the current acceptable standards or norms relative to social
responsibility today.
b) Analyze the organization’s strategy plan for any gaps in
social responsibility that might be potential risks to internal and
external stakeholders.
c) Predict the potential positive and negative impacts to internal
2. and external stakeholders regarding social responsibility that
would result from
the strategy plan. In other words, what might happen to the
employees and/or people involved in the company regarding
social responsibility
from this strategy plan? You could consider both the present
and future impacts.
d) Critique the evolution of strategy planning related to social
responsibility within the organization. In other words, what may
have influenced the
evolution of strategy planning related to social responsibility
unique to this organization?
e) Explain how this organization is or is not consistent with
regard to social responsibility when compared within its own
industry and when
compared to outside industries. Be sure to justify your response.
III. Ethical Decision-Making. In this part of the project, you
will continue your analysis of the case study, examining how
the strategy plan of the organization
considers ethics in decision-making processes.
a) Analyze the organization’s strategy plan for decision-making
processes that it employs. In other words, based on the strategy
plan, how does the
organization make decisions?
b) Explain how aspects of ethics were considered in the
decision-making processes of the organization. In other words,
what were the ethical
considerations related to social responsibility in the decisions
3. made by the organization? You could consider the connection
between ethics and
organizational decision making and how ethics influence those
decisions.
c) Analyze the organization’s strategy plan for any gaps in the
decision-making process that could be considered potential risks
to internal and
external stakeholders.
Rubric
Guidelines for Submission: Your paper must be submitted as a
3–4page Microsoft Word document with double spacing, 12-
point Times New Roman font, one-
inch margins, and at least three sources cited in APA format.
Instructor Feedback: This activity uses an integrated rubric in
Blackboard. Students can view instructor feedback in the Grade
Center. For more information,
review these instructions.
Critical Elements Proficient (100%) Needs Improvement (75%)
Not Evident (0%) Value
Analysis of Social
Responsibility:
Compliance
4. Analyzes the organization’s strategy
plan for compliance with current
acceptable standards or norms relative
to social responsibility today
Analyzes the organization’s strategy
plan for compliance with current
acceptable standards or norms relative
to social responsibility today, but
analysis is cursory
Does not analyze the organization’s
strategy plan for compliance with
current acceptable standards or norms
relative to social responsibility today
15
Analysis of Social
Responsibility: Potential
Risks
Analyzes the organization’s strategy
plan for any gaps in social responsibility
that might be potential risks
Analyzes the organization’s strategy
plan for any gaps in social responsibility
that might be potential risks, but
analysis is cursory or inappropriate
Does not analyze the organization’s
strategy plan for any gaps in social
responsibility that might be potential
risks
5. 10
Analysis of Social
Responsibility: Positive
and Negative Impacts
Predicts the potential positive and
negative impacts regarding social
responsibility that would result from
the strategy plan
Predicts the potential positive and
negative impacts regarding social
responsibility that would result from
the strategy plan, but prediction is
cursory or inappropriate
Does not predict the potential positive
and negative impacts regarding social
responsibility that would result from
the strategy plan
10
Analysis of Social
Responsibility:
Evolution
Critiques how the strategy planning
related to social responsibility has
evolved within the organization in
response to internal and external
influences
6. Critiques how the strategy planning
related to social responsibility has
evolved within the organization in
response to internal and external
influences, but critique is cursory or
inappropriate
Does not critique how the strategy
planning related to social responsibility
has evolved within the organization in
response to internal and external
influences
10
Analysis of Social
Responsibility:
Consistent
Explains how this organization is or is
not consistent with regard to social
responsibility compared within their
own industry and outside industries
Explains how this organization is or is
not consistent with regard to social
responsibility compared within their
own industry and outside industries,
but explanation is cursory or
inappropriate
Does not explain how this organization
is or is not consistent with regard to
social responsibility compared within
their own industry and outside
7. industries
10
Ethical Decision-
Making: Decision-
Making Process
Analyzes the strategy plan of the
organization for the decision-making
processes that are employed
Analyzes the strategy plan of the
organization for the decision-making
processes that are employed, but
analysis is cursory
Does not analyze the strategy plan of
the organization for the decision-
making processes that are employed
15
http://snhu-
media.snhu.edu/files/production_documentation/formatting/rubr
ic_feedback_instructions_student.pdf
Ethical Decision-
Making: Ethics
Explains how aspects of ethics were
considered in the decision-making
processes of the organization
8. Explains how aspects of ethics were
considered in the decision-making
processes of the organization, but
explanation is cursory or inappropriate
Does not explain how aspects of ethics
were considered in the decision-making
processes of the organization
10
Ethical Decision-
Making: Gaps
Analyzes the organization’s strategy
plan for any gaps in the decision-making
process that could be potential risks
Analyzes the organization’s strategy
plan for any gaps in the decision-making
process that could be potential risks,
but analysis is cursory or inappropriate
Does not analyze the organization’s
strategy plan for any gaps in the
decision-making process that could be
potential risks
10
Articulation of
Response
Submission has no major errors related
to citations, grammar, spelling, syntax,
9. or organization
Submission has major errors related to
citations, grammar, spelling, syntax, or
organization that negatively impact
readability and articulation of main
ideas
Submission has critical errors related to
citations, grammar, spelling, syntax, or
organization that prevent
understanding of ideas
10
Total 100%
IT 210 Business Systems Analysis and Design Final Project
Comment by Author: You will submit your responses for
Milestones One, Two, Three, and Four and your final
submission using this template. For your final submission in
Module Seven, please remove all comments from this template.
Business Report
INTRODUCTION (Milestone One) Comment by Author:
Milestone One is due in Module Two.
The business owner of Sharpe style wants me an IT business
analyst intern in the company to research on various options of
information technology that will help in improving the business
performance. The business owner intends to expand his retail
business into online sales business and thereby needs intelligent
systems as well as a website put in place. As an IT business
analyst intern at Sharpe style, I am expected to create a report
that analyzes sharp style business regarding the anticipated
10. technology and the requirements of the information system. The
business owner also expects to know the various technologies
that are available that would support the expansion of the
business.
The task given is crucial and relevant given the role of
Information technology in business management. Sharpe style
wants to expand the retail business into online sales business.
My role includes providing a solution in accordance with the
business goals. The task is relevant as the business owner want
to use information systems to improve the performance of his
business. Information technology will help the company access
more customers especially those that are connected and are
always online. Through information systems, the sales will also
increase as the platforms for sale have also been expanded. My
role will be to determine the most efficient and cost saving
intelligent systems, as well as the best, deigns for a website to
ensure that the business gives the positive customer experience
it desires. For example, Apple Inc. has been using information
technology to market its products. The company specializes in
using email marketing that is quite affordable so as to help in
reaching many customers and for the realization of the
company’s profits (Brennan, 2014).
The system development life cycle was created to make sure
that the solutions that are observed meet user requirements as
well as the business goals of a company. The SDLC also gives a
comprehensive guide that aims at assisting program managers
with every aspect of IT system development. The SDLC also
provides a checklist of rules and regulation that governs IT
systems and also ensures that system developers comply with
government regulations. The SDLC has a certain checklist as
well as a systematic progression that is vital in the development
of an IT system from conception to disposition. The first phase
is the conceptual planning that involves the process of
developing a need, feasibility, costs, risks and many other
factors surrounding the system.
The other phase is the planning and requirements definition that
11. involves the collecting, defining and other. It also involves
project management, project planning and other. The other
phase is a design that involves translating functional, support as
well as training requirements into preliminary and detailed
designs. Development and testing are the pother phase that
involves developing systems or acquiring depending on design
specifications. The other phase is the implementation that
involves the installation of the new system or the one that has
been enhanced to the production environment. The
implementation phase also involves the training of users
converting data, evaluating business processes and many other
activities. The other phase is the operations and maintenance
where the system is proven to be operational and is a phase that
ensure that the needs of the sponsor are met the last phase is the
disposition that is the end of the life cycle of the system.
The SDLC is a system that can help in documenting and inform
IT decisions in the case of Sharpe Style. The SDLC can help in
creating a guideline that can help in creating a good procedure
of how the online sales system would be implemented. It also
helps in ensuring that better decisions since every process will
be followed ensuring that a good IT system is created which
suits the goals of the company. (Reynolds, 2010)
NEEDS AND OPTIONS: DATABASE (Milestone Two)
Comment by Author: Milestone Two is due in Module
Three. Delete instructions after you have completed your
milestone.
Sharpe style has a need for the database technology that will
help the company to maintain records regarding inventory. It
also needs a database that can help in ensuring that the new
online services carry on as the owner intends it to be. The
company also has a need for intelligent systems that will help in
ensuring that the new online services are ensuring a positive
customer experience. Since Mary does not have knowledge of
information technology, then she needs a simple database for
her to understand so has to be useful to her and her customers.
12. Since the company is beginning on this project, it needs a cheap
database that will be affordable.
There are various databases that Sharpe style can use in support
of its new online services. The company can use a database
technology such as MYSQL, which is a very popular database
platform that is used by many developers especially with new
people starting to use database technology. This database has a
free community version. It also has an extended variety of
tutorials, blogs that are meant for the sole development if the
MySQL. This database also supports forums. This database
technology can help support the new online business as it is
applicable for large-scale as well as small-scale businesses. The
MySQL is a system that is especially useful for beginners like
Mary Sharpe. This database technology has a GIU interface as
well as syntax protection materials that can also be downloaded.
MySQL can run on Windows Linux or any other platforms. The
disadvantage of this database is that it is expensive.
Another database technology that can be used is the Google
Cloud SQL, which is a fully managed which is related to the
MySQL database via Google’s cloud service. This database is
reliable as it store data of high volumes. The advantage of this
system is that it the user can access the data when she needs it.
Google also manages backups for the user. The limitation of
this database is that it needs the user to stay online for proper
services.
A real-world example is a Proctor & Gamble which has once
used the Google Cloud SQL as a database technology when it
was still young in the industry, and the company has succeeded
to this far. This example has helped me to suggest this option to
Sharpe Style since if it uses the database well, then it can
succeed like Procter & Gamble. I would like that the company
succeeds, and a real life example helps in convincing the
company that it is possible to succeed when it implements this
database technology. This company has the possibility of
becoming victorious in its undertakings if it follows this
example (Van, 2011).
13. NEEDS AND OPTIONS: WEBSITE (Milestone Three)
Comment by Author: Milestone Three is due in Module
Four. Delete instructions after you have completed your
milestone.
[For Milestone Three, you will be focusing on the website for
Sharpe Style based on what you have learned in Module Four.
Your response must address three different aspects of the
website: features, mobile computing, and security challenges.
Remember that Sharpe Style has a website that directs
customers to the retail location, advertises sales events, and
provides coupons that customers can print. The main guiding
question to consider is, what will the company’s website need in
order to accommodate online sales? You will be using the
Milestone Three section of the template to complete this
assignment. Refer to the Sharpe Style scenario for details on the
current state of the company and the business owner’s goals.
For each one of these aspects, assess what the company needs
and research two options to propose to Mary the business
owner.
1. Features: What features might the business owner want the
new website to include? Think about what features an online
shopper would need to see on a website. Also think about
Mary’s goal to implement intelligent marketing. Support your
answer with examples of what other consumer companies are
doing. Remember to cite your sources appropriately.
Comment by Author: Features items to consider: Should
the owner consider incorporating intelligent features such as
links to product descriptions, product availability, or
complementary items for purchase? Should the system
automatically post new products to social media? What do other
businesses do?
2. Mobile Computing: What challenges and needs might the
14. owner face in terms of supporting mobile computing? As you
assess these challenges, fill out the Requirements Document in
Appendix A of the Final Project Template. Comment by
Author: Mobile Computing items to consider: Does the company
need different solutions to accommodate mobile devices vs. a
desktop? Comment by Author: Appendix A is a template of a
requirements document. Completing the template is part of your
Milestone Three assignment and will be graded along with your
submission in the NEEDS AND OPTIONS: WEBSITE section of
your Final Project Template.
3. Security: Analyze the security challenges arising from adding
e-commerce to the website including both internal and external
security concerns. Identify a minimum of two options for the
business owner to consider. Compare and contrast these
available IT security solutions to address the needs you
identified. What are the advantages and disadvantages to each?
To illustrate your point(s), research examples of what has or has
not worked for other companies.] Comment by Author:
Security items to consider: What types of systems will the
company need to ensure that customer data is secure and that
the site is not abused? Explain considerations regarding the
security of both data transmission and storage.
HARDWARE AND SOFTWARE (Milestone Four) Comment by
Author: Milestone Four is due in Module Five. Please use this
template to complete your milestone. Remember to incorporate
any instructor feedback for your final submission.
[So far throughout this course, you have been looking at
different facets of the company from database needs and options
to website needs and options. For your Milestone Four
assignment, you will be looking at hardware and software needs
and hardware and software options. Refer to the Sharpe Style
scenario for details on the current state of the company and the
business owner’s goals.
Begin your response by explaining why it is important to
15. consider the current IT infrastructure when integrating new e-
commerce features to a website (the specifics of which you
looked at in Module Four). Discuss how the business’s current
IT affects the costs of data storage and processing. You should
also discuss how the current business’s current IT affects
customer satisfaction with the purchasing experience.
Comment by Author: Hints: Start to think about this from a
high level. How will the costs of storage now vs. 5 or 10 years
ago affect what kind of options are available to your business
owner who is looking for a cost effective solution? How does
this affect how she reaches her goal? How will reaching her
goal affect her customer experience?
Next, explain the hardware and software infrastructure currently
in place at Sharpe Style. Refer to Appendix B for an IT
flowchart depicting the hardware and software in place. Use the
flowchart to describe what the company has and state what it is
the company lacks. Draw conclusions for how the current state
is negatively impacting business processes.
Now that you have systematically gone through and identified
needs and options to present Mary Sharpe to help her migrate
into online sales, complete the Matrix of Options in Appendix C
of the Final Project Template to help organize the research you
have done to persuasively communicate your ideas. See prompt
in the appendix. Comment by Author: Part of your
Milestone Four assignment is completing Appendix C of this
template, the Matrix of Options. You will be assessed on
Appendix C as well as this section of the template for your
Milestone Four assignment.
After completing your matrix of options, you can now address
some additional considerations. For example, what
compatibility issues exist with the different options? Explain
your response in terms of how these issues affect the business
process.
16. In proposing solutions to these conclusions, what factors should
the business owner consider when deciding whether to use in-
house or external IT resources and services such as cloud
computing or companies that specialize in hosting online
stores? What are the short-term and long-term trade-offs?
Use the Milestone Four section of the template as well as
Appendix C, and submit the template to your instructor for
feedback. Remember to incorporate instructor feedback before
your final submission in Module Seven.]
CONCLUSION (Due for Final Submission in Module Seven)
Comment by Author: Start to craft in Module Six.
Note: Module Six would be the time to revisit Milestone One to
answer the one outstanding question, “How did you go about
identifying solutions that address the business owner’s
concerns?”
[Conclusion: Craft a one-paragraph response suggesting
potential next steps for the business in light of your findings.
Remember you audience (the business owner) and make sure
you justify your response.] Comment by Author: Delete
prompt as you craft your paragraphs.
IT 210 Business Systems Analysis and Design Final Project
Template
Page 3
Appendix A Comment by Author: This section of the
template is covered in Milestone Three in Module Four.
Prompt: Online and mobile computing has requirements and
limitations that must be understood to avoid creating a security
risk to the business and customers. In a retail store, the
information collected is maintained within the store, and sales
transactions are processed locally. With online and mobile
17. computing sales, transactions start from the user’s mobile
device or computer using a browser or mobile application.
When considering the challenges and needs owners face in
terms of supporting mobile computing, one must understand the
requirements and limitations of mobile computing.
Make sure to cite your sources appropriately.
Requirements Document
Fill in the sections in red with your information from the
research you have completed on the requirements and
limitations of online and mobile computing. Once you have
replaced the red text with your own, make sure all the text in
your document has been changed to black.
Online and Mobile Computing: Requirements Document
(Version 1.0)
Project: Expanding Business to Online and Mobile Computing
Date(s): Fill in the due date for the assignment.
Prepared by: Jon Collins
1. Introduction
This document contains the system requirements and limitations
for expanding the business to online and mobile computing.
These requirements have been derived from several sources,
noted in the reference section of the requirements document.
2. Purpose of This Document
We expect business executives to understand the requirements
and limitations of online and mobile computing through the use
of this document.
3. Requirements
This section will give the reader an overview of the
requirements for expanding a business to online and mobile
computing.
In this section, list any assumptions you made about the project.
For example, did you assume the finished product would require
a migration of data to a cloud-based solution? If your
18. requirement depends on any particular technical infrastructure
or requires administrators or others with specific skills, note
that here.
3.1. User Requirements
List user requirements here.
3.2. System Requirements
List detailed system requirements here. If your system is large,
you may wish to break this down into several subsections.
3.3. Interface Requirements
List interface requirements here; these could include device or
browser requirements.
4. Limitations
This section will give the reader information on known
limitations for expanding a business to online and mobile
computing.
In this section, list any limitations that must be considered
when expanding a business online.
5. References Comment by Author: For your final submission,
make sure that you move this content to the reference page.
In this section, list any references that you used in the
requirements document. Use APA format. For example, this is
how the source that was used to create this template would look:
Center for Distributed Learning (CDL). (2015). Writing a
requirements document: Workshop materials. Retrieved from
http://www.cdl.edu/cdl_resources/writing-requirements
Appendix B
Flowchart Comment by Author: You will use this flowchart to
inform your response to Milestone Four.
Appendix C
Options Matrix Comment by Author: You will create your
options matrix in Module Five as you work on your Milestone
Four submission.
IT 210 Matrix of Options Comment by Author: Set up as a table
to present your thoughts clearly to Mary Sharpe.
[For this assignment, based on all of the research you have
19. conducted for Mary Sharpe to help her reach her goals, create a
table to organize all of your business recommendations. Your
table should summarize your findings and be easy to read. It
should clearly and professionally present the company’s needs
and your recommendations to meet those needs.]
References
Brennan, L. L. (2014). Social, ethical and policy implications of
information technology. Hershey, Pa: Information Science Publ.
Reynolds, G. W. (2010). Information technology for managers.
Boston, MA: Course Technology, Cengage Learning.
IT 210 Milestone Three Guidelines and Rubric
In the final project for this course, you will imagine that you
are an IT business analyst intern at Sharpe Style in the scenario
provided and have been asked by the
owner to research options for improving the business’s
performance through the use of technology. Specifically, the
owner wants to expand the business’s retail
presence into online sales and ensure a positive customer
experience by incorporating intelligent systems into the
website. You will create a business report for
business owner Mary Sharpe that analyzes the business’s stated
and anticipated technology and information system
requirements, compares and contrasts
different technology solutions available, and provides
suggestions on technology opportunities that would support the
business venture. You should explain in detail
how the different options could help grow the business and/or
improve operational efficiency and client satisfaction, using
real-world examples and references to
support the suggestions. You should also keep in mind that the
20. business owner is not a technology specialist. Consequently,
you should use nontechnical language in
crafting the business report and remember that the owner may
not always know what technology is needed to carry out a
particular option or how much it costs.
Prompt: For Milestone Three, you will be focusing on the
website for Sharpe Style based on what you have learned in
Module Four. Your response must address
three different aspects of the website: features, mobile
computing, and security challenges. Remember that Sharpe
Style has a website that directs customers to
the retail location, advertises sales events, and provides
coupons that customers can print. The main guiding question to
consider is, what will the company’s
website need in order to accommodate online sales? You will be
using the Milestone Three section of the template to complete
this assignment. Refer to the
Sharpe Style scenario for details on the current state of the
company and the business owner’s goals.
For each one of these aspects, assess what the company needs
and research two options to propose to Mary the business
owner.
1. Features: What features might the business owner want the
new website to include? Think about what features an online
shopper would need to see on
a website. Also think about Mary’s goal to implement
intelligent marketing. Support your answer with examples of
what other consumer companies are
doing. Remember to cite your sources appropriately.
21. 2. Mobile Computing: What challenges and needs might the
owner face in terms of supporting mobile computing? As you
assess these challenges, fill out
the Requirements Document in Appendix A of the Final Project
Template.
3. Security: Analyze the security challenges arising from adding
e-commerce to the website, including both internal and external
security concerns. Identify
a minimum of two options for the business owner to consider.
Compare and contrast these available IT security solutions to
address the needs you
identified. What are the advantages and disadvantages to each?
To illustrate your point(s), research examples of what has or has
not worked for other
companies.
Use the Milestone Three section of the template as well as
Appendix A and submit the template to your instructor for
feedback and grading. Remember to
incorporate instructor feedback before your final submission in
Module Seven.
Specifically, the following critical elements must be addressed:
III. Website Needs and Options: In this section, you should
analyze the business’s website needs with respect to the
proposed expansion into online sales
22. and lay out possible solutions for meeting the needs you
identified. Be sure to address the following:
A. What features might the business owner want the new
website to include? To support your answer, use examples of
what other companies in
the industry are doing. For example, should the owner consider
incorporating intelligent features such as links to product
descriptions, product
availability, or complementary items for purchase? Should the
system automatically post new products to social media? What
do most similar
businesses do?
B. What challenges and needs might the owner face in terms of
supporting mobile computing? Include a requirements document
as an appendix
to help support your discussion, using the template provided,
and offer real-world examples to illustrate your points. You
may also want to
consider whether the business needs different solutions to
accommodate mobile devices versus a desktop computer.
C. Analyze the security challenges arising from adding e-
commerce to the website, including both internal and external
security concerns. Explain
your response. For example, what types of systems will the
company need to ensure that customer data is secure and that
the site is not
abused? You may want to consider the security of both data
transmission and data storage.
D. Compare and contrast available IT security solutions to
address the needs you identified. What are the advantages and
disadvantages to each in
terms of supporting the business owner’s objectives?
23. E. Compare and contrast web and mobile software packages and
services available for addressing the owner’s online needs.
What are the
advantages and disadvantages to each with respect to business
process engineering? To illustrate your point(s), you may want
to include real-
world examples of what has or has not worked for other
companies.
Rubric
Guidelines for Submission: This milestone should be submitted
using the Milestone Three section in the provided Final Project
Template.
Instructor Feedback: This activity uses an integrated rubric in
Blackboard. Students can view instructor feedback in the Grade
Center. For more information,
review these instructions.
Critical Elements Proficient (100%) Needs Improvement (75%)
Not Evident (0%) Value
Website Needs and
Options: Features Needs
Identifies the features that the website
needs to accommodate online sales to
help Mary Sharpe reach her business
goals
Identifies some features that the website
needs that may not directly support
online sales
24. Does not identify features that the
website needs to accommodate online
sales
15
Website Needs and
Options: Features Options
Identifies options that Mary Sharpe
would want to implement on her website
to accommodate online sales to reach
her business goals and supports answer
Identifies options that Mary Sharpe
would want to implement on her website
that may not directly support online sales
Does not identify options that Mary
Sharpe would want to implement on her
website to accommodate online sales
15
http://snhu-
media.snhu.edu/files/production_documentation/formatting/rubr
ic_feedback_instructions_student.pdf
Website Needs and
Options: Mobile
Computing Needs
25. Identifies the mobile computing needs of
the website to accommodate online sales
to help Mary Sharpe reach her business
goals
Identifies mobile computing needs that
Mary Sharpe would want to implement
on her website that may not directly
support online sales
Does not identify mobile computing
needs
15
Website Needs and
Options: Requirements
Document Appendix A
Fills out the requirements document in
Appendix A by answering all of the
questions completely and thoroughly
Fills out the requirements document in
Appendix A, but may not answer all of
the questions or does not answer all of
the questions completely or thoroughly
Does not fill out the requirements
document
15
Website Needs and
Options: Security Needs
26. Analyzes the security challenges arising
from adding e-commerce to the website
both for internal and external security
concerns
Analyzes some security challenges arising
from adding e-commerce to the website
both for internal and external security
concerns, but may not formulate answer
completely, or answer contains some
inaccuracies
Does not analyze security challenges 15
Website Needs and
Options: Security Options
Presents options for the challenges
arising from adding e-commerce to the
website both for internal and external
security concerns, compares and
contrasts available IT solutions, and
supports answer with appropriate detail
Presents some options for the challenges
arising from adding e-commerce to the
website both for internal and external
security concerns, attempts to compare
and contrast available IT solutions, but
may not identify appropriate solutions,
and supports answer but without
appropriate detail
Does not present security options 15
Articulation of Response Submission has no major errors related
27. to citations, grammar, spelling, syntax, or
organization; submission uses template
Submission has major errors related to
citations, grammar, spelling, syntax, or
organization that negatively impact
readability and articulation of main ideas;
submission uses template
Submission has critical errors related to
citations, grammar, spelling, syntax, or
organization that prevent understanding
of ideas; submission does not use
template
10
Earned Total 100%
IMB 339
Abhoy K. Ojha prepared this case for class discussion. This
case is not intended to serve as an endorsement, source of
primary data, or to show
effective or inefficient handling of decision or business
processes.
29. centuryii. The dilemma for industry captains has
been to decide on the future direction of their firms such that it
addresses the interest of all stakeholders, including
the society at large, while maintaining short-term and long-term
viabilities.
ITC Ltd. has been a diversified company. In addition to being a
dominant player in the cigarette industry in India, it
had interests in hotels, agri-business (which included tobacco),
packaged foods, lifestyle products, personal care
products, education and stationery products, paperboard and
packaging, and more. It also had subsidiaries in other
businesses, including information technology. It has been trying
to keep the interest of all the stakeholders in mind
and position itself as a socially-responsible organization. The
Chairman of ITC Ltd., while addressing the
shareholders on July 27, 2007 emphasized the need for
corporate social responsibility and suggested that ITC Ltd.
producing economic, environmental and social values, and thus
contributing to national progress. His July 24, 2009
address to the shareholders, highlighted a wide range of
initiatives in the communities within which the company
has reach, including watershed development, animal husbandry
services, education services, and self-help services
as part of the efforts of the company to live up to the promise
emphasized in its vision.
ITC Ltd. had to chart its future direction for the next phase of
its lifecycle in light of the tremendous opportunities
for growth in the cigarette industry and the controversies around
significant social costs, largely owing to health
risks for primary and even secondary smokers. Sanjiv Puri, a
long time manager with ITC Ltd. with a wide range of
experience, in various segments of the company, had just then
taken over the tobacco division as the chief executive.
30. What advice would one provide him given the strong evidence
of high growth possibilities for the cigarette industry
in India, but also the health risks associated with the
consumption of tobacco, including cigarette smoking?
TOBACCO INDUSTRY IN INDIA
Although some types of tobacco and tobacco products existed in
India for long, the tobacco we know today was
brought to India by Portuguese merchants about 400 years
agoiii. After that the British East India Company
extensively used tobacco as a cash crop for trade primarily to
the United Kingdom. After India came under the
control of the British government, there were several initiatives
to encourage the cultivation of tobacco across
different parts of the country with primary focus on markets
outside India. However, various forms of tobacco
consumption became quite common in India too. After
independence also, the tobacco industry continued to make a
significant contribution to the overall Indian economy. The
Indian government established the Tobacco Board that
For the exclusive use of J. Collins, 2015.
This document is authorized for use only by Jon Collins in OL-
326 Social Environment of Business 15EW2 taught by Lindsay
Conole, Southern New Hampshire University from October
2015
to December 2015.
ITC Ltd: Towards a Triple Bottom Line Performance Page 2 of
10
31. ed
regulated the tobacco industry in India. Even as the government
tried to discourage the consumption of tobacco
products owing to increasing opposition to consumption of
tobacco products, it provided a number of subsidies to
the tobacco industryiv as it provided significant employment to
people and income to farmers in the rural areas.
Table 1 shows the growth of the tobacco industry between 1970
and 2000. It shows that production of cigarettes
grew modestly although tobacco leaf production grew
significantly. Although the land devoted to tobacco
production remained about the same, there was an increase in
the number of people employed in the industry.
Imports of cigarettes and tobacco had fluctuated but grown
modestly, and exports of tobacco and tobacco products
had increased significantly.
In 2011, India was one of the three largest producers of tobacco
along with China and Brazilv. It was estimated that
229 million males and 11 million females in India consumed
tobacco in some formvi. According to the National
Family Health Survey, 57% of men and 11% of women in India
aged 15 49 years consumed one form of tobacco or
anothervii. Tobacco consumption in India could be broadly
classified into three categories: (i) chewing tobacco,
including zarda, khaini, and gutka, which comprised about 48%
of the consumption; (ii) bidis, tobacco rolled in leafs
largely produced in the unorganized sector, which comprised
about 38% of the consumption; and (iii) cigarettes,
largely produced in the organized sector, which comprised the
remaining about 14% of consumption. Cigars,
hookah and some other forms of tobacco consumption
contributed very little to the overall market.
32. India has been the eighth largest exporter of tobacco and
tobacco products in the world. According to the Tobacco
Board data, exports of tobacco and tobacco products rose by
about 67% in rupee terms to Rs. 3,383 crore in the year
2008 2009 on a year-on-year basis. In dollar terms, exports
increased by a record 47% to US$ 737 millionviii.
Cigarettes accounted for 85% of the country's total tobacco
exports. Some tobacco products were also imported into
the country.
The tobacco industry provided employment to over 10 million
people who were directly involved with the various
stages of cultivation, manufacturing and distributions processes
and contributed over Rs. 70 billion to government
earnings. The commercial cultivation of tobacco was
concentrated in Andhra Pradesh, Karnataka, Gujarat,
Maharashtra, Bihar, Tamil Nadu, and West Bengalix, with about
80% of the tobacco grown in Andhra Pradesh,
Gujarat and Karnataka. The tobacco production in India was
expected to increase in the next few years. The increase
in demand for tobacco leaf was reflected in the fact that the
average price received by tobacco farmers in Andhra
Pradesh increased from Rs. 84.75 in 2008 to Rs. 108.27 in
2009x.
CIGARETTE INDUSTRY IN INDIA
There were 14 major cigarette manufacturing companies in
Indiaxi. Four companies, ITC Ltd., Godfrey Phillips
India Ltd., Vazir Sultan Tobacco Ltd., and Golden Tobacco Ltd.
accounted for over 95% of the cigarette market.
ITC Ltd. was the largest of these and comprised about 75% of
the market. It was involved with cigarette
manufacturing, tobacco leaf procurement and processing, as
well as investments in the manufacture and export of
33. cigarette packaging materials. In addition to serving the
growing domestic market, the company also exported
cigarettes and unmanufactured tobacco. Other tobacco
companies included Kanhayya Tobacco Company, M.R.
Tobacco, Sapna Enterprises, Sudarshan Tobacco, Dalmia
Consumer Care, and Kothari Products Ltd.
According to the Tobacco Institute of India, the number of
cigarettes sold in the country had remained more or less
constant since the late 1980s, barring a few fluctuations.
However, there had been some changes. Cigarette
production in India increased from 87,568 million pieces in the
year 2001 2002 to 113,835 million pieces in the
year 2006 2007, which was a 30% increase. However, there was
a slight decline in output owing to the impact of
the new taxes levied. The consumption of cigarettes declined
from 19% to 14% as a proportion of overall tobacco
consumption over the previous 10 years. Largely because of the
impact of high taxes on cigarettes, which were
lower for bidis and other products, people had moved to those
forms of tobacco that were less taxed. Smuggling,
also as a result of high taxes, had an impact on the market. In
the year 2008 2009, cigarette production dropped to
109,231 million piecesxii. However, most firms in the industry
did not experience a drop in revenues; rather they
experienced an increase in revenues, as they raised prices to
compensate for the drop in consumption.
For the exclusive use of J. Collins, 2015.
This document is authorized for use only by Jon Collins in OL-
326 Social Environment of Business 15EW2 taught by Lindsay
Conole, Southern New Hampshire University from October
2015
to December 2015.
34. ITC Ltd: Towards a Triple Bottom Line Performance Page 3 of
10
GROWTH OPPORTUNITY
The number of smokers in India has remained about constant for
a long timexiii. Even after an increase in the number
of smokers, India has one of the lowest per capita consumption
of cigarettes in the world. As shown in Table 2, the
per capita consumption of cigarettes in India was significantly
lower than the world average. In most countries,
cigarettes accounted for about 85% of tobacco consumption. In
India, cigarette consumption was about 14% in
2011xiv. Studies show that the urban low and lower-middle
income households consumed more cigarettes compared
to the similar income groups in rural areasxv. Growing
disposable incomes and increased media exposure for this
segment of the population provided growth opportunities for the
industry. As affluence increased the possibility of
increase in cigarette smoking, many people moved from other
forms of tobacco consumption to cigarettes. Further,
India is demographically very attractive to the industry as 65%
of the population was below the age of 35 years. A
significant proportion of this segment of population is likely to
have higher disposable incomes and possibly a lower
level of aversion to smoking, providing a potential for growth
for the cigarette industry. A top executive of one of
people become more prosperous and have more disposable
income, consumption of cigarettes will go up. Cigarettes
are a much more mo xvi
35. Further, there were growth opportunities in exports. India's
share in world cigarette production had remained at
around 1.7% whereas India's exports of around 2.8 billion sticks
of cigarette per year accounted for less than 1% of
the world export of cigarettexvii. There was significant
opportunity for the cigarette industry to extend and
consolidate its position in the international market owing to
some recent trends such as withdrawal/reduction of
agricultural subsidy and escalating cost in the traditional
cigarette exporting countries.
THE HEALTH HAZARD
Globally, about one billion men in the world smoke: of them,
about 35% of men live in high-resource countries, and
50% of men in developing countries. About 250 million women
are daily smokers. Estimates suggest that in 2010,
tobacco accounted for about 8.8% of all global deaths and 4.2%
of disabilitiesxviii, and around 5.4 million people
died prematurely owing to tobacco-related illness. According to
World Health Organization (WHO) estimates, about
80% of those who were negatively affected come from low and
middle-income nations that would pay a heavy price
in terms of financial and social costs. Statistics indicate that
more than half of the world's smokers live in 15
countries such as India, Bangladesh, Russia, China, and
Indonesiaxix.
According to the WHO, India is home to 12% of the world's
smokers. Surveys suggest that there was an increase in
smoking in urban areas, and just 2% of the smokers were
inclined to quit smokingxx. A study by the Centre for
Global Health Research, University of Toronto, Canada
estimated that around 0.5 million people are likely to die of
smoking in India in one year1
36. xxi. A study, "A Nationally Representative Case-Control Study
of Smoking
and Death in India," covered as many as 1.1 million homes
across India and involved 900 field workers. The
smoking histories of 74,000 who had died were studied. It
concluded that men who smoked bidis lost 6 years of
average life while women lost 8 years. Men who smoked
cigarettes lost 10 yearsxxii.
Nicotine from tobacco led to an acceleration of coronary artery
disease, peptic ulcer disease, reproductive
disturbances, esophageal reflux, hypertension, fetal illnesses
and death, chronic bronchitis, and delayed wound
healing. Studies suggested that tobacco acted on cells as a
mutagen, disrupting the inherited regulation mechanisms
for repair and reproduction, making them susceptible to
cancerxxiii. According to estimates, cancer of the oral cavity,
pharynx, esophagus, and lungs together accounted for 75% of
tobacco-related cancers in the countryxxiv.
1 It is worth noting, however, that bidi smoking was one of the
largest killers in India. Estimates indicated that bidis killed
6,00,000 people in
India every year1. According to a study done by the Health
Ministry, 70% of tobacco smoked in the country was in the form
of bidis. The states
with maximum bidi smoking were Manipur, Mizoram, Nagaland,
and Sikkim. Some studies suggested that the mortality rate from
bidi smoking
was much higher than cigarette smoking and overall mortality
rate from tobacco smoking was even higher.
For the exclusive use of J. Collins, 2015.
37. This document is authorized for use only by Jon Collins in OL-
326 Social Environment of Business 15EW2 taught by Lindsay
Conole, Southern New Hampshire University from October
2015
to December 2015.
ITC Ltd: Towards a Triple Bottom Line Performance Page 4 of
10
The National Family Health Survey (1998 1999) revealed that
smoking and chewing tobacco affected different
strata of society differently. Individuals with no education were
2.69 times more likely to smoke and chew tobacco
than those with post-graduate education. Households belonging
to the lowest fifth of a standard of living index were
2.54 times more likely to consume tobacco than those in the
highest fifthxxv. According to a study by the Indian
Council of Medical Research, the average economic cost of
major diseases owing to tobacco use in India in 1999
was estimated at Rs. 350,000 for cancer, Rs. 29,000 for
coronary artery disease and over Rs. 23,000 for chronic
obstructive lung disease. Total losses from these tobacco-
related diseases in 1999 was about Rs 277.6 billion,
equivalent to US $6.5 billionxxvi
The Government of India tried to control the consumption of
tobacco in a variety of ways, including taxation, ban on
advertising, ban on sales to minors, and ban on smoking in
public places, etc. Many of these initiatives focused more
on the organized sector, particularly the cigarette industry. In
38. September 2009, the Union Minister of State for
Health and Family Welfare indicated that India was committed
to bring down tobacco production as per the
provisions of Framework Convention on Tobacco Controlxxvii.
He acknowledged that there was a need for
concentrating on alternative livelihood for the millions of
farmers and cottage industry workers who were engaged
in tobacco-
to stall many serious steps to curb the tobacco menace in the
country, xxviii . He outlined various initiatives of the
Government of India to control tobacco consumption which,
according to available estimates, killed about 0.9
million people every year in the country.
TAXATION
One of the tools that the government used to control the
consumption of cigarette was taxes. Industry experts
suggested that cigarettes were taxed the highest among all
tobacco products which was about 132% of the value of
the productxxix. Cigarettes contributed more than 90% of the
total tax revenue from the tobacco sector despite
constituting only 14% of the tobacco consumption in the
country. Since 1979, when duty on raw tobacco was
removed, the burden of tobacco tax had increasingly shifted to
the cigarette industryxxx. However, the high taxes on
cigarettes continuously drove consumers to cheaper tobacco
products2. In addition to the central government, the
state governments also imposed other taxes. A Supreme Court
verdict ended a 12-year-long legal battle against the
imposition of luxury tax on cigarettes by 10 states declaring
them illegalxxxi. However, the cigarette industry was still
heavily taxed. In 2007, the government increased excise duty by
6% and added 12.5% in VAT, bringing the total
effective tax to about 20%. This was a big challenge for the
39. cigarette industryxxxii. Some argued that the decline in
domestic cigarette consumption discouraged investment in R&D
and quality enhancement of tobacco varieties and
thereby undermined the export potential of high-value Indian
cigarette tobaccos.
Analysts saw a conflict between the tax objectives of the
government. The cigarette sector was taxed at higher rates
to meet government revenue needs. This did not serve the
objective of discouraging tobacco consumption, as the
consumption pattern shifted to tobacco that was less taxed or
not taxed at all. At the same time, other considerations,
such as employment and income generation in rural area
hindered any serious effort toward reducing non-cigarette
consumption of tobacco. Some analysts argued that tobacco
taxation in India achieved neither revenue optimization
nor tobacco control as an objectivexxxiii.
2 The non-smoking tobacco products, commonly used among
rural masses, were not taxed. Bidis, which were used by people
in lower economic
strata, were not taxed till the early 1990s, and in 2011 were
taxed only lightly. In 2011, taxes on bidis were 30 times lower
than that of cigarettes
on per kilo basis. The Health Ministry recommended that taxes
be on par with non-filter cigarettes, which would raise the price
of a pack of 25
bidis from Rs. 4 to Rs. 82. Non-filter cigarettes attracted a
much lower tax than filter cigarettes. The central government
policy of keeping the
prices of certain tobacco products cheaper for low-income
groups ignored the potential of higher occurrence of tobacco-
related diseases.
40. For the exclusive use of J. Collins, 2015.
This document is authorized for use only by Jon Collins in OL-
326 Social Environment of Business 15EW2 taught by Lindsay
Conole, Southern New Hampshire University from October
2015
to December 2015.
ITC Ltd: Towards a Triple Bottom Line Performance Page 5 of
10
CIGARETTES AND OTHER TOBACCO PRODUCTS ACT,
2003
The Cigarettes and Other Tobacco Products (Prohibition of
Advertisement and Regulation of Trade and Commerce,
Production, Supply and Distribution) Act, 2003 (COTPA) was
being implemented in a phased manner with effect
from May 1, 2004. The purpose of this act was to reduce the
consumption of tobacco consumption and also make it
more difficult for producers to reach potential consumers. In
line with the provisions, the Government of India
banned the advertising of cigarettes. Advertising of cigarettes
was banned on television and commercial radio
stations, and in government-owned premises. Cinema, outdoor
advertising and sponsorship of sports, and other
events and cultural activities were permittedxxxiv.
The government had put a ban on smoking in public, and a ban
on sale to minors. Smoking was banned in
government offices, public transport, cinema halls, theatres, and
41. government-run stadiums. The law prohibited
smoking in workplaces and public places including hotels,
restaurants, coffee houses, pubs, airport lounges,
shopping malls, cinemas, educational institutions, and libraries,
hospitals, auditoriums and railway stations. A poll
conducted in four Indian cities, Mumbai, New Delhi, Chennai,
and Kolkata found that there was near-universal
support for prohibiting smoking inside all public places and
workplaces in India. Overall, 97% of the Indians
surveyed expressed support for the smoke-free law, with 92%
expressing strong support. The level of strong support
ranged from 89% in New Delhi to 97% in Mumbai. In addition,
84% said that they thought secondhand smoke was
a serious health hazard, and 99% agreed that workers should be
protected from secondhand smokexxxv.
Under the provisions of the Act and rules approved in 2006,
companies would have to display pictures of the
potential health dangers of smoking cigarettes, such as oral
cancer and lung cancer. This provision had just been
implemented, and the industry was fearful that this may have a
negative impact on volume sales.
CHALLENGES IN THE MARKET
Given the prevalence of high taxes on cigarettes, other
unscrupulous elements could enter the industry illegally and
often create a market loss for the legal industry. For example,
smuggled cigarettes posed a major threat to the legal
industry. According to industry estimates, cigarettes were the
world's most widely smuggled legal consumer
product. In 2006, about 600 billion smuggled cigarettes were
consumed, which was a missed tax opportunity for
governments, as well as a missed opportunity to prevent many
people from starting to smoke and encourage others
to quitxxxvi. According to estimates, contraband cigarette sales
42. caused a loss of Rs. 1,500 2,000 crore per annum to
the Indian government in terms of taxes and forex
outflowxxxvii. As both imported and smuggled cigarettes did
not
use Indian tobacco, their influx also served to erode the demand
for Indian cigarette tobacco, thereby negatively
impacting farmersxxxviii.
Some illegal manufacturers in the small-scale industry or
unorganized sector entered the market without formal
licenses. Some of these firms manufactured products illegally to
avoid the high taxes. This not only led to the
presence of inferior products, which did not conform to strict
quality standards, in the market but also hurt the
markets available to the legitimate cigarette industry.
Although imports constituted only a negligible proportion of the
domestic pie, their rising share posed a threat to
players.
ITC LTD.
ITC Ltd. has been one of India's foremost private sector
companies with a market capitalization of nearly US $14
billion and a turnover of over US $5 billionxxxix. In the year
2009 2010, ITC employed over 29,000 people at more
than 60 locations across India. It was rated amongst the best
organizations in the world by Forbes magazine and in
Asia by Business Weekxl and in India by Business World and
Business Today. ITC Ltd. was established in India by a
U.K.-based tobacco company in 1910 as a sales organization
named the Imperial Tobacco Company of India Ltd.
Under pressure from the government of India, Imperial divested
its equity in 1969 through a public offer, which
raised the shareholdings of the Indian individual and
institutional investors from 6.6% to 26%. After this, the
43. holdings of Indian financial institutions were 38% and the
foreign collaborator held 36%.
For the exclusive use of J. Collins, 2015.
This document is authorized for use only by Jon Collins in OL-
326 Social Environment of Business 15EW2 taught by Lindsay
Conole, Southern New Hampshire University from October
2015
to December 2015.
ITC Ltd: Towards a Triple Bottom Line Performance Page 6 of
10
In 2011, ITC Ltd. was a dominant player in the cigarette
industry, with about 75% of the market. Although ITC Ltd.
dominated the cigarette business, it realized very early that
making only a single product, especially one that was
considered injurious to health, could be a problem. Similar to
other global tobacco companies, it diversified into
other markets. It had a presence in hotels, paperboards,
specialty papers and packaging, agri-business, packaged
goods and confectionery, information technology, branded
apparel, personal care, stationery, safety matches, and
other products. Table 3 shows the performance of the various
business segments.
Although ITC Ltd. continued to be a market leader in the
cigarette industry, it was doing reasonably well in its new
businesses in which it had diversifiedxli. The trend suggested
that the other FMCG business would be profitable in
the near future. ITC Ltd. had been constantly making efforts to
44. de-emphasize its tobacco business. However, in the
year 2009 2010, cigarettes contributed over 65% of its gross
revenues, about 45% of its net revenues, and over 80%
of its profits. If the tobacco component of the agri-business was
included, then the dependence of ITC Ltd. on
tobacco and tobacco products for the near future cannot be
under-emphasized.
d focused on creating multiple avenues of growth based on its
core competenciesxlii.
ITC had built on its core competencies: distribution reach,
brand-building capabilities, supply chain management
and service skills. The vision of the company was to
continuously enhance the wealth of its more than 3,53,000
shareholders, while fulfilling the aspirations of its other
stakeholders and meeting societal expectations. Its vision
has been captured in its corporate positioning statement:
"Enduring Value. For the Nation. For the Shareholder."
This vision is reflected in the address of the Chairman of ITC to
the shareholder on July 27, 2007.
It is only when market forces make CSR a crucial component of
shareholder value creation that new
competitive forces will emerge in favor of responsible corporate
action. .The key to corporates sustaining a
meaningful strategy for constructive social action therefore lies
in the ability to create strong market drivers
that incentivize CSR.
And on July 30, 2008:
In the past, I have shared with you the abiding vision that
inspires us to create sustainable stakeholder
45. wealth and enlarge our contribution to the Indian society. This
commitment goes far beyond the market to
create simultaneously financial, environmental and social
capital for the nation... The Triple Bottom Line
approach to creating economic, environmental and social capital
unleashes strong multipliers that
contribute to making national progress more inclusive and
sustainable.
nomic
and financial parameters is quite apparent as the organization
had a turnover of over US $6 billion and a market
capitalization of nearly US $30 billion. Returns to the
shareholder, including increases in market capitalization
and dividends, grew at the compounded rate of over 24% per
annum for 15 years before 2010. In order to
continue the creation of economic value, the organization
diversified into other businesses to provide multiple
drivers of growth.
lue are visible in the various initiatives. It had been a carbon
positive
company, which was storing twice the amount of carbon than it
emitted, for five years earlier to 2010. It had been a
water positive company, which was harvesting three times the
water it consumed, for eight consecutive years.
Besides, it also had several water recycling initiatives. Nearly
31% of its energy consumed was generated from
renewable resources. Two of its new hotels, ITC Royal
Gardenia and ITC Green Centre, were awarded for being
green buildings.
d social value in its context. It businesses generated direct and
indirect employment for over 5
million people. Its e-Choupal initiative benefitted over 4
46. million farmers. It greened over 1,07,000 hectares of land
and its watershed initiatives helped provide water to 54,000
hectares of dry lands. In addition, ITC Ltd. had many
, and integrated animal husbandry.
ITC Ltd. -President of
India, M. Hamid Ansari.
For the exclusive use of J. Collins, 2015.
This document is authorized for use only by Jon Collins in OL-
326 Social Environment of Business 15EW2 taught by Lindsay
Conole, Southern New Hampshire University from October
2015
to December 2015.
ITC Ltd: Towards a Triple Bottom Line Performance Page 7 of
10
objective but also guides key organizations in the private sector,
such as ITC. I hope your initiatives would
prove to be a trendsetter for the Indian Industry.
THE DECISION
How can Sanjiv Puri guide the future of the Tobacco Division to
live up to the promises of the triple bottom line
company?
47. (i) Given the overwhelming evidence of health problems caused
by tobacco, including cigarettes, should he
work toward progressively winding down the cigarette
operations? What are the implications for the
shareholders and other stakeholders, including employees,
suppliers and farmers, associated with the
business?
(ii) Should he work on strategies to continue to grow the
cigarette operations, and maybe invest afresh in the
industry, but also invest significantly into research on the health
problems caused by the consumption of
tobacco, particularly cigarette smoking? Should he invest in
research to make cigarette smoking less
harmful?
(iii) Should he increase efforts to counter the negative publicity
for the tobacco industry as it might result in
further taxes and restrictions that might make the cigarette
industry unviable? Should he lobby the
government and educate the general public on the needs for a
fairer tax regime across all tobacco
products? Should he highlight all the positives that ITC Ltd.
generates, despite the negatives that are
associated with the industry, to shore up support?
(iv) Should he try to focus entirely on export of tobacco
products in the long run? This would allow the
positives to accrue to the stakeholders in the country with the
potential negatives being exported to
other countries in which the cigarettes might be consumed.
48. i www.indiatogether.org/2008/feb/hlt-tobacco.htm
ii timesofindia.indiatimes.com/.../india/229-million-males-in-
India-consume-tobacco-/.../4239447.cms
iii http://www.businessworld.in/index.php/Economy-and-
Banking/Tobacco-Timeline.html
iv http://www.businessworld.in/index.php/Economy-and-
Banking/Tobacco-Timeline.html
v timesofindia.indiatimes.com/.../india/229-million-males-in-
India-consume-tobacco-/.../4239447.cms
vi timesofindia.indiatimes.com/.../india/229-million-males-in-
India-consume-tobacco-/.../4239447.cms
vii http://www.businessworld.in/index.php/Economy-and-
Banking/Tobacco-Timeline.html
viii http://www.mydigitalfc.com/industry/budget-lights-
cigarette-industry-554
ix dacnet.nic.in/tobacco/handbook/intro.htm
x http://www.mydigitalfc.com/industry/budget-lights-cigarette-
industry-554
xi http://www.businessworld.in/index.php/Economy-and-
Banking/Tobacco-Timeline.html
xii http://www.mydigitalfc.com/industry/budget-lights-
cigarette-industry-554
xiii http://www.businessworld.in/index.php/Economy-and-
Banking/Tobacco-Timeline.html
xiv www.foolonahill.com/mbacigsenviron.html
xv www.foolonahill.com/mbacigsenviron.html
xvi
www.tobaccofreekids.org/campaign/global/casestudies/india.pdf
xvii dacnet.nic.in/tobacco/handbook/intro.htm
xviii timesofindia.indiatimes.com/.../india/229-million-males-
in-India-consume-tobacco-/.../4239447.cms
xix www.indiatogether.org/2008/feb/hlt-tobacco.htm
49. xx www.indiatogether.org/2008/feb/hlt-tobacco.htm
xxi www.indiatogether.org/2008/feb/hlt-tobacco.htm
xxii www.indiatogether.org/2008/feb/hlt-tobacco.htm
xxiii http://www.businessworld.in/index.php/Economy-and-
Banking/Tobacco-Timeline.html
xxiv ibnlive.in.com/.../70-of-tobacco-smoked-in-india-is-in-
form-of-bidis/66304-3.html
xxv http://www.businessworld.in/index.php/Economy-and-
Banking/Tobacco-Timeline.html
xxvi www.fao.org/docrep/006/y4997e/y4997e0h.htm
xxvii www.newkerala.com/nkfullnews-1-114038.html
xxviii www.newkerala.com/nkfullnews-1-114038.html
xxix www.financialexpress.com/printer/news/237347
xxx dacnet.nic.in/tobacco/handbook/intro.htm
For the exclusive use of J. Collins, 2015.
This document is authorized for use only by Jon Collins in OL-
326 Social Environment of Business 15EW2 taught by Lindsay
Conole, Southern New Hampshire University from October
2015
to December 2015.
ITC Ltd: Towards a Triple Bottom Line Performance Page 8 of
10
xxxi http://www.outlookindia.com/article.aspx?226427
xxxii www.foolonahill.com/mbacigsenviron.html
xxxiii dacnet.nic.in/tobacco/handbook/intro.htm
xxxiv dacnet.nic.in/tobacco/handbook/intro.htm
xxxv
51. For the exclusive use of J. Collins, 2015.
This document is authorized for use only by Jon Collins in OL-
326 Social Environment of Business 15EW2 taught by Lindsay
Conole, Southern New Hampshire University from October
2015
to December 2015.
ITC Ltd: Towards a Triple Bottom Line Performance Page 9 of
10
ANNEXURE I
Table 1
Annual Tobacco Trade and Agriculture Statistics in India
55. 121000
358000
431452
471657
NA
Source: Regional Tobacco Surveillance System Country Profile
India
Table 2
Source: ITC Web site
For the exclusive use of J. Collins, 2015.
This document is authorized for use only by Jon Collins in OL-
326 Social Environment of Business 15EW2 taught by Lindsay
Conole, Southern New Hampshire University from October
2015
to December 2015.
56. ITC Ltd: Towards a Triple Bottom Line Performance Page 10
of 10
Table 3
Segment-wise Revenues and Profits at ITC Ltd. (Rs. crores)
2009 2010 2008 2009
Gross Revenue Net Revenue Profit Gross Revenue Net Revenue
Profit
FMCG Cigarettes
- Others
Total FMCG
17293.00
6642.00
20925.00
9321.00
3634.00
12955.00
4938.00
(350.00)
58. 53.00
(143.00)
18.00
(63.00)
Total profit before tax
6015.00
4826.00
Source: Corporate presentation on ITC web site
For the exclusive use of J. Collins, 2015.
This document is authorized for use only by Jon Collins in OL-
326 Social Environment of Business 15EW2 taught by Lindsay
Conole, Southern New Hampshire University from October
2015
to December 2015.
<<
/ASCII85EncodePages false
/AllowTransparency false
/AutoPositionEPSFiles true
/AutoRotatePages /None
/Binding /Left
/CalGrayProfile (Gray Gamma 2.2)