個案資料

Present-day ITC Limited (ITC) is a well-diversified company with a presence in various businesses, including fast-moving consumer goods (FMCG), hotels, agribusiness, paperboards and paper, and packaging. The 113-year-old India-based company has de-risked its portfolio and also remained relevant and competitive. This case chronicles the transition of ITC from a cigarette major to a conglomerate, aspiring to become the number one FMCG player. The creation of a strong brand portfolio coupled with an adept brand extension strategy spelled rapid growth for the company’s FMCG business. ITC’s successful diversification, led by the FMCG business, can be attributed to its corporate parenting advantage that accrued to the various businesses housed as divisions or strategic business units under a single listed company. Fiscal year 2023 had drawn to a close. ITC faced numerous questions. Was the millet-based business a good fit in the company’s parenting matrix? Would the food business benefit from the structural advantages that ITC had created as a corporate parent? What strategic initiatives could ITC take to gain further traction in the FMCG market?

This case is suitable for undergraduate- and graduate-level strategic management courses. It examines the transformation of a single-business company to a conglomerate and provides an opportunity to discuss concepts of diversification and corporate parenting. After working through the case and assignment questions, students will be able to do the following:<br><br><ul><li>Understand the concept of diversification.</li><li>Assess a company’s economic and social performance.</li><li>Understand the concept of corporate parenting.</li><li>Create a parenting matrix.</li></ul>

• conglomerate
• synergy
• corporate parenting
• corporate strategy
• vertical integration
• mission millets