2(e) 5 C’s Analysis & Example

To understand the Macro environment in which the industry is situated in terms of Six major factors that impact the industry. Each of these factors has the potential to impact the firm and its competitive environment

Political Factors: Public Policies, Tax, Fiscal Policy, Tariffs, Political Climate, foreign direct investment policy, etc.

Technical Factors: Technical changes and developments, genetic engineering, nanotechnology, patents and copyrights law in these areas, etc.

Environmental Factors Weather, climate change and their associated factors. These factors, impact industries such as insurance, farming, tourism, energy productions, etc.,

P E S

T E L

Economic Factors

Interest rates, Exchanges, inflation, unemployment rates, growth rate, per capita consumptions. Also, includes market for stocks and bonds, consumer confidence, interest rates, etc.

Socio-culture Factors:

Societal values, attitudes, culture, lifestyle, demographic factors, etc.

Legal Factors: Laws and regulations complied by the company like labor laws, antitrust laws, health and safety. Other laws that impact the firm directly or indirectly

To understand the Macro environment in which the industry is situated in terms of Six major factors that impact the industry. Each of these factors has the potential to impact the firm and its competitive environment

Political Factors: High taxation in Cigarettes Advertisement Ban on Cigarettes 100% FDI allowed in Food Processing Production linked scheme in FMCG sector

Technical Factors: E-Choupal 4.0 to target Agri-tech startups Growth in adoption of Digital Supply chain Operational, Logistic efficiency in manufacturing facilities

Environmental Factors Increased rules and regulations in the packaging, operations of the FMCG industry Water reusage facilities Rain water harvesting and treatment facilities

P E S

T E L

Economic Factors

India among the top 3 tobacco producers in world, 77% of ITC in Cigarettes in India 20,000 employees with indirect employment to 5 Million employees FMCG is 4rth largest sector in India

Socio-culture Factors:

Increased Consumption of packaged foods Increased Awareness for ill-effects of tobacco Status symbol works in favour of ITC Hotels

Legal Factors: Cigarettes are highly legalized and most debatable sector in country Health and safety issues in the business