FACILITY LOCATION & LAYOUT

1) Factor influencing Location decisions.

This paper attempts to determine the economic factors that best explain the decisions of the
International Trade Commission in antidumping, countervailing duty and safeguard cases,
utilizing the economic data collected by the Commission for each investigation. We also
consider the extent to which these factors measure the injury conditions and causation
relationships specified in U.S. trade laws.

Our analyses yield mixed results. For example, while the Commission tends to require declining
profits and employment in an industry before recommending import protection in safeguard
cases -- as specified in the law, it is not clear that it delineates between serious injury caused by
increased imports and serious injury due to other factors. Similarly, in countervailing duty and
antidumping cases, economic conditions, such as changes in industry shipments and the degree
of capacity utilization, are taken into consideration in material injury decisions, but other factors
one would expect to be associated with affirmative decisions, e.g., the ratio of unfair imports to
consumption, do not seem to playa significant role. Some variables also enter significantly in the
regressions that do not seem to be indicators of material injury.

2) Inventory Management.

ITC Limited is investing in automated information technology (IT) systems and has lined up a
number of initiatives this year aimed at making stock tracking and clearance more efficient.
According to V V R Babu, chief information officer of ITC Limited, with new businesses and
diversification, ITC’s stock keeping units (SKUs) have increased by over 50 per cent in the last
few years. So far, all ITC products were bar coded at the retail level. But now, ITC will bar code
its products at the warehouse itself. This is expected to help ITC keep track of product
manufacturing time, thereby enabling implementation of first-manufactured-first-out (FMFO)
strategy, which means items manufactured first are shipped out of the factory and the warehouse
earlier than products manufactured later. This has been facilitated by the implementation of
identification technologies and controlled batch management processes.

So far, ITC's Rs 100 crore investment announced earlier in infrastructure upgradation has
reduced lead time, improved availability and brought down stockouts. The IT network of ITC
covers over 550 locations in urban, semi-urban and remote rural locations, enterprise mail
messaging for more than 8,000 users, six different ERP systems, linked 25 warehouses and 14
processing plants in a year and is capable of setting up operational IT facilities in a rural
hypermart in three days.

Transportation logistics and costs have emerged as major challenges given the fact that
approximately 700 trucks carry finished goods every day from ITC’s manufacturing locations
and warehouses to its customers compared to about 100 trucks earlier.

DIRECTING, MOTIVATION AND LEADERSHIP

1) Motivation Practices.

To some extent, a high level of employee motivation is derived from effective management
practices. To develop motivated employees, a manager must treat people as individuals,
empower workers, provide an effective reward system, redesign jobs, and create a flexible
workplace. Employees who know they are on track for a specific career path are more motivated
to perform at a higher level. Employees need to know what opportunities there are for growth
beyond their current role. Upward mobility and future promotions can be more motivating to
some employees than money. Considering the current state of the global economy, a secure
career path is more important than salary. When employees have favourable perceptions of their
work situation, their organisation, and the support they receive from their managers and
supervisors, they are motivated to work more diligently and identify with the mission of the
organisation. High levels of employee engagement contribute to employee retention - employees
are much less likely to quit because they are engaged with the organisation as a whole and are
invested in the overall success of the company.

Create a Positive Work Environment;

Motivate employees by offering an upbeat, positive work environment. Encourage teamwork and
idea-sharing, and make sure staffers have the tools and knowledge to perform well. Be available
when employees need you to be a sounding board or a dispute mediator. Eliminate conflict as it
arises, and give employees freedom to work independently when appropriate.

Set Goals:

Help employees become self-motivated by helping establish professional goals and objectives.
Not only does this give employees something to strive for, but your business benefits when goals
are tied to corporate contributions. Make sure goals are reasonable and achievable so employees
don’t get discouraged. Offer encouragement when workers hit notable milestones.

2) Leadership Type: Strategic Leadership Style

 Leadership development at ITC Yogesh Chander Deveshwar is a strategic leader. He

has some leadership qualities which made him a strategic leader For a Hospitality
Leader, there must be a equalised focus to understand the function which provides the
value towards the organization. At the time he joined the ITC Company, it was facing a
very bad time and He is working with ITC from the last 41 years and has worked in
virtually every arm of ITC. He was appointed as the Board of director of the Company in
1984, between 1991 and in the year 1994 he took the charge of the Chairman and
Managing Director of the Air India. On Jan 1st, 1996 he became the Chief Executive and
Chairman of ITC Company. Strategic leadership. Strategic Leadership is the ability to
influence others to voluntarily make decisions that enhance the prospects for the
organisation's long-term success while maintaining long-term financial stability.
Strategic leadership refers to a manager’s potential to express a strategic vision for
the organization, or a part of the organization, and to motivate and persuade others
to acquire that vision. Strategic leadership can also be defined as utilizing strategy in the
management of employees. It is the potential to influence organizational members and to
execute organizational change. Strategic leaders create organizational structure, allocate
resources and express strategic vision. Strategic leaders work in an ambiguous
environment on very difficult issues that influence and are influenced by occasions and
organizations external to their own
1) Organization Structure:

2) Decision Making Process:

 ITC believes that any meaningful policy on Corporate Governance must provide
empowerment to executive management of the company, simultaneously create a
mechanism of checks and balances which ensures that the decision making powers vested
in the executive management is not only not misused, but is used with care and
responsibility to meet stakeholder aspirations and social expectations.

 ITC believes that control is a necessary concomitant of its second core principle of
governance that the freedom of management should be exercised within a framework of
appropriate checks and balances. Control should prevent misuse of power, facilitate
 timely management response to change and ensure that business risks are pre-emptively
and effectively managed.

3) Organizing: span of Control:-

Span of Control arises in line authority and refers to the number of Subordinates who report
directly to a given manager or supervisor. If the span of Control is too Wide, it is difficult to
supervise the subordinates effectively and this places more pressure on the manager.

ITC has a flat Organization Structure. Flat Organizations have a wide span of control and Tall
organizations have narrow span of control.

4) Line and staffing Relationship:

Line and staff organization is a modification of line organization and it is more
complex than line organization. According to this administrative organization,
specialized and supportive activities are attached to the line of command by
appointing staff supervisors and staff specialists who are attached to the line
authority. The scalar principle in organization the clearer the line of authority from
the ultimate management position in an enterprise to every subordinate position is,
the clearer will be the responsibility for decision-making and the more effective
will be organization communication. In many large enterprises, the steps are long
and complex; but even in the smallest; the very fact of organization introduces the
scalar principle. Becomes apparent from the scalar principle that line authority is
that relationship in which a superior exercises direct supervision over a subordinate
authority relationship being in direct line or steps.
The nature of the staff relationship is advisory. The function of people in a pure
staff capacity is to investigate, research, and give advice to line managers.

For Example, Human resource, accounting, public relations and the legal
department are generally considered to be staff functions.