Metamorphosis of Tata Steel -the Challenges of Change Management

The Indian economy following the 1991 crisis swiftly moved away from central planning economy towards market-based economy with the government having less intervention and control. As a result, companies were operating in what is called emerging

This book presents an array of practical procedures which can assist the prudent practitioner in preparing for change and how to handle all of the up’s and downs which accompany change. The two strengths in this book revolves around asking the right diagnostic questions which pave the way for change and the many characteristic of leaders who lead.

However, this lack of governance is not just seen as disadvantage for India. India is amongst the top 40 nations to have been involved in the highest number of business regulation reforms in the last five years (Innovasjonnorge, n.d.). Reform has eased business operations in India as the mainly concern the introduction of new technology. These technological improvements have led India to be highly industrialised, rather than agriculturally based like in the past. For instance, India is now the world’s biggest manufacturer of small cars (Innovasjonnorge, n.d.).

This special reports dives into the changing business world of India. It starts off by describing a big day for India, one where county leaders discussed the fact that business people in their country feel disheartened and the dynastic culture of the entrepreneurs in India. “The world is Flat” by Thomas Friedman is mentioned as he describes India as a “silicon Valet with worse roads and spicier food”. And an idea of a new form of capitalism in India is discussed; stating that Indian capitalism is concentrated and that in the stock market debt levels are low and growth rates are strong. The idea of India’s sense of ownership is mentioned with the evidence that many Indian firms are under family or founder control. India is growing to be

In 2013 the total exports for India was at $313.2 billion whereas the import stood at $467.5 billion (CIA, 2014). India followed the Adam Smith model producing only what it was efficient at and imported the rest. There started a reversal in capital inflows which hit the export demand and posted a crunch in the domestic markets leading to a decline of more than 2% in India’s GDP in the fiscal year 2008-2009 (Kumar & Vashisht, 2009). In 2008 India was already experiencing a high inflation rate, which reduced expenditure in the country. To address the crisis and its affects the Indian government and the banks introduced fiscal stimulus and relaxed monetary policies in order to boost domestic demand. The market interest rates increased to 20% and above suddenly. India had received a fiscal stimulus of $80 billion injected into the economy to ensure liquidity. India was loosing badly on FDI’s and remittances. During 2008, India’s FDI inflows experienced a negative growth of 2% (Kumar & Vashisht, 2009). Remittances also are a major part of the capital inflows of the country, in 2008 the remittance inflow declined by more than 29% (Kumar & Vashisht, 2009) as every country first wanted to protect jobs of its home citizens and there was a severe lay off. Exports to USA is a major component of India’s GDP. After a sharp decline in the demand from the US, India had to lay off more than 300,000 workers instantly. There was a decline in exports of India by

JSW Steel Ltd. is part of the $11billion JSW Group and is the India's largest private sector steel manufacturing company in terms of installed capacity i.e. 14.3

Tata Steel is a truly global company with a well established presence not only in India but around the world in large economies as well as emerging economies.. In the year 2013, it was the 11th largest steel producing company in the world and the second largest steel company in India (measured by domestic production) after the State run entity- Steel Authority of India Limited.

When India got independence in 1947, India inherited a shattered economy. The economy was completely damaged. This damage was largely done by the exploitative policies adopted by the

Indian economy was a closed economy until 1991as mentioned by Ahluwalia (2002); it focused on import substitution, strict licensing legislations, resistance to change. Consequently, the economy boosted after the adoption of globalization. Following are the drivers of globalization in India:

It should be understood that the 1991 economic reforms were not wholly a knee jerk reaction to the economic crisis that shook India in the same

1. The focal point of this paper is to inform the reader about the country of India. Encompassed in the two pages are two cultural domains about India and how India relates to the United States. The first cultural domain discussed is a brief summary of the history of India in paragraph two. Immediately following the history of India, paragraph three contains the economics and most prominent resources in India. The fourth paragraph explains India’s relation to the United States.

In 1907, Jamsetji Tata, an industrialist, established Indians biggest and first steel plant. At the same time it was Asia’s initial private sector steel company. The reason of Tata Steel’s establishing was that Jamsetji had the idea of developing an iron and steel industry in his own country.

The Tata Steel Group is one of the world 's most topographically differentiated steel makers, with operations in 26 nations and business workplaces in

Under this system, Nehru sought to strengthen the agricultural and power sectors, providing agriculture 45% and industry 5% of the resource during the first Five-Year Plan. It initially gave India an increase of 3.6% (Exhibit 10a) on its gross domestic product during the first five years. Following this the government isolated the country from foreign investment (as nationalist leaders feared a dependency on it) and trade in an effort to promote domestic production and as a strategy to reduce imports. Since the government had also created a complex system of licensing through the Permit Raj, resources became scarce, the complexity of its bureaucracy fostered corruption and became a reason of delay for companies. This made it hard for other important areas of the country to help increase its economic growth. Also, the government gradually came into possession of most of the private sectors: By 1956, it already had control of commercial banking, oil, insurance and some important resources such as steel and mining. The government, along with the large family conglomerates controlled almost all Indian economy and could arbitrarily choose how each industry would be ran; it regulated the where, the how, the how much and the whether or not a company would be given permission to produce. Price regulation and

Nehru’s period was known by extended economic development plans that organized as five year plans based on policies of the Soviet Union. Given the colonial conditions that India had been through; these plans were particularly admirable for them. By 1970s, regulatory policy regime of India became gradually restrictive and inward-oriented.