Strategic Management
Credit Accumulation & Transfer Scheme (CATS) – Undergraduate – Degree in Business & Management Studies
“Position Analysis of Tata Steel”
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Table of content
Title page | 1 | Table of content | 2 | 1. Introduction | 3 | 2. Historical
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2.1 History
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.
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2.2 Strategic drift
One significant point in position analysis is the strategic drift, which is defined and illustrated (exhibit 1.1) in appendix 1.
Since its establishment, Tata has shown a strategy of incremental change. Arguably, that point was important because so the group might vary within the current market. In the nineteenth – century steel was seen as an unprofitable section. Even more than 50 independent steel producers went into bankruptcy in the USA (Business Monitor International Ltd, 2010: 54).
In the late twentieth century, demand growth was strongly low. In contrast, the twenty –first century saw a boom in demand. For instance, Tata bought weaker players internationally, such as NatSteel in 2004, which was Tata Steel’s first overseas acquisition, and the Anglo – Dutch giant Corus in April 2007. Through the investment in Corus, Tata has created a manufacturing and marketing network in Europe, South East Asia and the pacific – rim countries. These acquisitions were also the result of using a strategy of
INTRODUCTION Decisions form the basis of strategy. Each firm must make choices regarding what resources and capabilities to invest in, as well as what to do with such resources and capabilities in order to achieve sustainable competitive advantage. The star of this week’s case, Nucor Steel, finds itself at a critical inflexion point: Should it invest in a new steel mill to commercialize thin-slab casting? This paper examines why Nucor is considering making such an investment and what risks are involved if they choose to adopt the technology. Based on this analysis, the paper will conclude with a recommended path for Nucor Steel. YOU CAN NEVER BE TOO RICH OR TOO THIN The flat sheet segment accounts for 52% of the U.S. market for steel. The
Difficulty in finding similarities in markets or operational capabilities; Tata has more than 100 operating companies in seven main business groups doing business in 80 countries: chemicals, information systems and communications, consumer products, energy, engineering, materials, and services. It’s difficult to find similarities in markets or operational capabilities, so they need more effort to develop to different strategies for different markets especially for consumer products. More complex and challenging process of managing strategically it face.
The Company’s Vision for Tata Steel: “to seize the opportunities of tomorrow and create a future that will make it an EVA positive Company and to continue to improve the quality of life of its employees and the communities it serves”
|Tata can reduce at least 25-30 years to build global business on its own.|Tata has to confront with the making-loss of Jaguar. |
Tata Steel is one of India’s largest steel organizations. Established 1907 in Mumbai as “TATA IRON AND STEEL COMPANY” it has a production capacity of 40 Mn. tonnes a year. It is also world’s sixth largest steel company. With a presence in more than 60 + countries and manufacturing units in 30+ countries the company can be called truly global.
business man during time who had put India on the global map of economic trade. TATA group includes
The Tata Steel Group is one of the world 's most topographically differentiated steel makers, with operations in 26 nations and business workplaces in
This has led to the declaration that there will be reduction in the manufacture of even formations by a number of tons in the first half of that year due to the low stipulation in the promotion of the European Union. Although, this decrease unreservedly aspires at offering support to the advertising costs that the company has already publicized. This has clinched an augmentation of Euro 15/ton effectual early in the second quarter. The second largest steel producer, “Mittal Steel”, provided some analysis that opted to taking comparable applications to that of Arcelor (“Analysis of economic indicators of the EU metals industry p.1)
As a result, the domestic steel industry has since then, become market oriented and integrated with the global steel industry. This has helped private players to expand their operations and bring in new cost effective technologies to improve competitiveness not only in the domestic but also in the global market. Private sector contribution in the total output has since been increasing in India. Development of private sector has caused high growth in all aspects of steel industry that is capacity, production, export and imports. During the last decade more than 12 Mt of capacity has been added in the steel industry, this is mostly in the private sector. Recently, the steel industry is receiving significant foreign investments such as POSCO South Korean steel producer and Arcelor-Mittal Group UK/Europe based steel producer announcing plans for establishing about 12 Mt production units each in India.
Huge infrastructure demand: According to a PWC report Asian infrastructure market will be about 60% of the whole world. India is on the path to become the manufacturing hub in its endeavours to overtake China in that
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.
Tata Steel group believes that by achieving its goals of value creation, safety, environment and people, it can become the global steel industry benchmark. Corporate governance guidelines ensure that the Board will have necessary authority to review and evaluate Company’s operations; moreover these guidelines let the Board to make the decision independent of the Management. The Board comprises of 11 members, including one woman member.
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
What are the key challenges faced by Tata Motors in the process of moving to produce passenger cars from successfully producing commercial vehicles?
In this day, Tata is famous for its wide and one of the most advanced business sector in India. It spread its wings almost in all sectors ranging from automobiles to hotels. Most of the credit goes to the great man Jamsetji Tata. The man who foresaw the future and established Tata industries in the 19th century. It is also by far one of the oldest known names in business and industries. Jamsetji has made the world know the power of Indian entrepreneurship and talents.