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Copy of Tata Steel Case Study
Transcript of Copy of Tata Steel Case Study
Tata Steel Limited ( formerly known as TISCO) is an Indian multinational steel-making company headquartered in Mumbai, Maharashtra, India, and a subsidiary of the Tata Group.
Corporate Level Strategy
"Tata steel strategy is Wealth creation, Create a culture of continuous learning and change, achieve world-class status in services and products,reach the position of the most cost-competitive steel producer ,establish industry leadership"
Business Level Strategy
Tata Steel follows an Integrated cost/Differentiation strategy
Creating long-term value- Moving up the value chain-
Kar Vijay Har Shikhar
– Continuous improvement programme, it is a fast paced, analytics based process with in-built rigour and review systems
It achieves this by:-
Having complete control over the supply chain and efficiently managing it
Economies of Scale
Increasing the no of Custom products: Increase in the proportion of custom products to standard products by 20% in 2 years
Investing In R&D to provide unique products
Analysis of the strategy
Tata steel strategy is a sound one looking to position the company as a Global Steel Industry Leader and mitigate present and future challenges
It is targeting Wide variety of customers from different segments
Efficiently utilizing the synergies between various divisions of the company
Pursuing a differentiation strategy by investing heavily in R&D and innovating continuously
It has acquired Control over raw materials to maintain cost-leadership and insulate itself from price fluctuations
Acquisition of more mines to safeguard against future demands for raw materials
Expand operations in potential markets like the American Continent to further increase revenue and profitability
Special focus on the European Markets as it is the one where there is a need to restructuring in operations to remain competitive and also the current economic and political factors are grim that may require rapid response to safeguard the company Interests
We aspire to be the global steel industry benchmark for Value Creation and Corporate Citizenship
Consistent with the vision and values of the founder Jamsetji Tata, Tata Steel strives to strengthen India’s industrial base through the
effective utilization of staff and materials.
The means envisaged to achieve this are
modern management practices.
Tata Steel recognizes that while honesty and integrity are the essential ingredients of a strong and stable enterprise, profitability provides the main spark for economic activity.
Overall, the Company seeks to scale the heights of excellence in all that it does in an atmosphere free from fear, and thereby reaffirms its faith in democratic values.
Local Players in India
Tata steel has committed a huge investment in unstable countries like Thailand Bangladesh and Iran etc .
Anti dumping duties on foreign steel products in India
Five year strategy plan implementation by Ministry of Steel
Increasing in Quality consciousness over steel in population
Increase in Disposable income of the people
Tata steel has been awarded Golden Peacock Award in 2009 for Corporate social Responsibility
CSR is an integral component of Tata Steel's business strategy, and constitutes one of the company's key enterprise process
Tata Steel aims is to create a favorable social environment.
Diversification into Global Markets
Forward, backward and horizontal Integration
Ashish Kumar Anshu (PGP14013)
Deepika Sood (PGP14016)
Himanshu Agarwal (PGP14022)
Palash Palod (PGP14035)
Siddhant Singh (PGP14046)
Quality Mission 2016
We aspire to be the most trusted and preferred domestic supplier of value added steel with world class quality of products and services.
We act professionally. We set challenging goals, encouraging innovation and speed. We get it right first time. We share, learn and improve continuously.
Tata lives and Work by :
We grow our knowledge and gain customer intimacy by understanding their business. We are led by facts and measure what we do.
We show personal leadership in health and safety. We act responsibly towards the environment and community. We demonstrate commitment and ownership. We act decisively, empower and lead change.
We role model the Tata Values and debate openly and transparently, building trust and earning respect. We act ethically.
We create the greatest value when we work together in the interests of our customers. We take a ‘one company’ approach. We value diversity and gain strength from our blend of functions, nationalities and skills.
1. Self sufficient in raw materials currently producing over 14 million tonnes of ore from its mines and captive collieries
2. Adaptability of company in the fast changing environment
3. Excellent integration with Corus which has more than 2000 metallurgists
4. Economies of scale
6. Strong backing of Tata brand name
7. Operations in 26 countries and a commercial presence in over 50 countries
1. Operational efficiency are not as good as international leaders
2. Slightly lagging in technological front
3.High Debt ratio which needs to be addressed
1. Rising coking coal prices
2. India is plagued with violent agitation against land acquisition
3. Government & regulatory norms
4. International competition
5.Investments in countries which currently dont have or there is a possibility of Political Unstability
1. Newer technologies available
2.Lot of untapped potential in India
3. Acquisition of coal blocks in Asia, Africa etc.
Iron & steel
Values stronger than steel
The top ten global steel companies with an annual crude steel capacity of over 28 million tonnes per annum
Strip & long Steel products, Iron ore mining, Agricultural implements
Construction, automotive infrastructure, capital goods
The global steel industry benchmark for value creation and corporate citizenship
Increasing Government spending on technology
Speed of "Technology transfer" and adaptation also affects the performance of TATA steel
Steel Industry is highly cyclical
Euro Crisis affecting european operations
Depreciation in Rupee
Slowdown in chinese economy can boost Tata steel
Current adverse Conditions in Indian Economy may affect Tata steel
Resources and Capabilities
Low cost Manufacturing
Experienced Management Team
Response to Feedback from Customers
Low cost Manufacturing
Reputation as a resource
Research and Development
Tata Steel, formerly known as TISCO Tata Iron and Steel Company Limited , is the world's tenth largest steel company with an annual crude steel capacity of over 29 MTPA.
It is the second largest private sector steel company in India in terms of domestic production.
Ranked 486th on Fortune Global (500-2014) with revenues of $ 24575 millions
Established in 1907 as Asia's first integrated private sector steel company
World's second-most geographically-diversified steel producer, with operations in 26 countries and a commercial presence in over 50 countries
8. Good Corporate Governance
4. Growth of Infra Sector in India
5. Higher pricing opportunities in foreign markets
6.Movement along Value chain front
Ferro Alloys and Minerals Division
TATA Growth Shop
Bearings and Tubes Division
Expansion of its existing plant in Jamshedpur from 6.2 MTPA to 9.8 MTPA
Kalinganagar Project , 6MTPA in two phases - 3MTPA each
Strategy for Expansion
A page from 106th Annual Report