“With a clever strategy, each action is self-reinforcing. Each action creates more options that are mutually beneficial. Each victory is not just for today but for tomorrow.”
The above quoted line of Max McKeown from his famous book “The Strategy Book” gives not only gives an overview of the concept of strategy but also of the importance of the concept of strategy. The “advent of globalization and the recent developments in the fields of technology as well as innovations has drastically changed the way most of the business organizations or the companies conduct their business in the present times” (Hitt, Ireland and Hoskisson 2012). It is generally seen that every year new business organizations emerge into the market and therefore the “level of competition faced by the various companies as well as the business organizations has increased significantly over the past few decades” (Hitt, Ireland and Hoskisson 2012). Thus, to mitigate the “high level of competition” faced by them the various business organizations often take the help of various effective strategies (Hill, Jones and Schilling 2014). Strategies are the policies or the tactics which the various business organizations often take the help of “in order to bring about the overall growth as well as the development of their business operations” (Hill, Jones and Schilling 2014). Furthermore, it is also seen that ineffective as well as mistimed strategies can “hamper the prospects of the various companies as well as the business organizations in a significant manner” (Hitt, Ireland and Hoskisson 2012). Therefore, it becomes very important for the concerned business to clearly chalk out the reasons for which they want to formulate or to implement the strategy (Hill, Jones and Schilling 2014). This report will discuss about the “global corporate strategies” of the company “Tata Steel Limited”.
1.The company “Tata Steel Limited” was founded in 1907 by Jamsetji Tata and is presently not only one of the largest steel manufacturing companies of the nation of India but also of the world (Tatasteel.com. 2018). The company “Tata Steel Limited” was originally called by the name of “Tata Iron and Steel Company Limited (TISCO)” (Tatasteel.com. 2018). However, later on the name was just shortened to “Tata Steel Limited” on the score of the length of the name (Tatasteel.com. 2018). The concerned organization is “an Indian multinational steel-making company headquartered in Mumbai, Maharashtra, India, and a subsidiary of the Tata Group” (Tatasteel.com. 2018). It is significant to note that the company is “one of the top steel producing companies globally with annual crude steel deliveries of 27.5 million tonnes (in FY17), and the second largest steel company in India (measured by domestic production) with an annual capacity of 13 million tonnes after SAIL” (Tatasteel.com. 2018). In addition to this, the concerned company at the moment is operating “in 26 countries, including Australia, China, India, the Netherlands, Singapore, Thailand and the United Kingdom, and employs around 80,500 people” (Tatasteel.com. 2018). The entry of the concerned company in the steel market of the United Kingdom was much facilitated in the year 2007 by its purchase of one of the largest steel manufacturing companies of the United Kingdom, namely, Corus (Tatasteel.com. 2018). This particular acquisition can be seen as the first step towards the achievement of the monopoly condition which the company holds in the steel market of the United Kingdom presently (Tatasteel.com. 2018). It is a reflection of this that the concerned company was the 65th largest steel company of the world for the year 2017 in terms of the net revenue which it generated (Forbes.com. 2018). The annual profit of the company for the year 2017 was “$109 billion” (Forbes.com. 2018). It is significant to note that the “Tata Steel Limited” is originally an Indian company but in the last decade of the 20th and the first decade of the 21st taking the help of the concept of globalization it expanded in the other nations of the world and is currently operational in more than 26 nations of the world. The below given figure provides the financial statistics of the organization under discussion here-
Figure 1: Financial Statistics of Tata Steel Limited
Source: “Factset, Bloomberg, S&P Cap IQ; Forbes”
The workplaces of the 21st century have become much more diversified than they were in the earlier times with people forming a part of them not only from different social but also from different cultural backgrounds as well. It is generally seen that these employees have a set of perspectives as well as opinions of their own as regards the ways or the manner in which the management of the concerned organization should work or cater to their needs. It therefore, becomes very important for these organizations to incorporate all these perspectives as well as expectations of the people into the overall framework of their organization (Hill, Jones and Schilling 2014). This process is known as the “integrated organization perspective” and is used by the major business organizations of the world like “Tata Steel Limited” and others to take into effective consideration the different perspectives of the employees and others related to the organization. As the per the Annual Report of Tata Steel Limited (2017), the organization has more 65,000 employees not in the nation of India but also in the other nations of the world in which it is operational. As the countries of operation of the organization under discussion here suggest the employees are from different cultural as well as social background. Furthermore, in the recent times the net annual revenue earned by the company has gone down in a significant manner and right now it is being positioned at the 1007th position among the top business companies of the world (Forbes 2018). This particular problem which the company is facing at the current moment can easily be resolved through the incorporation as well as the use of the strategy of integration organization perspective which focuses on taking into consideration the individual perspectives of the employees who are associated with the organization (De Wit and Meyer 2010). Thus, the use of this particular strategy the company will not only be able to integrative the perspectives as well as the opinions of the employees who are associated with the organization into the framework of the organization but at the same time would be able to enhance the performance level of the employees by addressing their grievances as well as suggestions. This particular process is likely to motivate the employees to perform in a much better and this will in turn improve the net annual revenue earned by the company. The major benefit of this particular process is the fact that by integration the perspectives of the various employees who are associated with the organization the concerned organization can form strategies as well as vision for itself which will be based on the perspectives of the employees (Lynch 2006). Thus the employees are not only likely to feel a part of the organization but at the same time will feel more motivated to work in a better manner.
The concept of “portfolio organization perspective”, on the other hand, refers to the ways by means of which the various business organizations “decide where best to focus the organization’s finite resources in order to meet strategic objectives, considering the business as a portfolio of activities and making tradeoffs across the portfolio” (Hill, Jones and Schilling 2014). It is significant to note that the organization “Tata Steel Limited” also takes the help of this particular method of management of their resources and it is a reflection of this that the majority of the resources of this particular business organization are utilized which can be seen as its main center. It is significant to note that the company has active operational business centers in the nations of India, UK and other European countries and thus it becomes very important for the concerned organization to utilize the resources which it has at its disposal as per the needs of the business market and also the demands of the customers in the regions in which they are operational. The primary benefit which the use of this particular method to the various organizations which take the help of it is the fact that the resources of the organizations are being used taking into consideration the demands of the customers and also the needs of the business instead of the discretion of the management of the concerned organization (Hill, Jones and Schilling 2014).
The company can take the help of both the frameworks of “integrated organization perspective” and “portfolio organization perspective” at the same time as one framework will help it in the allocation of the resource and the other for taking into consideration the different perspectives of the people related to the organization. Therefore, it can be said that the company by following the two styles simultaneously can allocate the adequate resources to the actions which require these resources as per the perspectives of the people who are related to the organization (Hill, Jones and Schilling 2014).
2.The term strategy literally means “the art of the general (the Greek stratos, meaning ‘field, spread out as in ‘structure’; and agos, meaning ‘leader’)” (Wheelen et al. 2017). The concept of strategy gained prominence particular in the 18th century with the emergence of the various generals and their innovative ideas to defeat the enemies and win the battles (Wheelen et al. 2017). In the context of the business world, the term strategy refers to “a high-level plan to achieve one or more goals under conditions of uncertainty (Wheelen et al. 2017). In the sense of the “art of the general”, which included several subsets of skills including “tactics”, siegecraft, logistics etc., the term came into use in the 6th century CE in East Roman terminology, and was translated into Western vernacular languages only in the 18th century” (Hitt, Ireland and Hoskisson 2012). In the opinion of Porter (1996), “Strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value”. However, Mintzberg (1979) is of the opinion that “Strategy is a mediating force between the organization and its environment: consistent patterns in streams of organizational decisions to deal with the environment”.
The company “Tata Steel Limited” is the second largest steel manufacturing company of the nation of India and therefore to expand its business and also to mitigate the threat which it faced from the other companies operational in the same field of business in the nation of India, the company purchased the financially ailing steel company Corus of the United Kingdom (Madsen and Walker 2015). It is significant to note that during the year 2007 the world was still suffering from the effects of the financial recession and it was at this particular time that the company “Tata Steel Limited” purchased the company Corus (Madsen and Walker 2015). There are two popular methods by which the various business organizations enter into the business market of the other nations, namely merger and acquisition and collaborations (Madsen and Walker 2015). The company “Tata Steel Limited” had adequate amount of financial resources and thus it was able to follow the policy of acquisition. In the opinion of many people the process of “acquisition” is a far better one than the policy of collaboration as it offers the concerned business organization which is trying to enter into the new market a far greater amount of freedom and also choices (Campbell, Coff and Kryscynski 2012). Therefore, in the particular context of the company “Tata Steel Limited” it can be said that the company has been able to attain a considerable amount of success in the recent times not only in the United Kingdom but also in the other nations of the continent of Europe because of the mode of entry which it selected for its entry in the business market of the United Kingdom (Campbell, Coff and Kryscynski 2012). In the opinion of many people the business collaborations does not provide much success to either of the business organizations concerned in the process both the parties involved need to take into account the “needs as well as the requirements of the other business organization or the company concerned” (Campbell, Coff and Kryscynski 2012). Therefore, in the opinion of many experts it is advisable to follow the method of “merger and acquisition” if the business organization involved in the process had the required means to buy the other company or the business organization (Campbell, Coff and Kryscynski 2012). Moreover, this particular method also provides a considerable amount of freedom to the business organization involved in the process (Campbell, Coff and Kryscynski 2012). Thus, it is seen that the majority of the business organizations of the world in the present times like the company “Tata Steel Limited” like to take the help of this particular strategy for the global strategy (Campbell, Coff and Kryscynski 2012). The company also tries to make regular contributions towards the planet as well as the society from which it derives its major resources and it is a reflection of this that the business organization is one of the active supporters of the various environmental legislations and acts.
Tata Steel since the year of its foundation has insisted on the use of innovation as well as creativity for the process of its business. As a matter of fact it is precisely the use of innovative as well as creative ideas which has made the company under discussion here one of the most successful ones of the world in the recent times. The company takes the help of the strategy of “Business Model Innovation” for the process of their business. It is generally seen that the company Tata Steel Limited takes the help of this particular process to manufacture innovative kind of products which are not only likely to help it gain competitive advantage over its rivals operational in the same field of business but at the same time is likely to help it to reach out to a larger customer base (Osterwalder and Pigneur 2010). A typical example of these kinds of products are Pravesh Doors which were designed by the company in such a manner that it would exude the elegance as well as the beauty of wood works but at the same time having the strength of steel (Tatapravesh.com. 2018). In the recent times, this particular product has become one of the largest selling ones of the company and in a way has helped the company to gain a sustainable amount of competitive advantage over its rival SAIL in the nation of India (Tatapravesh.com. 2018). Another innovative product which is being provided by the concerned organization is the Nest-in building structures. It is significant to note that the use of business model innovation has helped the company in a significant manner to gain competitive advantage over its rivals.
The “Blue Ocean Strategy” is another significant strategy which is being used by the company under discussion here for the purpose of gaining competitive advantage and also for the process of reaching out to a larger number of customers (Johnson, Scholes and Whittington 2005). The innovative product Pravesh Doors which are being offered by the company falls under this particular category. It is significant to note that these kinds of products are not being offered by the other companies of the world. For example, most of the companies provide either doors of wood or doors of steel however combining the elegance of wood and the strength of steel is a unique innovative idea developed by the company under discussion here and thus falls under this particular category (Tatapravesh.com. 2018).
Tata Steel Limited at the current moment has very limited or rudimentary amount of online presence and does not takes the help of the “digital and mobile technologies” in a significant manner. The use of these technologies is likely to further enhance the prospects of the concerned company in a significant manner as most of the business operations in the same field of business are taking the help of these technologies for the process of their business operation (Osterwalder and Pigneur 2010). The company under discussion here indeed has the proper resources as well as capabilities to integrate these technologies into the framework of their business model as is being shown by the use of the strategies of business model innovation, blue ocean strategy and others for the process of their business.
3.The official website of the business organization “Tata Steel Limited” states the mission statement of the concerned business organization to be “Consistent with the vision and values of the founder Jamsetji Tata, Tata Steel strives to strengthen India’s industrial base through effective utilization of staff and materials” (Tatasteel.com. 2018). Furthermore, the vision of the company is “We aspire to be the global steel industry benchmark for Value Creation and Corporate Citizenship” (Tatasteel.com. 2018). The objective of the company is “to become the largest steel manufacturing company not only of the nation of India but also of the world” (Tatasteel.com. 2018). The policy of the company is “In adherence to the Tata Code of Conduct, Tata Steel’s policies pertain to active sets of principles in different areas of operation that help bring uniformity in processes by clearly defining the company’s approach” (Tatasteel.com. 2018).
The entire business model of the organization under discussion here is directed towards the achievement of the above mentioned vision as well as mission statements. Thus, it is generally seen that the organization since the time of its foundation more than 100 years has tried to contribute in a significant manner towards the cause of the society as well as the environment in which it is operational (Tatasteel.com. 2018). In the present times it is generally seen that the focus of the various organizations have shifted from earning enhanced amount of profit to contributing in a significant manner towards the cause of the environment as well as the society from which they derive the majority of the resources that are necessary for the operation of their business. It is a reflection of this particular fact the organization under discussion in the recent have constructed various primary schools, hospitals and others in the industrial areas in which they are operational for the development of the employees and their families who are a part of their organization (Tatasteel.com. 2018). In addition to these, it in the recent times the organization under discussion here has also contributed in a significant manner towards the environmental policies of the nation of India in a significant manner and at the same time is trying to reduce the amount of pollution which is being caused by the various industrial plants of theirs.
These CRS policies as well as activities have contributed in a significant manner towards the growth of the concerned company in the recent times. The major benefit which these policies as well as activities provide to the concerned company is that they have contributed in a significant manner towards the creation of a positive brand for the company (Tatasteel.com. 2018). In the recent times it is generally seen that the concept of ethical consumerism has gained prominence and thus the customers have become more conscious about the way the products or the services purchased by them is being manufactured and also the environmental damage which they cause. Thus, these policies as well as activities through the creation of a positive brand image for the concerned company have contributed in a significant manner towards the growth of the company in the recent times.
4.I would like to comment here that this particular assignment helped me to know a lot of useful things about the business organization “Tata Steel Limited” and also the various strategies as well as the policies adopted by them “to bring about the overall growth as well as the development of their business process”. From this particular assignment I learnt that “the goals as well as objectives of an organization should be in synchronization with the individual goals as well as the objectives of the various employees who are associated with the business process of the concerned organization” (Capaldi, Zu and Gupta 2013). Furthermore, in my opinion the company should also try to foster environment at the workplace as that is likely to have dual value for the organization-firstly that would improve the environment of the workplace and at the same time will help the employees to perform their job roles in a much better manner (Hitt, Ireland and Hoskisson 2012). Secondly, it will also reduce the number of conflicts which forms an important part of the various workplaces and is also likely to help the organization in case of crisis situations (Hitt, Ireland and Hoskisson 2012). Furthermore, the official website of the company under consideration here states that “Becoming the supplier of choice, delivering premium products and services, and creating value for our customers” is their motive and therefore the company should focus on providing quality services to the customers (Tatasteel.com. 2018). This is likely to provide the concerned company with two benefits-firstly it will be able to reduce the “level of competition faced by it by offering better quality products at a lower price and secondly it will enable the company to earn the loyalty of the customers so that in future when it raises the price of the products or services offered by it the customers are likely to stay with them on the score of the loyalty factor (Hitt, Ireland and Hoskisson 2012). Development of effective relationship with the various shareholders as well as stakeholders related to the company is also likely to help the company in a significant manner during the times of crisis or other situations (Hitt, Ireland and Hoskisson 2012). These in short are some of the problem solving steps which the concerned company can take the help of in a bid to improve their prospects in the business market and also become one of the largest business organizations of the world.
Conclusion
To conclude, “the business world in the present times has undergone much transformation on the score of various factors like the advent of globalization, the recent developments in the fields of technology and the latest innovations and other factors”. Moreover, in the present times the “amount of business competition faced by the various companies as well as the business organizations has also increased in a significant manner” and it is a reflection of this that the majority of the business organizations in the present times take the help of the concept of globalization and start their business in the other nations of the world as well. Therefore, in order to sustain themselves not only the native country of their business but also in the host country of their operations the various business organizations often take the help of various kinds of innovative strategies as well as policies in a bid to sustain their business and also to “outrival their competitors” in the same field of operations.
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