Tata Steel Strategy

Only available on StudyMode
  • Download(s) : 122
  • Published : March 11, 2011
Open Document
Text Preview
| 2010|
| Strategic Management6BUS0118Coursework n°1Tata Steel |

[Tata Steel : Global Player, Product Pionner & corporate citizen]| |
Albi FabienID : 10250446Main body : 3840 words
Chopin ChristèleID : 10250448Appendix 1: 1916 words
Fattah-Ahmad Mohamad ID: 09282458
Jandos Meier ID: 09282355
Loridan Nicolas ID: 10250449
Albi FabienID : 10250446Main body : 3840 words
Chopin ChristèleID : 10250448Appendix 1: 1916 words
Fattah-Ahmad Mohamad ID: 09282458
Jandos Meier ID: 09282355
Loridan Nicolas ID: 10250449

Table of contents

Introduction2
The Environment of Tata steel3
Macro environment of Tata steel3
Steel industry5
Strategic Capabilities7
Tata Steel’s strategic purpose:10
Shareholder or stakeholder values perspective?10
Corporate values, mission and vision as expression of the strategic purpose.11 Cultural influences.13
Strategic Drift risk13
Paradigm14
Conclusion15
Appendix n°117
1.1)Analysis of PESTEL framework.17
1.2)Analysis of the Five Forces Framework.17
1.3)Different perspectives to strategy: Outside in perspective/Inside out perspective.18
2.1) Strategic Capabilities.18
2.2) Cost efficiency.19
2.3) SWOT.19
3.1)Corporate Social Responsibility.20
3.2)BP’s case.21
3.3)SPECIFIC project.21
4.1)Cultural Web.22
Appendix n°2 : Group Working24
Different members of the group24
Allocation of tasks in the timetable & responsibility table25
Group Meetings’notes.27
References33

Introduction

Constructing a strategy is a long process which requires a lot of resources but which can result in crucial competitive advantages. Inherently, strategy is difficult to define; there is no clear idea or best way to proceed. But if it is necessary to prove how important strategy is, a map can be used as a metaphor. Like a tourist who uses a map to help him find out how to get where he wants to go, strategy will enable a company to draw up its direction and its scope over the long term (Johnson et al, 2010). Without this element, it will be difficult or maybe impossible for a company to measure up to the environment’s changes. In the annual report of Tata steel, the chairman states that “Through the difficult times of 2009- 2010, Tata Steel has struggled to adhere to its long-term strategies, both in India and overseas. There has nevertheless been need to re-schedule and re-prioritise investment strategies in consonance with market conditions during this period.”(2010) Indeed, in the past years, Tata steel has realized important investments for the future. The company has acquired a stake in Corus (which became Tata steel Europe), Millennium Steel (which became Tata Steel Thailand) and in NatSteel Holdings (Singapore). Considering its recent investments, it would be interesting to analyze the strategic position of Tata steel in order to better understand the current threats, opportunities and challenges faced by the company. In the first part of the essay, the outside-in perspective of Michael Porter will be used to point out the strategic challenges and issues related to the environment of Tata steel. In the second part, the strategic capabilities of Tata steel, especially its core resources and competences will be examined, that refers to the inside-out perspective of Hamel and Prahalad. In the third part, the purpose of Tata steel‘s strategy will be evoked, putting an emphasis on the balance made by the company between shareholders’ expectations and more largely stakeholders’ expectations. In the fourth part, Tata steel’s culture will be explained thanks to the cultural web concept. The analysis of Tata steel’s environment, strategic capabilities, strategic purpose and culture will finally allow drawing conclusions on the current challenges and issues faced by the company.

The Environment of Tata steel
In the first place, an outside-in perspective (Appendix...
tracking img