Royal Holloway University of London
Inaugurated in 1907, the Tata Steel Ltd rose as the first private sector organisation to venture into the steel industry in Asia (The Economist 2011). After its establishment, the Tata Steel has maintained high levels of performance, an aspect that is supported by its ranking in the leading companies in the steel industry, at the global stage (The Economic Times Nd). The organisation has grown exponentially given that it is the second most geographically spread steel entity with operations over twenty-six countries as well as a commercial presence across fifty nations. The Tata Steel Group employs over eighty thousand workers across the world’s five continents and is listed in the Fortune 500 companies (The Economic Times Nd). Further afield, the Economic Times (Nd) reveal that the company bases its biggest production activities in India, Thailand, the UK, China, Australia, the Netherlands and Singapore. Among the most notable operating companies of the company are theTata Steel Limited (India), Tata Steel Singapore, Tata Steel Thailand and Tata Steel Europe Limited (formerly known as Corus). The current paper assesses how Tata Steel Ltd has internationalised its operations. The subsidiary under assessment is the Tata Steel Company whose incorporation originally saw it named the Tata Iron and Steel Company Limited. It is pointed that the company is a part/ subsidiary of the Tata Group of companies which have broadened their scope across the globe from their original base in India. With it’s headquarter in Mumbai, the Tata Iron and Steel Company Limited’s name was changed to Tata Steel Limited in 2005 (The Economist 2011).
Host Country Analysis
According to Khambatta & Inderfurth (2012), consensus shows that the economic growth is now concentrated in Asia. India is a large emerging nation as the country’s growing middle class continues to expand. The country also continues to capture the attention of leading investors because it provides an attractive investment destination. Citing credible sources, Khambatta & Inderfurth (2012) estimated that, the nation’s GDP had reached 1.8 trillion US dollars. In addition, projections indicated that by 2030, the Indian economy would rise to third position with forecasts indicating that it would stand at 30 trillion US dollars. In effect, the country’s economy is expected to be at the current level of that of China. Despite the dynamic nature of the Indian economy, perceptions place India as an Information Technology IT dominated hub (Bedi 2011). This is in contrast to the fact that the IT sector only accounts for 7.5% of the entire Indian economy in terms of GDP. It is noted that the IT industry is applicable to every other sector in the country. In the recent times, it is accepted that the country has transitioned from an agrarian to a knowledge-led economy (Srinivasan 2002). Thus, information technology remains a primary driver of the Indian economy. In practice, no economy develops by relying on only one sector. Industries such as energy, transport and construction are integral to the advancement of any country. Despite massive growth, India continues to face challenges such as power problems (Srinivasan 2002). Some observers have indicated that some parts of India suffer from chronic power outages. With an insatiable demand for power, the country needs to devise methods to address the problem. It has also been highlighted that the India has not adequately developed infrastructural facilities in the country, an aspect that has led to many controversies in the conduct of business (Dale 2002). It is also noted that the county has many poor populations lacking amenities such as healthcare. The Internationalization Path
The major markets of the Tata Steel Limited are in the automotive, construction and general engineering sectors of India....
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