STRATEGIC MANAGEMENT

PREPARED BY:-

Ankit Rai B01Parnika Gopal B04Anurag Upadhyay B19Akshara Kulkarni B33Shaurya Chauhan B41Pavak Panda B54Pradeep Yadav B63Sidharth Singh B67

TIMELINE • 1907: Tata Iron & Steel Co Ltd established by JamshedJi Tata• 1912: First company in world

introducing 8 hour day job.• 1920: Leave-with-pay introduced. This

practice was rare pre-1940s.• 2004: Acquisition of Singapore based

NatSteel for ~$486m.• 2005: Acquisition of 40% stake in

Thailand's Millennium Steel.• 2007 : Wins bid for Corus against

Brazil’s CSM• 2013: Tata Steel Europe reports record

GBP 1.2 bn loss.• 2014: Plan announced to increase

capacity 60% to 16 mt by 2020.

Amongst the top-ten global steel companies with an

annual crude steel capacity of over 29 million tonnes per

annum

Now the world's second-most geographically-diversified steel producer, with operations in 26

countries and a commercial presence in over 50 countries

The Tata Steel Group, with a turnover of Rs. 1, 48,614 crores

in FY 14, has over 80,000 employees across five

continents and is a Fortune 500 company.

VISION STATEMENT• ‘We aspire to be the global steel industry

benchmark for Value Creation and Corporate Citizenship’

• We make the difference through: Our People

By fostering teamwork, nurturing talent, enhancing leadership capability and acting with pace, pride and passion. 

Our OfferBy becoming the supplier of choice, delivering premium products and services and creating value for our customers.

Our Innovative ApproachBy developing leading edge solutions in technology, processes and products.

Our ConductBy providing a safe workplace, respecting the environment, caring for our communities and demonstrating high ethical standards.

Reflects the concerns of other stakeholders such as shareholders, customers and the local community

Gives the view of Tata Steel’s future direction and course of business activity

Lays stress on their core ideology in vision statement by taking People, Suppliers and Ethics into account

It also emphasizes on their innovative approach for cost leadership and differentiation in their products and process

The vision statement of Tata Steel provides managers with unity of direction that transcends individuals, parochial and transitory needs

Vision Analysis

MISSION STATEMENTMission Tata Steel strives to strengthen India’s

industrial base through the effective utilization of staff and materials. The means envisaged to achieve this are high technology and productivity, consistent with 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.

Achieve sustainable, profitable growth in steel and related businesses

Reflects the firm`s self-concept like being the high performer and innovative organization

Create differential value for our customers through innovative offerings

Continuous improvement of business processes and technologies

Foster partnership with key stake holders

Enhance employees' competencies to create a high performing and innovative organization. Be a responsible corporate citizen and enhance the quality of life of employees and key community

Analysis

Commenced central warehouse management operation at Kalinganagar plant

Tie-ups with 65 distributors & 9000 dealers

Pan India distribution network to serve 3 million customers a year

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PRIM

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ACTI

VITI

ESSU

PPO

RT A

CTIV

ITIE

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INBOUND OPERATIONS OUTBOUND SALES & LOGISTICS LOGISTICS MARKETING

SERVICE

R & D IT SYSTEM EMPLOYEE FIRM INFRASTRUCTURE/GENERAL ADMINISTRTION WELFARE

95% of raw material transported by rail

60% of coal imported from Australia

•UNLOADING-Introducing engine-on-load system within the plant to halfunloading time

Coal unloading system & tipping capacity revamped

HUB & SPOKE model for operational excellence in SC

TQM used in Policy, Daily & Cross Functional Mgmt

Process audits & Quality reviews Investments in supply chain

logistics integrated with downstream expansion initiatives.

Production is controlled & monitored by highly automated, computer-based systems.

Focus on technology absorption.

The Automation Division has a dedicated team of experts in various disciplines from laser to robotics

Well@Workplace programmes

Social change through SPORTS

Occupational health & safety committee meetings

Resettlement & Rehabilitation Progms for tribals

Growth-oriented strategy in domestic market

•Concentration of sales mostly in Northern & Eastern part of the domestic market

•In 2015,launches two new products-1.Steelium Neo-CR steel2.Pravesh-wood finished steel doors

•Opening 23 service centers for SME customers

•Feedback from customers- STEELNOVATION-for Key Account Customers

•Marketing communicationprogrammes

5 research centers in India, Netherland & United Kingdom

Separate dept for its India & South East Asia markets-The Scientific Services & Refractory Technology Group

•NPD & process developments creating competitive advantage & sustainability

•The Tata Code of Conduct (TCOC) is an integral part of the Company's value system.•Brownfield expansion at Jamshedpur

•Greenfield expansion at Odisa

•Fosters culture of innovation & continuous reviewof product mix

MARGINS

MARGINS

VALUE CHAIN

ANALYSIS

Support from Sister companies Tata Steel has a multiple companies under the

same banner, which gives it an advantage of value-chain efficiency, whereby the company can utilize products made in its sister companies to process raw materials and increase efficiency

Availibility of huge raw material Raises over 14 million tones of ores from its

captive collieries, iron ore mines and quarries

Strong Distribution Network 65 distributors and 9000 dealers in India Operations in 26 countries and a commercial

presence in over 50 countries

POINTS OF LEVERAGE

CORE COMPETENCIES

•Geographic Spread and global presence•Presence in around 50 countries with manufacturing operations in 26 countries including: India, Malaysia, Vietnam, Thailand, UAE, Ivory Coast, Mozambique, South Africa, Australia, United Kingdom, The Netherlands, France and Canada.

•High Scale manufacturing•The value chain of steel can be divided into two parts - primary steel-making and finishing. Tata Steels strategy is based on breaking up this value chain and putting each part where its the most cost-effective.

•Driven by value and ethics : 2015-World's Most Ethical Company

TATA Steel’s core competency lies in

value creation through

manufacturing and distribution of

medium as well as high grade steel at considerably lower

cost.

7 S FRAMEWORK

• Domestic Leadership and Global Competitiveness• Expansion in addressable markets and Branded product

portfolio• Creating long-term value - Kar Vijay Har Shikhar –

Continuous improvement program

Super Ordinate Goals

• Composition of the Board and the board of Directors• Strategy and Integration committee• The TATA STEEL GROUP Board• TATA Steel Executive Committee

•Corus Executive CommitteeStructure

• Efficient deployment and management of manpower• Easy processing of ESS application –one window concept • Development and Marketing of ESS Package• Safeguarding Organization values and credibility

System

• Combines innovation, functionality and style, to offer a never-before range in steel lifestyle products

• Keeping employees happy for increased productivity• Growth through collaborations(JVs) and acquisitions

Style• Right talent at right time, to enhance net worth of

human capital • Being non-discriminatory on grounds of sex, race, or

disability• Tejaswini (women)and Shabbash (Reward) Scheme for

employees

Staff• Open and collaborative leadership • Understanding cultural issues at work• Motivation through intense counseling and information

sharingSkill

• Strengthen Indian Operation and focusing on Price stability

• Realize Synergies from the Corus Acquisition• Seek and Maintain control over Raw Material• Increasing Focus on High Value Added Steel Products• Encourage cashing on the carbon market/ CDM projects

Strategy

GROWTH STRATEGIESIntegration strategy

Horizontal Integration

Major Acquisitions NatSteel, Singapore Millennium Steel, Thailand Anglo Dutch steel producer Corus

Major Mergers Tata Metaliks Limited (TML) and Tata

Metaliks Kubota Pipes Limited (TMKPL)

Corus was a formed by a merger between British Steel and Koninklijke Hoogovens

Vertical Integration

Acquisition of Labrador Iron Mines  to improve raw material security and reduce transportation cost. (backward integration)

Greenfield integrated steel plant in the Bastar region, Chhattisgarh

Steel-cum-mining, Orissa Five-per cent interest in the

Carborough Downs coal project, Australia

Diversification Strategy

Mining coal Greenfield projects Industrial Park and SEZ projects Plant Modernization projects Energy and Power projects Packaging projects Consumer Goods

• Two biggest contributors to growth:

Strategically targeted mergers and acquisitions (Integration Strategy)

Integration and use of state-of-the-art technology making them cost leader in the industry

GROWTH STRATEGIES

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