...Management Report on Case 2: Tata Steel Table of Content Company Overview……...….…..……….………………………. 1 Problems & issues company faced ……………………………… 3 Probable Solutions…………... … ………………………………. 4 Compnay Overview Tata Iron and Steel Company was established by Dorabji Tata on August 25, 1907, as part of his father Jamsetji's Tata Group.By 1939 it operated the largest steel plant in the British Empire. The company launched a major modernization and expansion program in 1951. Later in 1958, the program was upgraded to 2 Million metric tonnes per annum (MTPA) project.By 1970, the company employed around 40,000 people at Jamshedpur, with a further 20,000 in the neighbouring coal mines.In 1971 and 1979, there were unsuccessful attempts to nationalise the company.In 1990, it started expansion plan and established its subsidiary Tata Inc. in New York. The company changed its name from TISCO to Tata Steel in 2005. After then Tata Steel Limited (formerly Tata Iron and Steel Company Limited (TISCO)) constructed their headquartered in Mumbai, Maharashtra, Based in Jamshedpur India, and a subsidiary of the Tata Group. It was the 12th largest steel producing company in the world in 2012, with an annual crude steel capacity of 23.8 million tons, and the 2nd largest private-sector steel company in India (measured by domestic production) with an annual capacity of 9.7 million tons and the world’s 56th largest company. Post Corus merger, Tata Steel was India’s second-largest and...
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...taken by an individual manager or by an organization at the strategic, functional or operational levels Reinventing a Giant Corporation: The Case of Tata Steel D V R Seshadri and Arabinda Tripathy A KEY WORDS Reinvention Change Management Turnaround Tata Steel Liberalization Response to Globalization t the meeting of the senior management of Tata Steel to celebrate the spectacular performance of the company, Mr. B Muthuraman, the Managing Director, recalled with satisfaction the remarkable strides that the company had made from the difficult days in the early nineties, when the company, used to a protected environment, was suddenly thrown open to global competition, consequent to the liberalization of the Indian economy. The company had closed the year with a record profit of Rs. 34.74 billion. A series of initiatives launched by the company over the last 15 years had culminated in these stellar results although there were many challenges at every step. At each stage in its journey, the company did what needed to be done. In retrospect, however, the various initiatives launched by the company over the years now appeared to fit into a coherent picture. The company had made steady progress over the years and had now achieved a pre-eminent status in the Indian steel industry. It had become one of the lowest cost steel producers in the world five years ago, a distinction that it had continued to maintain. All key performance indicators indicated that the company was in...
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...Introduction of Tata Steel Limited Tata Steel Limited (previously Tata Iron and Steel Company Limited (TISCO)) which was established in 1907, it was the Asia’s first and India’s largest privately owned steel company. This company was the flagship company of Tata group, which started by Jamsetji Tata. Tata Steel had expended the business globally and successfully; their business have been running all over the world. It was ranked the 11th largest steel producing company in the world in 2013. Frame work Is Tata Steel Limited successful just because it is using the right market strategy? Is Tata Steel Limited earning a big profit just because the workers are hard-working? In this essay, I will be using PESTEL and Porter’s Five Forces as my main models to analysis Tata Steel Limited. The purpose of doing this research is to see how Tata Steel Limited managing the business tremendously successful in a real market by applying these analysis methods. Political Factor At all times, government is always acting an key role in the development of different industries. It takes charge of the labor law, tax policy, tariffs, environmental law, trade restrictions and political stability. Political factor may also include what the government wants to provide or not to provide. After 200 years ruled by the British, India became an independent nation in 1947 and India’s economy changed to a free market economy in 1991. Government put a lot effort to change the economy. They increased...
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...What are business ethics and sustainability? Introduction Steel is a unique and vital material. It touches almost every part of modern life. It is a key element of our infrastructure. From buses to buildings, from canned food to computers, almost everything we see around us is either made of steel or is made using steel. Steel is essential to modern society. TATA Steel Ltd. is the third largest steel producer in Europe and has its main steelmaking plants in the UK and Holland. It supplies steel and related services to major industries, such as construction, vehicle production and packaging. The European operations are a subsidiary of TATA Steel Ltd. ,one of the world’s top ten steel producers. The combined Group has around 50,000 employees. The challenges of sustainability A commitment to environmentally-sound practices is part of many businesses’ commitment to act responsibly. Social responsibility refers to an organisation’s obligations to maximise its long-term positive impacts and minimise its negative impacts on society. For TATA Steel Ltd., it is a core part of its vision to be ‘the global steel industry benchmark for value creation and corporate citizenship.’ TATA Steel Ltd. is committed to tackling the challenges of sustainability. This means that it takes its responsibility towards both the environment and its communities seriously, balancing these against the need to make a profit. It has put systems in place to meet international standards for environmental...
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...Approach to Knowledge Management at Tata Steel Name Institution Table of Contents Introduction 3 Background to Tata Steel 4 Knowledge Management Initiative at Tata Steel 5 Knowledge Management Phases at Tata Steel 5 Tata Steel Knowledge Management Stakeholders 7 Knowledge Transfer Opportunities 7 Tata Steel Knowledge Transfer Strategies and Instruments 8 Tata Steel Knowledge Management Portal 11 Tata Steel’s Knowledge Management Approaches Achievements 11 Conclusion 12 References 13 Introduction Knowledge management has arisen as an essential aspect that business establishments must consider if they hope to enjoy unimpeded success. In fact, it could turn into a bottleneck if not well managed. Schwartz (2006, p. 3) defines knowledge as a malleable combination of expert interpretation, contextual information, values and experiences that offers an outline for appraising and integrating information with new experiences. Essentially, knowledge is the information that the business entity has collected on their successes, mistakes, business processes, and stakeholders such as customers, suppliers and investors (Schwartz 2006, pp. 3-4). Tata Steel is aware of the importance of knowledge management and has developed unique approaches towards the same. McInerney and Koenig (2011, p. 45) points out that knowledge can exist in either of two forms: explicit or tacit knowledge. Explicit knowledge is tangible knowledge that is embedded...
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...Approach to Knowledge Management at Tata Steel Name Institution Table of Contents Introduction 3 Background to Tata Steel 4 Knowledge Management Initiative at Tata Steel 5 Knowledge Management Phases at Tata Steel 5 Tata Steel Knowledge Management Stakeholders 7 Knowledge Transfer Opportunities 7 Tata Steel Knowledge Transfer Strategies and Instruments 8 Tata Steel Knowledge Management Portal 11 Tata Steel’s Knowledge Management Approaches Achievements 11 Conclusion 12 References 13 Introduction Knowledge management has arisen as an essential aspect that business establishments must consider if they hope to enjoy unimpeded success. In fact, it could turn into a bottleneck if not well managed. Schwartz (2006, p. 3) defines knowledge as a malleable combination of expert interpretation, contextual information, values and experiences that offers an outline for appraising and integrating information with new experiences. Essentially, knowledge is the information that the business entity has collected on their successes, mistakes, business processes, and stakeholders such as customers, suppliers and investors (Schwartz 2006, pp. 3-4). Tata Steel is aware of the importance of knowledge management and has developed unique approaches towards the same. McInerney and Koenig (2011, p. 45) points out that knowledge can exist in either of two forms: explicit or tacit knowledge. Explicit knowledge is tangible knowledge that is embedded in data storage tools such...
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...Peeyush Gupta, DVR Seshadri, and James A Narus Executive Summary KEY WORDS Tata Steel Customer Value Management (CVM) Business Markets Commoditization Spiral Value Creation/Sharing Customer Retention Customer Value Management (CVM) has emerged as an important vehicle for customer retention in business markets. Supplier firms under increasing pressure from relentless competitive forces are seeking to retain and grow the share of business from profitable existing customers as a means of finding a way out of downward spiralling price pressures. While a lot has been written in academics about the importance of CVM, several gaps remain on understanding how a large company actually undertakes this journey. Crafting competitive value chains and focusing on streams of competition are also emerging as important agenda for supplier firms since, increasingly, the end customer is no longer willing to pay for inefficiencies in the value chains. In this context, the challenge for a supplier firm in business markets is no longer restricted to getting its own operations in order, but, additionally, it must ensure that multiple interfaces that exist across the entire value chain all the way until the end customer are streamlined so that the value chain is free of value drains and every meaningful opportunity to create value is exploited. In this paper, the authors present the experiences of the India-based Tata Steel in implementing CVM across 25 select customers. This has enabled it to successfully...
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...TATA STEEL CASE STUDY QUANTITATIVE TECHNIQUES FOR MANAGERS Submitted to Prof. Anil B. Gowda RAMAIAH INSTITUTE OF MANAGEMENT STUDIES SUBMITTED BY: MUZAMIL QUADIR – PB1108 PRASHANT BHAT – PB1133 PRAVEEN YADAV – PB1135 COMPANY PROFILE Established in 1907, Tata Steel is among the top ten global steel companies with an annual crude steel capacity of over 28 million tonnes per annum (mtpa). It is now one of the world's most geographically-diversified steel producers, with operations in 26 countries and a commercial presence in over 50 countries. The Tata Steel Group, with a turnover of US$ 22.8 billion in FY '10, has over 80,000 employees across five continents and is a Fortune 500 company. Tata Steel’s vision is to be the world’s steel industry benchmark through the excellence of its people, its innovative approach and overall conduct. Underpinning this vision is a performance culture committed to aspiration targets, safety and social responsibility, continuous improvement, openness and transparency. Tata Steel’s larger production facilities include those in India, the UK, the Netherlands, Thailand, Singapore, China and Australia. Operating companies within the Group include Tata Steel Limited (India), Tata Steel Europe Limited (formerly Corus), NatSteel, and Tata Steel Thailand (formerly Millennium Steel). OVERVIEW OF THE CASE: Profit is given quarterly for 5 years starting from 2006 to 2010. The year 2006...
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...'Tata Steel', formerly known as TISCO (Tata Iron and Steel Company Limited), was the world's 56th largest and India's 2nd largest steel company with an annual crude steel capacity of 3.8 million tonnes. It is based in Jamshedpur, Jharkhand, India. It is part of the Tata Group of companies. Post Corus merger, Tata Steel is India's second-largest and second-most profitable company in private sector with consolidated revenues of Rs 1,32,110 crore and net profit of over Rs 12,350 crore during the year ended March 31, 2008. The company was also recognized as the world's best steel producer by World Steel Dynamics in 2005. The company is listed on BSEand NSE; and employs about 82,700 people (as of 2007). Corus was formed from the merger of Koninklijke Hoogovens N.V. with British Steel Plc on 6 October 1999. Corus is a leading European manufacturer providing steel and aluminium products and services worldwide. It focuses on semi-finished and finished carbon steel products. Corus is Europe’s second largest steel producer with revenues in 2005 of £9.2 billion (US$18 billion and crude steel production of 18.2 million tonnes, primarily in the UK and the Netherlands. Corus provides innovative solutions to the construction, automotive, packaging, mechanical engineering and other markets worldwide.. Group turnover for the year to 31 December 2005 was £10.142 billion. Profits were £580 million before tax and £451 million after tax. Company Backgrounds Tata Steel, formerly known as TISCO...
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...CASE STUDY– Trilogy Software Few industries have undergone as much turbulence in the past few years as those in Internet-related businesses. One of the leaders in this industry is Trilogy Software, based in Austin, Texas. Trilogy, founded in 1989, creates software to help e-businesses handle procurement, customer service, relationship management, and data integration. Its 1500 employees serve an impressive client base that includes Ford, FedEx, Land’s End, Charles Schwab, and Motorola. Trilogy’s president and CEO, Joe Liemandt, seeks to hire and keep employees who can flourish in a chaotic environment, who are willing to take risks, and are not afraid of working long hours. Liemandt has fashioned a strategy for Trilogy that encompasses maintaining the high energy of a start-up with the experience of an established company. An important part of that strategy is continually recruiting “only the best”—bright, dynamic individuals from the best universities, business schools, and industries. By hiring great people and giving them significant responsibilities from day one, Liemandt hopes his firm will be able to respond to competitive challenges, keep its entrepreneurial spirit alive, and achieve its goal of being a high-impact company. New recruits are wooed to Austin with dinners, cultural and recreational outings, and competitive salaries. Once there, the recruits go through “boot camp”—an intensive training program conducted to turn rookies into Trilogians. In classes led...
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...2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Cash flows from Operations Net income 12,790 27,149 54,424 55,150 63,130 163,711 67,432 310 121,020 85,850 Depreciation & amortization 5,697 6,464 6,518 8,910 14,482 48,502 48,693 50,809 51,913 45,167 Investment gain & loss -226 -1,144 -1,700 -1,669 -3,437 -1,938 -6,946 -15,083 -7,388 -33,684 Income taxes 0 0 0 0 0 0 0 0 0 0 Stock based compensation 0 0 0 0 0 0 0 0 0 0 Working capital changes Accounts receivable 1,720 4,008 1,174 -1,132 -9,601 -20,517 30,034 20,876 -47,190 8,887 Inventory -267 -1,547 -6,345 -2,373 -6,400 -27,013 10,123 18,842 -48,885 4,077 Accounts payable 1,179 3,510 -4,162 -2,239 18,542 27,753 -37,309 6,747 24,326 -1,374 Other working capital 0 0 0 0 0 0 0 0 0 0 Minority Interest 0 0 0 0 0 0 0 0 0 0 Other items 3,046 1,564 1,271 -70 3,235 -15,552 78,603 51,416 8,436 1,498 Cash provided by operat... 23,800 39,454 50,415 55,479 76,476 161,068 190,772 129,296 96,980 149,362 Income tax paid -2,341 -9,423 -18,667 -18,198 -21,446 -26,867 -33,813 -24,586 -32,351 -36,524 Net cash generated from op... 21,458 30,030 31,748 37,281 55,030 134,202 156,959 104,710 64,629 112,838 Cash flows from Investment Investments in PPE -4,698 -10,082 -20,621 -19,328 -29,751 -84,166 -84,337 -71,495 -104,160 -121,360 Sale of PPE 407 585 297 511 480 4,231 727 2,024 2,524 1,774 Purchases of investment -18,255 -47,309 -72,388 -82,007 -285,519 -333,779 -607,568 -1,915,783...
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...Knowledge Management By S.Kanakaraj @ Tata Steel Importance of Knowledge – When arisen? Before 21st century the three major problems faced by the industry are Land, Labor and Capital. After 21st century, the fourth factor is increasingly and fast becoming a hurdle or bottleneck for companies to grow. That is "Knowledge", which is at the heart of much of today’s global economy and managing knowledge has become vital for companies success. Knowledge Knowledge can be defined as a fluid mix of experience, values, contextual information and expert insight that provides a framework for evaluating and incorporating new experiences and information. Knowledge is information in action. Knowledge is what people in an organization know about their customers, products, processes, mistakes, and successes. Knowledge - Types Explicit knowledge: It is the visible knowledge available in the form of letters, reports, memos, literatures, etc. Explicit knowledge can be embedded in objects, rules, systems, methods etc. Knowledge - Types Tacit knowledge: It is highly invisible and confined in the mind of a person. It is hard to formalize and therefore, difficult to communicate to others. Knowledge - Types Transformation of knowledge from tacit to explicit form increases its usability and visibility. Capturing the experts Tacit Knowledge that resides within him in the form of Know-how and insights is a very difficult and challenging task. While tacit and explicit...
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...Case study of ERP Topic:Compare SAP at TATA Steel and SAP at CO-OPERATIVE BULK HANDLING LTD.(CBH) Submitted to:Mr. Pradeep Kumar Date: April 6, 2013 Section: K1108 Roll no: B34, B36, B40 Index: 1. Introduction 2. SAP 3. TISCO 4. Implementation of ERP at TATA Steel 5.1 Problems occurred 5.2 Solution and implementation 5.3 Benefits 5. What change has occurred after the SAP implementation at Tata steel? 6. Sap at Co- Operative Bulk Handling ltd (CBH) 7.4 Problems occurred 7.5 Solution and implementation 7.6 Benefits 7. Comparison SAP at Tata steel and Co -operative bulk handling 8. References Acknowledgement Through this case study we get the opportunity to learn about the process of implementation of ERP so we thanks to all those who guided us and corrected us at each step in making of this case study and helped us for making successful and satisfactory completion of this case study. We are highly thankful to our subject teacher Mr. Pradeep Kumar for providing his active support, valuable time, guidance and sincere cooperation during the study and in completing the assignment of preparing the said project within the time. Lastly, we are thankful to all those, particularly the group friends, who have been helped us in creating proper and conductive environment and including new and fresh innovative ideas for us during the project. Introduction: Through this case study we...
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...TATA STEEL 2009 FINANCIAL RATIO ANALYSIS ABHIJIT SAMANTA I N T E R N A T I O N A L S C H O O L O F B U S I N E S S & M E D I A ; K O L K A T A P a g e | 2 FINANCIAL RATIO ANALYSIS OF TATA STEEL 1. Liquidity Ratios:- Liquidity Ratios measures the ability of the firm to meet its short term obligations. They also reflect the firm’s ability to meet financial contingencies that might arise. (A) Current Ratio: - This ratio indicates the firm’s ability to meet its current liabilities. This ratio is of very high importance to the suppliers of short term funds like the bankers and trade creditors. It is measured by: - Current Ratio = Current Assets / Current Liabilities. As per Balance Sheet 31st March 2008 & 2009. (All figures are in crore.) Year Current Asset Current Liabilities Current Ratio 2008 3,613.70 3,855.26 0.94 2009 5,707.05 6,039.86 0.94 Analysis: - The industry norm value of current ratio is 2:1. However it does not mean so that higher current ratio means good company profile. It may signify higher unused cash, inventory which again may result in inventory carrying cost. In both the years the Current ratio for Tata Steel is same. However it does not mean any increase or decrease in current ratio of any company gives the growth profile of the company. P a g e | 3 (B) Quick Ratio:- ...
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...Ratio Analysis of TATA Steel Ltd for the Financial Year ending 2009-2010 Balance Sheet Analysis (Base Year Taken 2008-2009) * Ratios Testing Solvency or Financial Strength (A) Short Term Solvency (1) CURRENT RATIO = Current Assets/Current Liabilities The Ratio tests the short term financial strength of a Company. It tests the Company’s ability to pay its Current Liabilities. Standard Ratio should be 2:1 i.e. Current Assets should be double the Current Liabilities. Higher the Current Ratio better for the Company. Analysis in case of TATA Steel Ltd. Year | Total C.A. | Total C.L. | Current Ratio | 2009-2010 | 13425.27 | 12003.02 | 1.2:1 | 2008-2009 | 11591.66 | 11899.95 | 0.97:1 | Interpretation of the above Ratio: As stated earlier that the Standard Current Ratio should be 2:1, which is not in the above case for both the years hence it can be said that the Company might not be having a good short term Financial Position. Low Current Ratio is not good for a Companys reputation as it states that the company is not in a position to even repay its Current Liabilities. It is a widely used Ratio for Analysing a Companys short term Financial Position. From the above comparison it can be stated that the Company had a good short term Financial position in the year 2009-2010 as compared to the year 2008-2009. (2) QUICK RATIO = Quick Assets/Quick Liabilities Where Quick Assets = C.A. Less Closing Stock Less Prepaid Expenses Where Quick Liabilities = C.L. Less...
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