Business Study of Tata Steel Compny

Added on -2020-02-05

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BUSINESS STRATEGY FORMULATION IN TATASTEEL IN EUROPE
Table of ContentsINTRODUCTION ..........................................................................................................................3TASK 1: REPORT...........................................................................................................................31.1 How business mission, vision inform strategic planning......................................................31.2 Factors considered while formulating strategic plans...........................................................41.3 Effectiveness of techniques used when development strategic plans...................................52.1 Strategic positioning of Tata steel Europe............................................................................62.3 Significance of stakeholder analysis.....................................................................................73.1 Analysing Appropriateness of alternative strategies relating to market entry, substantivegrowth, limited growth or retrenchment.....................................................................................83.2 Justifying selection of strategies in terms of suitability, feasibility and acceptability..........94.1 Assessing roles and responsibilities of personnel in Tata Steel Europe............................104.2 Estimating resource requirements to implement new strategy for Tata Steel Europe........114.3 Contribution of smart targets to achievement of strategy implementation ........................12CONCLUSION.............................................................................................................................13REFERENCES..............................................................................................................................14
INTRODUCTION Business strategy is associated with overall plans and policies being developed bybusiness with the motive to accomplish desired goals and objectives. Further, in the modern erawhere businesses operate market has become challenging due top which companies are requiredto develop effective strategies for their overall growth and development (Epstein, 2008). Apartfrom this, mission and vision of every business is developed with the help of which it can beeasily known the main reason behind conducting overall operation. Moreover, differentstrategies are being employed by companies such as market entry, substantive growth etc withthe help of which it become easy to carry out overall operations. The present study is based onTata steel where company is second largest steel producer with steel making facilities in Europe.Business is indulged into practices of supplying wide range of steel, organic and metallic coatedproducts. Further, business has developed effective business strategy in order to successfullyoperate in the market. Apart from this Tata steel operates on wider basis due to which each andevery strategy is being developed by analyzing the overall business environment. Various taskshave been covered in the study which involves factors to be considered while formulatingstrategic plan, significance of stakeholder analysis etc. TASK 1: REPORT1.1 How business mission, vision inform strategic planningMission statement of the enterprise supports in knowing its overall functions, market andall other range of activities being carried out. Further, it highlights the reason for existence ofenterprise in the market. Moreover, vision of the organization is declaration of all the objectivesof the company which supports in taking different type of decisions (Ferrell and Hartline, 2010).It supports in knowing what organization wants to accomplish in near future and in turn acts asdevelopment tool for the business. Mission of Tata steel is to strengthen India’s industrial basethrough proper utilization of resources such as materials and staff. Further, organization hasemployed advanced technology to enhance overall productivity and this supports inaccomplishing overall objectives (Thompson, 2005). Apart from this, vision of enterprise is to beglobal steel industry benchmark for value creation along with corporate citizenship. Overallgoals and objectives of Tata steel are enhancing market share along with profitability, expandingproduct base, increasing global presence etc. Apart from this, core competencies of theorganization involve research and development activities, product expansion, strong financial
base etc. All these competencies directly contributes in strategic planning of the business.Further, large numbers of plans are being prepared by enterprise where vision, mission alongwith strategic planning assists in development of such plans which enhances market performanceof the entity in every possible manner (Ohnson and et.al .,2013). Apart from this, market whereorganization operates is highly competitive due to which strategic plans provide base incompeting with other firms on continuous basis. Mission and vision of Tata steel totally relies onthe long term aims of the business where each and every area of business contributes inachievement of desired objectives and has supported company in gaining competitive advantage.In short without setting overall aims and objectives it is not possible for company to indulge intopractices of strategic planning and it can lead to decline in overall level of performance(Rothaermel, 2015). On the basis of overall objectives plans are modified by Tata steel and itinfluences overall performance of entity. Apart from this, long term objectives of Tata steelhighlights that company wants to expand its share in the steel industry and have to offer highlydifferentiated products to its target market. So, this is also one of the most integral parts ofstrategic planning which only takes place by forming mission, vision, long term objectives(Malerba and et.al., 2015).1.2 Factors considered while formulating strategic plansStrategic plans are most important for company and by forming the same it becomes easyfor organization to focus on its overall goals and objectives. Further, development of strategicplan is not at all easy for business and it requires consideration of large number of factors.Following are the key factors which Tata steel has to consider at the time when strategic plansare prepared and they are:Need and expectations of customers: Company has to clearly identify the actualrequirement of the target market. Further, steel and other type of products are being used incommercial properties due to which target market of business is somehow different. Moreover,Tata steel has to ensure well in advance what type of steel customers prefer to purchase and onthe basis of same strategic plan is being developed by the organization for its future growth(Spender, 2014). Apart from this, main priority of company is to enhance customer satisfactionas its absence can bring unfavorable results for enterprise in the market where it operates.

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