Global Corporate Strategies and Their Impact

This assignment delves into the world of global corporate strategies, examining their significance in modern business environments. It explores how these strategies impact organizational performance, leadership, and sustainable development. The report draws on a range of sources, including journal articles and book chapters, to provide a comprehensive understanding of this critical aspect of business operations.

Global Corporate
Strategies

EXECUTIVE SUMMARY :-
Global marketing strategies helps a company to make their market plans and strategies
according to nature of other countries. Global marketing strategies of Tata steel in respect to
other countries.
 Introduction
 Structure of the Tata steel
 Goals and perspectives
 Business model changes and advancements with strategic alliance.
 Governance, CSR and role of leadership in Tata steel
 Personal overview on global market strategies.

Table of Contents
INTRODUCTION...........................................................................................................................1
Question 1: Portfolio, Integrated Organisation Perspectives and Competitiveness .......................2
Question2: Business Model Innovation and Technological Innovation ........................................4
QUESTION 3 : Corporate governance ...........................................................................................6
QUESTION 4: Personal overview .................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
1

INTRODUCTION
Corporate strategy gives the direction to the organisation to achieve the objectives for the
success of business in long term. Corporate strategy provides the long term vision to the
company which they have to follow to create corporate values and to motivate the employees for
proper actions to achieve customer satisfaction (Bonsón and Flores, 2011). Tata steel is the
multinational company which deals in the business of the providing steel making facilities as
well as producing of both long and flat steel. In this report going to explain about the corporate
strategies, merits and demerits of adopting portfolio organisation perspective or the integrated
organisation perspective, Innovation of business and technology by using strategic alliances and
M&As, corporate governance, corporate social responsibility and leadership.
Question 1: Portfolio, Integrated Organisation Perspectives and Competitiveness
Integrated organisation perspectives means to to divide the work into different groups
which are specialists in their department and then integrate all of them under one organisation to
achieve the organisations objectives effectively. Similarly, Tata steel also divided their work
from extract to making final products of steel into different departments and integrate all of them
under their organisations management to achieve the objective set by the company.
There are lots of merits and demerits of such integrated organisation perspectives which
are: -  Demerits:
Strategic risks: These risks are associated with the strategies make by the company to run
their business which affects the profitability and the growth of the company. Risks which are
related to the adverse macro environment in which other global steel company's are working
affects the whole operations of the company in the market also affects the cash flows of the
company (De Mooij and Hofstede, 2010). The basic impact of these risks are on the profitability
and the financial flexibility of the firm. Another risk which is associated with strategic failure of
plan is that it affects the whole capacity expansion and restructuring of the company which
hampers the the long term growth Of the company.
Operational risk: Operational risks are associated with those risks which are arises
during the operational work of the business which related to the safety of the employees and also
2

with the social licensing. As we know Tata steel is big venture and various integrated services
are going on there, so it is always difficult to maintain the proper safety of the employees. It is
very difficult work to maintain the proper safety in such big organisations and the failure to
maintain affects the image and the reputation of the company. They also have to bear the hefty
fines for such failures which increase the overall cost of the project (Du, Bhattacharya and Sen,
2010). Another risk which is associated with big organisations is that have to take the labour
licence whenever the number of labours increased above 20. If the company is not taking the
licence it causes business operations disruptions and affects the continuity of the business.
Legal and compliance risk: The company has to face these risk when they breach any of
the regulations provided for the operation of the business. One of the risk covered in this is
absence of raw material linkage due to adverse regulatory environment and its price changes
threaten company's profitability. This risk affects the continuity of the business and also
increases the cost of the project also. Another legal risk which is associated with business is the
non compliance of environmental regulations. Every company has to take the environmental
clearances before start the business. The company not taking the clearances it results in the close
of the organisation or to pay the heavy fines (Mallin, 2011). Another risk associated with
company is impairment of the tangible and intangible assets which affect the company's key
financial ratios. It affects financial ratios of the company. A group like Tata steel has various
integrated services sop it is always difficult for them to maintain all the legality in the business.
If they failed then they have to bear all the consequences which are mentioned above.
 Merits:
Raw material: One of the merit to Tata steel is to get high quality, low cost iron ore at
close proximity to the manufacturing plant. It is possible because the Tata steel is the large
manufactures which requires the raw material in large quantity and the quantity of the raw
material affects the prices of the iron ore.
Growth: Any organisation grows if they work as one unit for the purpose of the
achievement of the goals. Integrated departments helps in supporting the overall organisation to
manage the actives effectively.
Productivity: If all the departments working with core competence increases the
productivity of the organisation but the most important thing that they work with good spirit to
achieve common goals. Integrated business activities always help in taking better decision
3

making because they clear about their roles assigned to them. It also reduces the chances of fault
because they have no confusion in the distribution of the work. Every department working
independently and free to takes the decisions according to the situation increases the confidence
of the worker and their management too (Mishra and Suar, 2010).
Digital technologies: To buy new digital technologies makes the company more agile,
enhance the productivity and profitability. Technology advancement helps in increase the
production capacity, quality and profitability of the company.
Question2: Business Model Innovation and Technological Innovation
Business innovation: Business is the process of introducing new ideas, workflows,
methodologies, services or products. It also includes the process of improving the existing
products, services or processes and to provide the solutions for reach the new customers.
Technology innovation is the part of the business of the innovation. Both should be achieved
through the strategic alliances and Merger& acquisitions.
Technology innovation: Technology innovation is related to the advancement of the
technology. It comprises new products and processes and the significant technological changes
in product and processes (Rugman and Verbeke, 2017). It helps in increase the production
capacity, quality of the product and to be cost and time efficient in future.
Some of the points regarding business innovation and technology innovation by use of
strategic alliance and M&As: Expansion of business: Any strategy adopted by the company either the strategic
alliance or merger and acquisition both helps the company to expand their business
activities. Merger and acquisition is the situation where one company merges into another
company or the both company forms the new company and either one or both
discontinues their business (Farndale, Scullion and Sparrow, 2010). Similarly, strategic
alliance means the situation where the both company's are agreed to make contract on
some set of objectives and combine each other but both of them operate independently in
the market. So, It is easily understand from the meaning of both the strategies that the
basic purpose behind all these is to expansion of the business.
4

 Enter into new segment: Both strategies helps the companies to enter in the new market
by taking guidance of each other. Know about that Tata group is merged with steel door
segment under the brand name of the Prasvesh which receives the good response from
customers. It helps them to take the benefits of the market experience of that company in
its local area and to explore their business more by providing efficient and quality
product. Obtaining quality staff and additional skill: Both the strategies helps in obtaining quality
staff, additional skill and the knowledge of other industries. For instance, a business with
good management helps in improve the management of the other business. Development: The valuable assets and the excess funds helps in the new development of
the organisation. Better production or distribution facilities are often less expensive to
buy than to build. A merger with such company having marginal profit but have large
unused capacity then it can be used by the other company to mange it better for
increasing their productivity (Grinblatt and Titman, 2016). These strategies also helps in
to expand on those areas where they struggle but merge with the regional company which
doing good in that area. Increased market share: By merging with other companies, they are able to use their
large base of customers to increase their market share. They can also use their
distribution channels and systems for growing their market share.
 Technology up gradation: Merger or strategic alliance with other companies help them
to use their advance technology. All these strategies are always adopted for the
betterment off the organisation which gives something new to the company.
Merger of two companies of same nature helps each other by allowing to use this
technology, process, ideas and methods. Diversification: By merger between two companies allows diversify their options to be
indulged in the market of another company. This will help them to increase their market
share. It also helps to expand the overall business.
 Elimination of competition: Business development is also possible through the
acquisition of the rivalry company exist in the market. It eliminates the competition in the
market and also provides the opportunity to grow more in the market in the diversifies
fields.
5

QUESTION 3 : Corporate governance
Corporate governance is a statuary committee made by the government of the country.
Corporate governance made of rules and regulations designed for the corporate sectors and
organisation. Corporate governance control the actions of the organisation and help to maintain
the interest of the members of the organisation as stakeholders, investors, employees and
management.
Corporate governance of Tata steel shows clean and fair report of its corporate ethics and
vision statement. There is a specific board is made for maintain and monitoring corporate rules
and regulation amendments and changes. According to Hofmann, (2010)Member of the board
contains executive directors, non executive directors, independent directors. Currently
organisation has 11 member of board in which two are executive director, 3 non executive
directors and 6 independent directors.
Organisation has to follow the guidelines of Securities and exchange of India (SEBI).
Tata group of steel have different committees to operate corporate governance strategies. Are as
under :
Finance committee : Finance committee provide financial analysis of the organisation
that how much finance is required and from where it can arrange. Member of finance committee
contains chair person of the organisation.
Routine matters committee : This committee operates the authentication work in the
organisation as bank account operations, rotation of powers and responsibilities, manage the
election procedure in general meetings through postal ballot on behalf of the organisation. For
reducing the factor of conflict of interest it is require to change the role of the employer in the
organisation after a specified period.
Compliance committees : Compliance committee monitor the internal environment of
Tata steel, whether any protocol or policy is not going to breach or impacting. Compliance
strategies maintain the flow of operations in a specified protocol and format. Compliance
strategies helps to maintain discipline while practising important task.
CSR (Corporate social responsibilities)
CSR is the format of duties and responsibilities of the organisation to work economically
and socially in the society. There are some corporate and social responsibilities involves when an
6

organisation perform in social culture. Lamberti and Noci, (2012) refers that an organisation
gives employment and supports to increase the growth of the country and increase the living
standards of the society. An organisation should understand the responsibilities for outsiders of
the organisation. An organisation use different resources of the country. It is require to justify the
responsibilities in respect of investors, stakeholders, society. CSR are designed by the
governance to define the practices and the objectives of the organisation and to control the social
practice outside the organiastion.
CRS in respect of Tata steel
Tata group of steel is working effectively and helping the economical growth of India.
Tata steel is helping to progress the states of India. It is also the part of UNICEF as working in
sector of child friendly business to protect children rights . Tata steel has advisory council too
which helps to improve the performance of the organisation in CSR. According rganisation rural
development societies sectors which are working to improve the structure of the rural economy
and promote the social wale fare programs. Tata group of steel an opportunities to increase
employment conditions in organisation. It is working in the sector of improving skills and
performance programs so that people get the knowledge and experience about the work.
Sustainability and leadership roles and feasibility
Sustainability of an organisation denotes the existence of the organisation in future.
Leadership in sustainable development refers the overview of the organisation towards the
society, country and all over the world. Sustainable development works around the stability of
the organisation in future with its current available tools for improving the capacity and ability of
work according the estimated future challenges and targets. According to ….. It works around
three areas environmental, economical, social.
Leadership and sustainability as per Tata group: -
Being a global leader in Tata steel is very concern about its sustainability in future.
Management of the organisation put their efforts to recognise the challenges and issue which
may be affect the organisation in future. Management of the organisation take the challenges as
an opportunity to improving more better and stronger. Organisation work around one principle of
proper utilisation of available resources resources. It consumes its energy in effective manner so
that organisation can get more productivity. Sustainability of an organisation has direct relation
7

with its product durability. Tata steel works are the mentality of the customer. Its basis
assumption is that if the the life cycle of the product is last long than the sustainability of the
organisation would also be last long.
Leadership role to maintain sustainability:
Basically the role of the leader remains same in every organisation because a leader
always work to lead the organisation in correct direction.
 As a representative : leader is the only spoke person who works on the behalf of the
organisation. Leader always present the image of the organisation in front of investors
and the employers.
 Leader always try to increase the organisation capacity for better productivity and
outcomes. Its main objective is integrate the goal of the organisation among all the
departments.
 Training and development programs to excel the skills and capability of man power.
 Analysing the performance of the organisation is also on of the key role of the leader
to get out best ways of operating functions.
 One of essential work of the leader is to motivate the employees for achieving the
goals and objectives. It is required to make an free and interesting environment in the
organisation so that employees don't feel monotonous while performing the same
task.
 Employee relation : for every organisation it is require to build a smooth and
approachable system for hearing the voice of employee. Leader should create a
friendly environment where employee and employer relations doesn't affect by the
organisation.
 Leadership skills is not only the work of giving orders and direct the organisation. It
also play supporting roles while performing the task.
QUESTION 4: Personal overview
Steel is a material which is used in many ways and steel is such a material which can be
recycled and used in making other objects. Durability of the products which are made of steel
depends upon the quality and stability of the product. It is seen that steel industries has very
essential role in every country's economical growth (Zona, Minoja and Coda, 2013). Tata steel
8

has achieved milestone achievements in that duration where it was changing its technology and
implementing global marketing strategies. Tata steel managed this global challenge very
effectively and easily by using sustainable approaches and leadership skills.
A steel manufacturing industry should be concerned about its objectives and material
analysis. Steel industries have to face the challenges of new technology and advancement
changes in that situation it is required to adopts the beneficial option for the industries. New
advancements and technology save the time and energy of the resources and organisation would
be able to utilise the rest energy in substitute activities (Vogel, 2010).
Steel industries are helps to strong the base of the economic structure of the country. Being a part
of the economy the organisation has to follow the rules and regulations. Government policies,
import export policies, global environmental changes etc. To manage the functions at global
level leadership must extreme level of abilities and capacity. Leader is the only person who is
responsible for the action performed by the organisation at global level. Function operated by the
management of the organisation.
 Analysis of the product in respect of its nature, size, market area, sustainability.
 Build committees for performing and managing sub departments.
 Finance department
 Human resource departments
 Administrative department
 Accounts department.
Marketing environment is full of challenges and competitors. Management should plan the
strategies according to its competitor, substitute products. New techniques and strategies of
marketing helps to advertise the and promote the organisation at global environment.
CONCLUSION
Global corporate strategies asses the organisation to recognising the environment of the
organisation. The above research defines the roles of global corporate strategies and the effect of
the strategies in the organisation. In this reported the the strategies and the roles of the leadership
in sustainable development are elaborated. Global strategies in respect of Tata group of steel
explains the challenges which were perfectly managed by the management of the organisation
9

during its crucial circumstances. Tata steel gave an example of being a perfect leader as
economical growth. Its corporate social strategies help the nation to grow the living standard of
the society and provide employment opportunities. As per the above achievement of Tata steel
an image of steel manufacturing industry is explained in current situation.
REFERENCES
Books and Journal
Bonsón, E. and Flores, F., 2011. Social media and corporate dialogue: the response of global
financial institutions. Online Information Review. 35(1). pp.34-49.
De Mooij, M. and Hofstede, G., 2010. The Hofstede model: Applications to global branding and
advertising strategy and research. International Journal of Advertising. 29(1). pp.85-110.
10

Du, S., Bhattacharya, C. B. and Sen, S. 2010. Maximizing business returns to corporate social
responsibility (CSR): The role of CSR communication. International Journal of
Management Reviews. 12(1). pp.8-19.
Farndale, E., Scullion, H. and Sparrow, P., 2010. The role of the corporate HR function in global
talent management. Journal of world business. 45(2). pp.161-168.
Grinblatt, M. and Titman, S. 2016. Financial markets & corporate strategy.
Hofmann, E., 2010. Linking corporate strategy and supply chain management. International
Journal of Physical Distribution & Logistics Management. 40(4). pp.256-276.
Lamberti, L. and Noci, G., 2012. The relationship between CSR and corporate strategy in
medium‐sized companies: evidence from Italy. Business Ethics: A European Review.
21(4). pp.402-416.
Mallin, C. A. ed., 2011. Handbook on international corporate governance: country analyses.
Edward Elgar Publishing.
Mishra, S. and Suar, D. 2010. Does corporate social responsibility influence firm performance of
Indian companies?. Journal of business ethics. 95(4). pp.571-601.
Rugman, A. M. and Verbeke, A. 2017. Global corporate strategy and trade policy. (Vol. 12).
Routledge.
Vogel, D., 2010. The private regulation of global corporate conduct: Achievements and
limitations. Business & Society. 49(1). pp.68-87.
Zona, F., Minoja, M. and Coda, V., 2013. Antecedents of corporate scandals: CEOs’ personal
traits, stakeholders’ cohesion, managerial fraud, and imbalanced corporate strategy.
Journal of Business Ethics. 113(2). pp.265-283.
11