University Assignment: Global Corporate Strategy of Tata Steel

This report provides a comprehensive analysis of Tata Steel's global corporate strategy, examining its approach to globalization within the steel manufacturing industry. It delves into the company's portfolio organization perspective, assessing its strengths and weaknesses in risk reduction and diversification, as well as the integrated organization perspective, emphasizing effective decision-making and optimal efficiency. The report explores Tata Steel's ability to acquire and deploy intelligent innovations and technologies through strategic alliances and mergers and acquisitions, evaluating the mix of resources and capabilities for digital and mobile technologies. Furthermore, it assesses the impact of Pravesh on the product portfolio and examines corporate governance, corporate social responsibility, and sustainability initiatives. The report also includes personal reflections and concludes with recommendations for the company's future strategic direction.

Running head: GLOBAL CORPORATE STRATEGY
Global Corporate Strategy
Name of the Student
Name of the University
Author’s Note:

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Executive Summary
The main aim of the report is to know about global corporate strategy of Global Steel
Manufacturing Industry. Global strategy can be stated as the strategic guide to globalization
for any organization. This type of strategy is responsible for allowing revenue of a business to
grow on a high level. The business could even employ a proper and effective global business
strategy for reaping the major rewards for trading within a proper world wide market. There
are three distinctive international corporate level strategies that vary on the requirement for
local responsiveness to the market as well as the requirement for globalized integration. The
multi domestic strategy majorly emphasizes on high competition in every country, where the
organization is operating. There is high pressure for the globalized integration of several
operations and are driven after growing some of the universal product demands. The potential
of larger demand of goods as well as services for people in the emerging markets is termed as
an important and significant incentive. A proper global corporate strategy can easily eradicate
the issues and complexities faced within any organization and hence most of the
organizations utilize such strategies. This report has clearly outlined a detailed analysis as
well as evaluation of distinctive strategies that are being adopted by global steel
manufacturers.

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Table of Contents
1. Introduction............................................................................................................................3
2. Discussion..............................................................................................................................3
2.1 Portfolio Organization Perspectives and Competitiveness..............................................3
2.1.1 Portfolio Organization Perspective...........................................................................3
2.1.2 Integrated Organization Perspective.........................................................................5
2.1.3 Possibility of Tata to Adopt both Perspectives of Portfolio Organization and
Integrated Organization......................................................................................................6
2.2 Business Model Innovation and Technological Innovation through Strategic Alliances
and M&As..............................................................................................................................7
2.2.1 Critical Assessment of Organizational Ability for Acquiring and Deploying
Intelligent Innovations and Technologies through SAs and M&As..................................7
2.2.2 Mix of Resources and Capabilities for bringing Digital and Mobile Technologies. 8
2.2.3 Assessment of Pravesh to Product Portfolio.............................................................8
2.3 Corporate Governance, CSR, Sustainability and Leadership..........................................9
2.3.1 Corporate Governance..............................................................................................9
2.3.2 Corporate Social Responsibility..............................................................................10
2.3.3 Sustainability in Business.......................................................................................11
2.4 Personal Reflections on Learning..................................................................................11
3. Conclusion............................................................................................................................12
4. Recommendations................................................................................................................13
References................................................................................................................................15

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1. Introduction
A global corporate strategy is a business strategy that is eventually engaged by
various firms, companies as well as businesses operating within a globalized business
environment and then serving customers in the entire world. Moreover, global competitive
advantages are also obtained if such strategies are fulfilled effectively (De Wit and Meyer
2014). Tata Steel, being one of the most popular and significant steel manufacturing
companies in the world that has gained its popularity through its unique global corporate
strategies. However, they have encountered closure of critical mines and thus margins were
under severe pressure. The following report outlines a brief discussion on the various
strategies and initiatives that Tata Steel have undertaken for achieving great efficiencies.
2. Discussion
2.1 Portfolio Organization Perspectives and Competitiveness
The standardization of company production, who are engaged in global business
majorly entails production of similar products for both national and several international
markets with the minor or the most significant changes within attributes (De Wit and Meyer
2010). The global corporate strategy provides benefits within the economies of scale for
producing in large quantities with the help of similar techniques for production. Decision
making process is highly enhanced and can even be dealt with effectiveness without much
complexity.
2.1.1 Portfolio Organization Perspective
Portfolio organization perspective refers to any type of business management strategy
execution from a high level perspective. The various tasks of an organization is well managed
and executed in an effective and efficient manner. The team collaboration and strategy

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management is done in a better manner (Johnson, Scholes and Whittington 2005). The
portfolio organization perspective refers to a mix of several strategies of business for
ensuring that the organization is getting proper output without involvement of any typical
complexity or issue. For gauging the scope of the business strategy, a proper time frame
should be included so that the outcomes are easily achieved. In Tata Steel, the wide range of
products can be easily and promptly managed with proper strategy. Since, the entire global
manufacturing steel industry is extremely competitive in nature, it is highly suggested that the
entire should be grouped into programs that form a portfolio (Lynch 2006). This process even
creates a basic hierarchical relationship of several elements, which are referred to as task
form projects, programs form portfolios and projects form programs.
The merits of portfolio organization perspective are as follows:
i) Reduction of Risk: Since, Tata Steel is recently facing issues related to their current
business strategy, the implementation of this particular perspective would be effective for
reduction of risks. This risk reduction can be extremely advantageous for diversification and
entering into the new market.
ii) Avoiding Disasters: The second advantage that Tata Steel would be obtaining from
this particular perspective is avoidance of disasters (Mintzberg, Ahlstrand and Lampel 1998).
Although, currently they are in a stagnant position, it is highly recommended for them to
involve this perspective so that they are able to avoid any type of disaster in future and hence
making the entire business error free. Security is enhanced after implementation of portfolio
organization perspective.
The disadvantages of portfolio organization perspective are as follows:
i) Lack of Downside Protection: The first drawback of portfolio organization
perspective is lack of down side protection (Osterwalder and Pigneur 2010). Since, it does not

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provide down side protection, governance corporate strategies should be selected wisely
before implementing them to the business. A subset of assets would go up in value at the
similar time according to the respective objectives and goals and thus there is no chance of
reduction of risks. Hence, portfolio perspective cannot be termed as a good technique for
avoiding these issues eventually.
ii) Risk of Over Diversification: The next issue is risk of over diversification. This
type of issue mainly occurs when there is a number of business strategies and these are
exceeding the budget of this particular organization (Rugman and Verbeke 2017). Although,
bringing diversification and entering into new market is good for any company, over
diversification can be problematic for Tata Steel.
2.1.2 Integrated Organization Perspective
Integrated organization perspective is a basic process that is required for developing a
business model, which eventually encompasses not only the financial priorities of any
enterprise, however after including significant measurements for the organization’s
environmental, governance and social performances (Thompson, Strickland and Gamble
2015). The detailed applications of integrated management are hence limitless since any
specific organization like public, private and non-profit could leverage the entire procedure to
integrate data into annual reports, decisions and functionalities and hence finding new and
distinctive opportunities for better improvement, value creation as well as expansion. A cross
functional and holistic approach is included in this particular perspective and hence
sustainability is enhanced. Organizational decision making process is improved with this
particular approach. In Tata Steel, the integrated organization perspective could be extremely
significant regarding the scope and boundary (Peng 2013). The key performance indicators or
KPIs are easily and promptly achieved and thus governance oversight and risk management

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and controls are subsequently reviewed without much complexity. The long term and short
term objectives are easily and promptly obtained without much complexity.
The main merits of integrated organization perspective are as follows:
i) Effective Decision Making: The decision making process would be improved and
integrated organization perspective can also bring effectiveness in organizational decisions.
ii) Optimal Efficiency: The optimal efficiency is obtained with this particular
approach and Tata Steel would be getting the best possible results with optimum uses of
resources (Park 2014).
The main demerits of integrated organization perspective are as follows:
i) Complex Approach: The entire approach of integrated organization perspective is
extremely complex as the organization of Tata Steel would be facing complex business
processes and models in their business.
ii) Time Consuming: The next demerit is time consuming as the approach is complex
in comparison to others. Value creation cannot be attained through this approach.
2.1.3 Possibility of Tata to Adopt both Perspectives of Portfolio Organization and
Integrated Organization
The two perspectives of portfolio organization and integrated organization are
extremely beneficial for the organization of Tata Steel (Herrera 2015). They can adopt both
of these perspectives simultaneously in the fast changing dynamic global business
environment. The main reason for this type of adoption would be that they can implement the
advantages of these two perspectives for gaining more efficiency and effectiveness in their
business. Since, Tata Steel is dealing with several products and services in their organization,
the advantages of effective decision making, optimal efficiency and avoidance of risks and

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disasters would be involved in their business (Bartlett, Doz and Hedlund 2013). The global
corporate strategy hence would be utilized in their business in an effective manner for
ensuring that Tata Steel is able to implement their unique ideologies for successful
achievement of goals and objectives.
2.2 Business Model Innovation and Technological Innovation through Strategic
Alliances and M&As
The global business strategy is closely related to the respective business developing
strategies that are being adopted by several businesses for meeting the short term as well as
long term goals and objectives. These short term objectives can be related to the
improvement of regular operations of the organization, whereas the respective long term
goals are generally targeted towards the increase of profits within the long run for eventually
ensuring stability and growth of the business as well as governance over the regional and
national market (Marchi, Maria and Micelli 2013). This type of strategy is responsible for
answering several questions like extent of market presence in the major markets of the world,
process of building the necessary global presence, optimal locations in the entire world for
several value chain activities.
2.2.1 Critical Assessment of Organizational Ability for Acquiring and Deploying
Intelligent Innovations and Technologies through SAs and M&As
Tata Steel has the ability to acquire and deploy intelligent innovations and
technologies through strategic alliances. Due to this type of effectiveness, they are able to
develop new products, business models and new and innovative technologies (Milne and
Gray 2013). The steel products of Tata Group eventually have a higher influence on
information technologies that have made the market globalization extremely high in
comparison to others. The innovative process should be treated as a multidiscipline as well as

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multidimensional process, where several people can participate. Strategic innovation hence
would be achieved for unpredictable future challenges as well as developments.
Innovation would be obtained in technologies through mergers and acquisitions as
well. Tata would be able to acquire as well as deploy new intelligent innovations and
technologies through M&As (Epstein 2018). A relative importance of the technological
investments should be given by Tata Group for ensuring these innovations.
2.2.2 Mix of Resources and Capabilities for bringing Digital and Mobile Technologies
In Tata Steel, a proper mix of resources and capabilities is being present after
automating, integrating and re-engineering information technology. The digital technologies
like mobile, predictive analysis, big data and social media would be different in respect to the
IT based technologies (Hood and Vahlne 2013). The digital possibility would follow digital
density and the resources and capabilities would be easily and promptly achieved without
much complexity. They have included these resources for the core purpose of achieving their
unique goals and objectives.
2.2.3 Assessment of Pravesh to Product Portfolio
Tata Steel has always focused on innovation and this has helped them in improving
their products, services and solutions for satisfying the customer needs. The innovent
program has hence allowed them to enter into the new market segments like steel doors
segment. Tata have introduced these steel doors under the brand name of Pravesh and have
received a positive feedback from clients. Pravesh is extremely efficient for Tata Group as
they have allowed them to create a new market for the organization (García‐Rodríguez et al.
2013). According to blue ocean strategy, there are four actions that are required to be
considered for assessing this product portfolio.

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The first action is raise, which raise questions regarding product and pricing
standards. The second action is eliminate that questions about areas that should be eliminated
for reducing costs. The third action is reduce that questions about unimportant products’ costs
should be reduced and finally the final action is create, where new product and service is
created. After analysing Pravesh with blue ocean strategy, it is being observed that this
product is extremely effective to product portfolio (Munro 2013). Moreover, business model
innovation can also be used for analysis. Since, they have created new product of steel doors,
the existing business model would be achieved.
2.3 Corporate Governance, CSR, Sustainability and Leadership
The organizational vision of Tata Steel is to be one of the major globalized
benchmarks for value creation as well as corporate citizenship. Moreover, long term CSR or
corporate social responsibility objective is required for improving the quality of life of every
community via long term value creation for each and every stakeholder of Tata Steel. This
particular objective of corporate social responsibility has an alignment with the core purpose
of Tata Group (Sparrow, Farndale and Scullion 2013). For achieving the objective, this
particular organization of steel industry has been a major pioneer within several initiatives of
corporate social responsibility. Tata Steel wants to continue to remain absolutely focused on
improvement of quality of life and then engaging the communities through development of
infrastructure, sports, education and health.
2.3.1 Corporate Governance
Corporate governance can be referred to the method any corporation is being
governed. This is the core technique through which the organization is being directed as well
as managed. It also refers to carry the business according to the expectations of stakeholders.
This is conducted by the board of directors for the benefit of the organization (Benn, Edwards
and Williams 2018). Corporate governance is the core interaction within several participants

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like organizational management, shareholders and board of directors for effectively shaping
performance of the organization. The owners should check the actual performance of
organizational member in accordance to the standard performances. Effective as well as
efficient strategies are being solely utilized for undertaking proper decisions within the
business. It is extremely important for the development of added value to the stakeholders.
Corporate success and economic growth are majorly obtained by this type of corporate
governance (Compact 2013). Regarding corporate governance, Tata Steel creates and
enhances the long term sustainable value for all stakeholders by the help of ethically driven
business processes. Hence, the affairs of this particular organization are managed in both fair
and transparent manner.
2.3.2 Corporate Social Responsibility
Corporate social responsibilities or CSR can be referred to as a kind of international
business related self regulations. CSR is being referred to as an internal organizational policy
as well as a corporate ethical strategy, which can be developed after implementation of
several laws and regulations. This type of responsibility is extremely important and
significant for any organization to manage their business processes for the core purpose of
producing an overall positive and significant impact on the society (Veltri and Nardo 2013).
It eventually covers ethics, social impact and sustainability and can be appropriately done for
understanding the core businesses. It not only refers to the business, but also on the fact that
how well business is being managed and the procedure to manage the business. In Tata Steel,
CSR is highly maintained as the organizational vision is to be a popular and globalized
benchmark for corporate citizenship and value creation. The organization has positive impact
as well as influence on its employees or partners for development of a sense of social
commitment for the stakeholders (Surijah 2016). The four initiatives that Tata Group focuses

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are skills, water, education and governance. Thus, they ensure that corporate social
responsibility is majorly maintained within the organization.
2.3.3 Sustainability in Business
Sustainability can be referred to as a core procedure to maintain major changes within
a balanced environment, where resource exploitations, investment directions, orientation of
technological developments are required for enhancing the current as well as future potential
for meeting aspirations and needs. Sustainable development helps in meeting the core
requirements of the present without even compromising the capability of future generation
and meeting needs (Mermod and Idowu 2014). Tata Steel is maintaining sustainability in
their business as they are following eco-friendly and environmental resource management
within their organization. Moreover, they are also ensuring environmental protection so that
the environment is not affected with their products under any circumstance. Thus,
sustainability is being maintained in Tata Steel efficiently.
2.4 Personal Reflections on Learning
After completing the strategy analysis and critical evaluation on global corporate
strategies of Tata Steel, I have known that the global business strategies have even emerged
as a major result of internationalization and globalization of several established domestic
organizations that is being purported for increasing the business value. The incrementing
pressure of globalization as well as rising global competition have eventually prompted the
organizational managers to rethink about formulating global business strategy. The impact of
this particular assignment is positive on me as I have understood the competition of Global
Steel Manufacturing Industry and how well Tata Steel has to make their unique strategies and
strategic alliances for making the business much more effective. I have also learned that
strategic alliances are responsible for enabling two companies to work towards correlating
and common goals. These are required for both short term as well as long term benefits and

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they ensure that the responsibilities of every organisational member is clear and hence they
are able to deal with the complexities faced within an organization.
Tata Steel should think about mergers and acquisitions and should undertake smaller
organizations for a consolidation of assets and companies through several types of financial
transactions. The merger with Thyssenkrupp is a major milestone for Tata Steel. Both of
these organizations share an equal joint venture and they have signed definitive agreements
after ensuring a valuation gap. I have also understand about corporate leadership in Tata
Steel. Corporate leadership is the executive structure of a company and it is responsible for
creating a companywide direction that is to be carried out by the respective employees,
supervisors and managers of Tata Steel. They also comprises of high risk and higher reward
nature for corporate leadership and hence it ensures that they would have an elite ascend in
the positions of corporate management. These types of positions of corporate leadership are
required for making their global corporate strategy much more effective and significant in
comparison to others. I have known that the Global Steel Manufacturing Industry is
sustaining its growth and development through few policies and practices. The Sustainable
Development Policy can be effective for reforming decision making process for undertaking
sustainable growth and approaches in the organization. Moreover, they are able to manage
linkages with global economy and are able to identify knowledge and implementation gaps.
3. Conclusion
Therefore, from this above discussion, conclusion can be drawn that global business
strategy is much different from the national business development strategy since there are
few factors like product adaptation and product standardization are being considered.
Moreover, the factors for product diversification and product differentiation are extremely
relevant for both global and national business strategy for the rise of competition in
international and national market. Such strategies even rest on the two pillars of adaptation

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and standardization that are in major conflicts. It is also helpful for fast accumulation of the
entre learning experiences as a major fallout of the learning by fulfilling approach. The above
provided report has clearly demonstrated about various strategies of Tata Steel. The
organizational perspectives, business model innovations as well as technological innovations
through mergers and acquisition, corporate social responsibilities, corporate governance and
personal reflections on learning.
4. Recommendations
The recommendations for Tata Steel regarding their global corporate strategies are as
follows:
i) Global Driving and Local Management: The first and the foremost
recommendation for Tata Steel is global driving and local management of the organization.
Tata Steel should emphasize on global marketing. It would set a framework as well as
parameters within which local marketing operates for controlling local success levers. The
areas of marketing, which lend themselves for being at a central or global level like strategic
marketing planning and branding. Any other local area should be best managed after
inclusion of social media strategy and guidelines. Tata Steel can easily consider this
particular recommendation for removing the recent turbulence faced in market.
ii) Understanding Demands of Local Market and Development of Collaborative
Approach: Being a popular steel marketing organization, Tata Steel should understand the
major demands of local market and develop a collaborative approach. Hence, the successful
and unsuccessful marketing approaches are considered majorly. A close relationship with the
local marketing teams could be developed and thus they would be able to eradicate the major
issues of global corporate strategy efficiently and effectively. Knowledge should be leveraged
for making global plans as well as campaigns successful.

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iii) Development and Socializing of a Global Marketing Plan: Another important
and significant recommendation for Tata Steel regarding their downfall of market position is
development as well as socializing of a globalized marketing plan. Since they have already
established the major relationships within their customers, researched the local markets as
well as defined global marketing plans for accommodating local requirements wherever
needed. The assumptions are required to be validated and hence a proactive approach is to be
considered for adjusting and revising the plans for any specific problem related to global
strategy.

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