Tata Steel Strategic Analysis

This assignment requires you to conduct a comprehensive strategic analysis of Tata Steel. You will utilize the SWOT analysis framework, the BCG matrix, and stakeholder mapping to evaluate the company's internal strengths and weaknesses, external opportunities and threats, as well as its key stakeholders. The analysis should also delve into Tata Steel's diversification strategies and the challenges associated with them. You are expected to draw on relevant resources and case studies to support your analysis and recommendations.

Contents
Introduction .....................................................................................................................................2
Task 1...............................................................................................................................................3
1.1In your report, briefly define the following terms; visions, missions, objectives, goals, core
competencies. Assess how these notions inform strategic planning for a business ...................3
1.2Analyse factors that Tata Steel UK and yourself, as the strategic manager would need to
consider planning and formulating strategic plans. In this part of your report, consider some of
the key issues and problems there are with respect to strategic planning. Include at least three
factors associated with Strategic Planning...................................................................................5
1.3Define and evaluate the appropriateness of the effectiveness of any two strategic planning
techniques used in strategic planning..........................................................................................7
Task 2...............................................................................................................................................9
2.1 /2.2 In your document, analyse the strategic positioning of Tata Steel UK by carrying out
an internal audit using SWOT. As a development of your analysis, carry out an external audit
using PESTEL as this will support your proposal. .....................................................................9
2.3. Define the term stakeholder in your proposal and then assess the importance of
stakeholder analysis with respect to Tata Steel UK and its formulation of a new strategy.......12
2.4 Create and present a new strategy for Tata Steel UK .........................................................15
3.2 In your proposal, inform the board of your selection in 2.4 and provide justification for this
selection ....................................................................................................................................17
3.1 Suggest two alternatives strategies and analyse the appropriateness of these strategies. In
this section of your proposal, analyses two of the following; market entry, organic growth,
growth by merger, acquisition, strategic alliances, substantive growth, limited growth and
retrenchment strategies. .........................................................................................................18
Conclusion ....................................................................................................................................20
Reference ......................................................................................................................................21

Introduction
There are several theories and concepts which are related with the business strategy. Within this
report the vision, mission statements, goals, objectives and core competencies which are
associated with the business of Tata Steel UK have been assessed. Different factors which are
needed to be analysed in the strategic planning are analysed. The effectiveness of the techniques
which are used in the strategic planning has been evaluated. After considering the strategic
position of the organisation Tata steel organisation audit as well as external audit has been
carried out. The significance of the stakeholders has been assessed and a new strategy has been
produced on Tata Steel UK. Justification has been made on the selection of the strategy which
has been developed and two alternative strategies are analysed.

Task 1
In your report, briefly define the following terms; visions, missions, objectives,
goals, core competencies. Assess how these notions inform strategic planning
for a business
Mission statement: the mission statement is the purpose or role through which the organisation
tends to serve the objectives of the stakeholders. Through the mission statement the current
approaches of the organisation as well as the capabilities of it are defined. The stakeholders and
justification of its existence are also referred within the mission statement. The mission statement
can be set for different levels of organisation it is the reason behind the existence of the
organisation. Tata steel strives to reinforce the industrial base of nation through efficient
utilisation of the skills and knowledge of staffs and available materials. High technological
implementations and consistency with the modern practice of management Tata steel has been
envisaged to achieve the mission statement. (tata.com, 2015)
Vision statement: the intention of the organisation in the future is defined within the vision
statement of the organisation. The way through which the organisation can be able to meet the
objectives of the stakeholders and make efficient steps within future market is related to the
vision statement. The shared understanding of the nature and its components and the purpose of
the organisation has been incorporated within the vision statement. The vision statement leads
the organisation towards greater purpose. Through the tool of vision statement the workforce can
be inspired and a sense of direction can be provided. They ought to serve the stakeholder and the
communities with long term value creation along with leadership and trust. (tata.com, 2015)
Their vision is to provide a sustainable future for the next generation through all modern
technologies. Through the strategies they tend to serve one quarter population of the world
within 2025.
Objectives and goals: objectives are required to be defined after the clarification of mission and
vision of the organisation. Objectives should achievable, measurable, attainable, realistic,
extending in nature and also includes specific time frame. Goals can be defined as the targets
within a specific time. Goals consist of one or more objectives. Through unique integrity and

trust and leadership Tata group has been trying to achieve the mission and vision statements.
They are trying to incorporate the changes of the global market and enforcing innovation in the
practices by retaining the core values. (tata.com, 2015)
Core competencies: these are set of unique skills, processes values and system which are helpful
in achieving the goals and maintain the position in the competitive market. Tata group has core
values like integrity, spirit, agility, passion for excellence and unity. Along with these leadership
and trust is most important one as they helping the organisation to achieving the reputation. Tata
group has numerous skills and talents and they are making improvements of their skills in
continuous process. (tata.com, 2015)

Analyse factors that Tata Steel UK and yourself, as the strategic manager would
need to consider planning and formulating strategic plans. In this part of your
report, consider some of the key issues and problems there are with respect to
strategic planning. Include at least three factors associated with Strategic
Planning.
Strategic planning is the management activity of tan organisation which has been used to set the
priorities, allocate resources, focus energy, strengthen the operations, establish common goals to
direct the human resources towards the achievement, establish agreement around the intended
outcomes and assess the organisational direction in responding to the changing environment. It is
documented for communicating the organisational goals and directing the needed actions to be
developed along with the critical element analysis within the planning exercises. There are
different factors which can be act as barriers for the strategic planning. These factors are external
as well as internal. By assessing the factors the implementation of the strategic planning can be
done with efficiency. (mbaskool.com., 2016).
SWOT analysis of TATA to assess the internal factors in strategic planning:
 Strengths: brand equity and reputation in the global market are the greatest strengths of
Tata. Acquisition of the multiple companies under the same banner is the strength of Tata
which is helping is to serve wide market along with UK. It is also providing value chain
efficiency and giving the opportunities to enjoy the products of the sister companies and
benefits from them. Apart from these the organisation has modern technical assets and
advanced talents of the current generation which are increasing the competency level of
the organisation to achieve its mission, objectives and goals. (mbaskool.com., 2016).
 Weakness: the increasing ratio of debt-to-equity is the biggest weakness of Tata in recent
context. This is limiting the organisation’s abilities in creating budget in strategic
planning. It is also impacting over the long run and the vision statement. The organisation
can also face issues in the time of economic crisis. (mbaskool.com., 2016).
 Opportunities: as the organisation is operating in different region and have several
acquisition it has the capabilities to utilise different materials in times of crisis. The

organisation also has the ability to adapt different modern technologies. The increased
improvements of the technology world have been beneficial for Tata. (mbaskool.com.,
2016).
 Threats: in the current context the organisation has been facing challenges in CO2
emission from the production in Europe.
External analysis of Tata: the external analysis is used for examining the threats and
opportunities in the current market. Through Porter’s five forces the external analysis can be
constructed:
 Barriers to entry: the organisation has been operating in the capital intensive business.
The production requires the capacity of the plant along with capital requirements.
Government policies in Europe have been major issues in the production of steel
manufacturing as the organisation. As there are low barriers in the product differentiation
the products do not have any substantial price differentiation. (Roy, 2011) The economic
forces like lower cost, better bargaining power, R & D expenses are impacting on Tata
steel.
 Bargaining power of suppliers: the powers of suppliers are low as the organisation is
containing full integrated steel plants and own mines.
 Competition: higher completion is arising though the brand value has been a greater
strength for the organisation. (Roy, 2011)
 Substitutes: though the usages of other materials in the domestic lives and use of
aluminium in the automobiles are increasing, these do not pose any significant threats to
the organisation. (Roy, 2011)
Factor and problem affect the strategic planning of TATA Steel business-
 Articulate value proposition – This is the issue that affect the business for making
the strategy and it takes place how the organisation can take the advantages of
social real ability to perform the well in the generating the profit.

 Globalisation – It is the issue for making the challenges in market of the company
in the foreign market the ability to take the new market and existing product. The
international market are better to gather the knowledge and culture.
 People – This is the problem facing by the TATA company for establishing the
business. That is the issue for related to the employment and worker of the
company. It can produce the product with reducing the cost in the market place.
 Power – In this problem the company can provide power both the way in formal
and informal way they take the power and influence the generally imposed and
under the related services.
D1 Mission, Vision, Goal of the TATA Company
Mission Statement – tata are more about considered the effective utilisation of resources
and user the new technology for expanding the business.
Vision- They offer the vision with the help of
People- It includes the teamwork, motivated workforce skilled people in the team.
Offer – They make good relationship with the suppliers, creditors, debtors and give the
discount and premium of the product and services.
Creativity and innovation – they used the more creative idea and participate the
employees to give them the techniques and process for manufacturing the product.

Define and evaluate the appropriateness of the effectiveness of any two strategic
planning techniques used in strategic planning
There are different techniques which used within the strategic planning processes. These are:
 BCG matrix,
 Stakeholder mapping
 PIMS
 SPACE
The effectiveness of stakeholder mapping: the mapping of the stakeholders are important for the
understanding the key stakeholders within the organisational operations and their impacts over
the business. Through the analysis the stakeholders are engaged within the organisational
strategy with efficient manner. Stakeholders mapping has been used in the ongoing engagement
process and analysing the efficiency of the previous engagement. Through this technique the
stakeholders prioritise the stakeholders and adapt necessary approaches to engage them.
(gsvc.org., 2011). Through the mapping the importance of the stakeholders are analysed by
identifying their intensity level. Through this mapping the risks within the stakeholder
relationships are also identified. There are certain issues which are associated with the
stakeholder mapping technique in the strategic planning. As this mapping identify the
importance of different stakeholders and helps to approach the significant one the focus can be
diverted for other stakeholders which later can impact over all strategies. (Karkhanis, 2016).
BCG matrix: BCG matrix is the effective management tool which can be used by large
organisations. Through this matrix the managers are able to manage several units and levels of
business. The market share as well as the growth rates are analysed through the matrix which are
necessary to develop new strategies. The development and growth rate against the average
growth rate can be compared through the BCG matrix. The balance of current portfolio of the
organisation can be done through this. Though there are several benefits of using this technique
there are limitations also. The synergies between the business units are neglected in the matrix.
As the model uses two dimensions – market growth and market share, this can limit the
management to emphasise a specific product. (bcg-matrix.com., 2016).

Considering the effectiveness of these two techniques as well as their limitations the BCG matrix
can be appropriate for the strategic planning for Tata. Through this matrix the organisation can
efficiently make proper approaches in the diverse market segments.

Task 2
2.1 /2.2 In your document, analyse the strategic positioning of Tata Steel UK by
carrying out an internal audit using SWOT. As a development of your
analysis, carry out an external audit using PESTEL as this will support your
proposal.
Through SWOT analysis the organisational audit can be done with analysing the strengths,
weaknesses, opportunities and threats of the organisation. It is also used for the internal factors
analysis. (startmyownbiz.biz, 2015)
SWOT of Tata steel UK:
Strengths of Tata steel: the adaptability of the organisation in the fast changing environment and
market forces, is posing a greater strength for the organisation. Through the high competencies
the organisation is adapting the changes in the global market within the operations of the
organisation with greater efficiencies. As it has its own mines and the direct supply of raw
materials it has the control over the supply chain. Strong brand image in the market is posing
advantages for the company along with the acquisition strategies. The commercial presence in 50
countries and operations in 26 countries are providing advantages in the economic scale. The
integration with the Corus and competencies of 2000 metallurgies are posing strengths to the
organisation. (mbaskool.com, 2016)
Weakness of Tata steel: as it has dependency on the domestic and few international markets it is
having issues in generating business. The operational efficiencies of Tata steel are noir as good
and the international leaders. In recent context the organisation is slightly lagging in the
technological front. (mbaskool.com, 2016)

(startmyownbiz.biz, 2015)
Opportunities: fastest evolving new technologies are the major opportunities for the organisation
as these can be helpful in creating advancement in the production such as, direct iron smelting,
Corex process, Hismelt process. Partnerships in the public and private sectors are also enforcing
opportunities for the market growth of Tata. Different acquisition of the coal blocks in Asia and
Africa are providing ability to improve the supply chain. The acquisition with the Corus group is
also providing greater access to the European market along with the facility of utilisation of
R&D. (mbaskool.com, 2016)
Threats: the rising prices of coking coal, regulatory norms imposed by government ion the
activities of Tata, international competition are giving challenges and threats to the organisation.
Pestle analysis of Tata steel: through the pestle analysis the external environment forces can be
analysed.

Political: the governmental intervention in the environment where the organisation has been
operating the business is referred as the political factor. Through different policies the
government has been influencing the business of TATA, such as taxation policy. The
international trade regulations are also enforcing changes in the strategic implementation. (Sinha,
2014)
Economical: in the time of the economical crisis in 2007 the organisation had faced different
issues like reduction in eth confidence in liquidity and the returns of investments. The European
market faced recession in this crisis. As the Corus Company has the main markets like UK,
Netherlands and Germany Tata steel faced issues within these markets. With the down turn of
the economic scale the organisation faced loss. Later the acquisition helps the organisation to
gain sustainable growth. (Sinha, 2014)
Social: with the ethical behaviours and trust in the leadership the organisation is maintaining
their social and ethical responsibilities considering the nation’s communities. The health issues
and the economic well being issues are the main focus of improvements of Tata Steel in recent
scenario.
Technological: changes and renovation within the technologies are impacting over the
organisation on both positive and negative respect. Through the adaptation of the current
technologies the organisation is having sustainable growth in international markets and
improving their operations and productions. The technological evolution also imposes threats in
the competitive measures. (Sinha, 2014)
Legal: different factors are influencing the strategic operations of Tata Steel. Health and safety
rules for the employees and customers, monitory and fiscal policies, etc are impacting over the
decision making processes within the strategic planning of Tata Steel.
Environmental: in recent context the carbon emission and the carbon footprint of the production
of Tata Steel has been impacting over the business. (Sinha, 2014)

2.3. Define the term stakeholder in your proposal and then assess the importance of
stakeholder analysis with respect to Tata Steel UK and its formulation of a new
strategy.
Stakeholder: The term stakeholder refers to the group of people or individuals who are impacting
over the business or can be impacted by the actions, policies and objectives of the business.
There are different creditors, board of directors, suppliers, employees, customers or consumers,
unions, community, shareholders etc are the main stakeholders of an organisation. (Atkinson,
2013)
Stakeholder analysis: the analysis of the stakeholder is the process of identifying the groups and
the individuals who can impact or can be impacted by the operations and policies of the business
and its strategies. The stakeholder analysis is effective in case of business administration,
conflict resolution, and project management. Through the stakeholder analysis the stakeholders
are sorted according to the levels of their impacts on the business. (Atkinson, 2013)
(stakeholdermap.co
m, 2016)

Importance of the stakeholders: The stakeholders are important as through effective
identification and management of the stakeholders are important in respect with the decision
making processes and in building the corporate image within the market. Through the analysis of
the stakeholders and the levels of their impacts the stakeholders are involved within the
organisation goals and achievements through effectiveness manner. (Atkinson, 2013) Different
relevance of different stakeholders is essential to analyse while placing a strategy. Through this
analysis the degree to which they have the power over the legitimacy and the urgency on the
relationships with the organisation are analysed. Tata Steel has a wide range of stakeholders such
as the community, the government both local and central, steel industry, mining industry, joint
ventures and acquisition companies like Corus Group, investors, different environmental groups,
Unions, employees etc. As Tata has been operating in such an industry which is mostly depend
on the various forms and components of environment different policies of government and
environment groups’ activities impacts the business operations of Tata. Global, political and
social landscapes have power, urgent and legitimate claims over the sustainable practices of Tata
Steel. Through ensuring creditability and reliability Tata steel has been approaching the
communities in the growth of the business. Through the stakeholder analysis the stakeholder of
Tata can be efficiently engaged within the new strategic decision making processes. (Atkinson,
2013)

2.4 Create and present a new strategy for Tata Steel UK
In order to develop new strategies the current and the existing strategies should be evaluated by
taking in account the effectiveness and the efficiencies. The current position and the desired
position of the organisation in the global market should be evaluated. New strategy for Tata Steel
UK:
Current position: Tata Steel is the Indian Multinational steel making organisation. It is Asia’s
first integrated private sector steel company; it has been in the top ten global steel companies
with annual crude steel capacity of over 29 million tonnes. It is operating within 26 countries and
is commercially presented in 50 countries. The larger production facilities of this organisation
are in India, UK, Thailand, Singapore, China Australia, and Netherlands. In Europe it has crude
production capacity of 18mtpa. They have plants in UK, Netherlands, Germany, Frances, and in
Belgium. (tatasteel.com., 2016)
Goals: Tata steel has been determined to become the global benchmark through value creation
and build corporate citizenship in the industry of steel. In UK they are aiming to develop long
term partnership in the chosen by through unlocking the potential steels. The current goals are to
produce innovation products which would be helpful in overcoming the challenges.
Objectives: the mission and vision statement of Tata Steel should in corporate within the
practices. Responsible way should be approached for maintaining the ethical approaches in the
market. The actions should be developed on following the policies and the safety measures
should be included within the practices. (tatasteeleurope.com., 2016).
Strategy: before developing the strategy the former strategies should be evaluated. The strategy
should be based on customer orientation. As the organisation is operating in the demanding
market the sales and marketing strategies should be focused on the demands in markets. The
product mix should be improved along with service offerings. Tata steel should integrate
innovation within the strategy. (Verbeke, 2013) With the maximisation of the proportion of
differentiated products the customer attractions can be retained. With the new evolution of the
technologies the manufacturing can be done and distribution facilities can be enhanced. BCG
matrix as well as Stakeholder Mapping techniques should be used to have proper knowledge
over the market share and growth and the involvement of the stakeholders in the strategies.

Risk: the risks can be analysed by the SWOT and PESTLE analysis. With the SWOT analysis
the internal risks and PESTLE analysis the external risks should be identified before the
development of strategies. (tatasteeleurope.com., 2016).
Time scale: within a fixed time scale the strategy should be executed. Units of time measurement
should be implemented on each objectives and units of actions.

3.2 In your proposal, inform the board of your selection in 2.4 and provide
justification for this selection
For having appropriate management in the organisation and building proper sustainable growth
in the current market the above strategy has been appropriate. Different factors are needed for the
justification of the strategy:
Acceptability: through the current strategy the real time measures can be implemented. The
stakeholder mapping is efficient regarding acceptability of the strategy. Through this technique
the current stakeholders and their impacts over the strategic implementations can be analysed.
BCG matrix would provide proper market scenario and their influences over the strategy.
(Verbeke, 2013)
Suitability: the strategy is suitable for the organisation is current market development. The
current market segments can be achieved through this strategy. With this strategy the
organisation can be able to place their focus in future market share in UK market considering
current issues like Brexit.
Feasibility: through this strategy and its implementation the organisation have feasibility in
achieving the desired goals. The strategy will lead responsible behaviour within the approaches.
(Verbeke, 2013)
Acquisition: in considering the acquisition the strategic approaches can create efficient balance
in functions business. Through this strategy the organisation can be bale to have better
understanding over the market competition place proper methods. (Verbeke, 2013)

3.1 Suggest two alternatives strategies and analyse the appropriateness of these
strategies. In this section of your proposal, analyses two of the following;
market entry, organic growth, growth by merger, acquisition, strategic
alliances, substantive growth, limited growth and retrenchment strategies.
Limited growth strategies:
Market penetration: this strategy has been developed on the market share or the measure of the
percentage of sales volume of a product in relation to the competition. For increasing the market
penetration Tata Steel UK can adapt different approaches like:
 Increased promotion: through greater promotional activities the organisation can have
better penetration in the market. An advertisement campaign can be developed for
increasing the brand awareness.
 More distribution channel: Tata steel should increase their methods of products. Along
with the exiting telemarketing operations Tata Steel can also approach direct mail
approaches for the distribution channel. (Kumar, 2010)
 Product improvements: through making improvements in the product the organisation
can increase the interest of the customers. By enhancing the perception of the quality the
organisation can retain the potential customer base.
 Price adjustment: it is one of the common market penetration strategies. Through lower
the price of products Tata steel can generate more volume of sales. (Kumar, 2010)
Market development strategy: through finding and developing new markets the organisation can
have sustainable growth. Through modifying the existing products and making innovation within
them new segments can be approached. Apart from the automotive and construction sector Tata
steel can approach the service sectors in B2C market.
Substantive growth strategies:

Related diversification: it is considered as the horizontal diversification. By adding related
product and services in the product line the diversification can be made. Tata steel can add more
innovative products in the retail business for having substantive growth. (Loya, 2014).
Unrelated diversification: it is referred as the conglomerate diversification strategy. By adding
new business units or producing new products which are separated from the existing ones this
strategy can be approached. (Loya, 2014).
M1
TATA Steel industry used the more technical system for they are competitive advantages of the
competitors firm. They can use the staff efficiency and also determined the factor which the
company are affect in the term of finance and services. They used the cheaper price and more
production with reducing the cost in the business. They provide the more expand the business in
the global market and invite the investor for creating the market goodwill.
D2 Michel five force model
 Supplier power – This step the behaviour of the customer for particular product
and service in the market and understand the preference of the consumers. The
TATA have select the particular for the soecific task and strength of the retailer
and whole seller to carry out the result and generate the profit.
 Buyer power – It is model tell about the purchasing power of the person tata can
used the model for increasing the demand of product and identified the demand in
the market.
 Competitive rival –TATA can used the model for determined the competitors in
the market place and relate to the existing product with reflect the other
commodity and technology used by the other firm.
 Threat of substitute -TATA take advantages for the product in the market for exist
one they produce other product and unique supply for existing ones.

 Threat of new entry – It affects the money, power, place and cost for making the
product effectively with reducing cost. TATA are estimated his revenue and
barriers and weakness and competitive strategy of the competitors.

Conclusion
With the case study analysis on Tata Steel the report has been generated on various aspects of
business strategy. Business strategies and their related concepts should be analysed by every
organisation in approaching a mass market. As Tata Group is a large company operating in
diverse business sector the organisation is having a wide range of strategies in the business.
Strategic planning is essential regarding the approaches which the organisations made within the
markets. Analysing the internal as well as external factors organisations get the ability to analyse
risks factors of strengths which they can utilise in the strategic planning implementation.

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