Report on Business Strategy Planning - Tata Steel UK
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Added on 2020-01-28
Report on Business Strategy Planning - Tata Steel UK
Added on 2020-01-28
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ContentsIntroduction .....................................................................................................................................2Task 1...............................................................................................................................................31.1In your report, briefly define the following terms; visions, missions, objectives, goals, corecompetencies. Assess how these notions inform strategic planning for a business ...................31.2Analyse factors that Tata Steel UK and yourself, as the strategic manager would need toconsider planning and formulating strategic plans. In this part of your report, consider some ofthe key issues and problems there are with respect to strategic planning. Include at least threefactors associated with Strategic Planning...................................................................................51.3Define and evaluate the appropriateness of the effectiveness of any two strategic planningtechniques used in strategic planning..........................................................................................7Task 2...............................................................................................................................................92.1 /2.2 In your document, analyse the strategic positioning of Tata Steel UK by carrying outan internal audit using SWOT. As a development of your analysis, carry out an external auditusing PESTEL as this will support your proposal. .....................................................................92.3. Define the term stakeholder in your proposal and then assess the importance ofstakeholder analysis with respect to Tata Steel UK and its formulation of a new strategy.......122.4 Create and present a new strategy for Tata Steel UK .........................................................153.2 In your proposal, inform the board of your selection in 2.4 and provide justification for thisselection ....................................................................................................................................173.1 Suggest two alternatives strategies and analyse the appropriateness of these strategies. Inthis section of your proposal, analyses two of the following; market entry, organic growth,growth by merger, acquisition, strategic alliances, substantive growth, limited growth andretrenchment strategies. .........................................................................................................18Conclusion ....................................................................................................................................20Reference ......................................................................................................................................21
Introduction There are several theories and concepts which are related with the business strategy. Within thisreport the vision, mission statements, goals, objectives and core competencies which areassociated with the business of Tata Steel UK have been assessed. Different factors which areneeded to be analysed in the strategic planning are analysed. The effectiveness of the techniqueswhich are used in the strategic planning has been evaluated. After considering the strategicposition of the organisation Tata steel organisation audit as well as external audit has beencarried out. The significance of the stakeholders has been assessed and a new strategy has beenproduced on Tata Steel UK. Justification has been made on the selection of the strategy whichhas been developed and two alternative strategies are analysed.
Task 1In your report, briefly define the following terms; visions, missions, objectives,goals, core competencies. Assess how these notions inform strategic planningfor a business Mission statement: the mission statement is the purpose or role through which the organisationtends to serve the objectives of the stakeholders. Through the mission statement the currentapproaches of the organisation as well as the capabilities of it are defined. The stakeholders andjustification of its existence are also referred within the mission statement. The mission statementcan be set for different levels of organisation it is the reason behind the existence of theorganisation. Tata steel strives to reinforce the industrial base of nation through efficientutilisation of the skills and knowledge of staffs and available materials. High technologicalimplementations and consistency with the modern practice of management Tata steel has beenenvisaged to achieve the mission statement. (tata.com, 2015)Vision statement: the intention of the organisation in the future is defined within the visionstatement of the organisation. The way through which the organisation can be able to meet theobjectives of the stakeholders and make efficient steps within future market is related to thevision statement. The shared understanding of the nature and its components and the purpose ofthe organisation has been incorporated within the vision statement. The vision statement leadsthe organisation towards greater purpose. Through the tool of vision statement the workforce canbe inspired and a sense of direction can be provided. They ought to serve the stakeholder and thecommunities 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 moderntechnologies. Through the strategies they tend to serve one quarter population of the worldwithin 2025. Objectives and goals: objectives are required to be defined after the clarification of mission andvision of the organisation. Objectives should achievable, measurable, attainable, realistic,extending in nature and also includes specific time frame. Goals can be defined as the targetswithin 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 thepractices by retaining the core values. (tata.com, 2015)Core competencies: these are set of unique skills, processes values and system which are helpfulin achieving the goals and maintain the position in the competitive market. Tata group has corevalues like integrity, spirit, agility, passion for excellence and unity. Along with these leadershipand trust is most important one as they helping the organisation to achieving the reputation. Tatagroup has numerous skills and talents and they are making improvements of their skills incontinuous process. (tata.com, 2015)
Analyse factors that Tata Steel UK and yourself, as the strategic manager wouldneed to consider planning and formulating strategic plans. In this part of yourreport, consider some of the key issues and problems there are with respect tostrategic planning. Include at least three factors associated with StrategicPlanning.Strategic planning is the management activity of tan organisation which has been used to set thepriorities, allocate resources, focus energy, strengthen the operations, establish common goals todirect the human resources towards the achievement, establish agreement around the intendedoutcomes and assess the organisational direction in responding to the changing environment. It isdocumented for communicating the organisational goals and directing the needed actions to bedeveloped along with the critical element analysis within the planning exercises. There aredifferent factors which can be act as barriers for the strategic planning. These factors are externalas well as internal. By assessing the factors the implementation of the strategic planning can bedone 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 ofTata. Acquisition of the multiple companies under the same banner is the strength of Tatawhich is helping is to serve wide market along with UK. It is also providing value chainefficiency and giving the opportunities to enjoy the products of the sister companies andbenefits from them. Apart from these the organisation has modern technical assets andadvanced talents of the current generation which are increasing the competency level ofthe 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 recentcontext. This is limiting the organisation’s abilities in creating budget in strategicplanning. It is also impacting over the long run and the vision statement. The organisationcan also face issues in the time of economic crisis. (mbaskool.com., 2016).Opportunities: as the organisation is operating in different region and have severalacquisition it has the capabilities to utilise different materials in times of crisis. The
organisation also has the ability to adapt different modern technologies. The increasedimprovements of the technology world have been beneficial for Tata. (mbaskool.com.,2016).Threats: in the current context the organisation has been facing challenges in CO2emission from the production in Europe. External analysis of Tata: the external analysis is used for examining the threats andopportunities in the current market. Through Porter’s five forces the external analysis can beconstructed: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 steelmanufacturing as the organisation. As there are low barriers in the product differentiationthe products do not have any substantial price differentiation. (Roy, 2011) The economicforces like lower cost, better bargaining power, R & D expenses are impacting on Tatasteel. Bargaining power of suppliers: the powers of suppliers are low as the organisation iscontaining full integrated steel plants and own mines. Competition: higher completion is arising though the brand value has been a greaterstrength for the organisation. (Roy, 2011)Substitutes: though the usages of other materials in the domestic lives and use ofaluminium in the automobiles are increasing, these do not pose any significant threats tothe 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.
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