Strategic Management Accounting Assignment - TATA Steel Europe company

Added on - 22 Nov 2020

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Strategic ManagementAccounting
Table of ContentsINTRODUCTION...........................................................................................................................1(A) By using theoretical model analyse the current business strategies of TATA Steel Europe1(B) Analyse how key factors embedded in TATA Steel Europe business environment............2(C) Critically evaluate the TATA's business operations and corporate social responsibility.....3(D) Critically evaluate the balance scorecard concept and system which help the TATA SteelEurope to identify performance or deliver to the corporate responsibility.................................5CONCLUSION...............................................................................................................................7REFERENCE..................................................................................................................................9
INTRODUCTIONStrategic management accounting is the combination of business objective andmanagement accounting information which look forward for the business decision making. Itincludes the formulation & implementation of the business goals and objectives and these stepstaken by the top management people. This assessment is based on internal and externalenvironment where organisation operate their functions. This report is focused on TATA SteelEurope company which is a steel making company and its headquarters are situated in London(Bromiley and et.al., 2015). This report includes theoretical model which is applied onorganisation according to their business strategies. It also includes the key factors whichinfluence the business environment and also use other framework to critically evaluate thebusiness operation of TATA Steel Europe. Along with this, evaluation of balance score card andmeasurement of the performance or deliver the corporate responsibility is also done.(A) Analysis the current business strategies of TATA Steel EuropeAnsoff model is the strategic planning tool which help the organisation to perform theirtask according to framework. This matrix helps to senior manager, executives & marketresearcher for the purpose of analysis and majorly helps in decision making process. This modelprovide help to the manager regarding strategic planning and show the future expected growth.This matrix includes the four different type of strategies such as:Market penetration: -This marketing strategy followed by the various organisationwhere business introduce their existing products in the existing market for the further growth.Organisation continuously improve their manufacturing, cost competitiveness and distributionfacilities to their consumers. For example: - TATA Steel company can develop their existingproduct that is cold rolled steel in the UK market and the follow best practices to achieve theirproduction level such as maintain plant, supply chain management or other operational activities.These practices help the organisation to improve their existing product in the existing market(Brustbauer, 2016). TATA Steel Europe company can focus on operational excellence throughmarket penetration.Market development: -It is the second market growth strategy of this model whichfocuses on existing product in the new market. In this phase organisation introduce their existingproducts in the new market and it is done through focusing on consumers. Organisation identify1
the consumer's demand & preference in the market and then identify market where they have tointroduce their product. For example: - TATA Steel company can launch their existing productsuch as cold rolled steel in the German market. Because there is huge demand of cold rolled steeland Germany market have less suppliers to fulfil the demand of this product. TATA Steelcompany build a proper team who closely work with the consumers to identify market need anddemand.Product Development: -In the product development, business have to introduce newproduct in the existing market and it depends upon the market share of the company. TATASteel company have very good reputation in the market so they can sustain in the market. Forexample: - TATA Steel company can introduce their new product that is Metallurgy in theEurope country. Company regularly identify the market demand through research and make itpossible to satisfy the market. New product developed in the existing market will provide thestrength to the company to survive in the market. TATA name is sufficient in the market to makeit popular between the consumers or suppliers. With the help of innovation business can attractmore consumers because people find the unique products to use them. TATA Steel spend lots ofmoney on their research and development department to identify unique product to introduce inthe market. Product development strategies help the TATA Steel company to increase theirmarket share, profitability, increase their consumers as well as brand value of the organisation.Diversification:- Diversification means company introduce new product in the newmarket and it will include the huge risk because it required lots of money to invest.Diversification in organisation will be achieved by establishing new units in different areas thathelps to grab targeted consumers. Strategy of employees’ growth, nurture talent, foster teamwork will be achieved by appointing right employees at right place. Diversification will providemployees an opportunity to show their talent in new field or at some other job profile(De Waal,2013). In an organisation with the help of diversification object of growth can be achieved byoffering employees who are more competent in performing activity. For example: - TATA Steelcompany can introduce their new product which is Metallurgy in the new market that is German.It will require a lot of planning, investment, risk and different strategies according to thesituation. In the organisation, product development team identify future trend in the technology,recommend the various material for the production, design the product and then continuous2
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