Business Strategy and Strategic Planning for Tata Steel

This report provides a comprehensive analysis of Tata Steel's business strategy. It begins with an introduction to business strategy and its application to Tata Steel, including the company's mission, vision, objectives, and core competencies. The report then identifies strategic planning problems faced by Tata Steel, such as failing to adhere to strategic plans, inappropriate team members, and reluctance to embrace change. It explores strategic techniques like the BCG matrix, SPACE analysis, and stakeholder mapping. A SWOT analysis is presented, followed by an examination of external environmental factors impacting the organization's effectiveness, encompassing political, economic, socio-cultural, technological, legal, and ecological elements. The significance of stakeholder analyses is also discussed. The report further examines market entry strategies, specifically for Tata Steel, and analyzes the selected strategies. It also considers the roles and responsibilities for strategy implementation, resource requirements, and the evaluation of strategic plans, concluding with a summary of the key findings and recommendations for Tata Steel's future strategic direction.

Business Strategy
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1, D3, M3 Tata Steel.................................................................................................................3
1.2 Strategic planning problems for Tata Steel............................................................................4
1.3 Strategic techniques used in planning procedure...................................................................6
task 2................................................................................................................................................7
2.1 SWOT analysis of Tata Steel.................................................................................................7
2.2 External environmental factors of organization that impacts on Tata Steel's effectiveness..7
2.3 Significance of stakeholder analyses.....................................................................................8
2.4 Strategy for Tata Steel.........................................................................................................10
Task 3.............................................................................................................................................11
3.1, M1 Market entry strategy for Tata Steel.............................................................................11
3.2, D1, D2 Analysis of selected appropriate strategy...............................................................12
Task 4.............................................................................................................................................13
4.1 Roles and responsibilities of personnel for strategy implementation..................................13
4.2 Recognition of required resources for implementing new strategy.....................................14
4.3, M2 Evaluation of strategic plans........................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCE.................................................................................................................................16
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INTRODUCTION
Business strategy is useful tool to recover issue occurs at workplace by formulating,
implementing and evaluating strategic plannings. It is helpful for long term sustainability of
organization. The present report is based on understanding aspects of business strategy for Tata
Steel. It is largest well known cars, trucks and its equipment provider entity of UK. In this
regard, overall structure of company including mission, vision and objectives of firm can be
determined. In addition to this, different problems and their solutions are to be described through
this study. However, learners can understand environmental factors that impact on company's
effectiveness. Along with significance of personnel roles for adequate future plans are obtained
that is helpful for long term sustainability of Tata Steel.
TASK 1
1.1, D3, M3 Tata Steel
To,
The board
Tata Steel is one of the wide spread private sector organization of United Kingdom. Its
headquarter is is London and has different branches in other countries worldwide. The motor car
and truck provider company presents its organizational structure effectively. It includes mission,
vision, objectives and competences can be described as follows:-
Mission:- Tata Steel aims to sustain its market position for long term stability of
organization (Tata Steel, 2016). It is interrelated with set targets to reach out adequately.
Therefore, its mission can be understood as:-
 Adequate utilization of staff and materials.
 Increasing productivity and profitability of firm.
 Sustainability of entity for maintaining attraction of customers towards goods and
services.
 Creating effective and growing environment of organization for increasing working
efficiencies.
Vision:- It considers as scope of organization that how it views for itself for increasing
efficiency in business activities. It includes following visions as:-
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 Innovative approach:- Adopting new technologies for better quality services. People oriented:- Team work, effective leadership and management of business
activities.
 Environment:- Positive and healthy atmosphere of Tata Steel that is able to make
effective position in competitive market.
Objectives:- According to given scenario, Tata Steel sets target to maintain its valuable
goodwill in market by achieving following objectives:-
 To enhance profit earning capacity of organization.
 To reduce turnover of employees at workplace.
 To provide beneficiary facilities to workers for their stability and performance for
entity's effectiveness.
 To leading in delivering innovative solutions for entire growth of firm at high level.
 To be responsible for organizing and constructing infrastructure projects.
 To establish good relationship with collaborative to get succeed.
Core competences:- Tata Steel has balanced international availability over developed
UK and other countries of the world. However, it places essential role in entire global for
providing motor car and its equipment. It is fast growing organization and has good relations
with various customers including retailers, wholesalers and business entities.
1.2 Strategic planning problems for Tata Steel
Strategic planning is a process of forecasting and decision making for increasing business
and competitive strategies. It involves decisions related to development of entity including
qualitative services of firm to allocate sufficient fund as well resources. It interrelates with great
atmosphere of organization to achieve set of targets regarding planning and controlling over
transaction of motor cars including their equipment (Slack, 2015). However, it includes varieties
of ideas generated for effectiveness of firm and proper management of business activities. It
influences to increase business strategies of Tata Steel that presents strength and weakness of
entity. Thus, strategic planning is related to create effective future trends as per current position
of company in competitive market. Along with it includes internal and external environmental
factors that impacts on firm's position in global market. It is useful tool for developing
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efficiencies of organization to create positive atmosphere of business entity (Seuring and Gold,
2013).
Strategic planning problems:- Strategic manager of Tata Steel recognizes problems
occur at workplace regarding business activities can explain as below:-
 Do not follow on strategic plans strictly:- Manager of the company identifies that
organization remains unable to reach out its planned objectives. It is due to not focusing
upon strategic plans related to effectiveness (Abdallah and Langley, 2014). However, it is
also determined that unsystematic process and uncertain changes occur in entity.
Therefore, it is required for Tata Steel to prepare action oriented strategies to recover problems
arises at workplace. It is beneficial tool to meet targets of firm effectively. Having inappropriate people for team building:- Strategic planning and ideas are related
to leadership and systematic management of business activities. Therefore, selecting
wrong workers for contributing in team work and meeting organization's effectiveness
impacts on business strategy. It disturbs strategic planning procedures regarding
collaborative of entity. Hence, Tata Steel requires to choose suitable employees for
coordination and reaching out group's set goals (Agudo, Garcés and Salvador‐Figueras,
2015). Including this,effective leadership is approach is also needed for proper strategic
planning scheduling.
 Unwillingness to adopt changes:- Strategic plans are prepared for accepting uncertain
dynamics occurs at workplace. In this regard, plans consider as failure due to inability to
adopt changes. These changes are of different kinds such as technological issues and
qualitative services including turnover problems. Thus, it is necessary for strategic
manager of Tata Steel to prepare plans according to working over these dynamics
smartly. It is helpful to emerge workers' interests towards working performance. It
increases business strategies of organization effectively (Al-Mudimigh, 2015).
However, these above mentioned strategic problems disturbs environment of Tata Steel
to reach out its target. It impacts on management of business activities and strategies for further
plans and organization's effectiveness.
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1.3 Strategic techniques used in planning procedure
According to the given case scenario, strategic manager of Tata Steel plans to enhance
profitability and reducing turnover issue obtains at workplace. Therefore, various methods are
used for implementing business strategy of firm (Blackburn, Hart and Wainwright, 2013). It
includes various methods such as BCG matrix, SPACE and stakeholder mapping etc. Some of
the important techniques can express as follows:-
 BCG matrix:- It is one of the appropriate method that is useful for analyzing accurate
business unit including its several activities. By using this tool, strategic planning would
be succeed systematically. However, it generates varieties of ideas for optimum
allocation of resources used in manufacturing of finished goods. Hence, Tata Steel can
increase business strategy of organization by using this matrix technique for
implementing action plans. It influences proper production of motor cars, trucks and their
equipment that is related to profitability of firm (Brower and Mahajan, 2013). Thus, BCG
matrix plays crucial role effectiveness of entity at high level. It remains as key
component for systematic following strategic plans.
 SPACE analysis:- It stands for Strategic Position and Action Evaluation analysis. In this
process, different ideas are created regarding business strategy including internal and
external environmental factors that allows organizing suitable strategies. It has various
advantages for example; increases strength for facing competition and enhancing
financial strength of Tata Steel (Buckley and et.al., 2016). Therefore, appropriate
business strategy is obtained by using this strategic technique for planning process.
However, it influences environmental stability and industry attractiveness that is useful to
achieve organization's effectiveness.
 Stakeholder mapping:- It is related to stakeholder relationship management (SRM) for
which manager of Tata Steel prepares plan to achieve better performance of workers. In
accordance to this, conflicts and disputes occurs at workplace are managed effectively
therefore employees' great coordination to reach out objectives can be obtained
effectively (Chen and Jermias, 2014). However, it also involves providing various
facilities to stakeholder to emerge interest for enhancing working efficiencies. It is
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helpful for effective business strategy that impacts on company's positive environment at
high level.
TASK 2
2.1 SWOT analysis of Tata Steel
SWOT stands for strength, weakness, opportunity and threat of organization that presents
business performance. Through, analyzing these factors, strategic manager of Tata Steel can
prepare business strategy for organization's development (Goerzen, Asmussen and Nielsen,
2014). Therefore, SWOT analysis of company can understand as below:-
Strength:
 Utilizes resources adequately
 Products are popular with its brand
name
 Adopts environmental changes occurs
at workplace.
 Strongly follows prepared strategic
plans.
Weakness:
 High turnover ratio of employees
 Inefficient profit.
Opportunities:
 Leading generated ideas effectively.
 Providing development facilities to
workers to gain their great coordination
for organization's effectiveness.
 Following strategies plans for African
and Asian markets.
Threats:
 Facing competitive market.
 Maintain attraction of customers
towards company's goods and services.
 Supportive role of workers for team
building.
2.2 External environmental factors of organization that impacts on Tata Steel's effectiveness
External environmental factors are those uncontrollable components that affect business
activities of Tata Steel. It includes political, economic, socio-cultural, technological, legal and
ecological elements. Therefore, strategic manager of Tata Steel recognizes these factors to
present business strategy of firm (Harrison and Wicks, 2013). Description of all of these tools
and techniques can be determined as follows:-
Political factors:- It includes government policy, market structure, taxation and foriegn
trade rules. Due to changes in these aspects market position and effectiveness of Tata Steel get
impacted. In this regard, changes in interest and tax rates are interrelated with market structure. It
affects on financial position of entity. Moreover, increasing in these rates presents economic
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instability while decreasing in these rates influences effective monetary structure of firm
(Jocovic and et.al., 2014). Thus, changes in government policies impacts on economic profile of
organization.
Economic and socio-cultural environmental factors:- These are buyer behavior
components related to social status and economic condition of customers. In accordance to this,
due to variances in interest, attitude, lifestyles and different income of consumers. Thus, buyer's
behavior affects organization's business strategy. A company's customers are entitled to fair
trading practices but they are not entitled to the same consideration as the company's employees
(Klingner, Nalbandian and Llorens, 2015).
Technological aspects:- Changes in technologies for producing qualitative motor cars,
trucks and equipment impacts on organization's goodwill in market. Thus, adopting these
dynamics affect products' value of company. It is interrelated with customer satisfaction and
attitude of consumers' towards goods and services produced by Tata Steel. Hence, strategic
manager requires to prepare strategy for adopting technological changes and get adjusted
according to situations.
Legal and ecological factors:- It involves components related to government rules for
protection of customers and employees including organization's performance. By changing in
these elements organizational structure of entity get impacted (Madsen and Bingham, 2014).
Environmental factors:- These are those natural components who remains
uncontrollable. Therefore, strategic manager of Tata Steel prepares strategies for get adjusted
according to dynamics occurs at workplace. In accordance to this, various plans and their
implementations are presented for organization's effectiveness.
2.3 Significance of stakeholder analyses
Stakeholders are key components of organization that impacts on its structural
framework. Manager of Tata Steel prepares plan regarding recognizing stakeholders' position
and performance that affects entity's goals, policies and different strategies. These stakeholders
are of two kinds as internal and external who plays crucial role in business performances (Mayer
and Dale, 2014). It includes director, manager, employees, suppliers, creditors and customers of
the firm. Overall, composition of all these elements creates structural framework of entity
effectively. In accordance to this, firm's business and competitive strategies are presented
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through these components that presents strength and weakness of organization. Thus,
stakeholders are those elements of firm that generate effective ideas for further business
activities. Including this, relationship and coordination of all stakeholders presents organization's
efficiency to sustain in competitive market.
Stakeholder's analysis:- It is key division of stakeholder management. Under this
system, proper management of business activities is presented effectively. It is useful for
conflict resolution, systematic project management and strategic planning succession. However,
manager of Tata Steel identifies all these stakeholders' performance for implementing and
evaluating strategies effectively (Menon and Yao, 2016). Including this, various ideas are
generated regarding stakeholders' interest, impact on entity's effectiveness through adopting
changes in environmental factors. Moreover, entire management and development of business
organization's efficiency are generated through this analytical tools. Under this process, different
strategic plans are prepared for establishing relationship among all stakeholders. However,
organization's owner and manager makes plan for effective organizational structure as well
helpful for company's valuable reputation in market.
Importance of stakeholder analysis:- Analyses of stakeholders and their performances
are beneficial for Tata Steel to implement business strategy. It is useful for systematic
management of all stakeholder components. Including this, it provides various ideas for personal
and professional development of employees as well able to gain customer satisfaction that
presents organizational structure (Nalbandian and et.al., 2013). Some of the important
significance of stakeholder analysis can express as follows:-
 Obtaining interest of stakeholder for business activities:- Analysis of stakeholders is
essential for determining their interest towards business performances. It generates
different ideas for organization's effectiveness. However, various components for
creating organizational structure is created.
 Preparing business strategy:- Stakeholder analysis plays crucial role in preparing
business strategies including entire activities of Tata Steel. Therefore, proper
management of entity is presented through formulating and implementing this strategy.
Including this, it presents overall activities of entity to achieve set goals (Rothaermel,
2015).
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 Generates innovative ideas for creating positive environment:- Varieties of ideas are
obtained for reducing conflicts and disputes occur at workplace. Moreover, it is useful for
encouraging employees towards effective work performance. In this regard, manager of
Tata Steel prepares strategy for improving workers' skills by organizing development
programs (Sabherwal, Hirschheim and Goles, 2013).
2.4 Strategy for Tata Steel
Business strategy involves formulating, implementing and evaluating action plans to
reduce issues arise in organization. In accordance to this, manager of Tata Steel analyses
business performance regarding entire activities. Through identification, problems determine as
loss of threat of increasing employees' turnover ratio. Including this, it is preparing plans for
making new strategy related to establishing contact with African and Asian markets for motor
car and its equipment services (Scholes, 2015). However, some of the important strategies can
express as follows:-
 Action oriented strategy:- It is related to focusing upon objectives and plans strongly to
reach out set goals. In accordance to this, manager of Tata Steel prepares business
strategy to make it action oriented. It is effective tool for enhancing profit earning
capacity including emerging employees' interest for coordinating in team building.
Moreover, smart plans are prepared for action oriented strategy as setting small goals for
short time period (Seuring and Gold, 2013). It is useful for increasing efficiency of
organization to sustain its good reputation in global market.
 Growth strategy:- It is valuable for launching new products or introducing unique
features in existing products. Therefore, applying strategic tools regarding characteristics
and developing goods and services remains effective for business strategy of Tata Steel.
Along with various steps are determined for new market research as well creating good
relationship with customers including other business entities of different countries.
 Acquisition strategy:- Tata Steel can make effective place in global market by applying
this business strategy. Therefore, product value and attractive organizational structure can
be created. It increases company's strength for facing competition and making place in
market effectively (Slack, 2015).
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As per the given case scenario, applying all above mentioned strategies are beneficial for
organization's development. The most suitable strategy is action oriented that is useful for
implementing action plans for Tata Steel. Thus, profit earning capacity of firm will be increased
that influences workers' efficiency towards performance. Including this, it is useful for
organization's growth at high level. It interrelates with all other departments of entity such as
Financial. Production, research and development etc. Hence, entire development of Tata Steel is
possible through applying action oriented strategy effectively (Tata Steel, 2016).
TASK 3
3.1, M1 Market entry strategy for Tata Steel
According to given case scenario, there is quite reserved stock in organization that
requires to be supplied at high level. Therefore, manager of Tata Steel prepares growth strategy
for introducing products in market. It interrelates with market entry and growth strategies that
influences market position of entity to present motor can and equipment in global market. In this
regard, market entry strategy includes organic growth, acquisition and strategic alliance to
enhance production for company's goods and services (Abdallah and Langley, 2014).
Organic growth:- It involves expansion of entity by operating new branches in other
countries worldwide. It is useful for utilizing products and enhancing profitability at large scale.
However, new products are introduced through this tool for implementing business strategies. It
is beneficial for new products' development in market that impacts on productivity and
profitability of Tata Steel (Agudo, Garcés and Salvador‐Figueras, 2015). process of business
expansion by increased output, customer base expansion, or new product development, as
opposed to mergers and acquisitions, which is inorganic growth.
Acquisition:- Market strategy related to acquisition is helpful for taking competitive
advantage and facing competition. In this process, company takes over other existing
organization that is going towards loss. It remains beneficial for creating effective market
position of Tata Steel worldwide. It impacts on productivity and profitability of firm.
Strategic alliance:- It is agreement two or more companies related to legal partnership
for taking over and impacts on market position of firm. Thus, market position of organization get
increased through this strategy for making position in market (Blackburn, Hart and Wainwright,
2013).
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Growth strategy:
Market penetration:- This term is related to re-positioning of existing products. It
implements promotion of motor cars and equipment that influences profitability of Tata Steel. In
this regard, manager of entity prepares strategic plan for using different advertisement
techniques.
Market development:- Through this strategic tool, Tata Steel sets target to introduce
their existing products in new market. However, it attracts customers and establishes effective
relations with other business entities (Chen and Jermias, 2014). Therefore, expansion and
profitability of organization get impacted effectively.
Thus, strategies related to market entry and growth are useful for utilizing stock reserved
at workplace. Including this, expansion of Tata Steel and increasing profit earning capabilities of
entity is impacted. However, product value of company is affected by attraction level of
customers that interrelates with productivity of motor cars, trucks and equipment of firm.
Hence, as per the case scenario, growth strategy is valuable for introducing new product
and its strategy in market. It will impact on market development and product value regarding
profit earning capacity of firm (Goerzen, Asmussen and Nielsen, 2014).
3.2, D1, D2 Analysis of selected appropriate strategy
For increasing profit earning capacity and reducing turnover ratio of employees, manager
of Tata Steel chooses action oriented strategy. Further, it is foretasted that this strategy will be
most suitable for African and Asian markets too that influences expansion and profitability of
firm. However, recognition of this term can be described with Porter's Five Factors can describe
as follows:-
Supplier power:- Under this process, competition is analysis by which technique of
facilitating services are recognized. It includes uniqueness to handle and strength to make
position in market is determined (Harrison and Wicks, 2013). Therefore, performance of
distributor related to action oriented strategy is identified that impacts on productivity and
profitability of Tata Steel.
Buyer power:- It is related to analyzing buyers' power for purchasing motor cars and
their equipment of Tata Steel. It involves bargaining power and behavior of customers for buying
products. However, market position of company is obtained through this system.
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