Analysis of Tata Steel's Corporate Global Strategy and Innovation

This report provides a comprehensive analysis of Tata Steel's corporate global strategy, examining key aspects such as portfolio organization, integrated perspectives, and competitiveness. It delves into business model innovation, highlighting technological advancements like the introduction of steel doors (Pravesh) and strategic alliances, including the collaboration with Labrador Mines Canada. The report also explores mergers and acquisitions, specifically the acquisition of Corus Group PLC, and discusses corporate governance, corporate social responsibility, and sustainability leadership within Tata Steel. The analysis evaluates these elements, providing insights into how Tata Steel has adapted its strategies to navigate the global market, enhance product offerings, and improve its competitive position. The report emphasizes the importance of innovation, strategic decision-making, and adaptation in achieving success in the international business environment. Finally, it provides a critical assessment of the strategies employed, including both strengths and potential challenges.

Corporate Global Strategy

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................3
INTRODUCTION...........................................................................................................................4
QUESTION 1...................................................................................................................................4
Portfolio, Integrated Organisation Perspectives and Competitiveness.......................................4
Portfolio organisation perspective...............................................................................................4
Integrated Organisation Perspectives..........................................................................................5
Competitiveness..........................................................................................................................5
Critical Evaluation......................................................................................................................5
QUESTION 2...................................................................................................................................6
Business Model innovation.........................................................................................................6
Technology innovation................................................................................................................6
Strategic alliances........................................................................................................................7
Mergers and acquisition..............................................................................................................7
Critical assessment......................................................................................................................8
QUESTION 3...................................................................................................................................8
Corporate governance.................................................................................................................8
Corporate social responsibility....................................................................................................9
Sustainability and leadership.......................................................................................................9
Critical evaluation.....................................................................................................................10
QUESTION 4.................................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

EXECUTIVE SUMMARY
This report is having details on the Tata Steel and their innovative changes in their products by
which they has increase their sales. Opportunities has to find out by the company on which they
can perform their business activities so it is essential for the company and their management to
use an effective strategy. Merger and acquisition can help to the company to increase their
strength in the competitive world.
INTRODUCTION
A global strategy defines international strategies and vision of a company for the
international market (Rothaermel, 2015). It provides a path to the organisation to move forward
to attain pre determined objectives for the global market. Many of the corporate are working in
several countries of the world as they have the potential to expand their business in more
markets. so they have to make modification to those particular market's in their global strategy.
This present report is based on Tata Steel which is a venture of Tata group that belongs to India.
Tata group has been acquired Corus Group PLC in Europe. This report is having portfolio
organisation perspective to manage several products of TATA steel. The company has made
many innovative changes in their products by using business model innovation. Corporate Social
Responsibility helps a lot in improving the products and services which has used by the
organisation which is included in the report.
QUESTION 1
Portfolio, Integrated Organisation Perspectives and Competitiveness
Portfolio is related to several investments which are made by the organisation to expand
their power and potential to increase their manufacturing. As TATA steel is working in the
international market, so it is essential for them to make a better development in their products
and as well as in the potentials to make a betterment in the products. As they are working in
different countries of the world so it is essential for the company to make integrated activities
and improve their product range by making investments in the manufacturing units (Hillier,
Grinblatt and Titman, 2011). Each and every unit or venture is having different teams which
have to work according to targets to attain objectives. These teams are required to make proper
bonding and team work to achieve mutual objectives.

Portfolio organisation perspective
It is a collection of strategies which helps the company in making strategic decisions to
manage the effectiveness to make better developments in the organisation. It is essential and
effective to adopt it by the TATA steel, it can help in developing various products as per the
needs of targeted market and as well as it can help them to increase their sales (Peng, 2013). But,
it is necessary for the organization to make better analysis of the target market to develop their
products and services accordingly.
Integrated Organisation Perspectives
Several departments have their targets which are required to be attained within the time
line; it is a breakdown of objectives in different departments which increases the integration of
company by increasing the productivity of different teams to align their activities as per the
business strategy. It focuses on the particular manufacturing unit to enhance the potentials of
towards the customers and as well as to manage the performance as per the market competition.
Tata steel manufacturing is making many types of products for competing with those companies
which are working in the same sector.
Competitiveness
As the Tata steel is working in the international market, so it is essential for the
organization to improve their production as per needs of the customers. Many of the companies
are working in the steel manufacturing so it is essential for them to increase their production and
services (Ghemawat, 2013). Competitiveness has potential to make regular improvements in
products and services by which company can ensure success in the market by managing their
sales standards and profit objectives.
Critical Evaluation
Portfolio organisation perspective can help the TATA steel to make a better product
range by taking effective decisions by developing strategic decisions. By this, the firm can
ensure their success in the targeted market and portfolio organisation perspective can help them
to make better changes in the production by making required changes. But it is a strategic
process which can take time so sometimes it can take huge time in the decision making to make
effective changes in product range. So the management is required to use their to make better
decisions to ensure the success of the company. Tata is multinational company and they have to

take strategic decisions by on the investments in their product development so they have to use in
a better way.
QUESTION 2
Business Model innovation
Innovative change and developments in the existing products and services, moreover new
concepts of products which can provide a better financial supports to organisation, can be stated
as a business model innovation (Peng, 2012). It includes many points on which a company can
make developments, most of the time a company is having their aim on the customer’s needs and
market competition which can impact their profits so it is essential for the company to make
better changes as per the customers’ needs. Proper analysis of market can ensure success of the
business model innovation and market analysis is the base of developments so it has to be in an
appropriate manner. Innovative changes create a compulsion to management and employees to
perform better. An organisation have different sector in which they can make innovative changes
which is essential for them to provide proper and appropriate customers satisfaction. Proper
analysis of market can help the company to develop their workings on the customers demands
which can help the company to make effective concept of a product and make innovative
changes in the products. Most of the companies are using business model innovations to enhance
their effectiveness for the customers.
Technology innovation
Technological innovation is a concept which involves development in scientific field
with innovation in studies in accordance with the technological change. It comprises of creating
new products and processes in the existing product and processes of the company to launch in
the market. It is an art of creating and introducing something new. The world is moving towards
globalisation which impacts the country by different other countries culture. So the up-gradation
and rising competition affects the operations of a company which aims at innovation and
development (Kolk and Van Tulder, 2010). Likewise TATA Steel have introduced steel doors
which is new innovation in the manufacturing of doors as doors were made of wood or iron back
in time. Steel is good resistor of water. Launching the range of doors made by steel under the
name PRAVESH is a very innovative and new technological change in the products and
processes. This new innovation of steel door was done by the TATA to improve the sales of the

company because the competition in the market is rising which lead to innovation of these doors.
As we know the population is rising very rapidly and resources are scarce so the company is
aiming at utilising the resources to develop new innovation.
Strategic alliances
It is a process under which a company forms a partnership with other company to achieve
some goals and objectives and while this operation both the agreed company remains individual
entity. Strategic alliance can be provided by partners with resources as well like- products,
distribution channel, manufacturing capability etc. This is basically strategic outsourcing
relationship (De Brentani, Kleinschmidt and Salomo, 2010). Various types of strategic alliances
are franchising, cartels, licensing, outsourcing etc. Cartels means collectively selling a product
by different companies setting a standard price. Franchising involves opening a new unit of some
company with the name of that company which act as head because the brand value of the
company is good. Strategic alliances goals is to have a all in one solution for a problem,
flexibility, acquisition of new customer, shared risk, access to new market, common sources and
son on to develop and grow business all over the globe. This may create a division of the profit
which might be earned by a single company but is a good way for the growth and development
of the company. Development of new strategies is enhanced by it. TATA has done horizontal
strategic alliance. TATA steel has done strategic alliance with Labrador Mines Canada.
Mergers and acquisition
Mergers and acquisition is a type of amalgamation of two organisations, it is a normal
term of the merger and acquisition. In this two companies can merge their business to increase
their power to make better production in a particular market. In the merger a stronger contender
of the market can merge those companies which are not performing well financially. In the
merger, board of directors of the two companies make an agreement and one company take over
on the other. In it a company which is not performing well can be merged by a strong company
but it needs an approval of the shareholders in it (Kirtiş and Karahan, 2011). It is a type of
transformation of the owners of the company with out making any changes in the management
and shareholders. In the acquisition the power company does not make any changes in the name
and legal structure of the acquiring company. As the Tata Steel has a made an acquisition of the
Corus Group of PLC which was also working in the steel manufacturing. It helps to both parties

cause both are having need of the support. As the Tata steel wants to expand their business in the
Europe by acquiring the Corus group they have increase their effectiveness in that particular
market.
Critical assessment
Innovation is an essential element for the company which is working on the international
level so they have to make an appropriate innovation in the products and services. Tata Group
has made many innovative change in the steel product and Pravesh doors is one of them, most of
the door's has made by the wooden and ply boards, but they have made innovative change in it
(Miller and Harkins, 2010). As they belongs to the India and they have made many of the
acquisition in the international market to enhance their potentials to increase their profits and
efficiencies to provide a better workings in the international market. They had acquired Corus
Group PLC which was an European company and now Tata steels are using their manufacturing
units and providing better products and services by making innovative changes in it. Strategic
alliance provides an opportunity to the company to make some innovative change in their
workings and products by taking inspiration from the other company, as the Tata has made
Labrador mines in Canada which get them an opportunity to use new technology to make a better
production of the Steel. Now they have to make a acquisition with the digital and mobile
company by which they can make a better communication with the targeted customers to make a
better CSR. This segment is having direct relation with the end user which is having a direct
impact of the CSR activities. As the Tata has made Pravesh doors which is a suitable example of
the innovation, the Tata group has use the blue ocean strategy according to this company has to
increase the number of customers by the business expansion in the overseas. Business model
innovation is also used by the company in which they have a more innovative segments of the
new products in which they can increase their sales and manage their profits and revenues.
QUESTION 3
Corporate governance
Corporate governance is a system of rules by which a company is controlled and directed.
It involves balancing the interest of company's stakeholders such as shareholders, management,
financiers, government, customers etc. It also helps in obtaining the objective of the company.
Board of Director is the primary stakeholder of the company. The shareholders elected the

directors and they are appointed by the other board members of the company and they represent
the shareholders of the company. The main function of board is to take the important decisions
of the company like appointment of the corporate officers, executive compensation and dividend
policy. Board is comprises of inside and independent members. Insiders are the shareholders,
founders and executives of the company whereas independent members are chosen according to
their experiences in managing and directing the companies. Independent members help in
corporate governance. Corporate governance is very important for every company because it
helps in preventing the corporate scandal,fraud and civil and criminal liability of the company
(Mollenkopf and et. al., 2010). It also helps in enhancing the goodwill of the company in the
eyes of the public as a self policing company. A company without a corporate governance is just
like a body without a soul. Corporate governance always keeps a company out of trouble.
Corporate social responsibility
Corporate social responsibility is a business approach which helps in development by
serving social, economic and environmental benefit to the stakeholders. CSR is a concept which
is defined by many definitions. It is implemented for each company and country in different
manner. It is a very broad concept in includes human resource, corporate governance,
economical development,working conditions and health and safety. The main objective of CSR
is to drive change towards sustainability. Corporate social responsibility is a management
concept which helps in integrating the social and environmental concern in their businesses with
their shareholders. A company also maintain a balance among social, economical and
environmental concern with the help of CSR and also fulfils the expectations of the shareholders
and stakeholders at the same time. It will also directly increase the reputation of the company
and strengthen the brand by making valuable contribution to the poverty reduction (Farndale,
Scullion and Sparrow, 2010). The main CSR issues are environmental management, eco-
efficiency, stakeholder engagement,working condition,labour standard,human rights etc. By
implementing a CSR concept it brings a variety of competitive advantages like enhancing capital
and markets, increased sales and profits, operational cost saving, improve productivity and
quality etc.
Sustainability and leadership
Sustainability means fulfilling the needs of the present generation without compromising
with the ability of future generations to fulfil their own needs. It must be done in such a manner

so that it will leave appropriate resources for others with minimum waste. It helps organisation to
prevent over consumption and reduce waste to provide a sustainable and healthy future. It also
helps in reducing operational expenditures and maintain stakeholders relations as well as
increase profitability and competitive advantages.
Sustainable leadership is based on some principles they are as follows
 Understanding the interconnections of systems
 Think towards future
 Protect nature and people
 Transform business
 Lead by example
It means planning and preparing for achievement of future objectives. Sustainable leadership
provides opportunities of rewards and incentives. This system helps in providing opportunity to
learn from and help each other. It is a cost saving approach. Its not too much expensive.
Sustainable leadership system take care of leaders and encourage them to take care of
themselves. The important components of sustainable leadership are courage and risk taking. It
helps to integrate social,economical and environmental benefits. It requires new form of
organising skills, new way of thinking sustainability within and between organisations.
Sustainable leadership is very important for every company (Dunlap‐Hinkler, Kotabe and
Mudambi, 2010). It must be direct and inspirational, collaborative and participative so that it can
helps in obtaining the objective of the company.
Critical evaluation
As the Tata group is working in the international market so it is essential for the company
to make a better development in the products and services by which they can ensure the success
in the market. Higher management is having the main r9ole in it and they have to identify those
sector in which they can do CSR activities. It can help to the company to make a better relations
with the society and as well as it can help to the company to make a better sale of the products by
making promotions of the products in the targeted market. CSR is having the main role in the
promotions but it is essential for the management to manage the public and social interest in it by
which the can make a better workings in the Corporate social responsibility. CSR is having need
of the proper analysis on the points on which the management can perform CSR activities so
management has to make a proper analysis on the needs of the stakeholders on which they can

start the CSR activities. Senior management is having rights to conduct a research on the CSR
needs by which they can make a better workings and as well as it can help to the company to
make a better reputation in the market.
QUESTION 4
As the Tata is working in the international market so it innovation helps a lot them to
make a better working in the product developments. Business model innovation helps a lot to the
company to make a different product range by which they can make a better profits. Many of the
companies are working in the international market and they are having regular innovative
changes in their products. I personal believe that companies which are working in the
international market have to make a proper analysis of the market needs and they have to make
appropriate changes in their products and they have to make regular analysis on those subjects on
which they can make products and services.
CONCLUSION
The above presented report has been concluded about the steel m manufacturing company which
are working in the international market. Tata steel is a big manufacturers in the world and it is
essential for them to make innovative changes in their products so they are using business
innovation model but they have to use also technological innovation in their old manufacturing
units to increase their effectiveness and profitability. A portfolio can help to the company to
make a better products as per the market requirements, it helps to the company to map the
strategic process to make a better product. Tata steel has acquire the Corus group PLC in Europe
by which they are making interfere in the European market which is related to the blue ocean
strategy in which they are increasing their market.

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Online
Merger. 2017. [Online]. Available Through: <http://www.investinganswers.com/financial-
dictionary/businesses-corporations/merger-1821>. [Accessed on 22 May 2017].