Managing International Business: Stakeholder Interests at Tata Steel

This report, prepared for an International Management Consultant role at Tata Steel, offers a comparative evaluation of stakeholder interests, focusing on shareholders (represented by the Board of Directors) and workers. The analysis considers the interests and concerns of both groups in relation t...Read More

SCENARIO COMPARATIVE
EVALUATION OF STAKEHOLDER
INTERESTS
TABLE OF CONTENTS

INTRODUCTIOON........................................................................................................................3
Comparison of the stakeholder interest.......................................................................................3
Recommendation.........................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTIOON
Stakeholder is the party who has interest in a organization and they can affect business or
can affected by the company. There are two type stakeholders i.e. internal and external
stakeholders. The primary stakeholders of the business are employees, investors, customers and
suppliers. The brief study provides understanding significance of the stakeholder and their
interests in the Tats Steel company that is located in Port Talbot.
Comparison of the stakeholder interest
Stakeholder
Shareholders is the person who keeps share of the company by investing funds as per
organization demands. Due to the stakeholder gets success in the business because they provide
funds for expanding business and it’s operation in the other countries. The shareholder is also
known as stockholder of the company because they keep stock of the company. They are
important for the organization because they keep control on the business process that’s why
shareholders are known as backbone of the company. They play both direct and indirect
responsibilities in organization’s operations. The main purpose of the shareholder is to gain a
profitable return on their investment (Eckhard and Jankauskas, 2019). They have aim to make
high revenue so that easy to achieve higher share price. The shareholders have right to outline
it’s terms and condition in shareholder’s agreement or corporation rules such as shareholders can
sell or buy their shares and receive dividends from the gross revenue. In addition, they have right
to nominate other board member as per their choices and they can give vote while selection of
board members. They have right to takeover on the company when owner unable to give
sufficient profit to them. Shareholder have rights to do change in the company’s rules and
regulation. They focus on the business profitability based on the achievement of short-term
goals. They have rights to sell their shares in the organization or can reinvest it in other
companies. Organization is highly dependent on the shareholders for buying their stocks so that
easy to economical infrastructure of the business. in addition, shareholder also supports
organization to give funds for the R&D department as well as marketing (Berlin and Engwall,
2018). Managers specially focuses on the shareholder objectives without concerning that they
affect employees or workers negatively. Shareholders can put pressure on the organization as
well by refusing them to reselect for the investment. The investors or stakeholders has large

financial interest in the organization. for example, if a shareholder buy large amount of
organization’s shares that means they want to gain control of the company.
Workers
Workers are also an essential stakeholder of the organization because they support it meet
it’s objectives over the time. Workers also possess some rights which quite different from the
shareholder rights within organization. The primary right of the employees or workers is that
they must free from discrimination acts by organization. In other word, organization must keep
equality in the workplace while taking decision. Employees are not discriminated by the
employer on the basis of sex, gender, sexual orientation, race and performance level. Most of the
countries or state grants right to the worker to privacy. For example, organization must keep
individual privacy in the workplace (Gerrits and Verweij, 2018). Workers also prohibits from
exchanging worker’s personal information and access private information of the individual
without approval. If a worker access other worker’s personal possession, in that state they are
punished by employer in term of penalty or job termination. Employees or workers has right to
seek for legal counsel when they feel their employer or organization exploits their rights under
federal law. In most of the companies, employees has own shares which are deposited as part of
their benefit package in the employer’s stock, then it makes them shareholders of the company.
Workers are important for the organization because they impact employer’s productivity and
profitability. When an organization which scarifies staff morals for giving high profitability to
the shareholder that makes workforce demotivate. When employee are demotivates at the
workplace as result cannot achieve success in the business. So, it is mandatory for the
organization to take interest in the staff satisfaction. When the individual happy in the
organization as result gets high productivity and their morals in the workplace. To lead high
satisfaction of the staff in organization plays essential role by the employer’s management and
leadership skills.
The Tata Steel company is a steelmaking company which is headquartered in London, UK. It is
mainly operated in the UK and the Netherlands. From past few years, company faces scarcity of
the employee productivity in the Port Talbot (Barnieh and Ofori, 2016). Whereas organization
made plan of joint venture with German rival Thyssenkrupp so that it can keep the giant Port
Talbot steel plant after the signalling. Thyssenkrupp is the shareholder of the company who

advice to use Troster plant in Lianelli that leads high profitability in the business. Tata Steel
company does not want to planting of the Troster plant in the Port Talbot because it said
workforce has made great sacrifices to secure future for the steelmaker and said it would be
betrayed if worker’s livelihood puts in the danger zone or risk due to the doomed shareholders. It
shows organization gives values to the stakeholder instead of the shareholder. The management
of the company has poor performance in the company that causes less productivity of the staff in
the workplace.
Recommendation
The chief operating officers (COO) should close down plant operation in the Port Talbot
because Tyrosate plant can create risk for the worker livelihood. Port Tablet occupy less
productivity of the employee estimates 4000 which is quite less as compared other Tata’s plant.
Secondly, organization faces financial loss in the company due to increase energy cost as result
does not get positive impact on the business. Organization plans to adapt joint venture strategy so
that it can continue it’s giant Port Talbot steel. Tata Steel company does not have good financial
resources that causes UK’s government suggests to apply joint venture strategy and sells it’s
shares to the Thyssenkrupp who is rival of German. Whereas Tata Steel has agreed to merge
with Thyssenkrupp for the next two years (Agrawal, 2017). There was a reason that causes welsh
government puts pressure to the Tata to continue plat operation in the Port Talbot because there
has wide scope to give employment 15000 people in Port Talbot’s supply chain. The board of
director of the company critically analyse whole situation of the Port Talbot and plans to create
sustainable business that maintains employee and shareholders wellbeing in the business. But
due to high uncertainty for the workers last few years can create more uncertainty to work at Port
Talbot. Second, organization know that Thyssenkrupp affects workers livelihood as result leads
demotivation in the workforce (Brandt and Georgiou, 2016). There are number of reasons i.e.
scarcity of the employee turnover at the Port Talbot, raising high cost of energy, poor
management practices and doomed shareholders which caused organization must close down it’s
plant. For example, if organization continue it’s plant operation in the Port Talbot, in that
situation company have to take effective actions i.e. provides health insurance and job assurance
policies to individual in the workplace and fulfil their objectives by meeting their goals. If
organization pay attention on individual objective then cannot give high profit to the shareholder
as result does not get proper funds or can possible, they can takeover company (Schiozzi,

Jugović and Smojver, 2018). Overall, it can be interpreted that organization get loss in all sides
i.e. financial loss, renumeration of employees and shareholder relations, decreases brand value of
the organization. To close down business in Port Talbot is the effective strategy for the Tata
Steel company.

REFERENCES
Books and Journals
Eckhard, S. and Jankauskas, V., 2019. The politics of evaluation in international organizations:
A comparative study of stakeholder influence potential. Evaluation. 25(1). pp.62-79.
Berlin, D. and Engwall, M., 2018. Organizing ERS Projects: Implications for Demonstrations
and Deployments: A Comparative Stakeholder Analysis of the Swedish ERS-Projects
eRoadArlanda and eHighway E16.
Gerrits, L. and Verweij, S., 2018. The evaluation of complex infrastructure projects: A guide to
qualitative comparative analysis. Edward Elgar Publishing.
Barnieh, Y. and Ofori, D., 2016. Mining Sector CSR and Stakeholder Management: A
Comparative Developing Country Study. African Journal of Management Research. 24.
pp.122-146.
Agrawal, V., 2017. A Comparative Study on Information Security Risk Analysis
Methods. JCP. 12(1). pp.57-67.
Schiozzi, D., Jugović, A. and Smojver, Ž., 2018. Comparative Analysis of the Related Interests
of Relevant Stakeholders in the Development of Seaports in Relation to the Spatial
Concept of the City. Pomorstvo. 32(1). pp.36-41.
Brandt, F. and Georgiou, K., 2016. Shareholders vs stakeholder’s capitalism.