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TATA Steel PTD (submitted by MP16016

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Environment:

Even though PSPL and PTD, both are operating in the same industry but their environment are
quite different. The most remarkable difference is in terms of Competitors. PTD, functioning
within the parent organization i.e. TATA Steel, does not have any direct competition. The
survival of PTD depends upon the quality of services it provides to the stakeholders (internal
and external customers).The uncertainties faced by PTD are much lower than those faced by
PSPL. Where the uncertainty faced by PTD is mainly because of dynamism, PSPL faces the same
due to complexity ad richness.

PSPL, on the other hand, works in an environment with low richness i.e. a market with high
number of competitors. PSPSL not being the largest competitor in the market is forced by other
competitors to cater to a SME market. Due to the issue, the present customer base of PSPL is
extremely sensitive to PSPSL since they are largely dependent on it for survival. Any demand
fluctuation affects PSPL’s performance severely. Therefore, even while enhancing its customer
base; existing customers are to be taken care of. Both competitors and customers form a major
source of uncertainty for PSPL.

Apart from customers and competitors, PTD deals with its suppliers on technical front and
derives the bargaining power to do so from the parent organization. PTD also set its own rules
to technically select a supplier’s offering. On the other hand, PSPL depends on other suppliers
for processing. It will not be able to deliver any output if these suppliers don’t provide the steel
sheets to PSPL. So, PSPL needs to guard against raw material supply side uncertainty which is
why they tend to form long term contracts with these suppliers, simultaneously working to
increase the suppliers’ base. The bargaining power of PSPL is also very limited. As any higher
and formal strategy may not economically be viable for them, they seek to create a strategic
alliance to manage resource independencies.

Structure

Both PTD and PSPL use the product divisional structure. PTD has PAG function which is a
geographical structure in itself but for majority of PTD employees, product divisional structure
functions in a similar manner to that in PSPL. As a result of this structure, the common support
functions in PTD and PSPL get centralized and accessed by all product divisions as per the
requirement.

all support functions look for all 4 types of product offerings. LD1 does not compete with any other steelmaking shop. LD Shop #1 or LD1 also belongs to the TATA Steel and have no direct competition. Sub-unit orientation is one of the limitations which have been experienced by PSPL. a support function member reports to his functional superior as well the head of that product. these employees usually report to the centralized department and not to the plant head. PSPL depends on the external suppliers for the raw materials to be processed. existing customers are to be taken care of. These employees are categorized as “operation groups” or “service group”. LD1 . For PSPL. Structure: LD1 operates round the clock and in shift-based working hours.Neither PTD nor PSPL can have product-wise dedicated support functions. Being the only steelmaking shop housing a billet caster. Each workstation in LD1 is considered differently producing different products and has a leader designated as Head. acting in their specific environment. LD1 has internal and external customers as stakeholders. LD1 caters to the need of long products’ (external) customers and long product rolling mills’ (internal) customers. While PSPL is limited in size and resources. The support functions in LD1 are a part of “product team structure”. In both organizations that the support function representatives can be located at the place where the production takes place. The Head is supported by the team members of other supporting functions as well. as discussed earlier. LD Shop #1 (submitted by MP16039) Environment: As PTD. In LD1. LD1 considers the labor unions as their internal stakeholders while the concept of union is absent in PSPL. PSPL. however. Even while enhancing its customer base. Product team structure is more prevalent in organizations willing to create a difference. operates in a market with high number of competitors. Where LD1 uses blast furnaces as their internal supplier of raw materials. These competitors force PSPL to cater their services to small and medium enterprises. PTD may also be highly susceptible to this type of issues and should guard against the same. employing around 900 employees. This SME customer base of PSPL is extremely crucial for its operations as they are largely dependent on it for survival. PTD itself is a support function in its parent organization.

Except for JSW. PSPL. uses Product Division Structure as a measure of organizational structure. As the entire different portfolio’s mentioned are in the similar line of work. CRM does not have any other competitor in terms of cold rolling mill / galvanizing coil production. They provide CRM with hot rolled . PSPL. Therefore. which requires a less complex and low differential organizational structure. This service head is responsible for its own line of service and directly reports to the directors with their line of work. even while enhancing its customer base. These distributers supply steel to smaller players where TATA Steel is not capable of reaching. works in an environment with low richness i. TATA Steel CRM also shares TATA Steel as its parent organization and has both internal and external customers. The most important suppliers for CRM are one hot strip mill and one thin slab rolling mill. Due to the issue. existing customers are to be taken care of. CRM being the finishing process includes distributers as well as important stakeholders. on the other hand.e. automotive. PSPSL not being the largest competitor in the market is forced by other competitors to cater to a SME market.e. a market with high number of competitors. CRM provides flat products to TATA Steel’s three most important market segments i. on the other hand. there is no need for the organization to carve out different support functions for each portfolio of service. Both competitors and customers form a major source of uncertainty for PSPL. CRM also have unions and recognizes them as external stakeholders and capable sources of uncertainty. Each different service is under the direct supervision of the Service Head that acts as a Plant Head in any large organization.strategies on lower costs. white goods/consumer appliances and general engineering applications (external customers) and also provides steel to captive steel processing centres that ( internal customers). Tata Steel Cold Rolling Mill Operations (made by MP16007) Environment: As PTD and LD1. the present customer base of PSPL is extremely sensitive to PSPL since they are largely dependent on it for survival. Suppliers are also a key source of distinction for CRM and PSPL. The service heads are assisted by a centralized support team that has developed core competencies in all the different services that the organization caters to. Any demand fluctuation affects PSPL’s performance severely. As PSPL does not have any union. they don’t encounter additional uncertainty that occurs due to the presence of unions in any organization. PSPL have a centralized support functions team that caters to all the different portfolios.

While the most important suppliers for PSPL are the steel sheets for them to process (business of cut/slit/shear to size). Being a large organization. the latter is dominant in Automobile Industry. their key raw material. PSPL.coils (which are converted into cold rolled / galvanised coils). caters to the needs of other SMEs and highly depends on its customers and suppliers for its operations. but this structure also poses some limitations to attain their objectives most of these functions cater to the different set of employees in different locations. Although all the support functions are centralized in CRM. TML faces the heat from unions from time to time. Jamshedpur (submitted by MP16005) Environment: PSPL and TATA Motors Ltd. The presence of labor union in any organization causes disruptions and leads to uncertainty. with its open door policy where the employees are free to ask anything to their directors. Jamshedpur (TML) function in completely different industries. Same is the case with TML. Tata Motors Ltd. While the former operates in Steel Industry. This basic difference of area of operations creates the further differences in terms of customers. Different manufacturing lines with their own hierarchy are made to maintain proper integration and span of control. PSPL also adapts the same Product Division Structure in its operations. TML on the other hand have the market advantage of being one of the dominant brands in automobile industry. competitors and suppliers. PSPL and TML both operates in an environment with high number of competitors but PSPL being a SME. Structure: The existing structure of CRM is similar to the Product Division Structure because of the similarities in the nature of the project being made. Structure: . does not have any union and in turn does not face any disruption.

TCS. not only report to the Divisional Head/ Plant Head but also to their respective Vice Presidents or Presidents. Both PSPL and TCS differ from each other in terms of customers and competitors. TCS has wide range of customers ranging from Private to Government firms using the software developed by TCS. Tata Consultancy Services (made by MP16037) Environment: Similar to the TML analysis. In TML. and the “the war for talent” is always on among these organization in order to create a better talent pool. as part of TATA group. similar to PSPL. The support functions in PSPL are highly centralized as opposite to the TML. rigid departmentalization. Wipro. The employees in PSPL directly reports to the service head. Structure: The organization structure adopted by TCS is mechanistic in nature characterized by many factors such as high work specialization. complex hierarchy. Human Resources etc. PSPL operates in Steel Industry while TCS is a major player providing Information Technology solutions. The complexity of the matrix structure comes from the decision of the management in deciding the roles of employees having multiple superiors as well as in deciding their appraisal which can be a daunting task. The major competitors of TCS are Infosys. But at the same time. TML has a complex Multi- Divisional Matrix Structure. they hardly overlap with the ones in TCS. TCS and PSPL both faces high competition but in completely different areas. The competitors for both PSPL and TCS limit their operations forcing them to implement new and creative strategies to sustain their operations. As most of the project done by TCS involves similar kind of IT work in terms of management rules . is much larger than PSPL and caters to the need of national as well international customers. While the customers and suppliers are crucial in the operations of PSPL. Marketing. narrow span of control to name a few. which leaves out the issue of multiplicity of superiors. Support functions in TCS.As compared to Product Division Structure implemented by PSPL. HCL etc. national and international forces also play and important role in its operations. are centralized. New Product Development. the employees working in the functions such as Engineering and Research. TCS and PSPL both are the players in different industries.

there is no need for the organization to carve out different support functions for each portfolio of service.followed by the project teams. In PSPL also. Centralized support function serves the purpose for all various divisions within TCS. Plus the customers we cater to in these different lines of services is more or less similar. as the entire different portfolios are in the similar line of work. there is no need of having separate support function within each department. .