Amity Business School

 Strategic Management
(STRA701)

Company-TATA Steel

Group Members-
Priyanka Sharma(02)
Suchitra Shil(06)
Preeti Anand(14)
Shreya Shrestha(53)
Kushagra Saxena(57)
About the Company Amity Business School
 PESTEL ANALYSIS Amity Business School

PESTEL Analysis is a strategic

framework used to evaluate the
external environment of a business by
breaking down the opportunities and
risks into Political, Economic, Social,
Technological, Environmental, and
Legal factors.

3
Amity Business School

4
 Amity Business School

TATA STEEL- Michael Porter’s Six Forces Analysis

 Amity Business School

Steel Industry- TATA Steel

New Entrants
10
9
8
7
6
5 3
4
Rivalry 8 3
2
Suppliers
1
0 2

5 5

Substitutes Buyers
 TATA STEEL – VALUE CHAIN Amity Business School

The value chain is an economic tool used to determine the strategic resources available to
company. Basic principle of the Value Chain Analysis is that the basis for a competitive
advantage of a firm lies primarily in the application of the bundle of valuable resources at the
firm’s disposal. 
Supply chain is a critical element in Tata Steel’s value-creation process for ensuring on-time
delivery of the right quality of raw materials, other goods and services to manufacturing
locations, and finished products to the customers. Storage of semi-finished and finished
products is a critical process with respect to timeliness of delivery, security and preserving
quality.
 EXTERNAL OPPORTUNITIES & THREAT
Amity Business School

TOWS Matrix begins with an audit of external threats and opportunities. Such
scrutiny gives a clear insight and helps to adopt long term strategies. Thereafter,
the internal strengths and weaknesses of a company are taken into consideration.
In the next stage, the internal analysis gets intertwined with external analysis to
devise a strategy.

❏ TOWS Analysis goes way beyond the conventional SWOT Analysis and aids
organizations to remain one step ahead in the ever-changing competitive
landscape.

❏ The TOWS Matrix can also help in the generation of amazing ideas in relation
to fruitful marketing strategies, decision-making, protection against threats,
opportunities, diminishing threats, overcoming weaknesses and awareness
regarding potential shortcomings.

8
TOWS MATRIX Amity Business School
 EXTERNAL FACTOR EVALUATION Amity Business School

External Factor Evaluation (EFE) Matrix is a strategic analysis tool used to

evaluate a firm's external environment and to reveal its strengths as well as
weaknesses.

Key External Factors

When using the EFE matrix we identify the key external opportunities and threats
that are affecting or might affect a company. By analyzing the external
environment with tools like PESTLE analysis, Porter’s Five Forces or Profile
Matrix, the key external factors can be identified. The general rule is to identify as
many key external and internal factors as possible.

10
EXTERNAL FACTOR EVALUATION Amity Business School

11
 Amity Business School

VRIO FRAMEWORK

1. Financial 1. Financial 1. Financial 1. Financial

ORGANISATION
VALUE

RARE

INIMITABLE
resources are resources are rare resources are resources are
highly valuable as here as strong inimitable as these organised to
these help financial resources are acquired capture value and
investing in are possessed by through company's are used
external few firms. prolonged profit. strategically to
opportunities and 2. Employees are 2. The distribution invest at right
combating external rare as these network too is places.
threat employees are difficult to imitate 2. The distribution
2. Workforce is highly skilled and by others as they networks are
valuable which as it trained. have developed this organised as they
leads to more 3. Patents of TATA chain over the ensure that
productivity Steel are rare as years. products are
3. Distribution these are not easily available in all the
network is valuable available to its outlets.
as it helps in competitors.
reaching to
customers.
 INTERNAL FACTOR EVALUATION
Amity Business School

Internal Factor Evaluation (IFE) Matrix is a strategy tool used to evaluate firm’s internal
environment and to reveal its strengths as well as weaknesses.

 KEY FACTORS-
 STRENGTHS
 BRAND REPUTATION
 STRONG PATENTS PORTFOLIO
 EXCELLENT EMPLOYEE MANAGEMENT

 WEAKNESSES
 HIGH DEBT LEVEL
 TOO LOW PROFIT MARGIN
 NEGATIVE PUBLICITY
EVALUATION MATRIX WITH REGARD TO
INTERNAL FACTORS Amity Business School
SWOT ANALYSIS Amity Business School

15
 COMPETITIVE PROFILE MATRIX Amity Business School

CPM is a tool that compares the firm and its rivals and reveals their relative strengths and
weaknesses.

EVALUATION MATRIX WITH REGARD TO EXTERNAL FACTORS-

 COMPETITIVE STRATEGY AND ANALYSIS OF TATA
STEEELS Amity Business School

FOOTSTEP STRATEGY FINANCIAL STRATEGY FOCUS ON CREATING LONG-TERM

SUSTAINABILITY VALUE

➢ moving from ‘price’ to ❏ long-term strategic ❖ focus on safety and ✔ focus was on mines and
‘value to customer’. plan of pursuing health of the production processes
growth in the Indian employees,evident from
market, raw material the launch of an ✔ tata Astrum”, the brand for
➢ showing unwavering interminable Safety Hot Rolled (HR) Sheets
integration and
personal commitment Excellence Journey, and and Coils, is the latest
downstream value
the Wellness Workplace offering from the
addition. programme
➢ aligning everyone with Company's stable.
the ‘greater cause’ of
❏ Majority of the capital ❖ Performance
survival and growth outlay directed towards ✔ "Tata Astrum" is being
Improvement Teams supplied to customers in
the brownfield and across the Group
greenfield growth processed form from
➢ future plan which has service centres, which
two themes: “global projects in India.
have a tie-up with
leader and world- distributors and conform to
class,” and “maintain the Tata Steel quality
low cost advantage.” standards.
 ANALYSIS
Amity Business School

❑ In continuation of growth efforts, Tata Steel made successful open offers to increase its stake in Tinplate
Company of India Ltd (TCIL) by 14% and Tata Sponge Iron Ltd (TSIL) by 11.26% respectively. Pursuant to
these open offers, TSIL has become a subsidiary of the Company.
❑ TCIL is today the largest producer of tin coated and tin free steel sheets for the packaging industry in India,
with a capacity of 379,000 tonnes per annum.
❑ Geographically diversified steel producer – operations in 26 countries, commercial presence in 50+
countries.
❑ Employee strength of 70,000+ across the world.
❑ Significant market positions in India and Europe with diversified product base targeting multiple end user
segments.
❑ Highly integrated and profitable India operations.
❑ Large producer of ferro chrome in India.
MARKET PRESENCE
Amity Business School
MARKET SHARE Amity Business School
 THE COMPETITIORS Amity Business School

❑ ArcelorMittal is one of Tata Steel's top rivals. ArcelorMittal was founded in Luxembourg, Luxembourg in 2006. Like
Tata Steel, ArcelorMittal also competes in the Diversified Metals & Mining space. Compared to Tata Steel,
ArcelorMittal generates $39.4B more revenue.

❑ JSW is Tata Steel's 2 competitor. JSW was founded in 1982, and is headquartered in Mumbai, Maharashtra. Like Tata
Steel, JSW also operates in the Diversified Metals & Mining space. JSW generates $8.8B less revenue vs. Tata Steel.

❑ SAIL is a top competitor of Tata Steel. SAIL's headquarters is in New Delhi, Delhi, and was founded in 1954. Like
Tata Steel, SAIL also works within the Diversified Metals & Mining sector. SAIL generates 52% of Tata Steel's
revenue.
 BCG MATRIX Amity Business School

Developed by the Boston Consulting Group , the BCG matrix – also known as
the Boston or growth share matrix – provides a strategy for analyzing products
according to growth and relative market share. The BCG model has been used
since 1968 to help companies gain insights on what products best help them
capitalize on market share growth opportunities and give them a competitive
advantage.

22
 BCG MATRIX(cont.) Amity Business School

❏ Star: The minerals division and specially Ferro-Alloys in TATA (Tata Steel Ltd.)
would fall into the group of stars of the BCG Matrix. It is the largest steel
producing company, annually producing 25.3 million tonnes of crude steel.

❏ Cash Cow: The overall sale of the company is 6.170 million tonnes,
producing about 6.439million tonnes.

❏ Question Mark: Tata Steel’s tubes and bearing division falls in the question
mark category. ThisTata Steel Europe Division is having a rapid growth-rate in
the market but with a low product-share. This division has the potential to
become a star and cash cow when the market growth rate is slow.

❏ Dog: All the divisions of Tata Steel cannot be categorized in Dogs, because
every division have a good market growth rate and its share.

23
GE Matrix Amity Business School
 Grand Strategy Amity Business School

Overcome weakness

Conglomerat
Divestmen e
t vertical
Integration

Internal Internal

Horizontal
Innovation
integration

Maximise Strengths
 Comparing recommended strategies with
adopted strategies of Tata Steel
Amity Business School
Recommended strategy Adopted strategy Explanation

Horizontal integration in the form of Tata Steel’s acquisition of Corus, The strategy of horizontal
acquisition like acquiring Inducto which made Tata Steel a integration brings in various ideas
Steel ltd can be done to ensure new steel giant. The acquisition and add value to the business.
expansion and growth. Inducto helped Tata Steel to tap European Hence, our recommendation stands
Steel Limited operates a ship mature market; and the cost of relevant as TATA Steel too believes
breaking yard. The Company’s ship acquisition was lower than setting up in horizontal integration. The
breaking is a type of recycling of greenfield plant and marketing and contrast here is that our
involving the breaking up of ships distribution channel. recommended strategy is related to
for scrap. It can further add value to tap Indian markets whereas there
raw materials of TATA Steel. adopted strategy is catering to
 
global markets.
 Implementation& Evaluation Amity Business School

Financial Analysis
Growth rate
Degree of regulation,
and capital versus
labour intensity

People
Payroll and
Management
compliance
Top level management
Market Impact
Reducing the number of
competitors may
decrease price
competition
 Comparing Recommended Strategies with Adopted
Strategies of Tata Steel
Amity Business School

Recommended strategy Adopted strategy Explanation

● Tata Steel has already made a
huge impact globally with it's
offerings and contribution in the
steel industry.
● To attain stability and efficiency in
the firm's earnings it must plunge
into an altogether different market
with the same cutting-edge
technology that they are
undertaking currently.
● Tata steel has been way ahead of
its competitors in producing the
required raw materials but the idea
behind all of this is if they start
converting these raw materials into
finished goods.  • Tata Tiscon footing is a mesh-like
● The organisation should target
household clans by manufacturing
consumer goods, such as kitchen
utensils; it will result in attracting a
large customer base.
Currently Tata Steel is producing the
following products.
• Pravesh is a range of steel doors that
exude the elegance of wood and the
strength of steel.  this strategy as well to achieve
• Sm@rtFAB is India’s first branded
Welded Wire Fabric (WWF), also known
as welded wire mesh. It is a cold-worked,
ribbed, electrically fused wire fabric, that
can be used in concrete reinforcements
• Tata Tiscon Superlinks are stirrups
(rings) made of high strength ribbed TMT
reinforcement bars in most commonly
used sizes.
structure formed of C-shaped rebars
placed at the base of foundation
columns.
● Tata Steel’s future plans have two
themes: ‘Global leader & world
class’ and ‘Maintain low cost
advantage’.
● This vision should be applied to
competitive edge over other rival
companies.
● Tata Steel could avail this
advantage of producing low cost
and high quality products because
of its control over raw materials. 
● Atma nirbhar Bharat Abhiyan, will
surely help in increasing
excitement for home grown
brands. Hence, this recommended
strategy stands relevant.
 Implementation & Evaluation Amity Business School

Financial Analysis
● Growth rate
● Degree of
regulation will
insure market
Maintain low share
R&D cost
advantage
Diversification
● Chances of high
return
● India is the fastest
Government
initiatives growing market
 Comparing Recommended Strategies with Adopted
Strategies of Tata Steel
Amity Business School

Recommended strategy Adopted strategy Explanation

Entry of the world’s largest TATA Steel is a preferred supplier to TATA Steel is the 2nd largest private
steelmaker ArcelorMittal in Indian large auto customers in India, a large producer of steel in India.
market has sure given a tough part of its sales is contractual and Increasing competition in the
competition to Tata Steels. Volumes relatively more stable. We have a market has delayed TATA Steel to
which are being produced by large retail business that leverages grab the 1st place in its business.
ArcelorMittal, is very difficult for an extensive network of over 200 Our recommended strategy of
steelmakers to influence a rival’s distributors. This segment is inducing a healthy competition
margins. But the Indian industry will relatively insulated from the through learnings and expansion of
benefit from world-class players international cycles and provides its major plants in Jamshedpur and
coming as it brings lot of learnings strong cash flows. They are also Orissa to gain competitive
and healthy competition into the exploring new segments such as oil advantage stands relevant here as
picture. In order to expand the & gas. TATA Steel too give importance to
production to have competitive macro-level mitigation strategies.
edge over competitors The contrast here lies on the
(ArcelorMittal, SAIL, ESSAR), TATA implementation of it as they
Steel should develop growth plans adopted the strategy to explore
for Jamshedpur and Orissa plants new segments in order to face the
to maintain market share. Also, they growing competition.
can establish solar panels
throughout the campus of
Jamshedpur. The electricity
generated can then be used as
renewable energy in the
manufacturing plant.
 
 Implementation & Evaluation Amity Business School

Implementation Evaluation

Market Research and Product

Development
Market
Share
Cost
Vision &
Prestige
Mission
Raw Materials/Backward
Increased
Integration Production

Integratio Expectatio
Compliances and laws n ns

Cost-
Effective
Hiring
 Comparing Recommended Strategies with Adopted
Recommended strategy
In order to gain pace in
technological areas, TATA Steel
is hosting competitions in B-
schools and engineering
colleges to gather ideas and
innovations of the young minds.
Such competitions can be
developed for the working
professionals as well, to help
generate innovative ideas. Few
suggested names could be
Steel-Hawks, Steel-nology etc.
Strategies of Tata Steel
Adopted strategy
TATA Steel as a means to public
involvement hosts competitions
in B-schools and engineering
colleges to gather ideas and
innovations of the young minds.
Competition like Steel-a-thon is
being organized by them
annually.
Amity Business School
Explanation
It is very important to inculcate
creativity in business. Thus, it
becomes important to capture
and gather the young ideas
flickering in the minds of
students. Our recommended
strategy stands relevant and
emphasis on this concept being
extended to working
professionals so that their
latent creative skills can come
forth in contributing to real time
problems.
 Implementation & Evaluation Amity Business School

Realizing
potential
of Social
Media
● Recognize and
Innovation recruit top talent
R&D as main
theme
Financial
Analysis
● Degree of regulation
of solution.
Promotion
● Market Share
 Comparing recommended strategies with
adopted strategies of Tata Steel
Amity Business School
Recommended Strategy Adopted Strategy Explanation

• From the allocation of • Protection is being given •
fund for the respective
locations, the funding
board has to look upon
the states wherein CR
category species are
listed and reallocate the
funding for their
protection.
for the protection of flora
and fauna in the districts
Jharkhand - East
Singhbhum, West
Singhbhum, Dhanbad,
Ramgarh
Odisha - Ganjam, Jajpur,
Kendujhar
This will entirely contribute
to the CSR practices of the
company. Apart from social
work, the company can be
befitted in terms of
attractive deals as this will
also leverage support to
government as
development is easy but
maintenance is a task.
Implementation & Evaluation Amity Business School
 SUCCESS STORY OF TATA STEEL Amity Business School

❏ Tata Steel is currently the world’s second-most geographically diversified

steel producer.

❏ Continuous improvement in the product and service portfolio, along with

success in value creating initiatives for customers, allows us to serve global
growth markets. Today, Tata Steel operate in 26 countries and have a
commercial presence in over 50 countries with employees across five
continents. And the numbers are growing.

❏ This is made possible by their commitment to a culture of continuous

improvement, through which drives operational excellence in processes,
products and people.

❏ Despite of Covid-19, Tata Steel to pay Rs 235-cr bonus to employees for

FY20.

36
 TATA STEEL & COVID-19 Amity Business School

❏ Tata Steel, through Tata Steel Foundation (TSF), recently launched a ten-
point #CombatCovid19 program to empathies, empower and equip the
communities proximate to Jamshedpur.
.
❏ Additionally, Tata Steel Foundation has started focusing on creating livelihood
opportunities to the migrant workers. TSF collected 1.5 tons of old
newspapers from various residential colonies in Jamshedpur and is
supporting 150 households for making paper bags.

❏ Work from home has been mandated to all applicable, including expectant
mothers, vendors and outsourced employees with 24X7 remote accessibility
IT service helpdesk.

❏ Employees have been instructed to refrain from using any mode of public
transport and are being encouraged to pool-in their for commuting to/from
their workplace.

37
 Amity Business School

Thankyou!!