Strategic Management

Report On

TATA GROUP

Submitted To:
Mam Shahzadi Sattar
Submitted By
Muneeb Ijaz (MBH-14-09)
Wali Khan (MBH-14-31)
Tata Group
Leadership with trust
 Contents
TATA Group
Introduction Group Holding Structure
CEO-Founder/Strategic Leader Competitors
PHASIS of TATA General Hierarchy Structure
Brief History TATA in India
Vision & Mission Strategic Management Structure
Core Values
Diversified Business
Business Ranking
Global Ranking
Group today-Market Value
BCG-Matrix
INTRODUCTION TO TATA GROUP
The foundation of
the Tata Group was laid in 1868
by Jamsetji Nusserwanji Tata.
The Headquarters of Tata Group
is situated in Mumbai,
Maharashtra.
Tata Group was firstly established
Jamshetji Tata
as a trading company.
 Tatagroup is Indias largest and most trusted
Multinational Conglomerate.
A global business group with products and services
in over 150 countries over 580,000 employees and
operations in over 100 countries group revenue of
$103.27 bn with 67% generated in geographies
other than India global leader in several sectors.
 HISTORY

1868

The foundation of what would grow to become the

Tata group was laid in 1868 by Jamsetji
Nusserwanji Tata then a 29-year-old who had
learned the ropes of business while working in his
fathers banking firm when he established a
trading company in Bombay.
A visionary entrepreneur, an avowed nationalist
and a committed philanthropist, Jamsetji Tata
helped pave the path to industrialisation in India
by seeding pioneering businesses in sectors such
as steel, energy, textiles and hospitality.
1877
Empress Mills, a textiles venture set up in Nagpur
in central India in 1877, was the first of the big
industrial projects undertaken by the Tata group.
Jamsetji Tata was by this time, though, already
gripped by what would the three great ideas of his
life: setting up an iron and steel company,
generating hydroelectric power and creating an
institution that would tutor Indians in the sciences.
1892
Jamsetji Tata established the JN Tata Endowment to
encourage Indian scholars to take up higher
studies. It was the first of a multitude of
philanthropic initiatives by the Tata group. Over
generations, members of the Tata family have
bequeathed much of their personal wealth to the
many trusts they have created.
These trusts today control 66 percent of the shares
of Tata Sons, the holding company of the group,
and they support an assortment of causes,
institutions and individuals
1903
The most dazzling of the Tata enterprises that
came into being during Jamsetji Tatas lifetime was
the Taj Mahal Hotel in Bombay, which opened for
business in 1903. Legend has it that Jamsetji Tata
set his mind on building it after being denied entry
into one of the city's fancy hotels for being an
Indian.
Today, the Taj Group of Hotels is a byword for
luxury and quality, with standout properties across
the world.
1904
Following Jamsetji Tatas death, in Germany in 1904, the
chairmanship of the Tata group passed to the elder of his two sons,
Sir Dorab Tata, who accomplished the daunting task of turning his
fathers extraordinary ideas into reality.
Sir Dorab was the force behind the setting up, in 1907, of the Tata
Iron and Steel Company. Seven years later, India's first iron and
steel plant, in Jamshedpur in the eastern part of the country, started
production. In 1915, the Tata group broke new ground once again,
this time by generating hydroelectric power from a site near
Bombay.
1911
Seven years after his death, Jamsetji Tatas long-
cherished dream of establishing an institution where
Indians could cultivate their scientific temper was
realised. The Indian Institute of Science, set up in
Bangalore, would nurture some of the brightest minds
in India.
It was the first of a clutch of centres of learning and
research that would come up with the substantial and
steadfast support of the Tata group.
1912
Tata companies presently employ over 581,000 people
worldwide. Taking good care of this large family is a
priority for the Group, and it has a tradition to stay true to
while doing so.
Tata Steel introduced eight-hour working days in 1912, well
before it became statutory in much of the West, and the
first Tata provident fund scheme was started in 1920
(governmental regulation on this came into force in 1952).
The Tata townships, and the facilities they have, are
another example of the manner in which the Group
extends itself to care for its employees.
 Brief History
1868
Jamsetji Nusserwaji Tata starts a private trading firm laying the
foundation of the Tata group
1874
The Central India Spinning, Weaving and Manufacturing Company is set
up,marking the Groupsentry into textiles.
1902
The Indian Hotels Company is incorporated to set up the taj Mahal
Palace ad Tower Indias first luxury hotel which opened 1903.
1907
The Tata Iron and Steel Company is established to set up Indias fi
rst iron and steel plant in Jamshedpur, which started production in
1912
1910
The first of the three Tata Electric Companies,the Tata Hydro-Electric
Power Supply Company,is set up to generate electricity.
1911
The Indian Institute of Science is established in Bangalore to serve as a centre for
advanced learning
1912
Tata Steel introduces eight-hour working days, well before
such a system was implemented by law even in most
western countries.
1917
The Tatas enter the consumer goods segment as the Tata Oil Mills Company is
established to make soaps, detergents and cooking oils
1932
Tata Airlines,a division of Tata Sons,is established, opening up the aviation sector
in India.
1939
Tata Chemicals is established.
1945
Tata Engineering and Locomotive Company (renamed Tata Motors in 2003) is
established to manufacture locomotive and engineering products. The
company began manufacturing commercial vehicles in 1954 in a
JV with Daimler Benz.
1952
Pandit Jawaharlal Nehru,Indias fi rst Prime Minister,requests the Group to
manufacture cosmetics inIndia; and Lakme is established.
1968
Tata Consultancy Services (TCS),Indias fi rst software
services company,is established as a division of Tata Sons.
1984
Titan Industries a joint venture between the Tata Group and the
Tamil Nadu Industrial Development Corporation
(TIDCO) is set up to manufacture watches.
1995
Tata Quality Management Services institutes the JRD QV
Award, modelled on the Malcolm Baldrige National Quality
Value Award of the United States, laying the foundation of the
Tata Business Excellence Model.
1996
Tata Teleservices Limited (TTSL) is established to
spearhead the Groups foray into the telecom sector.
1996
Tata Teleservices Limited (TTSL) is established to
spearhead the Groups foray into the telecom sector.
2000
Tata Tea acquires the Tetley Group, UK,in the fi rst major
acquisition of an international brand by an Indian group.
2001
Tata-AIG a joint venture between the Tata Group and American International
Group Inc (AIG) marks the Groups re-entry into insurance.
The Groups insurance company, New India Assurance, was nationalised
in 1956
2002
The Tata Group acquires a controlling stake in Videsh Sanchar
Nigam Limited Indias leading international
Telecommunications service provider.
2004
Tata Motors acquires the heavy vehicles unit of Daewoo
Motors,South Korea.
2005
Indian Hotels adds New York's iconic hotel, The Pierre, to
its portfolio as also its Ginger "Smart Basics"hotels in India.

2007
In a major step in its unfolding strategy of growth and globalisation, Tata Steel
acquires Corus, the UK-based steel
company, for $ 12.1 bn,the biggest overseas acquisition
by an Indian company.Tata Steel is now the worlds 6th largest steel producer with
capacity of 26 million tonnes per annum and operations in 24 countries
)

CEO-Founder/Strategic
Leader
Jamsetji Nusserwanji Tata (1868-1964)
The founder of the Tata Group began with a textile
mill in central India in the 1870s. His powerful
vision inspired the steel and power industries in
India, set the foundation for technical educaton,
and helped the country leapfrog from
backwardness to the ranks of industrialised
nations

Sir Dorab Tata (1904-1932)

Included steel (1907), electricity (1910), education
(1911), consumer goods (1917), and aviation
(1932
 SirNowroji Saklatwala (1932-1938)

Jehangir Ratanji Dadabhoy Tata (1938-1991)

Incorporated chemicals (1939), technology (1945),
cosmetics (1952), marketing, engineering, and
manufacturing (1954), tea (1962), and software
services (1968) established Tata Engineering and
Locomotive Company (TELCO) in 1945 it was
renamed Tata Motors in
Ratan Naval Tata (Since 1991
Acquired London-basedTetley Tea in 2000,
purchased the truck-manufacturing operations of
South KoreasDaewoo Motors in 2004 it. In 2001
Tata Group partnered withAmerican International
Group, Inc. (AIG) to create the insurance company
Tata-AIG. Taken Over Automobile Giants Land
Rover & Jaguar & still countue.

Cyrus Mistry (2012-Present)

He is the sixth chairman of the group and the
second not to be named Tata, after Nowroji
Saklatwala The Economi st has described him as
"the most important industrialist" in both India and
Britain.
 Phasis of TATA
Foundation (1868-1931)
The seeds of what would mature and become today's Tata group were laid long
years before
India became independent

Consolidation (1932-1989)
The Tata group ventured into new areas and built on the foundations, in spite
of the restraints
imposed by a controlled economy

Expansation (1990 onwards)

The liberalisation of the Indian economy unleashed a period of remarkable
growth for the Tata group, in India and worldwide
 Diversified Business
1. Engineering
2. Materials
3. Information and Technology
4. Energy
5. Services
6. Consumer Product
7. Chemicals
Business Ranking
Ranking- global, India
Group today- Market
Capitalization
Market Capitalization as on 19th Feb, 2015 Rs. 862,918 Cr /
US$138.4 bn.
Most valuable business group.
8.2% of BSEs total market capitalization US$1,682 bn.
3.9 mn shareholders.
5 largest companies
Tata Consultancy Services $ 84.20 bn Rs.584,880 cr
Tata Motors $ 25.32 bn Rs.157,826 cr
Tata Steel $ 5.85 bn Rs.36, 479 cr
Titan Company $ 6.16 bn Rs.38,406 cr
Tata power $ 3.83 bn Rs.23,882 cr
Vision

Tata companies are building multinational businesses that seek

to differentiate themselves through customer centricity,
innovation, entrepreneurship and trustworthiness while balancing
the interests of shareholders, employees and civil society, with
the core purpose of long- term stakeholder value creation based
on leadership with trust
Mission
Toimprove the quality of life of the communities we
serve globally, through long- term stakeholder value
creation based on leadership with trust.

Theydo this through leadership in sectors of

national economic significance, to which the Group
brings a unique set of capabilities.

This
requires them to grow aggressively in focused
areas of business.
 Theirheritage of returning to society what they
earn, evokes trust among consumers, employees,
shareholders and the community.

TheTata name is a unique asset representing

leadership with trust.

TheTata family of companies shares a set of five

core values: integrity, understanding, excellence,
unity and responsibility.
Core Values

Integrity
Fair , honest, transparent in all dealings
Understanding
Care , respect compassion for customers and colleagues
Excellence
High possible standard In quality of good and services
Unity
Build strong relationship with customers and partners worldwide
Responsibility
What comes from the people goes back to the people many times over
TATA Group operates in more than
150 countries worldwide.
Competitors
Competitors for Tata chemicals
1.. Nippon Soda co ltd
2. K+S AG
3. Compass Minerals International

Competitors for Tata energy

1.NTPC
2. JSW
3.RELIANCE energy
4. ADANI Power

Competitors for Tata motors
Eicher motors
Ashok Leyland
SML isuzu
Competitors for Tata communications
Bharti airtel
Idea cellular
Reliance communication

Competitors for Tata consultancy services

Infosys
Wipro
Hcl tech

Competitors for Tata steel

JSW steel
SAIL
Visa steel
General Hierarchical structure
TATA STRATEGIC MANAGEMENT
STRUCTURE
 TATA Steel
History Global Steel Ranking
Vision & Mission Relative Market Capitalization
Quality Vision Steel Production
TATA code of conduct Porters Five Force analysis
TATA Values Competitors
TATA Steel today SWOT analysis
Business Division Future Strategies
Operations Conclusion
Strategies Adopted by TATA
Corporate level strategies
Functional level strategies
Continuous Improvement
 TATA Steel Overview

Tata Steel is the among the top ten steel manufacturers in the world.

Employing over 80,000 people across five continents in nearly 50 countries.

The Group`s vision is to be the world's steel industry benchmark in Value

Creation and Corporate Citizenship.
 TATA Steel Background

Tata Steel a part of the Tata group, one of the largest diversified
business in india.

Founded in 1907, by Jamshed Ji Nusserwanji Tata.

In feb 2005 acquired singapore based Natsteel Ltd.

In dec 2005 acquired thaialand Millennium steel .

 Mission
Consistent with the vision and values of the founder Jamsetji Tata, Tata Steel strives to
strengthen Indias industrial base through the effective utilization of staff and
materials. The means envisaged to achieve this are high technology and productivity,
consistent with modern management practices.

Tata Steel recognizes that while honesty and integrity are the essential ingredients of a
strong and stable enterprise, profitability provides the main spark for economic
activity.

Overall, the Company seeks to scale the heights of excellence in all that it does in an
atmosphere free from fear, and thereby reaffirms its faith in democratic values
VISION

Our vision is to be the global steel industry

benchmark for value creation and corporate
citizenship.

Quality Vision 2016

We aspire to be the most trusted and preferred domestic supplier of
value added steel with world class quality of products and services
 We will achieve our vision through:

Our People

Our Offer

Our Innovative Approach

Our Conduct

Business Ethics
 VALUES
Integrity: We must conduct our business fairly, with honesty and transparency.
Everything we do must stand the test of public scrutiny.
Understanding: We must be caring, show respect, compassion and humanity for our
colleagues and customers around the world, and always work for the benefit of the
communities we serve.
Excellence: We must constantly strive to achieve the highest possible standards in our
day-to-day work and in the quality of the goods and services we provide.
Unity: We must work cohesively with our colleagues across the group and with our
customers and partners around the world, building strong relationships based on
tolerance, understanding and mutual cooperation.
Responsibility: We must be responsible and responsive to the countries, communities
and environments in which we work, always ensuring that what comes from the people
goes back to the people many times over.
 Global Steel Ranking
Company Capacity(in million tonnes)
Arcelor - Mittal 110
Nippon Steel 32
Posco 30.5
JEF Steel 30
Tata Steel - Corus 27.5
Bao steel China 23
US Steel 19
 Competitors
The steel industry is truly global in terms of competition with large producing countries
like China significantly influencing global prices through aggressive exports.
Steel, being a commodity it is, branding is not common and there is little differentiation
between competing products.
The 4 major domestic rivals are SAIL, JSW, ISPAT & ESSAR STEEL. Rest are all small mills
which together accounts for 30 % of the total market share.
All the major domestic competitors like SAIL, ESSAR, JSW, JSPL have announced massive
expansion plans recently:
SAIL has announced that it will achieve production capacity of 40 Million Tons by 2020.
JSW plans to expand its production to 32 Million Tons by 2020
Other players such as JSPL, ESSAR have similar production expansion plans which will
contribute in overall achievement of 200 Million Tons steel production by the year 2020
 SWOT analysis
Strength
1. Raises over 14 million tonnes of ores from its captive collieries, iron ore mines and
quarries
2. Adaptability of company in the fast changing environment
3. Excellent integration with Corus which has more than 2000 metallurgists
4. Control over raw materials
5. Economies of scale
6. Strong backing of Tata brand name
7. Operations in 26 countries and a commercial presence in over 50 countries

Weaknesses
1. Operational efficiency are not as good as international leaders
2. Slightly lagging in technological front
OPPORTUNITIES
1. Newer technologies- The Corex process, The Hismelt process, Direct iron ore smelting
2. Public private partnership
3. Acquisition of coal blocks in Asia, Africa etc.

THREATS

1. Rising coking coal prices

2. India is plagued with violent agitation against land acquisition
3. Government & regulatory norms
4. International competition
 OPERATIONS
Indian Operations
Two new Greenfield steel projects are planned in the states of Jharkhand and
Chhattisgarh. Kalinganagar project is underway; it is set to augment production
capacity by 3 MnTPA in the first phase.
European Operations
Tata Steel Europe (erstwhile Corus) has a crude steel production capacity of 18 mtpa.
Tata Steel Europe has manufacturing operations in Western Europe, plants in UK,
Netherlands, Germany, France and Belgium, backed by a sophisticated global network
of sales offices and service centres.
South East Asian Operations
Tata Steel started its operations in SEA in 2004 with investments in NatSteel Singapore
(Tata Steel Singapore) and Millennium Steel (Tata Steel Thailand).
 Strategies adopted by TATA Steel
CORPORATE LEVEL STRATEGIES
ACQUISITION

NatSteel in 2004
Millennium Steel in 2005
Corus in 2007
2 Rolling mill companies in Vietnam in 2007
 ACQUISITION
TATA-CORUS
Tata acquired Corus, which is four times larger than its size and the largest steel
producer in the U.K.

The deal, which creates the world's fifth-largest steelmaker, is India's largest ever
foreign takeover and follows Mittal Steel's $31 billion acquisition of rival Arcelor in the
same year.

Tata acquired Corus on the 2nd of April 2007 for a price of $12 billion. The price per
share was 608 pence(rs 484), which is 33.6% higher than the first offer which was 455
pence.
 Objective of Acquisition
Higher profitability.

Global No. 5 company.

By 2013, expected production of 40 million tonnes giving it the position of Global

number 2.

To gain access to global steel market and expand production capacity to keep
pace with growing demand for steel.
Joint Venture and Associates
Tinplate Company of India Limited (TCIL) The Indian Steel and Wire Products Limited
(ISWP)
Tayo Rolls Limited
Tata BlueScope Steel Limited
Tata Ryerson Limited (TRYL)
Dhamra Port Company, Orissa
Tata Refractories Limited (TRL)
Hooghly Met Coke & Power Company
Tata Sponge Iron Limited (TSIL)
Lanka Special Steel Limited
Tata Metaliks
Sila Eastern Company Limited
Tata Pigments Limited
NatSteel Holdings (NSH)
Jamshedpur Injection Powder Limited
(Jamipol) Tata Steel Thailand
TM International Logistics Limited (TMILL) Tata Steel KZN- South Africa
TRF Limited
Jamshedpur Utility and Service Company
Limited (JUSCO)
 Major Joint Ventures
Tata Steel Thailand
Tata Steel KZN South Africa
Tata NYK : A joint venture with Nippon Yusen Kabushiki Kaisha
Corus Europes second largest steel maker with operations in the UK
and mainland Europe
 FUNCTIONAL LEVEL
STRATEGIES
Marketing Strategy (4 PS OF MARKETING)
1. PRODUCT:
TSLs products can be divided into three main categories:
. 1. Finished and semi-finished steel products;
. 2. Ferro alloys products; and
. 3. Other products and services, including tube products, bearing products, refractory
products,pigments, municipal services and investment activities.
Corus has four main product segments:
. (1) Strip products;
. (2) Long products;
. (3) Distribution andbuilding systems; and
. (4) Aluminum.
PRICE
The pricing strategy adopted by Tata Steel is the Market Penetration Strategy. This
strategy isbased on the assumption that demands for the product is highly elastic. By
setting relatively low price Tata Steel has managed to obtain large market share. The
advantage of this kind of pricing is that it discourages competition since there is less
opportunity to reap unusual benefits on investment.
PLACE
Place represents the location where a product can be purchased. But in industrial
marketing place is often referred to as the distribution channel.
Distribution channels at Tata Steel:
Tata Steel Limited delivers steel products to Indian customers through:
1) Direct supply channels,
2) 21 stockyards,
3) 25 consignment agents,
4) 15 external processing agents
PROMOTION
Branding Steel Based on Customer Focus
1) Branding its products
2) Moving to high value added products.

FUTURE STRATEGIES
TATA, Nippon to jointly set up steel plant at Jamshedpur.
 CONTINUOUS IMPROVEMENT
Tata Steel believes that long years of perseverance and belief are needed to continue
the journey of excellence.
Tata Steel has been pursuing TQM for business excellence formally since the late
1980s. With the vision of becoming a world-class steel company, it adopted various
popular improvement initiatives practiced around the world.

Understanding Customer Needs

Infrastructure Strengthening
The Improvement Philosophy
Early Success Areas
Change In Performance Culture.
Knowledge Exchange with a Purpose
People Involvement
CONCLUSION
TATA Steel being the fifth largest producer of steel in World and may
grow and spread its geographical footprint, embracing different
cultures; it will not lose sight of its great heritage of social and
community responsibility. Driven as much by its commitment to
society as by its performance and profits, the Tata Steel Vision
aspires to make the Group the global industry benchmark for both
Value Creation and Corporate Citizenship.
THANK YOU