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.
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.
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.
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.
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.
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.
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.
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.
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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
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.
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.
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.
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.
De Brentani, U., Kleinschmidt, E.J. and Salomo, S., 2010. Success in global new product development: Impact of strategy and the behavioral environment of the firm. Journal of Product Innovation Management.
Dunlap‐Hinkler, D., Kotabe, M. and Mudambi, R., 2010. A story of breakthrough versus incremental innovation: Corporate entrepreneurship in the global pharmaceutical industry. Strategic Entrepreneurship Journal.
Farndale, E., Scullion, H. and Sparrow, P., 2010. The role of the corporate HR function in global talent management. Journal of World Business.
Ghemawat, P., 2013. Redefining global strategy: Crossing borders in a world where differences still matter. Harvard Business Press.
Hillier, D., Grinblatt, M. and Titman, S., 2011. Financial markets and corporate strategy. McGraw Hill.
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