Tata Steel
Every organization has key stakeholders. These are those who are affected by its products, services and activities or it can be those whose concerns can change the show of business.
The Company’s Vision for Tata Steel: “to seize the opportunities of tomorrow and create a future that will make it an EVA positive Company and to continue to improve the quality of life of its employees and the communities it serves”
This statement clearly states that Tata Steel will continue to develop the excellence of employees and the communities it serves. Also group Purpose underscores the Tata values on Nation building. The company believes in returning back to the society that they have earned by developing trust among the shareholders, employees, consumers, and communities.
Tata Steel has identified in balancing the stakeholders needs and they consider this as a key strategic issue. The identification of the stakeholders is done from the vision of the company, which sets the strategic directions and strategic goals. Thus the total stakeholders of the company comprises of Shareholders, Financial Community, Customers, Media, Community, Employees, Regulators, Suppliers and Partners. The company treats the stakeholders as one of the Key Enterprise Processes.
Stakeholder Analysis and its Positioning
A) Shareholders, Financial Community
B) Regulators,
C) Customers, Suppliers, Employees, Media
D) Community
The Companies Approach to Stakeholders Consultation and Communication
1. Shareholders and Financial Community
The shareholders and financial community like banks, financial institutes etc are regarded as the important stakeholders in the company. The company meets the investors across the globe and organise Annual General Meeting. The company sends the quarterly and half-yearly reports to them and updating them about the different policies that the company is planning to do. The company also organizes Shareholders Relation Meet and Customer Forum. The Managing Director also calls for a conference with the customer groups. The meeting with the shareholders is done as per plan annually. The company has to do this because they have to inform the shareholders that how the company is doing and they have to build trust among the shareholders and financial institutes because they are the ones’ who have invested in the company and company has to take proper care of them in respect from making the policy for the company. Both the stake holder and finanical communites have high power and high interest in the operations of the company. So are regarded as key players in the stakeholder analysis.
People organization or groups that have a direct or indirect interest in a one particular organization or surrounding are called stakeholders.
For decades, the steel industry has been one of the toughest markets on a global scale with most steel corporations ending up in bankruptcy. Foreign and domestic competitors, management issues, environmental issues, political agenda’s and technology have had much to do with the demise and more so of the success of the steel industry. The issues that this case focus on Nucor Corporation was of:
Perspective Stakeholders in health and social care can be referred to a person, group or organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organizations actions, objectives, and policies. Some examples of key stakeholders in health and social care are inspecting bodies, managers, employers, government and its agencies, owners of care services, owners of local businesses, suppliers, trade unions, service users, and the community which the organization serves. For example, a local health and well-being strategy may be developed by;
The company’s approach to motivate employees has been working in a positive way. The employees are satisfied with the family style community, and the productivity has increased as well. The company’s style of treating employees as important partners has been successful in other manufacturing companies too. For example, when Honda opened its first factory in the U.S., the CEO and employees shared the same cafeteria, just like Lincoln.
The leadership at every level believes in the vision and mission at HNI Corporation. This is attributed to HNI has only changed their senior leadership three times in 60 years and by doing so it has maintained the vision and values of the HNI culture. According to Glamuzina, Developed leadership must find a proper way of expressing the mission and transferring it in order to inspire followers with the goal of increasing overall effectiveness of the company (2015). The latest rendition of the vision and mission statement was created once HNI merged with HON Industries and represents much more than a traditional mission. It represents the very foundation of our corporate culture.
For every company employees group is the most important stakeholder group. If a company has happy employees their customers will be doubly pleased.
Hence, the stakeholders which are described as those who are affected by the organisation performance ,actions and duties and those actions includes employees, clients, local community and investors as well. The theory of stakeholders also suggests that it is the responsibility of firm to make sure no rights of stakeholders are dishonoured and make decisions in the interest of stakeholders which is also the purpose of stakeholder theory to make more profit and balancing it while considering its stakeholders (Freeman 2008 pp. 162-165). In the other words organisation must also operates in a more socially accountable approach by carrying out corporate social responsibility as (CSR) activities.
Stakeholders are those groups or individual in society that have a direct interest in the performance and activities of business. The main stakeholders are employees, shareholders, customers, suppliers, financiers and the local community. Stakeholders may not hold any formal authority over the organization, but theorists such as Professor Charles Handy believe that a firm’s best long-term interests are served by paying close attention to the needs of each of these stakeholders. The modern view is that a firm has responsibilities to all its stakeholders i.e. everyone with a legitimate interest in the company. These include shareholders, competitors, government, employees, directors, distributors, customers, sub-contractors, pressure groups and local community. Although a company’s directors owes a legal duty to the shareholders, they also have moral responsibilities to other stakeholder group’s objectives in their entirely. As a firm can’t meet all stakeholders’ objectives in their entirety, they have to compromise. A company should try to serve the needs of these groups or individuals, but whilst some needs are common, other needs conflict. By the development of this second runway, the public and stakeholders are affected in one or other way and it can be positive and negative.
This is a case study on the series of negotiation between the Tata Steel (a part about TATA Group) which had acquired Corus, the Anglo-Dutch steel firm after a long eight month long negotiation over price and terms of acquisition because of the entry of a third party, Brazil's CSN. This is one of the most interesting acquisition cases in the recent decade due to the fact that the acquired company was nearly four times the size of the acquirer in terms of the total revenue. Here, Corus Group was acquired by Tata Steel in the month of April 2007 for £6.2bn. Tata Steel is India’s largest private sector steel company with 2005-06 revenues of US $5.0 billion and steel production of over 5.3 million tons across India and South-East Asia (as provided in the Annual Report 2006). Corus Group is Europe's second largest steel producer with the annual revenues of over £9.2 billion and a crude steel production of 18.2 million tons in 2005 (gathered from Annual Report Corus). This deal is supposedly the biggest deal ever from an emerging market. The deal is a powerful amalgamation of near to the ground cost upstream production in India with the far above the ground end downstream processing facilities of Corus.
Hence production units for example the exports that take place in Europe and its Ukraine therefore they have competitive advantage with value into the technology. It gone through the acquisition by natural resource seeking for example Tata Company has invested in coal mines in different country and ownership advantage the company that enables them to successfully acquire established goal companies (KUMAR, 2008).Location advantage of Tata motors has the nature of the product and the services which the company requires to invest In plant or an office (Neelankavil and Rai,2009).In addition the Tata Company has a manufacturing with joint venture and Thornburg automotive gives which them a location advantage again in the south East Asia region. Internationalization advantage of Tata motors will help them in having better control over the manufacturing units as licensing option which are issues related to transfer of technology or technology theft. The advantages of own production for Tata company which they have done is introducing a new car called Nano an ultra low cost car
Is it a big change to support what's going to happen to steel industry in the future?
Established in 1907 as Asia's first integrated private sector steel company, Tata Steel Group is among the top-ten global steel companies with an annual crude steel capacity of over 29 million tones per annum. It is now the world's second-most geographically-diversified steel producer, with operations in 26 countries and a commercial presence in over 50 countries. The Tata Steel Group, with a turnover of US$ 24.82 billion in FY 13, has over 80,000 employees across five continents and is a Fortune 500 company.
The healthcare projects of Tata Steel include facilitation of child education, immunization and childcare, plantation activities, creation of awareness of AIDS and other healthcare projects .It is for the healthy India. as the saying goes - ' healthy mind resides in healthy body'.
As a leader and figurehead of the company, he created restructuring plans and methods for ST Engineering to ride on new technology, innovation and capabilities for growth thus transforming it into a capability-driven enterprise that propelled the group to be the crème de la crème in its industry. His discernment for establishing globalisation as a key strategy to bring about sustainable growth proved to be very beneficial for the company as it allowed the group to penetrate into new markets to forge greater alliances and partnerships that leveraged on the external competitive strengths and capabilities.
Stakeholders refer to individuals or groups of people that have an interest in a business. Management argues that as long as there is wealth for shareholders, then anything is done in a responsible manner and things should be done to promote the interest of other stakeholders.