ICT303 Professional Ethics in Computing
In 1860, driven by the spirit of nationalism, Tata established the Tata Group. The group’s revenue is 18 billion dollars, or 2.5 percent of India’s gross national product. It is made up of 85 major businesses that employ approximately 2.3 lakh people.
With TISCO in Jamshedpur, Tata is India’s first steel manufacturer. In India, it has a long number of firsts to its credit. Tata Consultancy Services is a company that has been around for almost four decades. It is Asia’s largest software corporation. Over time, the Tata Group has grown and evolved. Tata has its own brand, in addition to its hundreds of products.
Tata is dedicated to sustaining the highest ethical standards in the industry. It has benefited society. Aside from philanthropy, the Tata Trust, which owns about two-thirds of the firm, has built massive national institutions. For decades, these people have worked in fields such as education, research, community development, hospitals, education, and scientific organizations.
In addition to their social responsibilities, the Tatas have followed corporate governance norms. It has gained the trust of stakeholders through time. As a result of globalization, Tata has taken over substantial businesses in other countries. It is now a big international player.
The Tata Steel Group is dedicated to fulfilling its vision of becoming a global leader in value creation and corporate social responsibility. Given the sustained pressure on European steel markets, historically high raw material prices, and the growing importance of climate change, it is fully aware of the challenges it will face in putting this vision into effect.
The value creation strategy is separated into two sections, the first of which is to improve the quality of earnings from current assets. Tata Steel Limited maintained good profitability levels and recovered faster than most of its competitors throughout the Indian crisis, demonstrating the strategic advantages of the Indian operations, which include access to growing markets, raw material integration, and cost competitiveness.
The European operations, which were experiencing some of the biggest steel demand contractions in history, placed a premium on regaining profitability. Tata Steel Europe responded by launching two initiatives: ‘Weathering the Storm’ and ‘Fit for the Future.’
Savings from these approaches amounted roughly £1 billion in the fiscal year under review. Tata Steel is reforming its business to better serve its customers and maximize the size of its operations in order to position itself for the future.
Tata Steel has made significant investments in industrial research in order to improve production growth and minimize unit costs. It has aided the company in achieving the title of world’s cheapest steel production. Collaborations with the Indian Institution of the Technology, Kharagpur, also the Indian Institution of the Science, Bangalore, as well as research institutes in Sweden, Germany, then Japan, have been undertaken. As an outcome, figure of the research credentials published also intellectual property lawsuits filed has skyrocketed. Tata Steel company used up a dollar every tone of the steel formed on the R&D, while Nippon Steel spent $1.8 per ton.
Tata Steel’s continued focus on development has enabled it towards improving the quality for its produce mix besides increasing the portion of trademarked products, resulting in higher realizations for a given volume of output. Aside from the ability to achieve incessant increases in creation through improved operational efficiency and lower exact consumption of the raw materials like refractories, there is also the added benefit of significant increases in labor productivity and a much larger increase in after-tax profits. Without a doubt, the quick growth in values over the last few years contributed towards this significant profit increase.
In recent years, Tata Steel has been involved in mergers and acquisitions with main steel companies all around the world. In 2005, Tata Steel completed its first significant foreign investment in the NatSteel, eventually owning 100% of the corporation. Tata Steel planned to expand into Southeast Asia as a result of this. Millennium was purchased by Tata Steel in 2006, increasing the company’s presence in Southeast Asia. Tata BlueScope Steel Limited, a 50:50 combined venture between Tata Steel also the BlueScope Australia, was founded in the same year. Tata Steel bought the millennium company in its whole. Tata’s purchase of Corus Group in 2007 was the largest foreign investment by an Indian company.
Tata Steel made a number of purchases for the aim of company growth and commercial expansion, but they took a big risk by investing in Bangladesh, Iran, and Thailand. The issue of gas supply, for example, is delaying Bangladesh’s plan, while the issue of iron ore mining licenses in Iran is driving up production costs.
The government’s numerous liberalization measures implemented after India’s economy opened up to the rest of the world in 1991 are responsible for tremendous growth in a range of industries, but especially in this one. Some of the features that can be discussed are: The creation of capacity necessitates licensing, which has been repealed. A total of 11 foreign equity investment licenses were granted, increasing the total to 74 percent. Import tariffs and import reductions were reduced from 105 percent in 1992-1993 to 30 percent in 1996-1997. Aside from that, regulations on import and export have been relaxed. These are some of the fundamental elements of the liberalization policies that have propelled Tata Steel’s expansion. Apart from that, the government’s mining rules and other policies benefited Tata Steel in cutting import and export levies, among other things, allowing the firm to expand rapidly across the globe.
Another important aspect of the PESTEL ANALYSIS is the economic viewpoint.
The economic conditions of a country have an impact on a company’s growth and stability. It could be a national or global economy. Economic conditions alter for a variety of reasons, and as these variables change, the enterprise is often impacted. For example, if the economic climate is very volatile, the firm may be impacted, and the business plan has frequently been impacted. The economic side of pestel analysis includes market trends, inflation rates, demand and supply for a given item, and globalization. The company could suffer a huge loss if these traits are intrinsically unstable. To ensure survival throughout the depression period, a company’s policy should change in response to changing economic conditions, and a complete research and survey by the specific country should be undertaken.
Analyze the Strengths, Weaknesses, Comparison
• Tata Steel is India’s largest steel producer and the sixth largest steel firm in the world. o India’s largest steel producer is this company. It is the primary steel supplier in the country. Tata had previously been ranked 56th in the world. It climbed to sixth place in terms of production with the purchase of Corus.
• It is both a cost-effective steel maker and a highly efficient steel mill. Their production costs are cheaper than those of other corporations because they have direct access to raw materials.
• Following the acquisition of Corus, the corporation was able to develop its technology. With the acquisition of Corus, the corporation gained not only production capacity, but also cutting-edge technology.
• The corporation has backward integration in terms of raw resources such as iron ore and coal. The company owns mines and coal areas, guaranteeing that raw material prices are stable. Tata Steel owns coal mines, giving for quick access to raw resources and cheaper production costs;
• The company has a strong management team dedicated to expanding its position both nationally and internationally.
The management team is one of the best in the industry.
• The firm has the strongest corporate governance in India, which has benefited it in completing overseas acquisitions.
The company has consistently adhered to the company’s policies. As a result, they have been able to proceed with their international acquisitions.
• Acquiring Corus Group is proving to be more difficult than expected.
Corus is one of the UK’s largest steel producers. Tata Steel’s management had to make a crucial decision. These options looked great on paper, but they were difficult to implement in practice.
• The purchase of Corus would dilute the company’s earnings per share.
In 2007, the company issued additional equity shares, which impacted the EPS. The stock’s value may plummet.
• Steel consumption in India is constantly increasing, resulting in a larger market. India is the world’s next-fastest-rising economy, afterward China. After China, India remains the world’s second-largest steel manufacturer.
• The country’s infrastructure, such as roads, ports, and airports, is undergoing a metamorphosis, providing an opportunity for Tata Steel to improve efficiency and close the gap. o In India, many airports and other infrastructures are being built, providing a strong local market for them. • The number of clients is increasing.
• Steel prices are at an all-time high, with price deflation a distinct possibility. o Steel prices have been steadily increasing over the years. The
price may begin to fall at some point, affecting the company’s revenue.
• There is no indication that China’s production rate is slowing.
Tata Steel may be able to seize a slice of the market that China currently controls. Gaining a larger market share is difficult, though, because
China’s production capacity is expanding every year.
Because the company operates both within and outside of India, we must maintain and improve our working policies to meet the needs of other countries, and we will have professionals at every level of the organization to give our clients our undivided attention. Assessment of risks and contingency planning: Every firm, no matter how big or little, faces risks and problems, and here are a few we might face:
• Failure is a possibility in various areas.
• It’s possible that the product won’t meet the requirements.
• The safety of the workforce is a major concern.
• Lawsuits of various types Investing Plan:
The initial start-up cost for a company like this would be determined by the facilities we would provide, which could be in the range of $2 billion.
The bank will give us half of it.
Resources and Capabilities at Tata Steel Resources that can be touched.
1. Access to funds
2. Physical Asset Intangible Assets
3. Organizational Culture
4. Development and Research
5. Reputational Capital
Capabilities in Human Resource Management
1. Production at a low cost
2. An experienced management team
3. Innovation capacity
4. Customer Recommendations
The political factor refers to government interference in a specific sector or, in the case of a corporation, a political atmosphere in which the firm must perform efficiently in order to achieve stability and set goals in the sector in which it operates. This political aspect includes tax policy, in which the government determines the many tax repercussions on the corporation, as well as import and export rules and other things that can help the company flourish. When discussing privatization and deregulation, two concepts that spring to mind are privatization and deregulation. The government and numerous specific ministries decide on various laws and regulations affecting the company’s worldwide commerce, which is the second major political issue. The government may also establish a broad program to assist in the encouragement of business, which will eventually help the company grow. Government stability is also vital in the industry because the government sets many of the important business rules and regulations. It is critical for the government to be stable in nature because if the government changes, the policies it implements may change as well, causing commercial instability. It’s also worth noting that international stability is essential for business growth. International stability refers to the absence of war and other threats to the organization.
Naval Ratan, Tata is Emeritus Chairman of Tata Sons, Tata Industries, Tata Motors, Tata Steel, and Tata Chemicals. His enterprises include Tata Steel, Tata Motors, Tata Steel, Tata Consultancy Services, Tata Power, Tata Global Beverages, Tata Chemicals, Taj Group, and Tata Teleservices. During his tenure, the Tata Group’s revenues grew rapidly, reaching over $100 billion in 2011-12.
Mr. Tata became a member of Tata Group steel company in the year 1962. After working for several companies, he remained designated Director-who is in-Charge of the Nationwide Radio Microchip Technology Company Limited in since 1971. In the year 1981, he remained chosen as the Chairman of Tata Manufacturing, and tasked with turning the corporation into the assembly strategy as the think tank in addition to a champion of innovative high-tech businesses.Tata is on the boards of directors of the Alcoa also the worldwide advisory panels of the Mitsubishi Corporation, JP Morgan Chase, Rolls-Royce, also the Singapore Monetary Authority. He remains the Chairman for the Sir Ratan Tata Trust besides the Sir Dorabji Tata Trust, two of India’s largest business-supported philanthropic foundations. He remains the head of the Council for Management at the Tata Institution of Fundamental Research and serves on the boards of executors of Cornell in addition to the of Southern Californium Tata had conventional nominal research degree from a number of campuses in India also abroad. Mr Tata conventional the Padma Vibhushan, India’s another highest neutral honor, from the Indian management in 2008.
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