It includes the external and internal factor analysis, ansoff matrix , BCG matrix analysis , SWOT analysis and product portfolio

1. Group-11
Amit Kumar 100
Arkadip Gupta 101
Dipayan Ghosh 102
Giri Seshadri 103
Sri Divya 104

2. Introduction
 Tata Steel, formerly known as TISCO Tata Iron and Steel Company
Limited, is the world's sixth largest steel company.
 It is the second largest private sector steel company in India in terms of
domestic production.
 Ranked 315th on Fortune Global 500.
 Vision statement: “To be the global steel industry benchmark for Value
Creation and Corporate Citizenship”
 Mission:
• Sustainable Growth
• Differential value creation
• Enhance employees' competencies
• Continuous improvement of business processes
• Being responsible corporate citizen

3. Time-Line
• 1907: Tata Steel was established by Indian Parsi businessman Jamsetji
Tata
• 1935: Production of high-tensile steel commenced.
• 1961: Industrial license is obtained by Tata Steel for an Alloy-Steel project
1963: The government approves in principle expansion by One-Million
tons during the 4th Plan.
• 1965: The Steel Ministry agrees to expansion to 4-Million Ingot tons with
a Strip Mill.
• 1974: Amalgamation with West Bokaro Limited for coal mine operations.
• 1979: Five-year Rural Development programme for upliftment of the
villagers near Jamshedpur taken up.

4.  1981: In 1981, Ratan was named Chairman of Tata Industries; the
Group's other holding company.
 1985: Merger with the Indian tube company
 1986: Started export cell
 2000: Company was recognized as the world's lowest-cost producer of
steel.
 2005: The company was also recognized as the world's best steel
producer by World Steel Dynamics.
 2007: Won their bid for Corus .The joining of the two will create the
fifth largest steel company in the world

5. INDIAN STEEL INDUSTRY
Step Analysis
Social Factors:
• Rehabilitation of people in mining areas.
• Impact on economy and climate change.
Technological Factors:
• Popularity of Steel Portals.
• Application of SML (Steel Markup Language).
Economic Factors:
• GDP Growth Rate.
• Reduction in Customs Duty.
Political Factors:
• Recommendations on Captive Mines.
• Mining Scams. Eg: Goa
`

6. SWOT Analysis
Threats
Socio Political Scenario/ Cap
on mining activity
Advancing technology
International Competition
Regulatory requirements
Rising prices of Coal
Opportunities
Competitive advantage by value
of size
Growth of Infra Sector in India
Higher pricing opportunities in
foreign markets
Movement along Value chain
front
Strengths
 Access to Raw Materials
 Strong Brand Value
 Access to Corus talent pool
 Risk Mitigation
 Good Corporate Governance
Weakness
 High debt loads
 Operational Inefficiencies
 Low demand for existing
products
 Less product innovations
 High attrition rate

7. External Analysis

8. Michael Porter’s Five Forces Analysis
Buyers’ Power(low)
• Increasing Demand for Steel.
• Low customer preference.
Suppliers’ Power(high)
• High Raw Material Prices.
• Lack of Transportation.
• Fragmented Coke Suppliers.
Competitive Rivalry(very high)
• Competition from Foreign Players.
• Spurt in Merger and Acquisition Activities.
Threat of New Entrants
(moderate)
• High Cost of Basic Inputs and Services.
• Industry is Capital Intensive.
Threat of Substitutes(moderate)
• Use of Aluminium, Plastic, Carbon Fibre.

9. Factors Score(S) Weighta
ge(W)
Total
weighted
value(S*W)
Threats
Technology Risks 1 0.15 0.15
Raw Materials Security and Price
Volatility
2 0.12 0.24
Forex, Credit, Liquidity and
Counterparty Risk
2 0.07 0.14
Regulatory and Compliance Risks 2 0.06 0.12
Health, Safety and
Environmental Risks
3 0.11 0.33
Opportunities
Macro environment 4 0.18 0.72
Industry Cyclicality 3 0.15 0.45
Growth Projects 3 0.12 0.36
Financing 3 0.08 0.24
2.75
External Factor Evaluation Matrix
Weighted
score is 2.75
Tata Steel is
externally
somewhat
strong.

10. TATA STEEL
INDIA
Reduced growth, reduced consumption
Long steel growth remain prospective,
Cash cows
TATA STEEL
EUROPE
Fall in demand; increase in diversified
product offering
Star –question
mark
TATA STEEL SE
ASIA
High demand, High growth opportunity,
High y-o-y growth
Star
NAT STEEL Automation implementation, up
gradation of production units, increased
performance, obtained multiple projects
Question mark
Iron Ore Project
Canada
Ramping up of coal production, succesful
completion of Direct shipping Ore
project
Question mark
(2013)
TATA STEEL GLOBALLY

11. Profit Pools
Brownfield expansion Increase in capacity, more
production, more dedicated
production to flat steel
Cash Cows
Global wire business Largest wire manufacturer,
Revenue US$ 496 M
Cash Cows
TATA growth shop Increased savings
Agrico Present in market for over 80 yrs,
high popularity, high product
diversification
Cash Cows
Tinplate Company of
India Ltd
Largest producer, high growth
opportunities y-o-y 14%
Star  cash cows
TATA Sponge Iron Ltd Improve synergies, future
alternative
Question mark
star
GreenField expansion Future growth opportunity for
furthur product diversification
Question Mark

12. Internal Analysis

13. Balance Scorecard
• Financial
• Turnover at 1,34,712 crores by 2013
• EBITDA is at 12,654 crores by 2013
• PAT is at -7058 crores by 2013.
• India leads in geographical distribution of revenue at 29% and in
capital employed by geographies by 46% for Tata Steel.
• Customer
• Diversified customer base.
• Automotive ,Construction , Engineering , Consumer goods
industries etc are major customers.
• Increasing marketing efforts in industries like Railways , Ship
Building , Defense etc.

14.  Internal business processes
• Kar Vijay Har Shikhar ,a Continuous improvement programme, a
well-defined six step process involving TQM and statistical tools for
improving quality.
• Some of the key themes through which process improvements are
taken up are – Throughput, Value-in-use, Energy Efficiency,
Opportunistic Plays, Logistics & Supply Chain
• Adoption of National Voluntary Guidelines to enforce transparency
, ethics and care for the community.
 Learning and Growth
• Presence of four research centers supporting cutting edge R&D in
steel.
• Tata Steel Group Process Improvement Teams deployment for
continuous process improvements.
• Growth of the company as a whole has been affected by weak global
economy in 2013.

15. Internal Factor Evaluation Matrix
Weighted
score is
2.56.Tata
Steel is
internally
somewhat
strong.

16. Business Model Analysis
Key
Partners
• Nat Steel
• Millenniu
m Steel
• Corus
Key Activities
• Mining
• Extraction
• Manufacturing
Value
Proposition
• “Trusted
Brand”
• Highly
valued by all
stakeholders
Customer
Relationships
• Strong Base
• Value
driven
Customer
Segments
• Automotive
• Constructio
n
• Engineering
• Consumer
goods
Key Resources
• Access to Raw
Material
• Strategic
Alliances
Channels
Traditional
supply
channels direct
to customers
Cost Structure
• Processing Costs
• Interest on Debts
Revenue Streams
• Steel, Tubes and Alloys
• Sale of minerals & bearings
• Sale of Power and water

17. Major players in Steel Sector
 Main Producers (SAIL plants, Tata Steel and Vizag Steel/RINL),
 Major Producers (Essar Steel, Jindal Steel & Power and Ispat
Industries)
 Other Producers
 Total production value :
Sector Production
Public Sector 12.579 M tonnes
Private Sector 38.015 M tonnes
Total 50.594(89% cap util)

18. Major player in Steel Sector
NAME MAJOR PRODUCTS TOTAL CAPACITY
(million tonnes)
REVENU
E (Billion
US$)
Tata Steel wire rods, bars, and
steel flats
28 6.9
Jindal Steel &
Power
mild steel slabs
and sponge iron
20 3.2
Essar Steel sponge iron, steel and
iron ore pellets
14 5.6
Rashtriya Ispat
Nigam Ltd
liquid steel 30 1.7
Bhushan Power &
Steel Ltd
iron Ore
beneficiation
12 (incl of the expansions) 1.32
Lloyds Steel corrugated sheets and
steel coils
Steel Authority of
India Limited
Stainless steel and
iron
25 7.8
Mahindra Ugene
Steel Corporation
1.8 0.210

20. Product Portfolio

21. Market Share
MarketGrowth
HighLow
LowHigh
Ferro Alloys
and Minerals
Division
Bearings and
Tubes
Division
Steel Division

22. External factor based decisions
• Updating frequently on the latest technological
advancements
• Improving storage facilities
• Cash management and treasury management
techniques
Internal factor based decisions
• Improving operational efficiency.
• Merging with high technology foreign
companies in similar line of business.
• Incentivizing employees for long term
association with the company.

23. ANSOFF MATRIX
Market
penetration:
Bearings and
tube division
Product
development:
Steel coils and
Corrugated steel
Market
development :
International
markets
Alliance and
Mergers
Diversificatio
n:
Not diversifying
in the near future

24. Long Term Strategic plan
2012 2020
28 mtpa
60+ mtpa
Fewer Intnl
Markets
Strong Intnl
presence

25. Thank you !!