Wednesday, April 10, 2019

Swot Analysis of Tata Steel Essay Example for Free

Swot compend of Tata Steel EssayThe company has also been acquiring stake overseas in Canada, Mozambique, Australia and so on to drift its reserves for clean coking coal which is rarely avail up to(p) in India. 2. Management Team Tata Steel has a highly credible management team which has displayed their skills in expanding the company through and through and through inorganic route. The company has successfully acquired Nat Steel of Singapore, Millennium Steel of Thailand and more importantly Corus. The companys virtuosos of finance have been able to find innovative ways to tackle the companys burgeoning debt and keep the bottom line in the green zone despite lowering demand and huge debts accumulated. . Information Technology The entire dig operation of the Company is safeguarded against accident occurrence. Proactive measures are undertaken to ensure the employees health and productivity through ergonomically designed work stations and by protecting them from occupational hazards. All its mines are ISO-14001 -Environmental Management System Certified. Tata Steels collieries go for Surpac, a state-of-the-art mine planning computer software that estimates the volume of coal in every seam. This software is coupled with qualitative detailing that focuses on output consistency.To maximize productivity and utilization, a voice and selective information equipped Global Positioning System is used, which helps to supervise mining activity form a slaughter movement and engine status. 4. Innovativeness of TATA Steel with respect to its competitors Tata Steel has the lowest operating cost for steel perform in the world. Further it has displayed effective means in adopting an eco-friendly and sustainable approach towards the manufacture of steel and then proactive measures are undertaken to ensure the employees health and productivity through ergonomically designed work stations and by protecting them from occupational hazards. . Adaptability of the company in the fast change of the environment Tata Steel has displayed immense lightness in the recent past during the world(a) financial tsunami. Its virtuosos of different fields have adopted various methods like lowering of production and even shutting down of steel plants owing to the lack of demand, managing the symmetry sheet efficiently etc. The company has 70% of its procurement of raw materials for its operations in Asia through long term contracts and so its margins can be shielded from the nuances of the volatility of the financial markets.Brand appraise The TATA brand owing to its highly ethical and a socialistic approach to business have make its name synonymous to trust. After the acquisition of Corus another powerful brand, the brand value of the company has intensify further. 7. somatic governance Tata Steel has had an impeccable record for corporate governance. It has set the benchmark in global corporate governance principles of transparency, accountability and equit y for others to follow. Tata Steel has been consistently receiving prestigious awards at both the theme and the international arena.Recently it bagged the Best Governed Company Award for corporate practices presented by Asian Centre for Corporate Governance. 8. Excellent integration with Corus Corus has a great reserve of around 2000 metallurgists and technology which could be exploited by Tata Steel on several fronts. 10. Excellent procurement philosophy Tata Steel has around 70% of its supplies through long term contracts. Thus it can be shielded from the volatility of the financial markets. 10. Spawning upon opportunities Tata Steel has been amongst the soonest to spot the escalation in the demand for steel in the forthcoming years.It has hence invested heavily in the amplification of its existing facility at Jamshedpur and is setting up other green field projects at Orissa, Jharkhand etc. Weaknesses of Tata Steel 1. Huge debt burden Tata Steel is having a total debt of 10. 2 b illion USD in its books. It has a debt equity ratio of 1. 6 which means that the assets of the company are largely financed through debt. With the inflation on a rise the central banks of most all the countries are intending to tighten in the liquidity in the money markets. As a result of which the interest rates are on a rise.

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