Tata Steel Corporation Case

HISTORY

Tata Steel Corporation is India's top steel producing company. It has done so by being the cost leader in the industry thus allowing it to offer prices lower than that of its competitors. The company has also successfully secured the trust of the country's consumer population by expanding and maintaining its renowned reputation for benevolence in its relationship with the community.

With these achievements, Tata Steel Corporation was able to forge a harmonious relationship with its workers and customers, while maintaining its profitability. The company funded hospitals, medical centers, road construction, waste management projects, schools and utilities like water and electricity in order to alleviate the current predicament and secure the welfare of its workers and the community it situates with. Furthermore, the firm maintains honesty and reliability in its production process seeing to it that standards are met and cost efficiency is achieved. As a result, the company's products is directly associated with reliable quality at the lowest price, hence, maintaining the firm's profitability.

With the start of globalization and through the passage of time, new circumstances beget the company forcing it to rethink whether its current disposition is enough for it to survive and grow or if it would need to tip the scale of balance between EVA and Corporate Social Responsibility. It has paid much attention on CSR activities that shareholders felt that the company is not giving importance to shareholder's value maximization. To address this, the company established a new vision geared towards increasing shareholder's wealth (EVA positive) without neglecting its commitment to the community. An outcome-impact analysis was done to determine the activities that created positive and negative impact to the achievement of the company's objectives. Strategies were formulated by determining activities or actions that would bridge the gap between their existing activities and their critical success factors.

General Environment Analysis

Economic Trends. India is proven to becoming a "tiger economy" as it