Summary of Part – II
Micro analysis of Tata steel
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.
Tata Steel’s larger production facilities comprise those in India, the UK, the Netherlands, Thailand, Singapore, China and Australia. Operating companies within the Group include Tata Steel Limited (India), Tata Steel Europe Limited (formerly Corus), Tata Steel Singapore and Tata Steel Thailand.
The Tata Steel Group’s vision is to be the world’s steel industry benchmark in “Value Creation” and “Corporate Citizenship” through the excellence of its people, its innovative approach and overall conduct. Underpinning this vision is a performance culture committed to aspiration targets, safety and social responsibility, continuous improvement, openness and transparency.
Business divisions of the company:
• Bearings Division : Manufactures ball bearings, double row self-aligning bearings, magneto bearings, clutch release bearings and tapered roller bearings for two wheelers, fans, water pumps, etc.
• Ferro Alloys and Minerals Division : Operates chrome mines and has units for making Ferro chrome and Ferro manganese. It is one of the largest players in the global Ferro chrome market.
• Agrico Division : Tata Agrico is the first organized manufacturer in India of hand tools and imp...
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...perational excellence
People
Proposed Business plan
Description of Business:
This business will
• Design, manufacturing, testing, commissioning & installation of mechanical component of Automobile sector.
• Design & manufacturing of trust, beam of steel structure.
• Design & manufacturing of suspension bridge, suspended bridge & other steel structure.
• Design, manufacturing & installation of designer products.
• Other steel structures as customer orders. Our product are avaible in every part of the country.
Financing:
Initial financing requriment is Rs. 3,43,30,000.00 Which includes bank loan of Rs. 2,05,98,000.00 which amount to 60% of total capital, with 9% interest rate to be paid in 5 years. So 40% of the remaining capital will be borne by five respective promoters equally. This debt will cover machineries, office equipments and other operating expnsees.
Based on the optimal capital structure analysis, they should pursue as 70% debt proportion, which will give them the lowest cost of capital at 11.58%. Currently Star has no debt in their capital structure, so these new projects should begin to add debt to the company. However, no matter what debt and equity proportions are chosen for each project, the discount rate of 11.58% should be used, as the capital budgeting decisions should be independ...
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:
- Nucor Corporation is the largest steel producer in the United States and had net sales of $11.3 billion in 2004.
Founded in 1985, Multigroup is one of the largest producers of steel products in Central America. Multigroup, a privately held company, specializes in the production and commercialization of Steel and it counts with more than five thousand different products. With leading brands in most of its markets, Multigroup operates in Mexico and Central America and exports to more than 15 different countries around the world. The company has its corporate offices in Guatemala city, Guatemala and has more than 1500 employees, 6 factories and 30 stores around the region. In 2013 Multigroup’s revenue exceeded US$100 millions from which 70% came from abroad.
A consulting firm, Rhodium Group calculates that global steel production rose by 57% in the decade to 2014, with Chinese mills making up 91% of this increase.[7]
...k, John. "US Steelmakers in Continuing Crisis." Challenge.Vol. 47, no. 1, January/February. M. E. Sharp, INC. 2004. 86-106.
This corporation was not always known for its manufacturing of steel. During the 1950s and 1960s
Corus group Plc. was formed on 6th October 1999, by the merger of British Steel and Koninklijke Hoogovens, following the privatization of many steelworks companies by the U.K. government. The company was the supplier of steel and related services to the construction, automotive, packaging, mechanical engineering and other demanding markets worldwide. The headquarters of Corus is in London and the company was once an esteemed member of FTSE 100 index. It has major integrated plants in UK, Netherland, Norway with capacity of 18.2 mn tone...
As we learn from the case study, the Lincoln Electric Company is the largest global manufacturer of machines for welding, which are used in all kinds of construction projects. This means that the company has a large global presence and many employees, so its culture affects thousands of its workers. Even though it is now 2014, the company still has a large market share and very satisfied employees, so clearly the culture leaves employees satisfied and motivates them to work hard for the company.
There is a range of criteria relevant for a decision of financing a new venture. To construct my list for the evaluation of a new company as an opportunity I have selected to refer to t...
TATA Steel. "The Facts: Behind the Figures." The Whole Story: From Cradle to Grave (2011): 10-13. Print.
From Bursa Saham Malaysia , Malaysia Steel Works (KL) Berhad (Masteel) started its business in 1971 and it is one of the head steel maker in Malaysia. Masteel is engaged in manufacturing and marketing of high tensile steel bars, mild steel bars and also prime steel billets. This manufacturing company is based in Shah Alam and its factories are located at Petaling Jaya and Bukit Raja, Klang in the state of Selangor. It makes Masteel has a benefit on having a lower transportation costs compared to others competitors. Every year Masteel can produce 50 million tonnes of Billet mill and the production can increase up to 65 million tonnes in year 2016. This is because Masteel have invested RM100 million of capital expenditure to build a new factory which
To become leading alloy castings producer in India by providing qualitative products to customers and create value towards
The Tata way is actually organizational behavior of the Tata group. The reason for the success of the Tata group is based on capability, they created their own way of organization behavior. Every business and every firm requires different set of organizational behavior and we can replicate a general organizational behavior for a firm but if you want your firm to be successful then you need to modify the organizational behavior your firm like the Tata group
Steel manufacturing has many different processes and can be a very complex to manufacture. Firstly the iron ore needs to be mined out of the ground before steel production can begin.From this process of mining the steel can then start it production process and begin the vital three stages needed to produce steel. Firstly a very intensive heat source needs to be produced to melt the iron ore. After this stage the intensive heat generated in the furnace is used to melt the iron ore. Then at its third stage the molten iron is used to produce steel this process will almost always take place at the same facility because of the intense heating and continuous production line like process.