Every organization has key stakeholders. These are those who are affected by its products, services and activities or it can be those whose concerns can change the show of business.
The Company’s Vision for Tata Steel: “to seize the opportunities of tomorrow and create a future that will make it an EVA positive Company and to continue to improve the quality of life of its employees and the communities it serves”
This statement clearly states that Tata Steel will continue to develop the excellence of employees and the communities it serves. Also group Purpose underscores the Tata values on Nation building. The company believes in returning back to the society that they have earned by developing trust among the shareholders, employees, consumers, and communities.
Tata Steel has identified in balancing the stakeholders needs and they consider this as a key strategic issue. The identification of the stakeholders is done from the vision of the company, which sets the strategic directions and strategic goals. Thus the total stakeholders of the company comprises of Shareholders, Financial Community, Customers, Media, Community, Employees, Regulators, Suppliers and Partners. The company treats the stakeholders as one of the Key Enterprise Processes.
Stakeholder Analysis and its Positioning
A) Shareholders, Financial Community
C) Customers, Suppliers, Employees, Media
The Companies Approach to Stakeholders Consultation and Communication
1. Shareholders and Financial Community
The shareholders and financial community like banks, financial institutes etc are regarded as the important stakeholders in the company. The company meets the investors across the globe and organise Annual General Meeting. The company sends the quarterly and half-yearly reports to them and updating them about the different policies that the company is planning to do. The company also organizes Shareholders Relation Meet and Customer Forum. The Managing Director also calls for a conference with the customer groups. The meeting with the shareholders is done as per plan annually. The company has to do this because they have to inform the shareholders that how the company is doing and they have to build trust among the shareholders and financial institutes because they are the ones’ who have invested in the company and company has to take proper care of them in respect from making the policy for the company. Both the stake holder and finanical communites have high power and high interest in the operations of the company. So are regarded as key players in the stakeholder analysis.
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:
Advances in technology can dramatically alter an industry’s landscape, making it possible to produce products at lower costs and opening up whole new industry frontiers. The management at Nucor believed they could use new technology to their advantage and make bolts as cheaply as foreign producers. The traditional integrated steel mills were outdated and inefficient compared to new electric minimills. Nucor embraced this new technology to produce steel. They became known for constructing state-of-the-art facilities at the lowest possible costs and for investing aggressively in plant modernization and efficiency improvements. New technology enabled minimills to triple their output in the 1990's. The new technology of twin shell electric arc furnaces helped minimills increase production, lower costs, and take additional market shares. Nucor’s use of advanced, efficient technologies enabled it to stay afloat when other companies could not. This use of technology also enables Nucor to lower many of the costs of maintaining environmental standards. With technological improvements to the plants and the production process, steel companies can better compete with each other. Because there is no real differentiation between products in the steel industry, companies will have to rely on technological innovation to profit in this industry.
Stakeholders are people that are either directly or indirectly influenced by the decisions made inside a given business. For example, an internal stakeholder might be an employee or manager, and an external stakeholder could be society, shareholders, customers or the government. Stakeholders undoubtedly play a large role in the way BI strategies are conducted and the way in which decisions are made. The primary goal of a business is to offer a service and or product to sell to a customer. Hence it is in a business’s best interest to make decisions which have the best impact on stakeholders and it is also in their interest to prime their BI strategy to their stakeholders. As stated in the “Sustainability Matters” article from Oracle – “management teams must consider the needs of all stakeho...
This is a case study on the series of negotiation between the Tata Steel (a part about TATA Group) which had acquired Corus, the Anglo-Dutch steel firm after a long eight month long negotiation over price and terms of acquisition because of the entry of a third party, Brazil's CSN. This is one of the most interesting acquisition cases in the recent decade due to the fact that the acquired company was nearly four times the size of the acquirer in terms of the total revenue. Here, Corus Group was acquired by Tata Steel in the month of April 2007 for £6.2bn. Tata Steel is India’s largest private sector steel company with 2005-06 revenues of US $5.0 billion and steel production of over 5.3 million tons across India and South-East Asia (as provided in the Annual Report 2006). Corus Group is Europe's second largest steel producer with the annual revenues of over £9.2 billion and a crude steel production of 18.2 million tons in 2005 (gathered from Annual Report Corus). This deal is supposedly the biggest deal ever from an emerging market. The deal is a powerful amalgamation of near to the ground cost upstream production in India with the far above the ground end downstream processing facilities of Corus.
The government has formulated policies that are favourable for steel manufacturers. However, there exists certain discrepancies in the allocation of land acquisitions and iron ore mines. In addition, the new entrants face a lot of regulatory clearances and other issues in the iron and steel industry. Indian steel industry has high custom tariffs and non-tariff barriers making its highly insulated. The competition in iron and steel industry have changed the objectives, the structure and culture of an organisation in order to achieve high efficiency and global competitiveness and the objective has already been achieved by several industries in India. But the lack of coordination between different departments of the organization and state governments are also a matter of concern.
...eholder theory and discovered notable issues with the characteristics of the stakeholders. The authors found out that there are theoretically problematic issues, mainly about the stakeholder concept itself. Future research is needed on how to identify the stakeholder’s group in practice. Furthermore, there is a need to present a universal criterion for ascribing specific characteristics belonging to one group or another. In practice or in application, it is necessary to address the conflicts of interest among the different stakeholders as well as the management difficulties when dealing with their numerous and various objectives. Mainardes, Alves, and Raposo (2011) also stated that there is a need to systematize the knowledge produced by academics and practitioners in order to achieve the theoretic convergence essential for the growth of stakeholder theory.
at ArcelorMittal, reveals, “Essentially, the foundation of our Transformation strategy is to address the social, environmental and economic challenges facing both the country and the industry at large. It is critical that we support the downstream Steel Industry and, where possible, remove any barriers to their success. One way to do this is to favourably impact the preferential procurement scorecard of those procuring from us, by continuously improving our B-BBEE score. Furthermore, a focus is placed on increasing ‘Black’ participation within the industry, thus, effectively breaking down the Barriers of Entry for ‘new entrants’ to the market.”
According to Freeman (1984), he defined that stakeholder which is called as investor relation, is a group of people without whose support the organization would cease to occur and they are one of a group who are directly affect the survival and success of the organization. Based on Malaysia Code of Corporate Governance (MCCG), there is a communication between the company and the stakeholders to improve the understanding objectives and expectation. By communicating, stakeholders are able to make decision that have been informed about the business of the company, governance’s policies environment as well as the social responsibility. The best of practices in stakeholder are the boards have to ensure that there is always an effective, transparent
Stakeholders are those groups or individual in society that have a direct interest in the performance and activities of business. The main stakeholders are employees, shareholders, customers, suppliers, financiers and the local community. Stakeholders may not hold any formal authority over the organization, but theorists such as Professor Charles Handy believe that a firm’s best long-term interests are served by paying close attention to the needs of each of these stakeholders. The modern view is that a firm has responsibilities to all its stakeholders i.e. everyone with a legitimate interest in the company. These include shareholders, competitors, government, employees, directors, distributors, customers, sub-contractors, pressure groups and local community. Although a company’s directors owes a legal duty to the shareholders, they also have moral responsibilities to other stakeholder group’s objectives in their entirely. As a firm can’t meet all stakeholders’ objectives in their entirety, they have to compromise. A company should try to serve the needs of these groups or individuals, but whilst some needs are common, other needs conflict. By the development of this second runway, the public and stakeholders are affected in one or other way and it can be positive and negative.
For every company employees group is the most important stakeholder group. If a company has happy employees their customers will be doubly pleased.
The company has emphasized on the need for a decentralized management in recent times. Furthermore, the company rates its employees based on performance or quality and not on seniority. Also, the company has employed the use of lean management that puts the customers’ needs first. Finally, the employees in the company have assurances of their jobs and are motivated, thus the high productivity within the company. Companies in the steel industry can borrow from NUCOR Corporation. In pursuing rapid growth strategies and expanding the production capabilities, companies can ensure production at low cost by embracing a payment strategy based on employee quality and not seniority. In the long run, these strategies can enhance profitability and strengthen the market share of any company. For instance, at a time when the demand for steel was at an all-time low, NUCOR managed to stay afloat by recording high earnings stretching back to twelve years and being a market leader of steel in the United States. In future, as a learning to upcoming companies in the industry, diversification to other markets, for example in Europe and Asia, is important to further hold a grip on the market and avoid any external threats to the market
Stakeholders are interest of an individual or groups that directly or indirectly affected by the organisation’s activities, policies and objectives (Henry Frechette, 2010). Stakeholders can be divided as internal (managers and employees) and external (shareholders, customers, and suppliers) (BPP F9). Different stakeholders may have common interests or conflict interests with company. Company board members or management must take care about stakeholders’ interest. They can’t make the decision based on their own interest or their relation with others organisation. Conflict of interest will arise when interests of organisation act in concert with managers’ personal interests or interests of another person or organisations, (Anon, no date).
Stakeholders refer to individuals or groups of people that have an interest in a business. Management argues that as long as there is wealth for shareholders, then anything is done in a responsible manner and things should be done to promote the interest of other stakeholders.
The healthcare projects of Tata Steel include facilitation of child education, immunization and childcare, plantation activities, creation of awareness of AIDS and other healthcare projects .It is for the healthy India. as the saying goes - ' healthy mind resides in healthy body'.