In India Tata steel is a common household name in the discipline of steel manufacturing, in the world this company is rated to be the biggest supplier of steel worldwide supplying more than hundred countries with this precious commodity. In the year 2003 this company had a record and reputation that surpassed all other major suppliers and exporters of steel all over the world (Doole & Lowe, 2008). The records in sales in this year when the country was recording a low economy astonished many financial analysts. This was highly complimented to the government of India intervention. The company garnered a turnover of Rs 5,262 Crore which was estimated to be high by 26% of the same block previous year. All through that year as many other steel exporters dealt on loses Tata steel was more EVA positive, their earning per share was recorded to have improved by 153% over the economic down turn experienced by the country the earning was mostly from exports (Doole & Lowe, 2008)
Recently this company has had similar tale as their records shows that in the first half of their trading financial year, there has been a record of increment of over 10% from their export sales and the boost from the government, this from the acquisition to SAIL steel company which is owned by the government by share rights and they control the voting of the company. These come in the wake of this organization has been doing some major rescheduling in the material reduction in the discipline of energy, raw material consumption and refractory per ton saleable steel consumption from advice from governmental consultation bodies (Kotabe & Helsen, 2007). Form these attributes this organization have recorded an increment of over 50% due to the adherences to this strategies brought about by structural management and the boost by the government in export promotions. Rosenberg, J. (2000),
The major focus on the structural management was mostly enhanced on branding; this enabled this organization to be able to boost the sale of the product which was flat branded compatible, garnering about 21% of the accumulative flat sales of these products (Dicken, 2007). Another juncture was on the long products which also garnered an accumulative total of over 30% in this product sale due to incorporation mission by the government of the product mix promotion. This is from the improvement that was authenticated back in 2003.
The product mix strategy by the government increased the value of the product quality, the high quality steel made this organization to do well even when other major steel companies was affected by the economic down turn (Dunning & Narula, 2005; Keegan & Green, 2008). This made many automobile companies assign Tata for the provision of quality steel, the other source that also sourced for the provision of quality by Tata steel during this economic downturn are white goods manufacturers and also other steel consumers organizations this from the export promotion enhanced by the government to trading with other regions (Albaum, & Duerr, 2008; Hofstede, 2001). The demand grew from the normal rating of 34% to a whooping 79% because of the improvement of quality and injection of structural management and the governmental effort boost. Seyoum, B. (2008).
In the discussion Dunning, H., & Narula, R. (2005) states that the most appreciated new buyers from the automobile exporters market segment helped Tata steel to gain high market shares, this was due to their demand on hot rolled product, cold rolled galvanized products (United Nations, 2007). This was more demanded by the aviation sector and also for the constructors of construction appliances, also in high demand was the high carbon wire rods by foreign countries (McDonald, Et al. 2004). Through enhancing their market mix, products and their management structure, this organization has propelled itself in the level of respectable steel exporters from a cynical commodity price nature to a more relevant and known realization successful regime and the acquisition of SAIL steel company haled top this boost from the government (Paliwoda & Ryans, 2007).
Over the year’s exports of Tata have made the company increase its revenue from Rs 552 to Rs 699 which is presented as 27% increase which is attributed to increased activities in trade of steel. The organization effort of quality observation have been recognized by the International Engineering Export Promotion Council National Award and they awarded this company with an accolades of Outstanding Export Performance Award, this has been due to the promotional effort that this organization has portrayed when the economy of India was very down, they even pumped some financing into the finance exchange council of this country. (Collier, 2007)
According to Rock & Angel, (2005) another non steel initiative by this firm is the Titania project located at Tamil Nadu which development are under way, for the mining of limonite and other minerals which the company will then upgrade to titanium dioxide slag or synthetic rutile the government of India helped pulled the promotional antics in most foreign seas (Kotabe & elsen, 2007). These superior product mixes have seen this organization sky rocket in recognition and bettering of their profit margin. They have gain recognition in the sense of customer relation, cost control and operation efficiency, from this attribute the export promotion has been greatly affected by the way this organization transacts with its associates through the government aides. (Paliwoda & John K, (2007).
Tata steel’s setback in export promotion has been due to the empirical by most of the organization which claim that this organization product is harmful to the environment (Ritzer, 2004). There has been also drawbacks on some of the company withdrawing themselves from this organization due to safety of the product mix products, and also due to the green gases emission. Another draw back is most of the countries policy on exportation which centralizes on high taxation for foreign goods (Dicken, (2007)
In conclusion the achievement of this organization has been tremendous and this has resulted in expansion to other market outreach, although this is deterred by foreign policies this organization continues to provide the highest quality steel products and mix products (Porter, 1990; Das, 2004). In recognition to the effort and the good will by this organization many state should put low constraint on taxation so that it maybe operational in favored regions which the government of India is very much concerned about and working round the clock to ensure smooth running of these ventures.
Recommending that the high taxation be resolved in countries that this high standard organization ought to bring business which will undertake several growth and efficiency oriented projects which would seize new opportunities in this region. The most important key factors is that the organization mergers with other organization where they intend to have export promotional and they are deterred by high taxations
References
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