Case Study of Tata Steel Company
The TATA Company has achieved economy of scale. The steel industry knows a lot about the market turbulence.
Since 1907, Tata Steel Company has overcome numerous challenges as well as its subsidiaries. The last challenge that it faced was its economic downturn which destroyed a lot of its wealth. The Company immediately took action recognizing that this time the economic downturn was bigger than the ones previously experienced and generally more global. The Company regarded slowdown as an effective way to create value; thus during the last year, it has undertaken some initiatives. The company assigned cross-functional strategic teams to implement transformational change in key process areas.
Managers were told to make decisions regarding resource allocation that served two equally critical but competing goals: maintaining the organization viable during the time of economic downturn and preparing it to move forward when the conditions are favorable again. It was a time to identify and analyze best working practices and follow them. Tata has been giving a satisfactory relation to its customers and clients regarding its production. To strive against rising costs, the TATA Company’s business plans were reorganized, budgets were tightened, and unnecessary expenses were reduced; thus the company reached its primary aim of emerging as a leaner, more efficient and cost-effective operation. The second goal of teh Company was growing in spite of the economic downturn. The company of Tata Steel concentrated on areas within its area of influence, communicated constantly and faithfully, and negotiated better contracts and deals.
Throughout this process, it continued to keep unambiguous and direct communication with its workers and ensured that its teams were motivated and finally became one of the top 10 companies worldwide. Thus, Tata Steel undertaken short-term, tactical, and strategic measures with the aim to benefit the organization in the long run work of the company. Similarly, any company can achieve success by its hard work, sincerity, and cooperation among the employees to counter any effects of the downturn.
