Wednesday, September 25, 2019
Tata Steel in India Research Paper Example | Topics and Well Written Essays - 1750 words
Tata Steel in India - Research Paper Example Tata Steel is recognized as IndiaÃ¢â¬â¢s first Iron and Steel company, having been founded in the year 1907 during the British colonial era. (Indicus Analytics, 2009) Tata Steel operates as part of the Tata Group, allowing it to pursue integrated supply and distribution facilities to automotive manufacturing, heavy industry, and consumer goods production within the conglomerateÃ¢â¬â¢s structure. (Economy Watch, 2010) Tata Steel competes with a large number of different Iron and Steel companies within IndiaÃ¢â¬â¢s domestic economy and internationally, including the Steel Authority of India (SAIL), Arcelor-Mittal, POSCO, Hindustan Steel, JSW Steel, and other companies. The Indian Government has pursued a policy of progressively opening IndiaÃ¢â¬â¢s local economy to foreign competition, and there is currently no levy or tax restriction on the import and export of iron and steel products. (India Ministry of Steel, 2009) The consequence of this is considered to be increased compet ition in the sector, and lower prices, particularly as set by Chinese steel producers for export. China produced over 10 times the steel capacity of India, at 567 million metric tons in 2009 compared to 56.1 million metric tons produced by India in the same period. (India Ministry of Steel, 2010) Nevertheless, Tata Steel has produced a corporate strategy to meet these competitive challenges, and this includes sustainability policies directed at the greater welfare of workers, the environment, and community. Tata Steel and Economic Conditions in India Tata Steel states publicly that Ã¢â¬Å"the primary purpose of a business is to improve the quality of life of people.Ã¢â¬ (Tata Steel, 2011) This tenet constitutes the cornerstone of the companyÃ¢â¬â¢s sustainability policy and represents the wider mandate held by corporate management on behalf of stakeholders. In India, there is a need for social and economic development that uplifts people out of poverty. One of the main processe s that enable individuals to improve their living condition in the modern, globalized economy is the possession of a professional, well-paying job. Another factor is the level of education that an individual receives in the formative years of development. Education is recognized as vital to the long-term sustainability of business and industry, as well as being one of the main constituents of what is required of a good employee. As IndiaÃ¢â¬â¢s economic development needs change on a national level from addressing the dire threats of the poverty situation of the post-colonial era through socialist policies to supporting the booming economy expanding at a rate of 8% to 10% annually in the 21st century through progressive market policies, it should be expected that the sustainability policies at Tata Steel are also updated and analyzed by management teams to reflect the changing requirements of the communities themselves that are being served.