Tata Steel Case Study

6969 words 28 pages
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Strategic Management
Credit Accumulation & Transfer Scheme (CATS) – Undergraduate – Degree in Business & Management Studies

“Position Analysis of Tata Steel”
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Table of content

Title page | 1 | Table of content | 2 | 1. Introduction | 3 | 2. Historical …show more content…

Thus, Tata has failed because it has not taken into account that Europe has a different cultural and historical background. Moreover it has failed to identify that the steel market within Europe is weakened. These failures might be the reason as why Tata is now in a phase of flux.
In addition, since many years, the company has used its beliefs and history to impinge on its future strategies. In consequence, it has facilitated the group to see changes in consumer behaviour and in the market.
However, in the course of years, Tata could not maintain the international changing environment. The result was strategic drift because the steel market within the country and over boundaries have become weakened. The reason was that there were fewer buyers as opposed to sellers.
However, assumedly, there might be reasons why the company could not expect a strategic drift. For instance, although the market is steady changing, one reason for the strategic drift might be that managers keep the same strategies, which they have used before. Another reason of being in strategic drift might be that Tata failed to perceive how strong its competitors are, such as Arcelormittal, which is the leader in global steel markets (Arcelormittal, 2010).

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2.3 Cultural background of Tata Steel

An organisation culture “is the basic assumptions and beliefs that are shared

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