SWOT ANALYSIS OF TATA STEEL


SWOT ANALYSIS

STRENGTHS:
Strong brand name like Tata Steel & Corus.
Indian operation capable of meeting its own requirement.
Strong supply chain for raw material leading sales & distribution.
Low cost, high skilled labour.
WEAKNEESSES:
Low R & D investment.
Unscientific mining method.
Technologically backward.
Low productivity.
OPPURTUNITY:
Unexplored rural markets.
Growing domestic market.
Growing global market.
Carbon trade.
High investment in infrastructure sector.
 THREATS:
Major Player entering Indian market.
China set to become a net exporter.
High duties and taxes from the government.

STEEL INDUSTRY PROFILE


STEEL INDUSTRY PROFILE

Global Steel Industry

The crude steel production for 66 countries reporting to the World Steel Association was 1220 million tons for calendar year 2009, lower by 8% against that of 2008. Hit by the economic downturn, the drop in production was nearly in all steel producing countries barring positive growth recorded in China, India and the Middle East. In most countries including the developed steel markets of the EU, The U.S.A; Japan, Brazil, CIS deterioration in the economy resulted in a sharp decline of demand in key steel using sectors. The following table shows the growth in terms of crude steel production for the top ten steel producing nations:

Rank

Country

2010

2009

Change

1.

China

626,654

573,567

9.26%

2.

Japan

109,600

87,534

25.21%

3.

U.S.A.

80,594

58,196

38.49%

4.

Russia

67,021

60,011

11.68%

5.

India

66,848

62,838

6.38%

6.

South Korea

58,453

48,572

20.34%

7.

Germany

43,815

32,670

34.11%

8.

Ukraine

33,559

29,855

12.41%

9.

Brazil

32,820

26,507

23.82%

10.

Turkey

29,002

25,304

14.61%

(Figures in Thousand Metric Tons)

As a result of the strong growth in china in sharp contrast to the decline in major parts of the globe, the list of the top ten steel producing companies during 2009 was dominated by Chinese companies.

OBJECTIVE OF THE PROJECT


OBJECTIVE OF THE PROJECT:
  1. To understand the concept of  WORKING CAPITAL MANAGEMENT.
  2. To understand the techniques and processes of  WORKING CAPITAL MANAGEMENT at TATA STEEL.
  3. To analyze the effectiveness and efficiency of the existing working capital control system.
  4. To compare the working capital position of TATA STEEL with other players in the market.
  5. To find out areas of weakness, if any.
  6. To identify the areas of strength and improvement.
  7. To suggest possible remedial measures.

Project Report on Working Capital Management at TATA Steel


EXECUTIVE SUMMARY
Project Description:

To study the working capital management practices of Tata Steel and compare with Indian firms SAIL and JSW steel. The project on Working Capital Management has been a very good experience. Every manufacturing company faces the problem of working Capital Management in their day to day process. An organization’s cost can be reduced and the profit can be increased only if it is able to manage its Working Capital efficiently. At the same time the company can provide customer satisfaction and hence can improve their overall productivity and profitability.

This project is a sincere effort to study and analyze the Working Capital Management at TATA Steel. There is making a financial overview of the company by conducting a Time series analysis of TATA Steel for the years 2005 to 2010 and a Comparative analysis of TATA Steel with its domestic competitors – SAIL, JSW for the year 2010.

The internship is a bridge between the institute and the organization. This made me to be involved in a project that helped me to employ my theoretical knowledge about the myriad and fascinating facets of finance. And in the process I could contribute substantially to the organization’s growth.

The experience that I gathered over the past two months has certainly provided the orientation, which I believe will help me in shouldering any responsibility in future.

Use of Advertising


 Use of Advertising
Promoting Products or Organizations - Institutional Advertising promotes organizations, images, ideas or political issues.
Stimulating Primary and Selective Demand - First to introduce product needs to stimulate primary demand. Pioneer Advertising informs people about the product.
Offsetting Competitors Advertising - Defensive advertising, offset to lessen the effect of competitors advertising. 
Making salespersons more effective - Tries to presell product to buyers by informing them of uses, features and benefits.
Increasing use of product - Consumer can consume only so much of a product, this limits absolute demand. May  need to convince the market to use the product in more than one way. 
Reminding and reinforcing customers -  Reminder, need to keep company/product name at the forefront of consumers' minds in the competitive marketplace.
Reducing Sales fluctuations - Increase sales during slow periods will help increase production efficiency

Scope and Importance of Advertising


Scope and Importance of Advertising

Advertisements are important for:
  • standardized products
  • products aimed at large markets
  • products that have easily communicated features
  • products low in price
  • products sold through independent channel members and/or are new.
Broadcast Ad spending is at an all time high due to heavy competition in the:
  • Computer industry
  • Telecommunications Industry
  • Auto Industry
 Whenever severe competition between marketers, introducing new products etc. Even with evolution of direct marketing, and interactive media. 
Nature of Advertising
 Used by many types of organizations including Churches, Universities, Civic groups and charities, politicians!!
Need to consider the following issues:
  • Does the product possess unique, important features to focus on Unique Selling Point (USP)
  • Are the hidden qualities important to the buyers
  • Is the general demand trend for the product adequate
  • Is the market potential for the product adequate
  • Is the competitive environment favorable
  • Is the organization able and willing to spend the required money to launch an advertising campaign

Definition of Advertising


Advertising as a discrete form is generally agreed to have begun with newspapers, in the seventeenth century, which included line or classified advertising. Simple descriptions, plus prices, of products served their purpose until the late nineteenth century, when technological advances meant that illustrations could be added to advertising, and color was also an option.
An early advertising success story is that of Pears Soap. Thomas Barratt married into the famous soap making family and realized that they needed to be more aggressive about pushing their products if they were to survive. He launched the series of ads featuring cherubic children which firmly welded the brand to the values it still holds today. he took images considered as "fine art" and used them to connote his brand's quality, purity (i.e. untainted by commercialism) and simplicity (cherubic children). He is often referred to as the father of modern advertising.World War I saw some important advances in advertising as governments on all sides used ads as propaganda. The British used advertising as propaganda to convince its own citizens to fight, and also to persuade the Americans to join. No less a political commentator than Hitler concluded that Germany lost the war because it lost the propaganda battle: he did not make the same mistake when it was his turn. One of the other consequences of World War I was the increased mechanization of industry - and hence increased costs which had to be paid for somehow: hence the desire to create need in the consumer which begins to dominate advertising from the 1920s onward.
DEFINITION - ADVERTISING
Advertising is
·        paid form
·        a way of promoting products, services or information
·        a form of communication (between manufacturer and consumer)
·        a physical commodity
·        an integral part of pop culture
·        an important economic force
·        a part of our urban landscape
            Advertising is a form of communication that typically attempts to persuade potential customers to purchase or to consume more of a particular brand of product or service. Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries
1.   The non-personal communication of information usually paid for & usually persuasive in nature, about products (goods & services) or ideas by identified sponsor through various media. (Arenes 1996)

2.   Any paid form of non-personal communication about an organisation, product,service, or idea from an identified sponsor. (Blech & Blech 1998)

3.   Paid non-personal communication from an identified sponsor using mass media to persuade influence an audience. (Wells, Burnett, & Moriaty 1998)

4.   The element of the marketing communication mix that is non personal paid for an identified sponsor, & disseminated through channels of mass communication to promote the adoption of goods, services, person or ideas. (Bearden, Ingram, & Laforge 1998)

5.   An informative or persuasive message carried by a non personal medium & paid for by an identified sponsor whose organization or product is identified in some way. (Zikmund & D'amico 1999)

6.   Impersonal; one way communication about a product or organization that is paid by a marketer. (Lamb, Hair & Mc.Daniel 2000)

7.   Any paid form of non-personal presentation and promotion of ideas,goods or services by an identified sponsor. (Kotler et al, 2006)