Export Promotion of TATA

Export Promotion Of TATA Steel Product (India)

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(15, April, 2010)

Export Promotion Of TATA Steel Product (India)

In India Tata steel is a common house hold name in the discipline of steel

manufacturing, in the world this company is rated to be the biggest supply 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. The records in sales in this year when the country was recording low

economy astonished many financial analyst. The company garnered a turn o0ver 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. Doole, I., & Lowe, R,( 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%. These come

in the wake then 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. Form these attributes this organization have recorded an

increment of over 50% due to the adherences to this strategies brought about by structural

management. Rosenberg, J. (2000),

The major focus on the structural management was mostly enhanced on branding; this

enabled this organization to be bale to boost the sale of the product which was flat branded

compatible, garnering about 21% of the accumulative flat sales of these products. Another

juncture was on the long products which also garnered an accumulative total of over 30% in

this product sale. This is from the improvement that was authenticated back in 2003, the

product mix strategy increased the value of the product quality, the high quality steel made

this organization to do well even when other major steel company were affect by the

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economic down turn, 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 down turn are white goods manufacturers and also other steel

consumers organizations. The demand grew from the normal rating of 34% to a whooping

79% because of the improvement of quality and injection of structural management. Seyoum,

B. (2008),

In the discussion Dunning, H., & Narula, R. (2005) states that the most appreciated

new buyers from the automobile market segment helped Tata steel to gain high market

shares, this was due to their demand on hot rolled product, cold rolled galvanized products,

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. 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.

From most of the export the market share representation by this organization have

risen in revenue by 27%, from the less Crore of Rs 552 to a higher of Rs 699 Crore. The

organization effort of quality observation have been recognized by the International

Engineering Export Promotional 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. Das, D. (2004)

This was rated all over the world as one of the most successful promotional attributes

of the 21st century, which even the Rating Agency Crisil commended on the best practice

performance from the best promotional etiquettes and structural management, their credit

rating was further upgraded from AA+(high safety) and increased to the rating of AAA

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(highest safety). This organization through the promotional attributes was bestowed by many

other awards such as Best Integrated Steel plant and awarded the Prime Minister’s Trophy, in

the manufacturing awards they achieved the Nasscom-Economic Times Best IT Utilization,

they were awarded the Asia’s Most Admired Knowledgeable Enterprise (MAKE) award and

they gain in recognition in the region of Eastern the CII’s Best Establishment award. Albaum,

G., & Duerr, E. (2008)

In still the promotional antics by this organization entered into a non-steel market in South

Africa, which is considered a non steel initiative and account for the production of 50% of

ferrochrome worldwide. The company acquired a warehouse in Richard’s Bay is estimating

at enjoying low cost and also proximity in this market segment share (Kotabe, M., & Helsen,

K. 2007). Another non steel initiative by this firm is the Titania project located at Tamil Nadu

which development are under way, for the mining of ilmenite and other minerals which the

company will then upgrade to titanium dioxide slag or synthetic rutile. 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 it associates. Paliwoda, Stanley J. & Ryans, John K

(eds.) (2007)

Tata steel set back in export promotional has been due to the empirical by most of the

organization which claim that this organization product are harmful to the environment, there

has been also draw back 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, P. (2007)

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In conclusion the achievement of this organization has been tremendous and this has

resulted to 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. 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.

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

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References

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& Implementation. London, South-Western Cengage Learning.

2. Kotabe, M., & Helsen, K. 2007. Global Marketing Management. New York, John

Wiley & Sons.

3. Albaum, G., & Duerr, E. 2008. International Marketing and Export Management.

Harlow, Prentice Hall

4. Collier, P. 2007. The Bottom Billion: Why The Poorest Countries Are Failing And

What Can Be Done About It. Oxford, Oxford University Press

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Macmillan

6. Dicken, P. (2007). Global Shift: Mapping the Changing Contours of the World

Economy. Los Angeles, SAGE Publications

7. Dunning, H., & Narula, R. 2005. Multinationals and Industrial Competitiveness.

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World. Oxford University Press.

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