An Internal and External Analysis of Tata Steel in the Uk
Autor: Andreea Criclevit • December 9, 2016 • Research Paper • 3,302 Words (14 Pages) • 912 Views
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An Internal and External analysis of TATA steel in the UK.
Author: Andreea-Adina Criclevit
Lecturer: Dr David-Luigi Fuschi
Submission date: November 2016
Contents
Introduction to TATA STEEL UK
Background to the British Steel Industry
PESTEL Analysis
Political
Economic
Social
Technological
Ethical/ Environmental
Legal
Porter 5 forces
Threat of New Entrants- Low
Rivalry among competitors -High
Bargaining power of suppliers - Low
Threat of substitutes - Moderate
Bargaining power of buyers - Low
SWOT Analysis
Conclusion and recommendation
Bibliography
This report aims to critically analyse the internal and external environment of TATA STEEL UK. A comprehension of the business environment and the ability to act upon certain circumstances can become vital for the success of any organisation. Furthermore, in order to formulate winning strategies, there should be a successive evolution, starting from the company’s vision, mission and objectives accompanied by an in depth understanding of the external and internal factors affecting the business. This step by step process is illustrated below.
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Introduction to TATA STEEL UK
Tata Steel UK is the name given to the acquisition of Corus by Tata Steel Group in 2007 with the aim to achieve the company’s objective at that time, which was to become the world’s biggest steel manufacturer, however the organisation had to be satisfied by being only in TOP 6 Global Steel Makers.
Tata Steel UK is one of Europe’s largest strip steel manufactures that holds steelmaking and steel rolling facilities in various locations around UK, such as Port Talbot, but also various product manufacturing plants, scattered all around, that create 11,000 jobs in Britain. It has a turnover of more than £2 billion, selling approximately 4 million tons of steel per year, however a sharp drop in demand in Europe after the 2008 economic situation and an inundation of cheaper third-country imports have hurt the European Operations and Tata Steel Group is planning to sell it UK-based operations. (Bloomberg, 2016)
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