TATA Steel PTD (submitted by MP16016)

Environment:

Even though PSPL and PTD, both are operating in the same industry but their environment are
quite different. The most remarkable difference is in terms of Competitors. PTD, functioning
within the parent organization i.e. TATA Steel, does not have any direct competition. The
survival of PTD depends upon the quality of services it provides to the stakeholders (internal
and external customers).The uncertainties faced by PTD are much lower than those faced by
PSPL. Where the uncertainty faced by PTD is mainly because of dynamism, PSPL faces the same
due to complexity ad richness.

PSPL, on the other hand, works in an environment with low richness i.e. a market with high
number of competitors. PSPSL not being the largest competitor in the market is forced by other
competitors to cater to a SME market. Due to the issue, the present customer base of PSPL is
extremely sensitive to PSPSL since they are largely dependent on it for survival. Any demand
fluctuation affects PSPL’s performance severely. Therefore, even while enhancing its customer
base; existing customers are to be taken care of. Both competitors and customers form a major
source of uncertainty for PSPL.

Apart from customers and competitors, PTD deals with its suppliers on technical front and
derives the bargaining power to do so from the parent organization. PTD also set its own rules
to technically select a supplier’s offering. On the other hand, PSPL depends on other suppliers
for processing. It will not be able to deliver any output if these suppliers don’t provide the steel
sheets to PSPL. So, PSPL needs to guard against raw material supply side uncertainty which is
why they tend to form long term contracts with these suppliers, simultaneously working to
increase the suppliers’ base. The bargaining power of PSPL is also very limited. As any higher
and formal strategy may not economically be viable for them, they seek to create a strategic
alliance to manage resource independencies.

Structure

Both PTD and PSPL use the product divisional structure. PTD has PAG function which is a
geographical structure in itself but for majority of PTD employees, product divisional structure
functions in a similar manner to that in PSPL. As a result of this structure, the common support
functions in PTD and PSPL get centralized and accessed by all product divisions as per the
requirement.
Neither PTD nor PSPL can have product-wise dedicated support functions. While PSPL is limited
in size and resources, PTD itself is a support function in its parent organization. In both
organizations that the support function representatives can be located at the place where the
production takes place, however, these employees usually report to the centralized
department and not to the plant head. For PSPL, all support functions look for all 4 types of
product offerings. Sub-unit orientation is one of the limitations which have been experienced
by PSPL. PTD may also be highly susceptible to this type of issues and should guard against the
same.

LD Shop #1 (submitted by MP16039)

Environment:

As PTD, LD Shop #1 or LD1 also belongs to the TATA Steel and have no direct competition. Being
the only steelmaking shop housing a billet caster, LD1 does not compete with any other
steelmaking shop. LD1 has internal and external customers as stakeholders, acting in their
specific environment. LD1 caters to the need of long products’ (external) customers and long
product rolling mills’ (internal) customers. PSPL, as discussed earlier, operates in a market with
high number of competitors. These competitors force PSPL to cater their services to small and
medium enterprises. This SME customer base of PSPL is extremely crucial for its operations as
they are largely dependent on it for survival. Even while enhancing its customer base; existing
customers are to be taken care of. LD1 considers the labor unions as their internal stakeholders
while the concept of union is absent in PSPL.

Where LD1 uses blast furnaces as their internal supplier of raw materials, PSPL depends on the
external suppliers for the raw materials to be processed.

Structure:

LD1 operates round the clock and in shift-based working hours, employing around 900
employees. These employees are categorized as “operation groups” or “service group”. The
support functions in LD1 are a part of “product team structure”. Each workstation in LD1 is
considered differently producing different products and has a leader designated as Head. The
Head is supported by the team members of other supporting functions as well. In LD1, a
support function member reports to his functional superior as well the head of that product.
Product team structure is more prevalent in organizations willing to create a difference. LD1
strategies on lower costs, which requires a less complex and low differential organizational
structure.

PSPL, on the other hand, uses Product Division Structure as a measure of organizational
structure. PSPL have a centralized support functions team that caters to all the different
portfolios. As the entire different portfolio’s mentioned are in the similar line of work, there is
no need for the organization to carve out different support functions for each portfolio of
service. Each different service is under the direct supervision of the Service Head that acts as a
Plant Head in any large organization. This service head is responsible for its own line of service
and directly reports to the directors with their line of work. The service heads are assisted by a
centralized support team that has developed core competencies in all the different services
that the organization caters to.

Tata Steel Cold Rolling Mill Operations (made by MP16007)

Environment:

As PTD and LD1, TATA Steel CRM also shares TATA Steel as its parent organization and has both
internal and external customers. CRM provides flat products to TATA Steel’s three most
important market segments i.e. automotive, white goods/consumer appliances and general
engineering applications (external customers) and also provides steel to captive steel
processing centres that ( internal customers). Except for JSW, CRM does not have any other
competitor in terms of cold rolling mill / galvanizing coil production. CRM also have unions and
recognizes them as external stakeholders and capable sources of uncertainty. CRM being the
finishing process includes distributers as well as important stakeholders. These distributers
supply steel to smaller players where TATA Steel is not capable of reaching.

PSPL, on the other hand, works in an environment with low richness i.e. a market with high
number of competitors. PSPSL not being the largest competitor in the market is forced by other
competitors to cater to a SME market. Due to the issue, the present customer base of PSPL is
extremely sensitive to PSPL since they are largely dependent on it for survival. Any demand
fluctuation affects PSPL’s performance severely. Therefore, even while enhancing its customer
base; existing customers are to be taken care of. Both competitors and customers form a major
source of uncertainty for PSPL. As PSPL does not have any union, they don’t encounter
additional uncertainty that occurs due to the presence of unions in any organization.

Suppliers are also a key source of distinction for CRM and PSPL. The most important suppliers
for CRM are one hot strip mill and one thin slab rolling mill. They provide CRM with hot rolled
coils (which are converted into cold rolled / galvanised coils), their key raw material. While the
most important suppliers for PSPL are the steel sheets for them to process (business of
cut/slit/shear to size).

Structure:

The existing structure of CRM is similar to the Product Division Structure because of the
similarities in the nature of the project being made. Different manufacturing lines with their
own hierarchy are made to maintain proper integration and span of control. PSPL also adapts
the same Product Division Structure in its operations.

Although all the support functions are centralized in CRM, but this structure also poses some
limitations to attain their objectives most of these functions cater to the different set of
employees in different locations.

Tata Motors Ltd. Jamshedpur (submitted by MP16005)

Environment:

PSPL and TATA Motors Ltd. Jamshedpur (TML) function in completely different industries. While
the former operates in Steel Industry, the latter is dominant in Automobile Industry. This basic
difference of area of operations creates the further differences in terms of customers,
competitors and suppliers. PSPL and TML both operates in an environment with high number of
competitors but PSPL being a SME, caters to the needs of other SMEs and highly depends on its
customers and suppliers for its operations. TML on the other hand have the market advantage
of being one of the dominant brands in automobile industry.

The presence of labor union in any organization causes disruptions and leads to uncertainty.
Same is the case with TML. Being a large organization, TML faces the heat from unions from
time to time. PSPL, with its open door policy where the employees are free to ask anything to
their directors, does not have any union and in turn does not face any disruption.

Structure:
As compared to Product Division Structure implemented by PSPL, TML has a complex Multi-
Divisional Matrix Structure. In TML, the employees working in the functions such as Engineering
and Research, Marketing, New Product Development, Human Resources etc. not only report to
the Divisional Head/ Plant Head but also to their respective Vice Presidents or Presidents. The
complexity of the matrix structure comes from the decision of the management in deciding the
roles of employees having multiple superiors as well as in deciding their appraisal which can be
a daunting task. The employees in PSPL directly reports to the service head, which leaves out
the issue of multiplicity of superiors. The support functions in PSPL are highly centralized as
opposite to the TML.

Tata Consultancy Services (made by MP16037)

Environment:

Similar to the TML analysis, TCS and PSPL both are the players in different industries. PSPL
operates in Steel Industry while TCS is a major player providing Information Technology
solutions. Both PSPL and TCS differ from each other in terms of customers and competitors.

While the customers and suppliers are crucial in the operations of PSPL, they hardly overlap
with the ones in TCS. TCS has wide range of customers ranging from Private to Government
firms using the software developed by TCS. TCS, as part of TATA group, is much larger than PSPL
and caters to the need of national as well international customers. But at the same time,
national and international forces also play and important role in its operations.

TCS and PSPL both faces high competition but in completely different areas. The major
competitors of TCS are Infosys, Wipro, HCL etc. and the “the war for talent” is always on among
these organization in order to create a better talent pool. The competitors for both PSPL and
TCS limit their operations forcing them to implement new and creative strategies to sustain
their operations.

Structure:

The organization structure adopted by TCS is mechanistic in nature characterized by many

factors such as high work specialization, rigid departmentalization, complex hierarchy, narrow
span of control to name a few. Support functions in TCS, similar to PSPL, are centralized. As
most of the project done by TCS involves similar kind of IT work in terms of management rules
followed by the project teams, there is no need of having separate support function within each
department. Centralized support function serves the purpose for all various divisions within
TCS. In PSPL also, as the entire different portfolios are in the similar line of work, there is no
need for the organization to carve out different support functions for each portfolio of service.
Plus the customers we cater to in these different lines of services is more or less similar.