Case Study Of Sarveshwar Steel Plant

Introduction
A vishakapattinam based Sarveshwar steel plant is a continuously growing steel plant
that aims to produce international standard steel and diversify its products and services
strategically for the benefit of its customers.
Information gathered
Number of executives: 2500
Employees : 15000
Objectives :
a. produce at least 3 Mtpa of liquid steel
b. Maximize profit and cost reduction
c. Improve corporate image, customer satisfaction,
d. Strong presence in the export market.
e. Manage expert work force
f. Continuous environmental conservation efforts.
Problem faced : a. Rehabilitation of displaced persons.
b. Managerial turnover
c. Doubtful profitability in the next decade.
c. Heavy interest burden due to high investment (10,000 Cr.)
d. Non acceptance of external members to the board
irrespective of their experience and value added to the
company.
e. Dissatisfaction of managerial personal on the acting CMD
ways of managing.
Questions for Discussion
1. What are the skills required for the CMD in taking decisions?

The Chief Managing Director of a company is a person who takes important and
responsible to the board of directors. He has to keep track of for daily activity and
every aspect of the company weather it is managing personal, financial and
commercial and also the implementation of projects within the company. All other
members / directors report to the CMD. An efficient CMD will work keeping in mind
the company’s growth and development. He needs to monitor and maintain optimal
resources needed for the efficient operations of the company. Must have good
knowledge of all the technical and innovative approaches needed to utilize capacity
optimally alongside keep up with the quality needs.
 As per this case study, the Sarweshwar steel plant has to meet the objectives the
CMD need to be proficient in collecting and keeping track of information on the
resources utilized in the plant; be it human resource or the raw materials for the
steel production. Develop strategies that could maximize profit at the same time
reduce costs incurred. Keep a keen eye on quality of steel supplied to the customers
to gain their good will. Introduce new plans for employee satisfaction and keep them
encouraged while working for the plant’s objective. Be open and receptive for new
innovative ideas from employees mainly those that are cost and resource efficient
and environmental savvy for the benefit of the company.

2. How can one achieve corporate excellence with regard to Sarveshwar Steel Plant?
Have a flat organization structure allowing the employees easy access to all the managers.
Align the intent of employees of varied level to the goals of the company. Train people to withstand
the dynamics environment of steel plant. Give regular training for employees and enhance their
skills in varied dimension. Develop stringent policies for promoting employees after a certain level.
This may help in identify experienced and dedicated managers who know the business at all levels
and would be valuable to the company. Bringing strict quality regulations for the company products.
For the betterment of the company it could also be suggested to consider external members
especially with experience in the field to the director board. Their experience would be a valuable
addition to the company’s growth. Limit political intervention in the company’s decisions.