TATA STEEL COMPANY

a)Emergence of managerial economics as a separate curse of management studies can be attributed to at least three factors b)Growing complexity of business decision making process due to changing market conditions and business environment c)The increasing use of economic logic, conceptual theories and tools of economic analysis in the process of business decision making process d)Rapid increase in demand for professionally trained managerial manpower

In economic terminology it is called as maximizing behaviour or more approximately optimizing behaviour . ECONOMICS AND MANAGERIAL ECONOMICS: Economics is a social science . Its basic function is to study how people individual house holds, firms and nations maximizing their gains from their limited resources and opportunities. Optimization means selecting best out of available resources with the objective of maximizing gains from given resources.

Managerial economics can be broadly defined as:The study of economic theories, logic and tools of economic analysis that are used in the process of decision making. Economic theories and techniques of economic analysis are applied to analyze business problems, evaluate business options and opportunities with a view to arriving at an appropriate business decision.

Economic Theory 1.It deals with the body principles 2.It has the characteristics of both micro and macro economics 3.It deals with a study of individual firm and individual consumer 4.It based on certain assumptions 5.It studies economic aspects of the problem

Managerial Theory 1.It deals with the application of certain principles to solve the problem of a firm 2.It has only micro characteristics 3.It deals with the study of only profit theories 4.In managerial theory assumptions disappear due to practical situations 5.It studies both economic and noneconomic concept

Demand estimation and forecasting Preparation of business /sales forecasts Analysis of market survey to determine the nature and extent of competition Analyzing the issues and problems of concerned industry Assisting the business planning process of the firm Discovering new possible fields of business endeavor and its cost-benefit analysis Advising on prices, investment and capital budgeting policies Evaluation of capital budgeting et

Business decision making is influenced not only by economic considerations, but also by human behavioral, technological and environmental factors due to growing public awareness.

Decision making and processing information are two important tasks of managers
In order to make good decisions managers must be able to obtain, process and use information

Tata Steel has always believed that the principle of mutual benefit - between countries, corporations, customers, employees and communities - is the most effective route to profitable and sustainable growth. Established in 1907, Tata Steel is among the top ten global steel companies with an annual crude steel capacity of over 28 million tonnes per annum (mtpa). It is now one of the world's most geographically-diversified steel producers, with operations in 26 countries and a commercial presence in over 50 countries.

The Tata Steel Group, with a turnover of US$ 22.8 billion in FY '10, has over 80,000 employees across five continents and is a Fortune 500 company. Tata Steels vision is to be the worlds steel industry benchmark through the excellence of its people, its innovative approach and overall conduct. Underpinning this vision is a performance culture committed to aspiration targets, safety and social responsibility, continuous improvement, openness and transparency.

Tata Steels larger production facilities include those in India, the UK, the Netherlands, Thailand, Singapore, China and Australia. Operating companies within the Group include Tata Steel Limited (India), Tata Steel Europe Limited (formerly Corus), NatSteel, and Tata Steel Thailand (formerly Millennium Steel).

ASPIRE : Acquisition of Indian Steel Wire Products:

5 Million Tonne Steel Plant:

Integration of Tata Steel and Corus: Merger of Tata Ryerson and HMPCL:

India Steel Wire Product was acquired in 2004: 5milions tones steel plant: Integration of tata steel & Corus:

The Indian Steel & Wire Products Limited manufactures and sells wire products in India. It also offers iron and steel rolls for integrated steel plants; and engineering castings for steel plants, power plants, and automobile industry. It also exports its products. The company was founded in 1920 and is based in Kolkata, India. The Indian Steel & Wire Products Limited is a subsidiary of Tata Steel Limited.

Demand analysis: Resource allocation:

Reducing risk:
Uncertainty: Price fluctuation:

Since 2000, TATA Steel strengthened their business as they knew there would be demand for steel in the coming years. Even they knew there would be much competition and hence they decided to merge small companies and acquire large ones. As their business of Tata steel is based on steel so the pricing depend on stock and their share so since the last decade the price was high but after 2009 they were stable.