Corus Case Study

Page 1: Introduction

The steel manufacturing company Corus focuses on meeting the needs of its worldwide customers and providing innovative solutions. It manufactures, processes and distributes steel and aluminium products worldwide. Corus is a subsidiary of Tata Steel, part of the giant Indian conglomerate. Tata Group includes businesses in many industries - for example, chemicals, automotive...
Read full page

Listen to page 1

Page 2: Continuous improvement

Continuous Improvement is often referred to by the Japanese word 'Kaizen'. Kaizen means 'change for the better' and covers all processes in an organisation. These include engineering, IT, financial, commercial and customer service processes, as well as manufacturing. CI involves making continual small improvements to a process rather than big changes at irregular intervals. This requires...
Read full page

Listen to page 2
[audio= improvement]

Page 3: Implementing a continuous improvement culture

A CI culture means that everyone can put forward ideas and have a say in how processes can change for the better. This is known as engagement. CI needs team work. In Scunthorpe, a CI manager coordinates the process. 40 CI Coaches chosen from the workforce received training to facilitate improvements. CCI has put together a 'toolbox' of techniques which the coaches use with managers, employees...
Read full page

Listen to page 3
[audio= a continuous improvement culture]

Page 4: Target setting

CI working requires everyone to think differently about the way they work. It was recognised that people might be resistant and cling on to old ways of working. The key was getting all workers to see change as their responsibility. The CI coaches support the teams and individuals and promote or 'champion' new ways of working. To help workers accept the changes, the 5-year plan established...
Read full page

Listen to page 4
[audio= setting]

Page 5: The benefits of continuous improvement

There are significant costs involved in setting up a Continuous Improvement programme, including: allocating employee time to participate in group work training coaches setting up a manual of tools and techniques However, Corus is already seeing the benefits of CI with: reduced waste through lean production improved product quality reduced rework time faster response times, giving...
Read full page

Listen to page 5
[audio= benefits of continuous improvement]

Page 6: Conclusion

Corus is transforming production at its Scunthorpe plate mill through Continuous Improvement. This way of working encourages all employees to behave as team members to identify and support work improvement opportunities. Increasingly employees at every level are making improvement their responsibility, which provides employee job satisfaction. Continuous Improvement helps Corus to provide...
Read full page

Listen to page 6

Case Details:


Case Code:BSTR355For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges


Mergers and Acquisitions
Case Length:17 Pages
Pub Date:2009
Teaching Note:Not Available
Organization:Tata Steel Limited / Corus Plc.
Countries :UK, The Netherlands, India


The case examines the business and financial performance of Tata Steel Group (TSG) between February 2007 and October 2009 period after Tata Steel had acquired Corus Plc in January 2007. It discusses the impact of global economic slowdown on the global steel industry during the same period. The economic slowdown forced several leading steel producing companies including Corus to cut down their production to align supply with demand. However, Tata Steel (TSG's Indian operations) continued to perform well on the back of robust domestic demand and its low cost of production. Corus faced problems as it had to purchase its raw material requirements from outside. Iron ore and coaking coal prices went up significantly in 2007 and 2008 which increased the cost of production at Corus.

Low demand for steel coupled with high and rising input costs led to TSG reporting consolidated losses of Rs 5.45 billion in the financial year 2008-09.

TSG took several measures to turn around Corus. It started acquiring iron ore and coal mines aggressively to secure the supply of raw materials at Corus. TSG implemented two strategic initiatives - Weathering the Storm and Fit for Future in its efforts to turn around its operations. However, in the first half of fiscal 2009-10 that ended in September 2009, TSG continued to report higher losses of Rs 49.58 billion. It remained to be seen whether the strategic initiatives undertaken by TSG would yield the desired results or not.


» Study and analyze the impact of global economic slowdown on the global steel industry.
» Examine the rationale for the acquisition of Corus by Tata Steel.
» Understand how Tata Steel went about realizing the synergies after the acquisition of Corus.
» Study the factors that led to losses in TSG's operations.
» Analyze the strategic measures taken by TSG to turn around its operations and evaluate the effectiveness of these measures.



Tata Steel Group, Corus Plc., Restructuring Initiatives, Global Economic Slowdown, Economic Recession, Liquidity Management, Global Steel Industry, Global Credit Crisis, Sub-prime Crisis, ArcelorMittal, Merger Synergies, Weathering the Storm, Fit for Future, Global Steel Demand, Global Steel Output, Global Steel Prices

Tata Steel Group Reports Loss- Next Page>>

Custom Search


Leave a Reply

Your email address will not be published. Required fields are marked *