Tata Steel
– a large and very old private
sector steel company which face a peculiar crisis when it was
performing well and was a model company.
BIG BUSINESS IS BAD !! That was the slogan in
the Government corridors of power of the Indian government at one
particular time. The Industries Minister, who had successfully
pushed multinational giants like IBM and Coca-Cola out of the
country, spearheaded it; saying big multinationals were bad for the
country and should not exist in the country.
Having succeeded in this, he had turned his attention to large
Indian and foreign private sector companies, and was determined to
nationalize them Tata Steel, an Indian company within the TATA Group
(with 100000 employees and over 80000 shareholders, and a turnover
of about Rs. 10,000 million i.e. about $ 300 million) was a target.
This was despite the fact that it had been in existence for over 100
years in the core sector of the economy, providing leadership in
supply of quality steel for the nations need. And was a major
contributor to the Government's exchequer, a big source of
employment, and a recognized good corporate citizen with a range of
programs for community service and development.
Communications, PR and Image
Status
Indian public sector companies, as in many other countries, are huge
in size but awfully managed. With poor products, systems and a large
number of unproductive workforce about which hardly much can be
done. As a result these companies are white elephants in the
country's economic scene. Tata Steel despite being large was
entirely the opposite. It was profitable, professional and
progressive in al respects of corporate practices and management.
If Tata Steel was nationalized and came under government control and
management, just as the other public sector companies, its
character, operations and working efficiency would be reduced to far
lower levels than currently so. It would directly affect its
products, manufacturing, marketing. Most of all it would affect its
employees and their morale. The very thought of it, as rumored in
industry and government circles, had demoralized the staff and got
them worried and angry about it.
An open and fairly vocal resistance to the move was building up,
both at the management level and general staff and employee level.
At the plant in Jamshedpur, near Calcutta in Eastern India, the head
office at Calcutta and all major offices across the country.
There was a kind of panic at the Tata Group Headquarters in Bombay,
with the top brass very concerned at losing one of the two top
companies in the group. It was being looked upon as amputation of
one of its corporate limbs! Everyone was helpless and sad. And were
discussing the pros and cons and at some action the Tata Group as a
whole needs to take to stall and prevent this sudden and uncalled
for demand by the government.
Problem On Hand and Objective
At that point of time, there seemed no way out of the situation for
Tata Steel. The government was bent on its take over. More for a
political benefit and not because it was in any way profiteering, or
antisocial exploiting its employees, customers or the community.
While lobbying in the corridors of the Parliament and other efforts
to influence the government continued, the company felt there was
need for an organized communications and PR program to counter this
draconian move. The program conceived was a long -term one, planned
for a period of three years, with adequate commitment of resources
behind it. It was directed towards policy formulators in the
government, decision-makers, and opinion leaders in business and
society, highlighting the fact that Tata Steel has done and is doing
an excellent job as a company and it is in the national interest to
leave it alone.
Communication and PR Strategy and
Program
The task at hand for the company was to evolve an effective, impact
oriented, strategy and program to tackle the government's attitude
and put across effectively the company's arguments and true facts.
The strategy was to influence the government by influencing of
different target groups through public and nonpublic media. Within
the strategy and campaign a "selling proposition" running through
the entire program in the form of a theme was evolved. It read as
follows:
Tata Steel is not only
a superbly managed steel company, it is also a unique example of a
company which has recognized that its social commitments extend
beyond its employees, to the community and the rural population
around it. Jamshedpur city, created by Tata Steel, is a living
embodiment of our nation's dream of a better life for our people.
India needs many more Jamshedpurs today.
With
a clearly defined task and theme, the company launched its program
with simultaneous activities in various media on a schedule planned
for the whole year.
In the public media of Press, the company released an advertising
campaign comprising six ads around the selling proposition/theme and
giving detailed facts on the company's employee welfare, rural
development, community development, shareholding, trusteeship, and
its superior steel making technology offering customers a better
product.
The advertising campaign was supported with special TV talk shows in
which a prominent public commentator interviewed and anchored a
debate on the issue with senior business, political and social
leaders. With the ultimate rub off and message that Tata steel
should not be nationalized.
Specific target group oriented activities in the nonpublic media
formed the main thrust of Tata Steel's program.
To reach government officials, bureaucrats, and politicians the
company activated its Government Relations Department in New Delhi
towards high powered lobbying and supported it with material and
fact of all kind - ad pulls, direct mails, and other print material.
It was given defined and focussed list of government officials and
opinion leaders to be contacted and influenced in New Delhi and
Calcutta and Patna and Bombay, the capitals of the States of West
Bengal, Bihar
and
Maharashtra. J R D Tata the then
Chairman of Tata Steel, and one of the most respected industrialist
of the country sent person memoranda to Ministers, Members of
Parliament and Members of the State Legislatures explaining the
situation and highlighting Tata Steels contributions to the national
industrial and social fields.
To obtain employee support and to create awareness for Tata Steel
for the company's broader operational activities and contributions
among them, specially prepared audiovisuals were prepared and
screened. Documentary films on the company and it social activities
were produced and screened in cinema houses and clubs and gatherings
of employees and their families in Jamshedpur city. A large number
of posters were splashed at offices, plants and at street corners. A
printed docket on the subject was given to each Manager at offices
and plants outlining for his or her benefit the need for an overall
communication program, what was planned, and how they could
contribute to further the cause of the company among their contacts.
Senior Managers were also given specific background material and
information for incorporating in their speeches and presentations
they make at various for a to plug the company's position and point
of view.
To get its over 100,000 shareholders, already a predisposed target
audience, to be a force that champions its cause at various levels,
a number of activities were undertaken by the company. For instance,
the Annual report was designed to pictorially portray the selling
proposition of the communications program. A full-scale exhibition
on the problem was put up at the Annual General Meeting. A
comprehensive and factual audiovisual was screened at the AGM. The
Chairman's speech was tailored and drafted to explain the problem
and generate support against the nationalization. Each shareholder
was given a full note on the problem explaining the government's
attitude and the company's stand outlining the role shareholders as
a group could play to support the company.
To tap the support and build on the goodwill of the trade, another
section of the public favorably disposed towards it, Tata Steel
issued simple and explanatory handouts to all of them. This was
followed by specially called dealer meetings and conferences
especially for the purpose. Company Managers address these and
called for the trade's support and representation to authorities.
Simultaneously, Tata Steel and Jamshedpur city were kept in the news
in the media through activities such as:
Articles and features on the life in
Jamshedpur
city.
-
Letters to
editors from prominent citizens and friends of the company
among readers of newspapers and magazines.
-
Important feature journalists
were taken around the company's plants and Jamshedpur
City
for them to see for themselves the company's contributions to
the welfare of its employees, the community and the rural
areas.
-
Regular meetings
between editors and journalists and the company's senior
management to keep them abreast of developments and sold on
the company's view point constantly.
-
Sending mailings
and printed literature to journalists on the company and
important activities and events.
-
The Chairman
meeting journalist on his trips abroad. He took the
opportunity of not only projecting the company view, but to
talk of the country's development and growth. In that he
projected indirectly Tatas as Indians, and that they had
India's progress at heart.
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Last, but not the least, customers were
reached through seminars and get-togethers on steel making,
technological developments in industry, and Tata Steel's performance
and contributions in its growth and progress. Even the chairman made
it a point to attend some of these meetings and seminars.
The Tata Steel audiovisuals and films on the company and Jamshedpur
were shown at Rotary Club, Lions Clubs, meetings of the Chambers of
Commerce and Industry Association, wherever possible, to project
what can and had been done for all round better life of people at
Jamshedpur and in the company.
Final Outcome
The outcome of this planned and massive campaign was that the
government's plan to nationalize Tata Steel was put in cold storage.
And with the publicity and public opinion that was generated the
government stopped its tirade against the company and gave the
subject a rethink.
In the meantime, as a result of a political turmoil the government
had to go through new elections, and it lost out to another
government. The concept of nationalization or taking over of big
business houses did not figure in the manifesto of the new
government. Tata Steel heaved a sigh of relief.
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