Posco in Odisha Nonmarket Stakeholders Missed Management Santhi Perumal Shyam S Nair Deepak Chandrashekar
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“Odisha, home to Posco, is a nonmarket state because a major chunk of the population in the region is illiterate, and the state’s government is dysfunctional. While the company has taken initiatives to promote education, there is a gap between the promise and reality. I visited the city of Bhubaneswar a few months ago to do a marketing analysis and write this report. Odisha has one of the worst health outcomes in India. The region is rife with infectious diseases, including meas
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In my last blog, I talked about the case of India’s giant steelmaker, Posco, its strategic stake in Jindal Steel and Power, and its nonmarket business development in Odisha. Today, let’s look at the nonmarket stakeholders of Posco, and whether they can be missed in management. I am a writer and not a lawyer. That is why I won’t go into details of the lawsuit, which has been dragging on for years, and that is why I won’t include the 1
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In Odisha, non-market stakeholders, such as farmers, affected families, and others, were deprived of the maximum benefit of the industrialization of Posco. The major problem was that the company had no formal mechanism to communicate and inform them about the potential of their lands. The company’s communication strategy for informing them about the proposed copper smelter project was also very poor. The company did not communicate adequately with the affected persons about the environmental impacts and other social problems caused by the project. The company’s strategy in the case
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The author introduces Posco in Odisha, the first foreign direct investment project in India. He also mentions the positive role of government and private stakeholders in the project. The section on Posco’s success is excellent, with details about its management strategies, production, and financial performance. However, it is important to address the stakeholders’ perspective. The author did not mention any criticisms or controversies regarding Posco’s impact on the local community, environment, or economy. This omission leaves a gap in the discussion. In the section
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Posco’s Odisha factory, a joint venture with Orissa Mineral Development Corp Ltd, is the only integrated steel plant in the state, with an investment of $3.3 billion, expected to employ 21,000 people. click for source However, the plant has missed the target of becoming the state’s largest single industrial employer. that site Odisha Minister for Industries, Dr Anand Kumar, said, “The government is willing to extend support of the state government to the joint venture company. The target could be achieved
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Our first stop is in India’s third-largest economy, Odisha, the home of giant steel-maker Posco. Founded in 2004, the company has already become one of the fastest-growing in the country, thanks to the recent boom in steel demand. But unlike other steelmakers, Posco in Odisha has not been without its controversies. In 2009, when its then owner DSMMP (now known as Posco DSME) was
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“The management of Posco Industries Limited is an inexplicable misadventure that has failed to make a dent in the company. Despite having invested substantially in the state of Odisha in a bid to gain competitive advantage, the company seems to have failed to capture the market potential. This has been compounded by the inability of the company to manage the stakeholders effectively, resulting in a perplexing situation. Santhi Perumal, a business analyst from the region, feels that the company needs to take steps to improve
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Posco has been a significant economic driver for the people of Odisha for over 30 years. However, we have not achieved the promised growth in manufacturing and infrastructure development. The reasons behind this are numerous and various. Critical Review of Key Factors that Affected Posco’s Growth in Odisha We have already explained in the how Posco has been successful in India, but the case shows that Posco needs to focus on various factors that affect its growth in Odisha. The company