Game theory attempts to mathematically capture behavior in strategic situations, in which an individual's success in making choices depends on the choices of others.
The deal between India’s Tata Steel and the Anglo- Dutch Corus Steel group which was the 9th largest producer of steel in the world was a strategically planned deal. Tata Group faced cut throat competition from Companhia Siderúrgica Nacional (CSN) which is a Brazilian company.
A bidding process was involved in the acquisition of the Corus group. The UK takeover panel set up the rules for the bidding. Of the maximum 9 rounds 8 will be for the suitors to table a fixed price bid in cash. In the event of competitive situation continuing a final round would be held to give chance to the bidders to outbid the other within a ceiling that has already been informed to the panel. There has to be a difference of 5 pence for each round of the bid between the two suitors
Before the Game
Tata had two had two options to bid or not to bid and CSN also had the same two options. However, CNS already had a 4 % stake on Corus. For every increase of pence the share price of Corus would increase by $ 4 million and CNS would also have its share.
Dominant Strategies: Tata had a dominant strategy to bid because by bidding Tata will have the advantages of developed markets, new patients, advance R& D of Corus.
CNS’s dominant strategy would also be to bid cos if it competes with Tata on the bidding the share price of Corus would raise and CNS would benefit from the same as it had a 4% stake in Corus.
The Game
On October 5, 2006, Tata Steel confirmed its interest in acquiring Corus. Tata Steel proposed a $7.6 bn bid for Corus at 455 pence a share in cash on October 26, 2006. Brazil’s CSN made an indicative bid of 475 pence a share on November 17, 2006. At this, Tata Steel raised its bid to $9.2 bn at 500 pence per Corus share on December 11, 2006. CSN in response made a formal bid of $9.6 bn at 515 pence a share in cash on the same day. This process of bidding after one and other is an example of sequential games. Sequential games (or dynamic games) are games where later players have some knowledge about earlier actions. This need not be perfect information about every action of earlier players; it might be very little knowledge. In this deal of Corus steel, both Tata Steel and CSN were aware of the bidding prices and each other’s strength in the deal.
After the various bids offered by both Tata steel and CSN , the UK Takeover Panel set January 30, 2007 as the deadline for Tata Steel and CSN to make their revised offers which would be the final offers for the acquisition of the Corus group. This bid like every bid in the real world is a finite, (9 rounds) discrete game that has a finite number of players (Tata Steel & CSN), moves (Bidding), events, outcomes (Acquisition).
After The Victory
We have been discussing the Tata- Corus deal from the angle of the acquisition of Corus. Post acquisition of Corus also explains a few game theory concepts.
The bid of Tata for Corus and Corus accepting the bid is an example of Nash equilibrium, as both Corus and Tata benefited from the deal. As mentioned earlier, Tata will have access to developed markets by this acquisition. It would also have its product mix enhanced with the high value product from Corus and more over it can also have the excellent R& D facilities of Corus. They can break the supply chain and produce parts of it where it makes sense, for Tata steel. It means producing the semi finished goods at locations where it has raw materials support and cost efficiencies and then making the finished products in the market where it gets the value i.e. China, South East Asia and European countries. As Tata is taking over the company the Corus will have better management skills high Value for its shares. A coordinated solution through collaboration has led to the potential for greater gains for both.
To conclude Tata Steel’s acquisition of Corus shows how coordinated strategies can yield greater benefits even in a competitive marketplace. The strategic fit of Corus’s range of high-end products and know-how, and its access to developed markets, combined with Tata’s low-cost access to ore, efficient basic steel production, and its own market access certainly provided a great deal to the steel industry of India and the world at large.
She
Friday, July 3, 2009
C- The spirit of Pune Alma Mater
I attended the program of Alma mater (Pune) for 3000 teachers. I was new to the city and therefore new to the fraternity of Pune Alma mater. I got down from the car with Bharti bhabi and started walking towards the venue, as I was walking I stopped midway, I was dumbstruck to see the spectacular sight- From the gates to the auditorium there were volunteers in white and white and a maroon dupatta , celebrating, loudly wishing each teacher Happy morning ….not being affected whether they are wished or not. There was no age bar or sex bar for volunteers, the only bar was – Sad face. In that atmosphere even the gloomiest person in this world would have smiled…. I don’t know what drove this volunteers to stand from 6.30 in the morning to 8.55 (the event began at 9.), none of their faces had a frown, nor was there a single argument, everybody was the boss. There were people at each point. Parking, entry, registration, each one smiling, celebrating and not missing their Happy Morning….
At 9 the speaker –Naren, started the program and he said – “I feel like a film star “. I don’t know what does it feel to stand in front of 3000 teachers and a few 100 volunteers and say “Happy Morning”.( never ever have done , always stood in front of a single teacher ) . Naren indeed is a star, he is bigger than a film star, cause film stars only entertain, but Naren creates people and in the process of creation he also entertains. The 2 hour program was filled with laughter, peace and learning. All Naren’s programs have the above elements.
Naren is a brilliant speaker and in the program he emphasized that there are 5 Cs which should always be a part of our life and should be inculcated to the next gen too. Naren being the trainer of Pune Alma mater has surely witnessed these 5 cs in the fraternity on the very morning of the event.
The Cs ….
Compete with yourself – All volunteers always won by competing within their best, they would have been a little soft in their celebrations, but the instant realization of the same, made them loud, clear and full of happiness and cheer … OH! What a sight …. Wish all welcomes were always this way … then every individual attending any program would always smile …
The next C- Co-operation. Naren shared beautiful stories through the program and thought the teachers- Lessons of life. He insisted that if we corporate with the world around and can work successfully in a team then we would create miracles … He expanded TEAM as Together we achieve miracles … Oh! How right he was …. Together we indeed achieve miracles… did we not see it in Chak de India and Lagan. But , I was lucky to witness Miracles cause of co- operation … It was all the activities which were involved in the event, where seating arrangement was concerned , nobody would shout out and say “ hey there is one place here, send someone”… Rather they would just hold placards displaying the number of seats vacant and the others would quietly direct the rest. An event of such a massive scale all organized by people who were volunteers and not members of the organization , some who were associated with the organization for years together and some who were setting their feet , some who knew Marathi and some who didn’t understand it, some school students and some who had been to their schools 20 years ago. Nothing affected the event, the smile on each ones face and the glitter in their eyes for the success of the event was indeed a miracle- So many people being happy at the same time for the same reason…. Wow.
Courage- The absence of it suppresses you and the presence makes you a Hero and helps you live your life on your terms. You must be wondering what the volunteers did to display courage… As you read, you will smile and feel so proud to know that such selfless people still exist (most in the fraternity are like this).
A young teacher and his mother who was also a teacher (remember this program is for teachers) had entered the auditorium gates and were heading towards parking and suddenly the son got an epileptic attack and he fell off the bike. There was no noise or commotion or crowd allowed to gather, it was handled with a lot of calmness. The bike was parked by an almanite ( the members of the fraternity ) and 3 almanities took him to the hospital, paid the medical bills , waited for him to recover and dropped the duo ( Mom and son) home and then came to venue … Unfortunately, by the time they reached the venue, the program was over… It was the most happening and talked about event in the city... They had worked for 15 days relentlessly for it and still they couldn’t watch it…. I felt terrible that they missed it, but the Dr. (one of the 3) who narrated the incident to me was so calm and composed and there was not a bit of regret on her face about missing the event. She just said “He is fine, we dropped him home”. It was brilliant the way the situation was handled. It would have been easy to put them in an auto and then call up and check, but they ( I assume ) must have felt “he is come for our program … we should take care of him” and proved what our ancestors taught us – Adhiti Devo Bhava
Creativity- Naren had given examples and told teachers very explicitly how each of the C could be inculcated in their life and also how it can be taken to class, but this C , the C of creativity Naren didn’t say much…That’s Naren he wanted all of us ( the audience ) to be creative and think how to be creative in everything we do. Naren displayed that to us in the two hours by his jokes, his lessons and also by making us realize “To be happy, you need to do nothing “. His volunteers – Unfair if I say his, cause of all them did it for themselves, for them the event and the organization was bigger than anything … They indeed were creative in their welcome in their placards for vacant seats, their uniform, their parking … everything was such that people would stop and appreciate, it was so simple yet so beautiful. It was the simplest of creativity at its best.
The last but the most important of Cs… The C of composure. If we can have this C as a part of us forever, then nothing in our life will trouble the muscles of forehead for a frown, there will be less things destroyed, there will be more relationships maintained, there will be less fights and more smiles… All with just this one C… It is one of the most difficult things, but once a part will always remain a part… Live example of Composure is Naren himself and what I hear about the volunteers who led the event indicates that composure is no big deal in this fraternity. If at 12.30 in the night, an important piece of work goes hay wire, we would kill the person who did it and raise hell… But here at 12.30 the most important part of their stage’s work (the frame in which they had to keep the banner) was not done properly, the volunteer walked up to the man who was in charge of it and asked – “Did u have a tough day?”…. Wowww 12.30 in the night, you can still not scream your head out knowing its a few hours in hand and still care about the other person’s view (OPV) …. Brilliant, now is that not what Composure is all about???
After the event got over , the volunteers seemed like school children playing music, clicking pictures, cheering hip hip hip hurray, doing all what I last did in my college days
It may all sound philosophical, but it’s just not literature or some dream which is written, it is all real which I and 3000+ people have witnessed it in city of Pune on the 27 of July. This fraternity has left a deep impact on me.
Before I bid adieu, I would just like to add - all the Cs which the speaker mentioned would enhance our life multifold, so instead of saying “Wish I also was there “ to witness this piece of art. Inculcate the 5 Cs and you will be not only there but on Top of the world forever
She
At 9 the speaker –Naren, started the program and he said – “I feel like a film star “. I don’t know what does it feel to stand in front of 3000 teachers and a few 100 volunteers and say “Happy Morning”.( never ever have done , always stood in front of a single teacher ) . Naren indeed is a star, he is bigger than a film star, cause film stars only entertain, but Naren creates people and in the process of creation he also entertains. The 2 hour program was filled with laughter, peace and learning. All Naren’s programs have the above elements.
Naren is a brilliant speaker and in the program he emphasized that there are 5 Cs which should always be a part of our life and should be inculcated to the next gen too. Naren being the trainer of Pune Alma mater has surely witnessed these 5 cs in the fraternity on the very morning of the event.
The Cs ….
Compete with yourself – All volunteers always won by competing within their best, they would have been a little soft in their celebrations, but the instant realization of the same, made them loud, clear and full of happiness and cheer … OH! What a sight …. Wish all welcomes were always this way … then every individual attending any program would always smile …
The next C- Co-operation. Naren shared beautiful stories through the program and thought the teachers- Lessons of life. He insisted that if we corporate with the world around and can work successfully in a team then we would create miracles … He expanded TEAM as Together we achieve miracles … Oh! How right he was …. Together we indeed achieve miracles… did we not see it in Chak de India and Lagan. But , I was lucky to witness Miracles cause of co- operation … It was all the activities which were involved in the event, where seating arrangement was concerned , nobody would shout out and say “ hey there is one place here, send someone”… Rather they would just hold placards displaying the number of seats vacant and the others would quietly direct the rest. An event of such a massive scale all organized by people who were volunteers and not members of the organization , some who were associated with the organization for years together and some who were setting their feet , some who knew Marathi and some who didn’t understand it, some school students and some who had been to their schools 20 years ago. Nothing affected the event, the smile on each ones face and the glitter in their eyes for the success of the event was indeed a miracle- So many people being happy at the same time for the same reason…. Wow.
Courage- The absence of it suppresses you and the presence makes you a Hero and helps you live your life on your terms. You must be wondering what the volunteers did to display courage… As you read, you will smile and feel so proud to know that such selfless people still exist (most in the fraternity are like this).
A young teacher and his mother who was also a teacher (remember this program is for teachers) had entered the auditorium gates and were heading towards parking and suddenly the son got an epileptic attack and he fell off the bike. There was no noise or commotion or crowd allowed to gather, it was handled with a lot of calmness. The bike was parked by an almanite ( the members of the fraternity ) and 3 almanities took him to the hospital, paid the medical bills , waited for him to recover and dropped the duo ( Mom and son) home and then came to venue … Unfortunately, by the time they reached the venue, the program was over… It was the most happening and talked about event in the city... They had worked for 15 days relentlessly for it and still they couldn’t watch it…. I felt terrible that they missed it, but the Dr. (one of the 3) who narrated the incident to me was so calm and composed and there was not a bit of regret on her face about missing the event. She just said “He is fine, we dropped him home”. It was brilliant the way the situation was handled. It would have been easy to put them in an auto and then call up and check, but they ( I assume ) must have felt “he is come for our program … we should take care of him” and proved what our ancestors taught us – Adhiti Devo Bhava
Creativity- Naren had given examples and told teachers very explicitly how each of the C could be inculcated in their life and also how it can be taken to class, but this C , the C of creativity Naren didn’t say much…That’s Naren he wanted all of us ( the audience ) to be creative and think how to be creative in everything we do. Naren displayed that to us in the two hours by his jokes, his lessons and also by making us realize “To be happy, you need to do nothing “. His volunteers – Unfair if I say his, cause of all them did it for themselves, for them the event and the organization was bigger than anything … They indeed were creative in their welcome in their placards for vacant seats, their uniform, their parking … everything was such that people would stop and appreciate, it was so simple yet so beautiful. It was the simplest of creativity at its best.
The last but the most important of Cs… The C of composure. If we can have this C as a part of us forever, then nothing in our life will trouble the muscles of forehead for a frown, there will be less things destroyed, there will be more relationships maintained, there will be less fights and more smiles… All with just this one C… It is one of the most difficult things, but once a part will always remain a part… Live example of Composure is Naren himself and what I hear about the volunteers who led the event indicates that composure is no big deal in this fraternity. If at 12.30 in the night, an important piece of work goes hay wire, we would kill the person who did it and raise hell… But here at 12.30 the most important part of their stage’s work (the frame in which they had to keep the banner) was not done properly, the volunteer walked up to the man who was in charge of it and asked – “Did u have a tough day?”…. Wowww 12.30 in the night, you can still not scream your head out knowing its a few hours in hand and still care about the other person’s view (OPV) …. Brilliant, now is that not what Composure is all about???
After the event got over , the volunteers seemed like school children playing music, clicking pictures, cheering hip hip hip hurray, doing all what I last did in my college days
It may all sound philosophical, but it’s just not literature or some dream which is written, it is all real which I and 3000+ people have witnessed it in city of Pune on the 27 of July. This fraternity has left a deep impact on me.
Before I bid adieu, I would just like to add - all the Cs which the speaker mentioned would enhance our life multifold, so instead of saying “Wish I also was there “ to witness this piece of art. Inculcate the 5 Cs and you will be not only there but on Top of the world forever
She
My Best Friend... My life
The first day I met him , I was bewildered at the fact that he was from P College………The first thought my mind processed was “ Stay away from this handsome guy “. I was introduced to him by my classmate who eventually became his first love.
My inhibitions about the college and all the students from P College made me keep my distance from him, but nothing stopped him from helping me. My first paper presentation in my new post graduate college, actually my first paper presentation in my life… without even knowing who I am and what I think about him. This guy stood there and said…. “Lets hear it once, that will give you the confidence”. It indeed did give me confidence and as I was giving my presentation, he anticipated the judges’ question and sent the answer across to me. Lo behold! That was the answer to whatever the judge had asked. I won. Not only a trophy, but a friend, a friend for life.
My inhibitions only reduced, they didn’t disappear. He offered to drop me home.. It was pouring cats and dogs and I kept arguing “ I will manage “… Thanks to my inhibitions. I was extra cautious of the way I was sitting on his bike… Keeping my distance as much as I could and being conscious that I don’t touch him… He insisted he drop me home and I fought back saying “thank you , I will walk “ . My mind kept saying “You don’t know him, how will you go home with him, after all he is from P...
Gosh what’s in a name? I Thought. But so much a college name did. It made me waste one full year, by staying away from this gem of a person…. We eventually got close.
I was a day college student, he also was but he was special and that’s why walked into college at 11.00 A.M – 12.00 A.M and left an hour after that. His brilliance helped him be one of the best students of the college and although he was a hourly visitor to college, he was made the Chairman of the Student’s Union council.
The department Journal (for which he recommended me- Wonder why?) got us closer and made us friends. Things slowly changed, I came when Day College began and left when the evening college got over and this hourly visitor came in the afternoon and went home after dropping me home. Yes, right outside my house.
We were supposedly working for the paper along with him… We use to be in Canteen fighting over the one Masala Dosa which he would ruin completely or else we would be seen on the bike together leaving to the printer. Oh! What a Unicorn it was (the bike ) – would always run out of petrol or the tyres would go whooooooooshhhhh exactly when we were getting late or there was no petrol bunk in the vicinity. He would make me run pushing his bike from behind and he dragging it. He would always blame his Unicorn’s laziness on me and say – “ it happens only when you sit on the bike”… Stupid never realised- No one else ever sat
He created history in college by organizing Disha- the college cultural program. I give the credit to myself, wonder whom he gives the credit for the name. I worked for the cultural cos my heart said – “He is a nice guy and he needs you”.. Doubt if he ever needed me. The cultural was on Valentine’s Day…. No, no I wasn’t expecting anything from him…. He never believed in love then….
It was amazing, our college, our journal, our cultural program and our new relationship- Our out of this world friendship. He was my only friend in the whole college of 3000 students… was it because I never got along with anybody or I never needed one, cos I found him?
Everything was perfect, till he feel sick……. Hospitalized…Typhoid…………nooooooo…. It was terrible, no not his falling sick, but the lecture from his brother ( great guy ! Seriously) J . His brother thought he fell sick because I made him eat at all the local eat outs while working with him… But was he not the one who recommended me for all the work along with hin ????
Whatsoever, said and done…This guy was no ordinary guy. He was an super intelligent guy, being a hourly visitor and coming to the exams directly from the ICU and still clearing all the papers… wowwwwwwwwww Only somebody with his caliber and determination could have done it.
That was my first year in College, he wasn’t my class mate.. was my senior… Hated him for being the Chairman, cos of him I never became the chairman (they wouldn’t give it to the same department for 2 consectuive years – Stupid rules ! ), loved him for his humor. Got irritated with his innocence, he would never understand the clues of me wanting to change my sanitary pad. I would tell him 10 times in different ways “I want to wash my face , lets go home “ he would repeat it 10 times “Wash it in the canteen” . I would give all the reasons to go home and he would reject all of them and then with all my frustration and irritation ( Thanks to the monthly cycle and his innocence ) I would scream and say “ I have got my periods and need a sanitary pad” and he would keep mum throughout the way and take me home…
The day I wouldn’t go to college, he would come and meet me at home and we would endlessly talk about everything under the sun. We have walked for 3 hours at a stretch. Thanks to him , I am fit today., So is he ….
Oh ! How can I forget the mess I created in his life… My classmate and my friend loved him deeply and she said her love increased cause of me… (I was always spending time with him). He never wanted to get into and always confessed the same to me and she would also confess to me all what she was going thru… I always pushed her to him and eventually asked her to express her feelings and after 2 years,( dude took quiet a lot of time ) he fell in love with her ……How much I hated myself for it…. Cause in 2 years he became my best friend, and I wasn’t willing to share him with anybody on planet earth….
I should be honest, I had a boy friend then…. My first love.. This hourly visitor would drop me to my boy friend’s place when asked for and has even had dinner with us even though he hated it… (An awesome friend)
His typhoid didn’t stop him from attending the farewell, how could it ???? She had insisted he be there. (he is a sweetheart).
Missed this hourly guest in my second year of college, but he made his attempts to stay connected so did I. He would give me a lift, actually not a lift , he would go out of his way to drop me to college, every time I was late… I was late most of the times( learnt it from him ) . During my exam, I would read one subject of mine and he would read the other and explain it out to me… thanks to him, I topped the university…. Wouldn’t have , if not for him. College got over and it was a beginning to my career life… He was always there listening to my fears and always kept telling me “ if you don’t get a job who will” . I got the first job I applied for.
He gave me Joy, Courage, Confidence, Smile, Time, Success, he gave me life, A life which I would have never enjoyed , if not for him….
Thank you friend, thank you Guru ,Thank you my Guardian Angel… ( only I am allowed to call him all the above even after 5 years of college ) Love you doggy
She
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