...1.0 PRoblemS DEFINITION 1.1 Types of Strategies used for Local and International Markets Under the International Strategic Management approach, companies can choose to either venture their business towards the Global or Regional strategy. The Global Integration strategy looks at production and distribution of products and services of a homogenous type and quality on a worldwide basis. National Responsiveness strategy requires understanding of individual consumer tastes imposed by autonomous governments and agencies. To further understand the Global and National strategies, we look into the two-dimension matrix below. (textbook, pg277) Global Strategy International Strategy Transnational Strategy Multi-domestic Strategy Global Integration High Low National Responsiveness High Low Quadrant 1 – Global Strategy, High requirement for integration and low awareness of differentiation. Based on price competition, entry strategy used it often mergers and acquisition. Quadrant 2 – International Strategy. Low requirement for centralised quality check and strategic decision making eliminating the need to adapt to individual countries. Mixed strategy combining low demand for integration and responsiveness. Quadrant 3 – Transnational Strategy. High requirement for integration and differentiation. Emphasizing both global integration and local responsiveness. Quadrant 4 – Multi-domestic Strategy. High requirement for differentiation but low concern for integration...
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...Tata Motors 1. Describe the economic characteristics of the global motor vehicle industry. The characteristics of the global motor vehicle industry are a boom in certain places and a bust in others all due to economic conditions in different nations. Four years after tow of Detroit Michigan’s big three went into bankruptcy American car makers are going “full throttle” with sales in August hitting an annual rate that if substantiated can take them back over 16 million and that is a rate that was last hit before the economic crisis and 80% higher than 2009 when GM and Chrysler went into bankruptcy. The opposite is happening in Europe being in its sixth year slump now and with a weak economy, high petroleum prices and an aging population being weighing factors on mass market car makers. This has led to cost cutting and over capacity for European car makers. This seems to be a trend worldwide as well as car makers are depending on there luxury brands to make them profitable. Tata has seen a profit due to Jaguar and Land Rover surging there net sales up 71% to 566 million dollars and raising revenues 31% to 568.82 billion rupees. This came dispute as the company said “a weak operating environment in the India business which was more than offset by increasing wholesale volumes and richer product and market mixes at JLR”. This is similar to Renault depending on Nissan and sales of cars produced in low cost factories in Romania to cover domestic losses. Mercedes and BMW are generating...
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...Submission on a Case House of Tata: Acquiring a Global Footprint Submitted by: - Submitted to:- Abhigyan Prof. Vinay Chirania Dipandita Kar Himali Kulshrestha Mridul Tiwari Priyanka Aggarwal Subhashree Roy Vaibhav Singh Summary of House of Tata: Acquiring a Global Footprint The 134-year-old Tata Group with 95 operating companies (31 of them publicly traded) and 230,000 employees, it is India's largest private-sector employer, its biggest taxpayer, and its greatest foreign-exchange earner. It operates India's one of the largest private steel manufacturer, its largest chain of luxury hotels, and its largest private power utility” (Ellis, 2002). Tata Group is one of India's most prominent and esteemed business groups. Tata Group's cite is substitutable with India's industrialization. The Group dedicated The India her first steel plant, hydroelectric plant, inorganic chemistry plant and produced a reservoir of scientific and technological workforce for the nation. Today, Tata Group constitutes 96 functioning companies in seven business sectors such as, information systems and communications, engineering, materials, services, energy, consumer products, and chemicals. The Group has operations in more than 54 countries across six continents, and its companies export products and services to 120 nations. The Tata family of companies, shares a set of five core values: integrity, understanding, excellence, unity and responsibility Tata Group has played a pioneering...
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...Tata Motors Case Jordan Jenkins Professor Watson University of Rio Grande 11/14/2013 Tata Motor case Economic characteristics Describe the economic characteristics of the global motor vehicle industry. The past five years were tumultuous for the Global Car and Automobile Manufacturing industry. The price for fuel and other growing concerns have shifted consumer’s preferences away from big pickup truck to more fuel efficient cars. Some automakers embraced the change by expanding their small-car portfolios and diversifying into the production of hybrid electric motor vehicles. Other automakers were more reluctant to shift their focus from big to small cars, expecting the price of fuel to contract eventually, bringing consumers back to the big-car fold. When fuel prices did fall during the second half of 2008, it was due to the US financial crisis ripping through the global economy. The meltdown began when a debt binge overwhelmed many US consumers and businesses. This had a domino effect throughout the developed and emerging worlds, with many Western nations following the United States into recession. The Global Car and Automobile Manufacturing industry is deemed to have a low level of market share concentration. There are several major automotive companies across the globe, each with a significant share of the market, but concentration has been declining over the past five years as firms in emerging economies ramp up production a good example would be Tata in India. ...
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...Q 1.What is your assessment of Tata Tea’s situation at the end date of the case? Tata tea ,set up in 1964 as a joint venture with a UK based James Finlay and Company .The company has definitely come a long way from a meager share of just 3% in 70’s to now becoming India’s 2nd largest tea producing company. It has noteworthy plantations in India and Sri Lanka. The brand leads market share in terms of volume and value in India and has been accorded ‘super brand’ recognition in India. It also has a100% export oriented manufacturing unit of instant tea in the Indian state of Kerala which happens to be the largest such facility outside the US. Here is a brief history of the company: Tata Tea acquired Tetley in the first ever-leveraged buyout (LBO). This largest cross border acquisition by an Indian company made it the world’s 2nd biggest tea company with the combined turnover worth INR2800 – 2900 cr leading to its aggressive growth and worldwide expansion. The merger proved beneficial for Tata Tea as it slowed its main competitor (in India) HLL’s share (Hindustan Lever limited, a Unilever subsidiary), which was gaining a major market share. Tata Tea Before merger: Post merger Scenario: The right moves at the times Though Tata Tea ranks among the smaller of the Tata companies, yet it has been the most internationally active one. It made the world stand up and notice it when it acquired Tetley, a company nearly twice its size, in a risky leveraged buyout in 2000...
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...House of Tata – Acquiring a Global Footprint Group 1 Bhuvan Bajaj Karan Bahl Raki Jain Trivikram Apte Vinayak Pareek Yan Yan Huang House of Tata – Acquiring a Global Footprint Executive Summary What and how did TATA emerge as a Multi Brand? Founded in 1868 by Jamshetji N. Tata as a trading firm Textiles in 1874 India’s first luxury hotel in 1903 First private steel company in 1907 First airline in 1932 First software firm in 1968 Liberalization of the Indian Economy and the changes that it brought to TATA’s way of doing business Ratan Tata becomes chairperson in 1991 • • First objective: Streamline group portfolio Some groups diversified and others organized around seven sectors 2 Major global expansions In 2000, Tata groups started internationalized operations and 65% of collective revenues were expected to come from outside India 1. Tata Consultancy ServicesWhy TCS, the group’s tech and consulting giant underwent its evolution at a much faster rate than the other Tata companies, in a sense became more global. And they perceived more growth in the foreign market and had to expand globally, TCS accounted for $27.8 billion of Tata’s $59.5 billion market capitalization as of August 2007 2. TitanExpanded globally but suffered high losses thus established itself as an NRI brand, especially in the Middle East. 3. Indian Hotels Company – TAJ Hotel Group Began globalization in 1982, Tata purchased 51 Buckingham gate and St. James court hotel which was later branded as...
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...2014 International Business Assignment Tata Motors International Strategies sdfdf Farhan Khan 11/30/2014 Table of Contents Indian Automobile Industry .................................................................................................................................... 2 1. 2. Tata Motors Overview ................................................................................................................................................. 2 3. Porter’s Five Forces Analysis of UK Car market considering Tata Motors Strategy........................................ 3 i. Competitors’ bargaining power............................................................................................................................... 3 ii. Buyers’ bargaining power ........................................................................................................................................ 3 iii. Suppliers’ bargaining power................................................................................................................................ 3 iv. The threat of Substitutes ...................................................................................................................................... 3 v. 4. Strategy adopted by Tata Motors................................................................................................................................ 4 i. Competition at Home...
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...Describe the economic characteristics of the global motor vehicle industry. 2. What are the key success factors for a successful firm in the global motor vehicle industry? 3. What are Tata Motors’ internal strengths and weaknesses? Identify competencies and capabilities that the company’s major competitors are lacking. What market opportunities does the company have and what threats can you identify that may negatively impact the company’s future? 4. Would you describe Tata Motors international strategy as a global, transnational, or multidomestic strategy? Explain your answer. 5. What are the driving forces in the global motor vehicle industry? 6. How strong are the competitive forces confronting automobile manufacturers? Do a five-forces analysis to support your answer. 7. What is the financial condition of Tata Motors as indicated from case Exhibits 3 and 4? What is its ability to meet short-term obligations? What advice can you offer Tata’s management based on the information in the financial statement? 8. What do you consider to be the most important problems and issues facing Tata Motors, based on your analysis of the company and the global motor vehicle industry? Prioritize these problems and issues beginning with the most important. 9. What actions would you suggest to Mr. Tata and his management team to help Tata Motors sustain or improve its competitive position in the domestic market and global markets, and its long–term financial performance? Describe...
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...economic characteristics of the global motor vehicle industry- The motor vehicle industry has leaned more towards fuel efficiency since the rise in gas prices, so companies need to switch their focus on how consumers perceive their product to be. Although, some manufacturers did not change with the times and still offer larger less fuel efficient cars, such as US auto makers who specialize in pickup trucks, mini vans and SUVs. With everyone focusing on saving money especially with the financial crisis in 2008 some companies have prospered more than others. Companies such as Tata Motors have come up with a car called the Tata Nano which is the worlds most affordable car in every sense of the way. 2. Would you describe Tata Motors’ international strategy as global, or multi-domestic strategy? Explain your answer. Does this appear to be the optimal strategy? Tata Motors's strategy would be considered a global strategy. In 2012, the corporation had operations in over 80 countries and had gross revenues of $83.5 billion in 2011 (Gamble, 361). Tata Motors' focuses on a broad product line striving for maximum quality and fuel efficiency. They implement this strategy all across the globe for all of their manufactures. They also wanted to focus on middle to lower class income families, offering an affordable product, such as the Nano. Tata Motors' looks to sell their products in a global market and will continue to do so. I feel a multi domestic strategy may be more suited for them considering...
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...diversification c) Reasons for Diversification d) Types of diversification strategies e) GOAL of diversification f) RISK of diversification g) Corporate diversification of TATA group h) List of diversification of TATA group i)CONCLUSION Introduction Diversification is a form of corporate strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets. Diversification can occur either at the business unit level or at the corporate level. At the business unit level, it is most likely to expand into a new segment of an industry that the business is already in. At the corporate level, it is generally via investing in a promising business outside of the scope of the existing business unit. Diversification is part of the four main growth strategies defined by the Product/Market Ansoff matrix:[1] [pic] Ansoff pointed out that a diversification strategy stands apart from the other three strategies. The first three strategies are usually pursued with the same technical, financial, and merchandising resources used for the original product line, whereas diversification usually...
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...Tata Motors is one of the crown jewels of the Tata Group, India's premier industrial house. In the fiscal year 2008 the company sold 585,649 vehicles and had a turnover of INR335 billion (Indian rupees) (US$8.4 billion), making it the largest automobile company in India. Tata Motors had ambitious plans to double the number of vehicles that it sold in a mere five years by maintaining its lead in the booming Indian market and by establishing a greater global presence. The case describes Tata Motors' journey to becoming a global contender. It traces the company's business portfolio and strategy, its dramatic turnaround in 2000-2002, its strengthened position in India in both commercial vehicles and passenger cars, as well as its diversification into international markets through greenfield ventures, as well as acquisitions and alliances - notably the Jaguar LandRover purchase in 2008. In January 2008, Tata Motors unveiled the Tata Nano, priced at INR100,000 or one lakh (US$2,500), the cheapest car in the world. By entering two of the fastest growing areas of the automotive industry (the premium and small car segments), Tata Motors company was firmly on the path to becoming a global contender. Learning objectives: The case has the following objectives: (1) introduce students to Tata Motors - an emerging global player in the auto industry from India; (2) understand and critique the company's domestic strategy to date (including the launch of the Nano); (3) review its international...
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...of Tata Tea’s target customers – what influences these customers to purchase their product? Tata Tea’s target market: * Indian middle class and upper middle class that accounts for nearly 300 million people. * Targets the youth by embracing them with social awakening messages * Targets women in a view to empower them socially * Calls out to housewives since they are influencers and deciders in the buying process Factors influencing purchase of tea & coffee In selecting tea & coffee, the consumers may be considering some factors. These factors were price, quality, taste, flavor, environmental concerns, social concerns, impact on health, family preferences, peer acceptability, familiarity with the supplier, reputation of the supplier, certification mark and promotions and discounts… 2. How have Economies of Scale helped/hindered Tata tea in their overall global operations – in what areas are there advantages and disadvantages for Tata tea? In microeconomics, economies of scale are the cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output. The purpose of mergers and acquisitions of Tata Tea is reaching the operational efficiency in the worldwide The restructuring combined with business strategy will bring many benefits for Tata tea brand in the international tea market; to be a global brand...
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...Q1. What is the Purpose & Values of TATA Group as a whole? Answer 1. Tata Group companies has evolved a collective commitment to evolving stronger connections between their values and first- in-class business practice – not by putting either one ahead of the other, but by finding mutually beneficial bridges between them. “In a free enterprise, the community is not just another stakeholder in business, but is in fact the very purpose of its existence.” Jamsetji N. Tata (Founder, Tata Group, 1868) “The Tata philosophy of management has always been and is today more than ever, that corporate enterprises must be managed not merely in the interests of their owners, but equally in those of their employees, of the customers of their products, of the local community and finally of the country as a whole.” – J. R. D. Tata Purpose Tata group is committed to improving the quality of life of the communities they serve. They do this by striving for leadership and global competitiveness in the business sectors in which they operate. Their practice of returning to society what they earn evokes trust among consumers, employees, shareholders and the community. They are committed to protecting this heritage of leadership with trust through the manner in which they conduct their business. They have a comprehensive document that serves as an ethical road map for Tata employees and companies, and provides the guidelines by which the group conducts its businesses.it has 21 clauses...
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...TATA NANO CASE STUDY MIDDLESEX UNIVERSITY Module: - International and cross cultural marketing Module leader: - Dr Michael Kourtoubelides Student name: - KANUPRIYA BANSAL Student number: - M00430431 EXECUTIVE SUMMARY Tata motors ltd. is a renowned automobile company of India and is a part of Tata group. It is a pioneer of commercial vehicles, utility vehicles, passenger vehicles and it is world’s fourth largest manufacturer of trucks and buses. Ratan Tata, the CEO of Tata group had a vision to design a car for a low income group family and he came with the design of Tata Nano in 2008, tagged as “ People’s car” which was created for all the sections of economy. The automakers were shocked that how could Tata motors achieve the price target of 1 lakh ($2500). Tata Nano’s car design won the Edison award in 2009 and best compact car award. Tata Nano was launched in March 2009. The spokesperson of Tata, Mr. Kant agreed that initially the marketing strategy as well as positioning and targeting strategies were inappropriate as it did not reach the targeted customers as a result sales dipped. Many policies were incorporated and the marketing strategy was altered. Tata group’s retail outlets, big bazaar and croma made open distribution. It tied up with banks to provide easy finance to targeted customers. “Happiness guaranteed” was an initiative by Tata motors to boost Nano sales by improving after sale service. Tata motors has international expansion plans...
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...Group 1 MM UGM Kelas Eks B 25 A Adolf Kurniawan P Ferdinand Agung Mike Silvia Yudi Yudistira preface... • Tata Motors Limited is India's largest automobile company, with consolidated revenues of INR 1, 88,818 crores (USD 34.7 billion / IDR 400 trillion) in 2012-13. • It is the leader in commercial vehicles in each segment, and among the top in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. • It is also the world's fourth largest truck and bus manufacturer. • The Tata Motors Group's over 55,000 employees are guided by the mission "to be passionate in anticipating and providing the best vehicles and experiences that excite our customers globally." preface... • Tata Group has been doing a lot of acquisitions, such as the company Tetley, Daewoo Motors, Nat Steel, Teleglobe, Tyco, Energy Brands, Corus, PT Bumi Resource, and General Chemical. • On June 2, 2008, Tata Motors, a giant company based in India, did acquisition of the business units of Jaguar and Land Rover (JLR), of Ford Motor Company (Ford), an automobile manufacturing Integration based in America, with a value of U.S. acquisitions $ 2.3 billion (IDR 27,6 trillion). – JLR is part of Ford's Premier Automotive Group (PAG) which found on March 1999 together with Aston Martin, Jaguar, and Lincoln and they are considered as a British icon. preface... • It covers the purchase of JLR manufacturing plant, superior design center in the UK, national sales companies...
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