...ase study of Tata Motor Acquisition of Jaguar and Land Rover You are Here: Home > Management Case Studies > Case study of Tata Motor Acquisition of Jaguar and Land Rover According to industry analysts, some of the issues that could trouble Tata Motors were economic slowdown in European and American markets, funding risks, currency risks etc. Acquisition of Jaguar and Land Rover provides the company with a strategic opportunity to acquire iconic brands with a great heritage and global presence, and increase the company’s business diversity across markets and product segments.- Tata Motors, in April 2008. “If they run the brands as a British company and invest properly in new product, it will be successful because they are still attractive brands.”- Charles Hughes, Founder, Brand Rules LLC, in 2008. “Market conditions are now extremely tough, especially in the key US market, and the Tatas will need to invest in a lot of brand building to make and keep JLR profitable.”- Ian Gomes, Global Head, Emerging Markets, KPMG, in 2008. Acquisition of British Icons On June 02, 2008, India-based Tata Motors completed the acquisition of the Jaguar and Land Rover (JLR) units from the US-based auto manufacturer Ford Motor Company (Ford) for US$ 2.3 billion, on a cash free-debt free basis. JLR was a part of Ford’s Premier Automotive Group (PAG) and were considered to be British icons. Jaguar was involved in the manufacture of high-end luxury cars, while Land Rover manufactured high-end...
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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 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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...Internationalisation within the UK Car Industry and the Success of Jaguar Land Rover ADD REFERENCES PROPERLY AT END OF PARAGRAPHS SENTENCES CHECK THROUGH OUT!!! Introduction This report will critically evaluate the impact of globalisation on the UK car manufacturing sector. It shall provide a brief insight into the UK Car Industry; highlight the trade and non-trade barriers affecting UK car manufacturers and the adjustments they need to make regarding culture, language and regulatory frameworks as well as intellectual property protection. All information used to complete this research was contemporary information from 2007 to 2015. Then it will explain how multinationals such as Jaguar Land Rover can provide impetus to the UK Car Manufacturing Sector and critically analyse the success of the Jaguar Land Rover brand since 2008. (Check this introduction once report completed) UK Car industry background 1975 to Present In 1975 the UK produced 5% of the worlds Cars but by 2005 they had lost a significant share to Korea, Brazil, China, Spain, India who produce a significant amount of the worlds cars over see Figure 2 with the UK producing less than 2%. Figure 1 – World Car Production 1975 Figure 2 – World Car Production 2005 Source: Source: From 1996-2006 alone UK Car Production decreased by over 14% from 1.926 million to 1.65 million a dip of 10% from the previous year in 2005 was enough...
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...LEGAL ELEMENT West Bengal's Nano Impasse: A Roadblock for Tata The slogans on signs in Singur -- the West Bengal site where Tata Motors plans to manufacture the Nano, its $2,500 small car -- say it all. Most are in Bengali, but the few in English capture the overriding sentiment. "Nano No No," reads one. "Atta not Tata," says another. Atta, which is flour made from whole wheat, refers to the core question of the dispute: Should fertile farmland be requisitioned for industrial purposes? Does food get priority or factories? According to faculty at Wharton and the Indian School of Business, the impasse over the plant in West Bengal threatens to increase the Nano's production costs and could delay its entry into the domestic market. Moreover, they say, it will likely impact investment in the region, as outside companies shy away from antiquated land laws and political disruption. As things stand today, work has been suspended at the Nano plant. Tata has closed shop because, as chairman Ratan Tata told journalists in Kolkata (formerly Calcutta): "I can't bring our managers and their families to West Bengal if they're going to be beaten, if there is going to be violence constantly, if their children are afraid to go to school." Tata has faced trouble ever since it got the go-ahead for the plant on May 18, 2006. Just a week later, there were angry demonstrations by farmers objecting to the "forcible" acquisition of land for the project. The Trinamool Congress, a political party...
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...wrong and therefore affect the success or failure of the deal. Integration planning is an important part of the takeover process, although there are other potentially significant factors that affect whether a takeover is successful which also need to be considered. (knowledge/ evaluation) Integration planning refers to a process in which the buying business (the acquirer) identifies how it will run the takeover target once the transfer of ownership has been completed. Integration involves many functional challenges such as how to manage customer reaction to the takeover, handle uncertainty amongst employees and integrate potentially different computer systems. Key strategic issues also arise – for example decisions over the future of competing brands, key business locations and the senior management structure. (application) Integration planning normally takes place before the transaction is completed with the aim of ensuring that the acquirer has a clear idea of the integration issues and a realistic action plan of how these issues can be addressed. It can be seen therefore that good integration planning can reduce the risks involved. (knowledge/ analysis) One reason why integration planning is important (evaluation) in determining the success of a takeover is that the process of integration is closely tied in with the need to achieve synergies. Synergies include cost savings and additional revenues from the deal and are a key part of the value the shareholders of the acquiring...
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...| Management Report | | Khalifa | | Management Report | | Khalifa | Coventry University [Pick the date] Authored by: Khalifa Ahmed Coventry University [Pick the date] Authored by: Khalifa Ahmed SUPPLY CHAIN Supply chain for new vehicle The automotive supply chain is not easy as it sounds, it actually gets difficult continuously . With over more than Twenty thousand car parts, may it be that one part of the car cannot be accessed then the consumers cannot purchase the end product. Tier 1 suppliers are on the highest on the pyramid which their job is to supply major items like the engines for the new vehicle. The second tier (Tier 2) suppliers provide the several parts the Tier 1 suppliers need they include the parts needed to assemble the piston rod which is part of the engine. The diagram below is going to show the 3-5 levels that are included in the automotive supply chain that are all from different parts of the world MATERIAL MATERIAL RAW MATERIAL MANUFACUTURER RAW MATERIAL MANUFACUTURER MATERIALATERIAL MATERIALATERIAL TIER 3/4/5 TIER 3/4/5 PART PART TIER 2 TIER 2 PART PART TIER 1 TIER 1 PART PART CAR MANUFACTURER CAR MANUFACTURER VEHICLE/SPARE PART VEHICLE/SPARE PART NATIONAL DISTRUBUTOR NATIONAL DISTRUBUTOR VEHICLE/SPARE PART VEHICLE/SPARE PART DEALER DEALER VEHICLE/SPARE PART VEHICLE/SPARE PART CONSUMER CONSUMER For a completely electric vehicle, Jaguar Land Rover will...
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...was officially announced over a year before, in February 2007, but the actual merger was delayed due to one tiny problem – when satellite radio first began in 1997, the FCC granted only two licenses under one condition: that either of the holders would not acquire control of the other.Oops. So Sirius and XM filed the proper paperwork with the FCC, allowed the FCC to investigate the merger, and waited patiently for the approval they needed. And although time will tell if the new Sirius XM company will succeed in the long-run, I consider this merger a success due to the number of big names recently added to their roster (Oprah, Howard Stern, Martha Stewart), as well having the foresight to combine forces in a down market. Tata/jaguar land rover the Tata...
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...Strategic development TATA MOTORS Introduction: Tata Motors Limited (formerly TELCO, short for Tata Engineering and Locomotive Company) is an Indian multinational automotive manufacturing company headquartered in Mumbai, Maharashtra, India and a subsidiary of the Tata Group. Its products include passenger cars, trucks, vans, coaches, buses, construction equipment and military vehicles. It is the world's seventeenth-largest motor vehicle manufacturing company, fourth-largest truck manufacturer and second-largest bus manufacturer by volume. Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad and Pune in India, as well as in Argentina, South Africa, Thailand and the United Kingdom. It has research and development centres in Pune, Jamshedpur, Lucknow and Dharwad, India, and in South Korea, Spain, and the United Kingdom. Tata Motors' principal subsidiaries include the British premium car maker Jaguar Land Rover (the maker of Jaguar, Land Rover and Range Rover cars) and the South Korean commercial vehicle manufacturer Tata Daewoo. Tata Motors has a bus manufacturing joint venture with Marcopolo S.A. (Tata Marcopolo), a construction equipment manufacturing joint venture with Hitachi (Tata Hitachi Construction Machinery), and a joint venture with Fiat which manufactures automotive components and Fiat and Tata branded vehicles. Founded in 1945 as a manufacturer of locomotives...
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...Acquisition of Jaguar and Land Rover brands by Tata Motors Ltd. from Ford Motors In 2008, Tata Motors Limited and Ford Motors reached an agreement which was about Tata Motors acquiring Land Rover and Jaguar brands. The transaction is worth US$ 2.3 billion, and it was concluded in 2008 (Wharton University of Pennsylvania 2007). The deal was criticized by many while others reserved their comment and maintained a keen eye to see how Tata would make a turn around to make the two brands regain their market and profitability under new management. The fact that Tata Motors is a company from India which is an emerging market was the main reason why many people were skeptical. Ford Motors were struggling to make their business thrive in a competitive...
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...Mercedes, Audi and what not. Today, India, popularly known as the land of snake charmers in the West, is undergoing a massive transformation and charming the world with its 3D effect- Democracy, Demography and Demand. The world’s largest democracy went for election in mid 2014 and its resultant was a stable government giving hope to the fellow Indians to building a new nation and providing aspirations to the foreign investors about India as an investment destination Our Prime Minister, Mr. Narendra Damodar Modi has inarguably taken it upon himself to market India globally. As a move to boost cross country relationship, tourism and trade, the Prime Minister travelled to popular and powerful countries of the world offering a hard to resist deal of ‘Make in India’. With opening its avenues for Foreign Direct Investment (FDI), India story is selling big time across the world as the favorite destination to attracting foreign investors. The fact was further corroborated as India topped the list...
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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 $59.5 billion market capitalization as of August 2007 2. TitanExpanded globally but suffered high losses thus established itself as an NRI brand, especially in the Middle East. 3. Indian Hotels Company – TAJ Hotel Group Began globalization in 1982, Tata purchased 51 Buckingham gate and St. James court hotel which was later branded as...
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...the Japan based telecom firm acquired 26% stake in Tata Teleservices for USD 2.7 billion. * The Indian telecommunication industry, with about 584 million mobile phone connections as of March 2010. * The industry is expected to reach a size of Rs 3,44,921 crore (US$ 76.92 billion) by 2012 at a growth rate of over 26 per cent, and generate employment opportunities for about 10 million people during the same period. Overview of the Tata Group * Founded by Jamsetji Tata in 1868, Tata’s early years were inspired by the spirit of nationalism. * The total revenue of Tata companies, taken together, was $83.3 billion (around Rs3,796.75 billion) in 2010-11, with 58 per cent of this coming from business outside India. * Employ over 425,000 people worldwide across seven business sectors * There are 31 publicly listed Tata enterprises and they have a combined market capitalization of about $92.46 billion (as on February 9, 2012), and a shareholder base of 3.6 million. Sector | Major companies | Materials | Tata Steel (incl. Corus), Tata Advanced Materials | Engineering | Tata Motors (incl. JLR), Voltas, Tata Autocomp Systems, Tata Projects, Tata Construction Equipment | IT & communications | TCS, Tata Tech, Tata Exlsi, Tata Communications, Tata Tele | Energy | Tata Power, Tata BP Solar | Services | Indian Hotels, Tata Realty, Tata Housing, Insurance, AMC | Chemicals | Tata Chemicals, Rallis |...
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...Krishna Burberry: Burberry moved manufacturing work overseas to China (offshoring). This involved the closure of their factory in Rhondda, causing 300 jobs to be lost in Rhondda. Consequently staff were crying when given the news and protests were held, causing the reputation and brand image to worsen in the short-term of Burberry as a result of making such an unethical move. This was a large concern as Burberry provided well-paid, quality employment, so the 300 job cuts in Rhondda meant a sad loss to the development of the economic infrastructure of Rhondda. Also in the short-term Burberry had to suffer larger cash outflows due to the redundancy payments. However the lower labour costs in China, although rising, allowed profits to rise. Also Burberry saw a 19% sales revenue rise, due to the rising customer disposable incomes in China, and as a result profits rose. Therefore in the short-term the move to China was not good as it meant large cash outflows due to the redundancy payments, and the job cuts in the UK made Burberry receive an unethical, negative brand image and reputation, reducing sales and profits. Although in the long-term Burberry is likely to benefit from greater sales and so more profits, particularly due to lower labour costs, but this depends on the rate at which labour costs are rising in China relative to that of the UK, and how high the shipping costs are of the goods from China to the UK. Dyson: Dyson's very innovative bladeless fan was the result...
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...OTPR PROJECT ON TATA MOTORS LIMITED Group 1: Raviteja Palanki (14S636) Niharika G (14S628) Souvik Sarkar (14S649) Mahalasa Kini (14S623) Sulagna Kakoti (14S650) Soumya Punyamurthula (14S648) 1|Page Brief Introduction: Tata Motors Limited is India’s largest automobile company, with consolidated revenues of INR 2,32,834 crores (USD 38.9 billion) in 2013-14. 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 fifth largest truck manufacturer and fourth largest bus manufacturer. The Tata Motors Group’s over 60,000 employees are guided by the mission “to be passionate in anticipating and providing the best vehicles and experiences that excite our customers globally.'' Established in 1945, Tata Motors’ presence cuts across the length and breadth of India. Over 8 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company’s manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The company’s dealership, sales, services and spare parts network comprises over 6,600 touch points...
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