...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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...Differentiator and value proposition Today every brand in the market speaks of the health benefits of tea. To that extent this valuable claim is now a generic claim. Looking deeper into the market one notes that it is the strength of the individual brands that dominate the market. The global leaders Lipton, Tetley, Brook Bond and the like have won the ‘trust’ of their consumer and have the strength to market leading tea variants without any association to Ceylon Tea. Of course they have Ceylon Tea products too. However, the fact is that the strength of their individual company brand makes it possible for them to market the larger share of their volume and variants without the Ceylon tea story. Looking into the shelves of supermarkets particularly in the developed markets we note many tea brands with no reference to Ceylon Tea at all. Given this scenario it is time for us to ask the question, is Ceylon Tea losing its power to influence the consumer with a relevant, credible and differentiating value proposition? Call for urgent consumer research We often speak of Ceylon being famous for quality tea, and some may assume that the entire world knows about it. However, when have we last verified this assumption through in depth research in the key markets? Is it our own perception or that of those involved in the tea trade, or only in the minds of the older generation? Does today’s ‘new consumer’ know about it? Even more important, when another brand of tea (local or foreign owned)...
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...TABLE OF CONTENT a) Introduction b) Corporate 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...
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...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. Emphasize on local adaption. 2.1 ANALYSIS Adaption from the Case Studies and Research Cases Tata Group uses two different strategies locally and internationally...
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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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...Tata fast facts Headquarters Bombay House 24, Homi Mody Street Mumbai 400 001 India 1868: Tata Sons established by Jamsetji Nusserwanji Tata Tata Sons and Tata Industries Information systems and communications, engineering, materials, services, energy, chemicals and consumer products 2012-13: $96.79 billion (around Rs527,047 crore) 3.9 million Over 100 operating companies 32 on the Bombay Stock Exchange Over 540,000 Over 80 countries 2012-13: $60.7 billion (62.7% of group revenues) Tata Motors Founded Promoter holding companies Areas of business Group revenues Shareholder base Number of companies Listed companies Number of employees International presence International revenues Companies listed on NYSE Board of directors, Tata Sons Cyrus P Mistry, Chairman Farrokh K Kavarana R Gopalakrishnan Ishaat Hussain Vijay Singh Nitin Nohria Board of directors, Tata Industries Cyrus P Mistry, Chairman Farrokh K Kavarana Ishaat Hussain S Ramadorai B Muthuraman Prasad R Menon Ravi Kant KRS Jamwal, executive director RR Bhinge, executive director Leadership Tata Steel: Among the top ten steelmakers in the world Tata Motors: Among the top five commercial vehicle manufacturers in the world Tata Global Beverages: Second-largest player in tea in the world Tata Chemicals: World’s second-largest manufacturer of soda ash Tata Communications: One of the world's largest wholesale voice carriers Pioneering initiatives in India Established the first steel plant Introduced labour welfare...
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...business policy and strategic management TATA GLOBAL BEVERAGES LIMITED A strategy for the DIVERSIFICATION IN SMARtPHONE BUSINESS Guided by, Dr. S.S. Patil Submitted By, 13323 Ritesh Raut 13324 Yogesh Sathe 13325 Sandesh Shendkar 13327 Amit Bhusare 13328 Harshal Patil 13329 Dev Roy PUMBA (2013-15) TATA TEA LTD.: DIVERSIFICATION IN SMARTPHONE BUSINESS AN OVERVIEW OF TATA TEA LIMITED * TATA Tea was set up in 1964 as a joint venture with a UK based James Finlay and Company to develop value added tea. * From a mere share of 3% in the mid 70's to become India's second largest tea producer, Tata tea has come a long way. (www.Tatatea.com) * The operations of Tata tea and its subsidiaries focus on branded product offerings in tea but with a significant presence in plantation activity in India and Sri Lanka. * The Tata tea brand leads market share in terms of value and volume in India and has been accorded the ‘super brand' recognition in the country. * Tata tea also has 100% export oriented unit manufacturing instant tea in the state of Kerela, which is the largest such facility outside the United States. Current Position of Tata Tea LTD. * After the financial collapse in the year 2000, Tata Tea is now moving forward toward the growth. Currently share value of Tata tea has moved up to Rs 700 per share. * Tata tea has been ranked as the most trusted beverage brand in India (The Economic Times, 2007)...
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...Global Business Opportunities Project: Starbucks Going to India Prepared by: Group A Contents Module 2: ANALYZING INTERNATIONAL COMPETITORS 6 Module 3: ASSESSING THE ECONOMIC-GEOGRAPHIC ENVIRONMENT 7 Module 4: ASSESSING THE SOCIAL-CULTURAL ENVIRONMENT 10 Module 5: ASSESSING THE POLITICAL LEGAL ENVIRONMENT 13 Module 6: SELECTING A GLOBAL COMPANY STRUCTURE 15 Module 7: FINANCING SOURCES FOR GLOBAL BUSINESS OPERATIONS 16 Module 8: CREATING A GLOBAL MIS (MANAGEMENT INFORMATION SYSTEMS) 18 Module 9- IDENTIFYING HUMAN RESOURCES FOR GLOBAL BUSINESS ACTIVITIES 19 Module 10 – MANAGING INTERNATIONAL FINANCIAL AND BUSINESS RISKS 21 Module 11 - PRODUCT AND TARGET MARKET PLANNING 22 Module 12: DESIGNING A GLOBAL DISTRIBUTION STRATEGY 24 MODULE 13: PLANNING A GLOBAL PROMOTION STRATEGY 25 MODULE 14—SELECTING AN INTERNATIONAL PRICING STRATEGY 27 MODULE 15— DETERMINING ORGANIZATIONAL FINANCIAL RESULTOVERVIEW 28 References: 31 Module 1: IDENTIFYING GLOBAL BUSINESS OPPORTUNITIES Global Business Opportunities We are the Starbucks Corporation; we purchase and roast whole bean coffees. Majority of our stores are in the United States, but we also have international stores. Starbucks Corporation has successfully been in business since 1971. India has the youngest population in the world and will stay young. Starbucks Co. has found the opportunity to expand internationally to India and believes that it can be a huge success. Potential Markets Starbucks would like to first start its operation...
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...Dabur * BIKAJI * SABMiller, India * Britannia Industries Ltd. * Bikanervala Foods Pvt ltd. * Marico Industries Ltd. * Nestlé India * Godrej Group * Tata Global Beverages * Parle Agro * Haldiram * Nirma * Bisk Farm * Bovonto * Cavin Kare * Pidilite * Elder Healthcare Ltd. * Grove limited * Tata * Wipro * GCMMF (AMUL) * Reckitt Benckiser * Cadburys India * Perfetti Van Melle India * Procter & Gamble Hygiene and Health Care * Godfrey Phillips * Henkel Spic * Johnson & Johnson * Himalaya Herbal Healthcare * Modi Revlon * Amul India * Godrej Consumer Products Ltd. * Masterchef food ventures pvt ltd (www.snakart.com) * Wital See Group * Jahana Electricals and Galaxy Graphics * Heinz India Pvt ltd * Pitambari Products Pvt ltd * Moraka Organic food Pvt Ltd * Morvin International Pvt Ltd * S.Narendrakumar & co. * hms agro proteins pvt ltd * little bee * Balaji Wafers * Ramdev Foods * Everest Masala * JMD Oil * Flourish Purefoods * Aachi masala Top 10 FMCG Companies in India 1 | Hindustan Unilever Corporate Office – Mumbai, Maharashtra | Turnover – 4.0 Billion Dollar | Employees – 16000+ | Business – Food, Beverages and Personal Care | Sector – Private Sector | Career Website – www.hul.co.in/careers-redesign Top 10 FMCG Companies In India 2 | Colgate-Palmolive Corporate Office – New...
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...chosen entry mode and growth of STARBUCKS in its new market. Vanessasong.(2012).Retrieved from http://blogs.ubc.ca/vanessasong/2012/11/15/doesnt-matter-what-starbucks-sells-india-loves-it/ Table of Contents: Assignment Cover Sheet…………………………………………….………………………………………………………………………………1 Assignment 1 – Research Report…………………………………………….………..………………………………………….…………...2 Project Starbucks India...…………………………………………………………………………………………………………………………….3 Executive Summary…………………………………………………………………………………………………………………………………….3 Table of Contents……………………………………………………………………………………………………………………………………….4 Introduction……………………………….………………………………………………………………………………………………………………5 Entry mode chosen by Starbucks………………………………………………………………………………………………………………..6 Why Starbucks – TATA will work?....................................................................................................7 Starbucks...
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...Abstract Skirosky and Tata joint venture to build S-92 cabins in India on a Greenfield facility is a business decision which can prove to be profitable for the United States and India based companies. There are pros and cons to the approach but can be quite profitable for both firms. A brief overview of both organizations is given, with their approach to the joint venture. An outline of possible challenges each organization could face along with followed with some recommendation as to how to overcome the challenges the companies may face. Sikorsky and TATA Joint Venture The Sikorsky Manufacturing Corporation was established in 1925 in Long Island New York by Igor Sikorsky a native of Russia who immigrated to the United States and restarted his aviation career after successfully designing a four engine craft. The company’s later became The Sikorsky Aviation Corporation. In 1929 after Sikorsky purchased land in Connecticut the company became a division of United Technologies Corporations. Sikorsky Aviation manufacture and designs fixed-wing aircrafts, military and commercial helicopter’s, spare parts and maintenance, repair and overhaul services for helicopters and fixed-wing aircraft; and civil helicopter operations (Skirosky.com, 2012). Sikorsky helicopters are used by all branches of the army, along with military services and commercial operators in 40 nations (Sikorsky.com, 2012). Sikorsky is the prime contractor in the U.S. Army’s UH-60M...
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...Chatterjee of 3rd year student of Hotel Management, H-18023 declares that all the content in this project has been "The result of my own research and at places where the information has been" Copied from a particular site, book, journal or pamphlet. I Declare That I Have Committed No Such piracy "any step taken which is against the academic rules of IHM-A and The University of Huddersfeild. Anamika.C(H-18023) Page 3 Corporate Governance Table of Content Serial Number 1 2 3 4 5 6 7 Chapter One-TATA Company Profile Chapter Two-IHCL Company Profile Chapter Three-IHCL and Corporate Governance Chapter Four- Prologue to Corporate Governance Chapter Five-Case Study Analysis on Tyco International Limited Chapter Six-Conclusion Bibliography Particulars Page Number 5-8 8-9 9-11 11-15 15-17 18 19-20 Anamika.C(H-18023) Page 4 Corporate Governance Chapter One TATA Company Profile The Tata Group is an Indian multinational company founded in the year 1868 by Jamsetji Tata who was then inspired by the spirit of nationalism and wanted to establish a company operated by Indians and for Indians. This...
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...STARBUCKS IS COMING TO INDIA INTRODUCTION As we all may know, behind any successful achievement, there is a long story of withstanding hardship and endeavouring persistently behind any success. The Starbucks’ case of successfully bringing the brand into the Indian market is one example. This paper is to study the (3) reasons why Starbucks International decided to expand its market scale internationally and to figure out the initial criteria required for Indian Market. This is also to analyse appropriate circumstances at that time for Starbucks to be able to earn its foothold there provides us with valuable business guidance. Besides, this study by pointing out key factors which lead to Starbucks’ success in launching its brand in India demonstrates how Starbucks applied sustained competitive advantage and dealt with obstacles during the launching period, which created significant courage for Starbucks International to move next steps to fulfil its ambition for international expansion. COMPANY’S OVERVIEW Founded in 1971 in Seattle, Starbucks was started as a store to roast and sell coffee bean by three partners. Its name and logo were named after the famous novel Moby Dick. In 1987, Howard Schultz who is currently the company’s CEO acquired Starbucks and single-handedly converted it into a national, publicly owned company. Having more than 11,000 stores in 36 countries worldwide and over 10,000 employees in 2006 (Case Study), the company grew to about 17,000 stores (starbucks...
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...An analysis and evaluation of the business model of Tata Group Introduction In the following case we will briefly analyze and evaluate the business model of Tata Group, an Indian giant that is moving into a global powerhouse. We will firstly use the SWOT analysis tool in order to understand the internal and external environment. Then we will strategically position the group with the help of the Porters Generic Strategy which will be followed by an overview of the VRIO model and conclude with looking into the croups portfolio with the Boston Consulting Group (BCG). According to Johnson et all described in their book Exploring Corporate Strategy, ”A business model describes the structure of product, service and information flows and the roles of the participating parties” For example a it is how the description of raw material is being converted to a final product and transferred to the final consumer. SWOT Analysis SWOT analysis is a tool that helps us develop strategic development by creating strategic options and evaluate future planning. This is achieved by identifying and analyzing the most important issues in a company’s environment as well as the strategic capability of an organization. Strengths: * Innovation is one step that Tata has advantage because, the lot of companies the group has helps each other and makes it easier to develop. * Resources are easier to being accessed due to the fact that Tata has a wide range of companies in their portfolio that...
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...Overview and Strategy PepsiCo has the world's largest portfolio of billion-dollar food and beverage brands, including 22 different brands that each generate more than $1 billion in annual retail sales. As well as our core brands—Pepsi-Cola, Lay's, Quaker Oats, Tropicana and Gatorade—we make hundreds of other nutritious and delicious, convenient and fun foods and drinks that bring joy to our consumers in more than 200 countries worldwide. With annualized revenues of approximately $60 billion, approximately 294,000 of PepsiCo's associates are united by our unique commitment to sustainable growth, called "Performance with Purpose." By dedicating ourselves to offering consumers a broad array of choices for healthy, convenient and fun nourishment, reducing our environmental impact, and fostering a diverse and inclusive workplace culture, PepsiCo balances strong financial returns with giving back to our communities worldwide. In recognition of our continued sustainability efforts, PepsiCo was named for the fourth time to the Dow Jones Sustainability World Index (DJSI World) and for the fifth time to the Dow Jones Sustainability North America Index (DJSI North America) in 2010. For the second year in a row, PepsiCo was the top performer in the Beverage Sector. For PepsiCo, the benefits of global expansion include: maximizing growth potential, gaining global scale and achieving geographic diversity. Emerging markets account for a notable portion of PepsiCo's revenue. With faster...
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