...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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...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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... PG-B 066 “If you cannot make it greater, at least preserve it. Do not let things slide. Go on doing my work and increasing it, but if you cannot, do not lose what we have done already.” -Jamsetji Tata to his son Dorab on his deathbed. Jamsetji Nasserwenji Tata was a visionary. More than a century ago he laid the foundation of the business that now stretches across 7 business sector, 80 countries, and 6 continents and touches a millions of lives inspired by his desire to see India as one of the world most advanced nations. Jamsetji Tata had three great ideas of his life: setting up an iron and steel company, generating hydroelectric power and creating an institution that would tutor Indians in the sciences. He conceived of policies and institutions far more advance than that of his times. He was born into a Parsi family of priests. He followed his father’s footsteps into business as his father was the first one in his family to start a business. He graduated with the green scholar from Elphiston College in Bombay and worked for 9 years with his father. There he learned about commodities, markets, trading and banking before starting his own company Tata & Sons, which is now Tata Sons. He made a detailed study of Lancashire cotton mills and replicated the idea into his own cottons mills. He set up a mill in Nagpur called empress mills which was based on the name of Empress Queen Victoria. Empress Mills started many innovative...
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...Hannah Haarala MGT 495 Tata Motors 1. * The GDP is consistently increasing in the Indian market, which is an attractive feature. * Transportation consumption rate and per-capita disposable income are both increasing. * India’s investment in the transportation infrastructure is another major feature that is attractive. 4. In countries where motorization is saturated but the population is increasing, key success factors are how well the automobile major can combine their position and introduction new and interesting products for customers. On the other hand, when both motorization and population are increasing, the key success factors are how well and efficiently they invest in supply chain, services, and new production launches. 5. To consolidate position in the domestic market: * Expanded capacity and new platforms were developed to accommodate trends of transportation demands. Expand international footprint through: * Leveraging in housing capabilities * Products being exported because they continued to be manufactured in India. Acquisitions: * When Daewoo was acquired, it gave Tata Motors the access to the technology that can assemble high-end trucks, giving entry in the South Korean market. * When Jaguar Land Rover was acquired, it gave Tata Motors a product portfolio that has an immediate global footprint. Strategic Collaborations: * Joint Venture with Marcopolo: to take advantage of product development and participation...
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...Case Analysis – House of Tata: Acquiring a Global Footprint Explain what are any problems or challenges by four major Tata’s businesses; Tata hotel, Tata tea, Tata Steel, and Tata Motor, and justify the solutions for success in business management. Overall, those three Tata’s businesses have commonly objective to increase potential growth of marketing competitiveness, while to broaden management to be higher level of international-scale operation. To be sorted out by each department, Tata’s tea Due to being three times the size of Tata Tea, different economic scale of Tetley becomes a concern distracting firm manager overly focused on acquisition. This proposition corroborated according to the case is that “the senior management of Tetley was virtually unchanged after acquisition2” because the firm was trying to relieve complexity generated after acquisition. Thus, Tata’s tea could better restructure management temporarily from acquisition with supplemented Tetley’s tea to be leveraged buyouts due to managerial mistakes. Which is Tata tea management emphasized on product quality improvement in the long term by focusing on value-added, branded tea, and sales presence in advanced market rather than benefits of shareholders1. This can be noticed from the case that “Tata Tea limited its equity contribution to an amount that we could service on our own without any returns coming for a period of time even though not yet hurt Tata Tea shareholder2. This consequence...
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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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...thriving in 21st century global competition while still adhering to traditional values. Their strategic objective is to become a global leader across six core diversified businesses (steel, motor vehicles, power, telecoms, information technology and hotels) by fostering innovation and business excellence, while proactively pursuing inorganic growth opportunities in emerging and developed markets. Diversification provides Tata with tangible and intangible economies of scope and the ability to leverage diverse talent pool to innovate across businesses. Tata’s companies are able to develop competitive advantage in their respective products and markets by tapping into the Tata brand, abundant supply of low cost labor, technology expertise, and natural resources in India, and leveraging the cash generation capability of the Tata group to exploit acquisition opportunities. Tata group companies have continued to distinguish themselves during the global economic downturn. Rather than exclusively focusing on operational transformation and cost reduction, Tata’s companies made bold investments to expand their global footprint by entering into new products and markets (acquisition of Corus steel in US, acquisition of Jaguar Land Rover, launch of Tata Nano in India, etc.) A SWOT analysis of Tata (see Appendix 1) clearly reflects that Tata focused on capitalizing their own areas of strength to exploit opportunities. As one of the largest business houses in India, Tata is uniquely positioned...
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...Summary Tata Motors Limited is India’s largest automobile company, the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The Company is the world's fourth largest truck manufacturer, and the world's third largest bus manufacturer. Tata established in 1945. Over 5.9 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. Tata Motors, the first Company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. In 2006, Tata Motors formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the Company's pickup vehicles in Thailand. In the summer of 2008 Tata Motor's announced that it had successfully purchased the Land Rover and Jaguar brands from Ford Motors for UK £2.3 million. They are running this business under this brand name “Jaguar Land Rover (JLR)”. Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004 for around USD $16 million. They are running this business under this brand name “Tata Daewoo Commercial Vehicles (TDCV)”. Tata Motors Limited...
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...Tata Motors Global Business Management Case Study October 24, 2012 1. There are many features of the Indian market that made it an attractive domestic market for Tata Motors. India had good economic conditions in the year 2004. They had a growth rate of 8%, their gross domestic product (GDP) grew 4.3% in fiscal year 2003, and the GDP was expected to grow 11% in fiscal year 2007. According to Goldman Sachs, India will have the highest growth rate in GDP in comparison with other emerging economies until 2045-2050. It was also expected that in 2009, 60% of India’s population will be 25 years of age and less. Transportation needs grew to 13.5% in the year 2000-2001, from 2.8% in 1970-1971. Actually, transportation became the second largest spend category in 2002. The reasoning is because the increasing per-capita disposable income is leading to a subsequent decline in the proportion of spending on basic necessities and an increasing proportion on transportation. India is expected to be the seventh-largest automotive market by 2016. 2. SWOT ANALYSIS FOR TATA MOTORS STRENGTHS * Tata Motors is the only automobile company in the world offering products from the smallest car, to the most luxury cars * Has operations in 35 countries around the world * One of the largest industrial companies in India with a revenue of $13.4 billion US | WEAKNESSES * Still no hold on the luxury car segment in India. * Factors affecting the global strategy of automobile...
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...ase study of Tata Motor Acquisition of Jaguar and Land Rover You are Here: Home > Management Case Studies > Case study of Tata Motor Acquisition of Jaguar and Land Rover According to industry analysts, some of the issues that could trouble Tata Motors were economic slowdown in European and American markets, funding risks, currency risks etc. Acquisition of Jaguar and Land Rover provides the company with a strategic opportunity to acquire iconic brands with a great heritage and global presence, and increase the company’s business diversity across markets and product segments.- Tata Motors, in April 2008. “If they run the brands as a British company and invest properly in new product, it will be successful because they are still attractive brands.”- Charles Hughes, Founder, Brand Rules LLC, in 2008. “Market conditions are now extremely tough, especially in the key US market, and the Tatas will need to invest in a lot of brand building to make and keep JLR profitable.”- Ian Gomes, Global Head, Emerging Markets, KPMG, in 2008. Acquisition of British Icons On June 02, 2008, India-based Tata Motors completed the acquisition of the Jaguar and Land Rover (JLR) units from the US-based auto manufacturer Ford Motor Company (Ford) for US$ 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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...2002 03 to 2007 08. The CAGR is expected to stabilise at 16% between 2007 08 and 2009 10. India An Ideal Investment Destination The large untapped potential in India s rural markets revealed by 9.21 per cent tele density in rural markets as compared to the national level of 28%. The government promoting telecom manufacturing by providing tax sops and establishing telecom-specific Special Economic Zones. Major Players Vodafone-Hutch Deal In Feburary 2007, Vodafone has bagged the 67% Hutch Telecom International (HTIL) stake in Hutch-Essar at an enterprise value of $19.3 billion Income Tax (I-T) department notice to pay capital gains of $2 billion TATA s Global Foray The TATA Group acquired Videsh Sanchar Nigam Limited ("VSNL"), in 2002 In 2004, they acquired Tyco Global Network (TGN) for $130 million This gave the company control over a 60,000 km cable network spread over three continents with a huge bandwidth of 10-15 terabytes and substantial control over bandwidth prices. ...
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...computers, almost everything we see around us is either made of steel or is made using steel. Steel is essential to modern society. TATA Steel Ltd. is the third largest steel producer in Europe and has its main steelmaking plants in the UK and Holland. It supplies steel and related services to major industries, such as construction, vehicle production and packaging. The European operations are a subsidiary of TATA Steel Ltd. ,one of the world’s top ten steel producers. The combined Group has around 50,000 employees. The challenges of sustainability A commitment to environmentally-sound practices is part of many businesses’ commitment to act responsibly. Social responsibility refers to an organisation’s obligations to maximise its long-term positive impacts and minimise its negative impacts on society. For TATA Steel Ltd., it is a core part of its vision to be ‘the global steel industry benchmark for value creation and corporate citizenship.’ TATA Steel Ltd. is committed to tackling the challenges of sustainability. This means that it takes its responsibility towards both the environment and its communities seriously, balancing these against the need to make a profit. It has put systems in place to meet international standards for environmental management such as ISO14001.Respecting and safe-guarding the environment is a central principle held by all TATA Steel Ltd. and can go hand-in-hand with profitable business. Business ethics Business ethics means ‘taking the right course’...
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...ANALYSIS ON TATA MOTORS STRATEGIC MANAGEMENT IN BUSINESS RANDY LOUIS WIZAR 1342981486 FELERI 1342981196 BINUS BUSINESS SCHOOL MASTER OF MANAGEMENT YP’S IN BUSINESS MANAGEMENT BINUS UNIVERSITY JAKARTA 2014 SYNOPSIS 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 to 2013. This largest automobile company 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. As being said as the market leader, Tata Motors also the world's fourth largest truck and bus manufacturer. Tata Motors expand its international footprint, established through export since 1961. The company’s commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia and South America. It has franchisee/joint venture assembly operations in Malaysia, Kenya, Bangladesh, Ukraine, Russia and Senegal. Tata Motors recently acquired the Jaguar and Land Rover businesses from Ford Motor company for a net consideration of US $ 2.3 bn. The Tata Motors Group's has over 55,000 employees; they are guided by the mission "to be passionate in anticipating and providing the best vehicles and experiences that excite our customers globally." The group has been doing a lot of acquisitions, such as Tetley, Daewoo Motors, Nat Steel, Teleglobe...
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...Tata Motors Limited is India's largest automobile company, with consolidated revenues of INR 1,23,133 crores (USD 27 billion) in 2010-11. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is the world's fourth largest truck and bus manufacturer. The company's over 25,000 employees are guided by the vision to be ''best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics.'' Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India. Over 6.5 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 3,500 touch points; Tata Motors also distributes and markets Fiat branded cars in India. Tata Motors, the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company...
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...Urban Migration – 140 million by 2020; 700 million by 2050 8. 2nd largest pool of Certified Professionals and highest number of Qualified Engineers in the world 9. Investment in Infrastructure 4 Automotive Industry in India 5 Automotive Clusters in India Eicher Escorts Hero Moto Corp Honda Motorcycle Honda SIELCars ICML JCB Maruti Suzuki New Holland Mahindra Suzuki Motorcycles Swaraj Mazda Tata Motors Yamaha North *New Hub: Sanand Tata Motors, Maruti, Ford India, Hindustan Motors Tata Motors East West Bajaj Auto Fiat Force Motors GM John Deere Mahindra Mahindra Navistar Man Force Mercedes Benz PSA Skoda Tata Hitachi Tata Motors Volkswagen Volvo Eicher Ashok Leyland BMW Caterpillar South Daimler Ford Hindustan Motors Hyundai Nissan Renault Royal Enfield Same Deutz TAFE Tata Motors Toyota Kirloskar TVS Volvo Buses (Illustrative List) Significant Manufacturing base of OEMs – Indian & Global 6 Rapidly growing presence of Global OEMs Passenger Vehicle market share by OEM parent country 2007 2011 Mahindra Hindustan Motors Premier Maruti Suzuki Tata Motors Mahindra...
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