...A PROJECT TO STUDY Acquisition OF TATA AND CORUS 0BY Jigar Gandhi Roll No- 11 PGDM - 4TH semester INTRODUCTION –( MERGERS AND ACQUISITION ) In this changed business paradigm only those organization rule who visualize the possibilities before they appear as plausible. Present Business environment, characterized by the globalization and liberalization, accommodates organization that are coming up with innovative strategies to survive and flourish. Companies in the global economies climate are thriving to each the pinnacle of the successes seeking competitive edge of over their rivals. While the waves liberalization and deregulation have been shaking the corporate shore around the global the domestic organizations are falling prey to the fierce competition and unprecedented challenges carried by this emerging business scenario. The recessionary trend consequents to the wall Street tsunami has made for the organization a maze with no exit . Drowning in the luxury of producing goods only to keep life simple is suicidal, rather an un quenched thirst must always prevailing that makes the quest for the value sustainable. Existence of keen competition with number and volume also made the texture of the competitor stronger shock absorber both finally and strategically creating a wide exposure for the business enterprises to build armour for protecting themselves from the threats lying in and forthcoming from the environment. Thus, organizations are left with...
Words: 18033 - Pages: 73
...House of Tata is one of the oldest and well-known collection of companies in India. Jamseti Tata started the group in 1874 and he took his vision and built it into one of the biggest business organizations in India. J.R.D. Tata was elected chairman of Tata sons, which was the initial investor in many Tata companies in 1938 and began decentralizing power as well as personally choosing many of the Tata company chairman. J.R.D was in control when Tata airlines nationalized as well as when the Tata companies became legally independent in 1970. In spite of the dismantling of the managing agency system there was still solidity and structure. J.R.D’s energetic persona, weekly cross-company director’s meetings and network of inter-corporate shareholdings created synergy. J.R.D’s chairmen under his influence managed their companies in parallel to one and other but within the Tata philosophy of professionalism and ethical business practices. J.R.D never micromanaged and the result was that Tata business were successful and on a level above all other home-grown businesses in Tata’s wheelhouse. J.R.D is what held the companies together and success was the result. Ratan Tata, the son of one of J.R.D’s cousins was shy and came back in 1962 after working in the United States as an Architect. In 1981 he became chairman of Tata Industries Limited (TIL) which he was tasked to turn from a small company to a Group strategy...
Words: 1029 - Pages: 5
...which will be important in their management careers. At the conclusion of the course students should be able to: (1) develop the skills to identify the appropriate statistical techniques for the analysis of data; and (2) learn how to collect, analyze, present and interpret research data. Course Syllabus Group I: Research Methodology: Objectives, Role & Scope in Management Research, Process of Research; Research Designs: Exploratory, Descriptive & Experimental Research Designs and their Applications; Sampling Design: Concepts, types and their applicability; Scaling Techniques including Likert, Thurston, Semantic Differential Scaling techniques, etc. Tools & Techniques of Data Collection: Primary & Secondary; Classification & Tabulation of Data. Group II: Introduction to Statistics, Statistics & Business Research, Measures of Central Tendency: Mean, Median and Mode; Measures of Dispersion, Coefficient of Variance; Skewness & Kurtosis: Concept and Measures; Correlation Analysis: Simple, Partial & Multiple (Elementary); Regression Analysis: Concept & Measures, Linear Regression. Elementary Probability Theory: Concepts, Definitions and Problems. Group III: Probability Distributions: Binomial, Poisson and Normal Distributions; Testing of Hypothesis: Concepts like types of hypothesis, significance level, degrees of freedom, Errors in hypothesis testing, Procedure of testing hypothesis etc.; Statistical Tests: Chi-square test, t-test, ANOVA – 1 way and 2...
Words: 1810 - Pages: 8
...Pearson Education, New Delhi, 8th Ed., 2006 Other Specific Books: 2. Kazmi, A. Business Policy and Strategic Management, Tata McGraw Hill, New Delhi, 2nd Ed. 2007 3. Jauch, R. Lawrence, R. Gupta and W.F.Glueck, Business Policy and Strategic Management, Frank Bros.&Co., 7th Ed.,2007 Other readings: |S. No |Journal articles as compulsory reading | |. |Camillus, J. C. Strategy as a wicked problem, Harvard Business Review, May 2008 | | |Hirotaka, The contradictions that Drive Toyota’s success, Harvard Business Review, June, 2008 | | |C.K. Prahalad’s Plan: India @75, Business Today, August 24, 2008 | | |McAfee, A. and Brynjolfsson, E., Investing in IT that makes a competitive Difference, Harvard Business Review, July-August, 2008, PP.98-107 | | |Collis, D.J. and Montgomery, C.A., Competing on Resource, Harvard Business Review, July-August, 1995 | | |Michael E. Porter, From competitive advantage to corporate strategy, Harvard Business Review, May-June, 1987, pp.43-59 | | |Markides, C.M., To diversify or not to diversify...
Words: 2548 - Pages: 11
...Case Study analysis TATA-CORUS:- Q.1. What are the benefits of the TATA-CORUS merger deal to the stakeholders of TATA Steel and the stakeholders of CORUS? Evaluate the post-merger security with the help of CAPM Model. A.1. On January 31st, 2007 India’s Tata Steel acquired Corus, the erstwhile British Steel Major at a price of 608 pence per Corus share totaling $12.1 billion/ Rs 54,000 crore/ £6.1 bn, which was five pence per share higher than the offer of Brazil’s CSN (Companhia Siderugica Nacional). The deal is the largest Indian takeover of a foreign company, and creates the world's fifth-biggest steel company from the present 56th rank. Benefits of TATA-CORUS merger deal to the stakeholders of TATA Steel Short-Term Implications Investors with a one-to-two year perspective may find the Tata Steel stock unattractive at current price levels. While the potential downside to the stock may be limited, it may consolidate in a narrow range, as there appears to be no short-term triggers to drive up the stock. The formalities for completing the acquisition may take three to four months, before the integration committees get down to work on the deal. In our view, three elements are stacked against this deal in the short run: 1) Equity dilution: The financing of the acquisition is unlikely to pose a challenge for the Tata group, but the financial risks associated with high-cost debt may be quite high. Though the financing pattern is yet to be spelt out fully, initial...
Words: 3103 - Pages: 13
...Gujarat Technological University Syllabus for New MBA Program effective from Academic Year 2011-12 (Also applicable to 2nd Year Students of 2010-12 Batch MBA Program) COMPULSORY COURSES MBA-II Semester-IV Sub Name: - Comprehensive Project Report – Industry Defined Problem (CP-IDP) Sub Code: - 2830004 In addition to Major Specializations, there will be over sixty Sectorial / Industry Areas for Practical studies in which theoretical papers / books are not to be taught in regular classroom sessions, but the teachers and students are free to use any available books, publications and online material to understand and guide the students for various sectors. Ideally, a teacher should study and specialize in at least TWO Sectors, so four teachers can guide 60 students in a class. (Reference: Appendix 1: List of Sectorial Areas for Comprehensive Project study given in Sem III Syllabus). This report is similar to the Grand Project, which was the part of earlier syllabus. The Comprehensive Project Report is based on the research methodology and students have to prepare the research report by using appropriate scientific statistical research tools for preparation of the CP in consultation with the faculty guide. (Please also refer the Guidelines for CP in MBA Semester III, as the same Project Title continues in Semester IV). A student has to opt for any ONE of the Sectorial Areas and study it thoroughly. The students may undertake the CP based on the selection of an Industry Defined Problem...
Words: 19599 - Pages: 79
...Development: Strategy Development Process in organizations, Intended & Emergent Strategies, Strategic planning systems –logical incrementalism – the learning organization, multiple processes of strategy development., Multiple processes for strategy development, Strategic leadership, Strategic drift – strategic management in uncertain and complex conditions. 2. Context of Strategy formulation 3. Strategic Leadership 3. Diversified 4. Diversified 3. Jack Welch and Jeffrey Immelt - Continuity and Change in Strategy, Style and Culture at GE 4. Ratan Tata: Leading the Tata Group into the 21st Century Chapter 11 (Text Book) 4 3&4 3. The Strategic Position: The environment – the Macro environment – the PESTEL framework – structural drivers of change – differential impact of environmental influences – scenario building. Industries and sectors – sources of competition – the five forces framework – the dynamics of competition – strategic groups. Organizational fields. Markets – market segments, Critical success factors. Opportunities and threats – strategic gaps – SWOT. 1. Macro Environment/PESTEL framework 2. Macro...
Words: 654 - Pages: 3
...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...
Words: 2671 - Pages: 11
...Executive Summary In this project, we have tried to understand the HR development policies that are being followed at Tata Motors Ltd. We explore the various facets of the policies by studying the literature of the HR policies, by discussing about these policies with the HR of the company and also speaking to the employees of the company. First of all we look at the Organization as a whole, what it stands for, what are its core values, vision and mission and then delve into the HRM practices, mainly with respect to its Human Resource development. We zero in to four categories to which these policies can be broken down to: * Assessment & Feedback * Career Progression & Job Rotation * Training & Development * Performance Awards For the purpose of evaluation of these policies, we conduct our primary research in the RECON department of Lucknow Works of Tata Motors Ltd. The research consists of an online survey and a few in depth interviews. From the responses we have tried to objectively assess the perception of these policies and tried to indentify the areas where there is a mismatch between employee expectation and HR objective. Towards the end, we have come up with some recommendations that could be looked at as possible options to further improve the policy framework. Introduction Vision: To be a world class corporate furthering the interest of all its stakeholders Mission: * Shareholders * To consistently create shareholder...
Words: 3677 - Pages: 15
...relationships to create, preserve and grow value in the short, medium and long-term. And thus helping investors to manage risks and allocate resources most efficiently. The IR reporting framework covers six parameters: v Organisational Overview of the Business Model O k loo ut The Busine ss M el od Risks a nd v Operating Context, Risks and Opportunities v Strategic Objectives and Strategies v Governance r Pe Op po r tunities Value Transparently Communicating ategic Obje Str c es a tiv nd Strate ce v Outlook na nce This Annual Report is Tata Steel’s maiden attempt to report in accordance with the above parameters. It is in keeping with Tata Steel’s own belief in transparency, accountability and ethics. A belief that Tata Steel has held strong for over a century. es Go v Performance fo rm an gi r ve The journey towards enduring sustainability Tata Steel has embarked on the journey toward sustainability...
Words: 21788 - Pages: 88
...EXECUTIVE SUMMARY Merger and Acquisition, a type of Corporate Restructuring have become a major force in the financial and economic environment all around the world. In India also many of the business group and their companies are engaged in some kind of Corporate Restructuring. Major mergers and Acquisitions that took place in the recent past among the Indian Companies are…. ITC’s Merger of ITC Hotels, a listed subsidiary itself. Consolidation in the Tata Group, Videocon Group, Jindal Group etc Acquisitions of IPCL by Reliance Industries. The merger of NARMADA CHEMATUR PETROCHEMICAL PLANT (NCPL) with GUJARAT NARMADA VALLY FERTILIZER COMPANY (GNFC) which took place in the year 2006 was one of the recent mergers that took place in Gujarat. The project “Merger of with GNFC” deals with, The various reasons which lead to the merger, The regulatory processes to be followed by transferee and transferor company, Calculation of goodwill, Financial analysis of GNFC pre merger and post merger, Recommendations. INTRODUCTION In every organization’s life and in every economy’s life comes a time when growth development and expansion seems to reach a plateau. Across what is today called the developed countries, we are witnessing such a Cycle, where iconic brands, companies and institutions are being acquired and merged. And across the world into Asia, transition economies like India, China are pumping in billions of dollars to acquire a stake or control...
Words: 1252 - Pages: 6
... International Business – Charles Hill 5. International Business— Subba Rao 3.0.2 Strategic management 100 Marks Course Content 1. Strategic Management Process: Vision. Mission, Goal Philosophy. Policies of an Organization. 2. Strategy, Strategy as planned action, Its importance, Process and advantages of planning Strategic v/s Operational Planning. 3. Decision making and problem solving. Categories of problems, Problem solving skill, Group decision making. Phases indecision making, 4. Communication Commitment and performance, Role of the leader, Manager v/s Leaders Leadership styles 5. Conventional Strategic Management v[s Unconventional Strategic Management. The Differences, Changed Circumstance. 6. Growth Acce orators: Business Web, Market Power, learning based. 7. Management Control, Elements, Components of Management Information Sysstems 8. Mokena’s 7 8 Models : Strategy, style, structure, systems, staff, skill and Shared values 9. Group Project Reference Text 1. Strategic Management — Thompson & Striekland McGraw Hill 2. Competitive advantage – Michael...
Words: 2761 - Pages: 12
...443–457 doi:10.1093/cjres/rsq009 Advance Access publication 1 April 2010 The Tata Nano, the global ‘value’ segment and the implications for the traditional automotive industry regions Peter Wells Cardiff Business School, Cardiff University, Aberconway Building, Colum Drive CF10 3EU, UK, wellspe@cardiff.ac.uk Received on June 30, 2009; accepted on March 4, 2010 Downloaded from cjres.oxfordjournals.org at East China Normal University on May 24, 2011 This paper provides a case study of the Tata Nano, a low-price car designed primarily in and for the Indian market, and its implications for the developed industrial markets. While the Nano is a classic ‘disruptive’ innovation in an Indian context, this paper argues that the car and its emulators have the potential to undermine the viability of the European automotive industry whose business is premised on technological sophistication, premium branding and high price. In an era of greater austerity, the ‘value for money’ segment is the one with global growth potential in emergent markets as well. The paper concludes that policy makers in Europe will need to decide how to react to the rather different vision of automobility offered by the Nano. Keywords: Tata Nano, automotive industry, strategy, regional development, economic policy, price competition JEL Classifications: F01, L11, L52, L62 Introduction In March 2009, the Indian company Tata launched the long-awaited Nano model, intended to provide a low-cost entry to automobility...
Words: 10095 - Pages: 41
...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...
Words: 3698 - Pages: 15
...Gujarat Technological University MBA Semester - IV Syllabus for MBA Programme effective from the Academic Year 2009-10 onwards The course curriculum and syllabus for MBA of Gujarat Technological University are devised considering the norms of AICTE/UGC. While preparing the syllabus, the syllabi of different national level universities/institutions have been taken into account. This syllabus has endeavoured to strike a balance between theory and practice and classic and contemporary concepts. The MBA programme of Gujarat Technological University (GTU) will be conducted on a semester basis with four semesters spread over two academic years. The duration of each semester will be around 15 weeks. In each semester there will be seven courses/subjects. In the first year all the 14 courses are compulsory. In the second year there will be three types of courses, namely, compulsory, electives and sectorial specialisation. The MBA programme will have four electives, namely, Marketing, Finance, Human Resource and Information Systems. A student can choose any one of the four electives. There will be five sectorial specialization areas, namely, Retail, Pharmaceutical and Healthcare, Rural and Cooperatives, Public Systems and Policy, and Banking and Insurance. A candidate has to opt for one of the sectorial areas. In each semester of the second year there will be three compulsory courses, three electives and one sectorial course, thus making a total of six compulsory courses, six elective...
Words: 17188 - Pages: 69
