...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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...Tata Group: Transforming the Sleeping Elephant “A company does not become global by simply participating in geographical markets around the world. The objective of globalization is to become globally competitive, leverage global opportunities and have the required global capabilities. It implies an organization, which employs talented people without reference to nationality. We are in the process of acquiring such competitive position and global capabilities”. Ratan Tata, Chairman, Tata Sons (Hindustan Times, September 5, 2004). “Despite popular perception Ratan Tata has more than lived up to JRD’s vision and expectations”. Deepakh Parekh, Chairman, HDFC, (India Today, February, 2003). The unfolding of a crisis After proposing the Strategic Plan in 1991, Ratan Tata observed: “I think we are in many more businesses than we should have been in and were perhaps not concerned about our market position in each of those businesses. I think the needs today are that we define our businesses much more articulately and that we remain focused rather than diffused, and that we become more aggressive than we used to be, much more market driven, much more concerned about our customer satisfaction (HBS Working Paper, 9-798-037).” Ratan Tata on being questioned in an interview regarding – what criteria he will choose in deciding what to keep and what not to, in his groups’ portfolio restructuring exercise? To this he replied, “One is certainly going to be: can we be in the first three in that...
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...Tata Group is following policy of growth strategy based on Mergers & Acquisitions. So, Corus takeover is a part of a whole series of mega acquisitions in diverse areas since 2000. Tata Steel's acquisition of Corus of the UK clearly reinforces the strategic logic dictating `consolidation' in the highly fragmented steel industry. The historic merger of Arcelor and Mittal Steel laid the foundation for this deal. For Tata Steel, which has been pursuing inorganic growth in the Asian region for a while, the move into Europe appears to go well with its strategy of global growth. Tata steel chose the equity mode to enter the European market. Equity mode or Foreign Direct Investment is the principle way in which firms enter and compete in the modern global economy. Acquisition is the part of FDI. The acquirer inherits the company’s strategic assets (managerial, technological, and marketing resources), without having to build them from scratch, as would be the case when setting up overseas operations through Greenfield investment. Increasingly, acquiring strategic assets have become a motivation for OFDI from emerging economies Tata have chosen Acquisition for many reasons. Some of these reasons can be explained by theory, while others not. Now we will discuss the prime motives that encourage Tata to adopt aggressive Acquisition policy while entering European Steel Market. The main advantages to Tata by choosing Acquisition are as follows: Economy of scale: This acquisition...
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...Ratan Tata: Leading the Tata Group into the 21st Century 1. The Tata Group has been transformed from a risk-averse, slow-moving giant into a more dynamic and aggressive conglomerate. How much of such a transformation can be attributed to one individual? Discuss the role of the leader in initiating and managing change. Answer The Tata Group transformation can be greatly attributed to the vision and execution of Ratan Tata. He was greatly responsible for the tremendous transformation because he was able to take his vision for the group and transformed it into a reality. By enforcing a mandatory retirement age policy which removed a lot of top management, who were challenging the core functions of the group and hindering growth, Ratan Tata implemented this as one of the first major changes in is rein. By replacing these individuals, he made a way for young fresh talent to bring new ideas to the group. In addition he implemented and created a Group Executive Office whose members were represented on the boards of the Tata companies, in addition to Tata Business Excellence Model (TBEM) that he introduced which was the Tata Group’s largest change initiative. The Tata Business Excellence Model (TBEM) was implemented and maintained through Tata Quality Management Services and its specific processes. Ratan Tata demonstrated a democratic leadership style that entailed openness to ideas with the group. With this his leadership approach he encouraged the executives and managers to be...
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...Company: TATA Motors Group – India Business & Jaguar Land Rover Mission “To be passionate in anticipating and providing the best vehicles and experiences that excite our customers globally” Vision Most admired by our customers, employees, business partners and shareholders for the experience and value they enjoy from being with us. Marketing Objectives Tata motors is a leading automobile brand. It is most widely known for its commercial vehicles such as buses and trucks. However, TATA motors has also started an excellent expansion in passenger cars and it is rapidly gaining market share. The Marketing mix of Tata Motors talks about the 4P of the brand which has helped the brand rise in the automobile empire. 1. Product in the marketing mix of Tata Motors Tata has a very wide range of products it has passenger cars, utility vehicles, JLR, Commercial passenger Carriers and Defence Vehicles Passenger cars Utility Vehicles Jaguar Land Rover Commercial Passenger Carriers Zest,Bolt,Tiago Safari Dicor Jaguar Buses Indigo XL/Vista Sumo Grande Land rover Winger Nano Sumo Magic Fiat cars Xenon XT Novas, TL4*4 2. Price in the marketing mix of Tata Motors The prices of Tata motors are generally affordable acceptable by the general public at large. Tata always have something for the lower class people with Nano being their trump card. Giving discount every month and special promotion for certain type of vehicle also one of the strong strategy use by Tata Motors. Discount...
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...problem for India’s biggest conglomerate – Tata Group. Ratan Tata joined the company after college and took over his late uncle’s business 16 years ago. He is involved in more issues than he should be. The authoritarian Tata is the chairman of key units including Tata Motors and Tata Steel and is involved in all major deals and making all the key decision. 2. SECONDARY PROBLEMS 2.1 Short Term A bid for Jaguar and Land Rover might present an even more daunting challenge for Ratan Tata. It would be an uphill climb to restore Jaguar’s luxury cachet, which was damaged by sharing basic designs with Ford. As the organization gets bigger and more diverse, talent and retaining the value system will pose the biggest challenge in Tata Group (Engardio and Lakshman 2007) 2.2 Long Term Succession “is a problem”. Ratan Tata is 69 years old, not married and has two dogs at his beachfront home he designed himself. He commands most Tata companies, which makes his failure to designate a successor all the more disconcerting. In Asian culture, the eldest son will take over the family business, however Tata is not married therefore he does not have any family members to take over his empire. Ratan, who is single and childless, could be the last Tata to oversee the group. His younger brother and three half-sisters aren’t involved in Tata business; his reclusive half-brother is unclear whether he’s tycoon timber (Engardio and Lakshman 2007). Ratan Tata public listed his companies, which also...
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...1. Which, if any, of the following initiatives undertaken by Ratan Tata do you think were good ideas? a) Creation of a Group Brand b) Building of equity interlocks among the Tata companies c) Sale of a part of Tata Industries Limited to the Hong Kong-based Jardine Matheson group d) Revitalisation of Tata Administrative Services 2. What do you think of some critics’ opinion that Ratan Tata was moving the group of companies in exactly the opposite direction from where it should be going? The Indian economy following the 1991 crisis swiftly moved away from central planning economy towards market-based economy with the government having less intervention and control. As a result, companies were operating in what is called emerging markets. Khanna & Palepu (1997, pp.41-2) describe emerging markets as hardly uniform that lack in providing the institutions vital for basic business operations. Companies that operate in such environment must adapt their strategies to fit their institutional context. Appendix 1 of the case study clearly shows market failures of Indian economy in mid 1990s compared to the UK and US. Some of the market failures include: information problems (e.g. limited phone lines, TVs, newspapers) capital markets problems (e.g. low bank assets, limited watchdog bodies, limited access to local capital markets and market information asymmetries) political and risk factors problems (e.g. corruption, low efficiency of judicial system, state intervention...
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...Approach to Knowledge Management at Tata Steel Name Institution Table of Contents Introduction 3 Background to Tata Steel 4 Knowledge Management Initiative at Tata Steel 5 Knowledge Management Phases at Tata Steel 5 Tata Steel Knowledge Management Stakeholders 7 Knowledge Transfer Opportunities 7 Tata Steel Knowledge Transfer Strategies and Instruments 8 Tata Steel Knowledge Management Portal 11 Tata Steel’s Knowledge Management Approaches Achievements 11 Conclusion 12 References 13 Introduction Knowledge management has arisen as an essential aspect that business establishments must consider if they hope to enjoy unimpeded success. In fact, it could turn into a bottleneck if not well managed. Schwartz (2006, p. 3) defines knowledge as a malleable combination of expert interpretation, contextual information, values and experiences that offers an outline for appraising and integrating information with new experiences. Essentially, knowledge is the information that the business entity has collected on their successes, mistakes, business processes, and stakeholders such as customers, suppliers and investors (Schwartz 2006, pp. 3-4). Tata Steel is aware of the importance of knowledge management and has developed unique approaches towards the same. McInerney and Koenig (2011, p. 45) points out that knowledge can exist in either of two forms: explicit or tacit knowledge. Explicit knowledge is tangible knowledge that is embedded in data storage tools such...
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...Approach to Knowledge Management at Tata Steel Name Institution Table of Contents Introduction 3 Background to Tata Steel 4 Knowledge Management Initiative at Tata Steel 5 Knowledge Management Phases at Tata Steel 5 Tata Steel Knowledge Management Stakeholders 7 Knowledge Transfer Opportunities 7 Tata Steel Knowledge Transfer Strategies and Instruments 8 Tata Steel Knowledge Management Portal 11 Tata Steel’s Knowledge Management Approaches Achievements 11 Conclusion 12 References 13 Introduction Knowledge management has arisen as an essential aspect that business establishments must consider if they hope to enjoy unimpeded success. In fact, it could turn into a bottleneck if not well managed. Schwartz (2006, p. 3) defines knowledge as a malleable combination of expert interpretation, contextual information, values and experiences that offers an outline for appraising and integrating information with new experiences. Essentially, knowledge is the information that the business entity has collected on their successes, mistakes, business processes, and stakeholders such as customers, suppliers and investors (Schwartz 2006, pp. 3-4). Tata Steel is aware of the importance of knowledge management and has developed unique approaches towards the same. McInerney and Koenig (2011, p. 45) points out that knowledge can exist in either of two forms: explicit or tacit knowledge. Explicit knowledge is tangible knowledge that is embedded...
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...the importance of family-owned groups The Economy of India is the ninth largest in the world by nominal GDP and the fourth largest by purchasing power parity (PPP)[1]. The country is one of the G-20 major economies and a member of BRICS. The country's per capita GDP (PPP) was $3,408 (IMF, 129th in the world) in 2010, making it a lower-middle income economy[2]. As a result of the financial crisis of 2007–2010, coupled with a poor monsoon, India's gross domestic product (GDP) growth rate significantly slowed to 6.7% in 2008–09, but subsequently recovered to 7.4% in 2009–10, while the fiscal deficit rose from 5.9% to a high 6.5% during the same period[3]. India’s current account deficit surged to 4.1% of GDP during Q2 FY11 against 3.2% the previous quarter. The unemployment rate for 2009–2010, according to the state Labour Bureau, was 9.4% nationwide[4]. As of 2010, India's public debt stood at 71.84% of GDP which is highest among BRIC nations. The latest GDP growth figure slipped to 6.9% and industrial production numbers just released, on December 12th, showed a decline of 5.1% compared with the previous period[5]. Inflation and capital flight are two clear factors that have hurt the Indian economy. First, inflation has stayed over 9% since December 2010, and wage inflation is also on the rise. The Reserve Bank of India (RBI), the country's central bank has been hiking interest rates since March 2010 to curb inflation[6]. Family owned groups constitute the backbone of the...
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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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...It is also increasingly being used as a measure of their overall performance."
Source:
"CSR" TATA.
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...A PROJECT REPORT ON (“A STUDY ON COST COMPARISON ANALYSIS OF TATA STEEL AND ITS COMPETITORS”) SUBMITTED TO MAEER’s MIT SCHOOL OF BUSINESS BY (SOURAV GHOSH HAZRA) 322346 32ND Batch IN PARTIAL FULFILLMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM) Finance APRIL-MAY 2015, MAEER’s MIT SCHOOL OF BUSINESS PUNE CONTENTS Chapter No. Title Page No. Declaration from the Student Certificate from the Organization iv Certificate from the Guide v Acknowledgement vi List of Tables vii List of Graphs viii List of Abbreviation ix Executive Summary I iii x INTRODUCTION 1 – 11 1.1 Company profile 1.2 Objectives of the Study 12 1.3 Limitations of the study 12 II RESEARCH METHODOLOGY 2.1 Primary data 13 2.2 Secondary data 13 2.3 Sample design 13 2.4 Sample Size 13 2.5 Method of Data Collection 14 III THEORETICAL BACKGROUND 3.1 Data analysis Techniques IV DATA PROCESSING AND ANALYSIS 25 – 45 V MANAGEMENT LESSONS 46 - 49 VI FINDINGS 50 VII RECOMMENDATIONS 51 VIII CONCLUSION 52 Bibliography Annexure/Appendices 15 – 24 24 DECLARATION I, Mr. SOURAV GHOSH HAZRA hereby declare that this project report is the record of authentic work carried out by me during the period from 7th April to 2th June and has not been submitted to any other University or Institute for the award...
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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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...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 when dealing with its businesses. Local businesses under Tata Group’ umbrella uses the Domestic Strategy which requires product differentiation base on the local adaption. Such example is the Tata Nano Car and the Tata Ace...
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