CLOSING CASE ONE
Tata’s Nano $2,500 Car
1. How can cultural and political issues affect Tata Motor’s Nano car? Tata Motor’s company will face many political and cultural issues if the company outsources the assembly of its cars. When one company starts assembling one product in another country, the company has to adapt the rule and regulation of that country. Cultural business challenges include differences in languages, cultural interest, religions, social attitude, and political philosophies. Tata must be sensitive for the country culture that it wants to outsource their business. Tata have to translate the content in to other language and they have to know the people interest, for example, the people may want luxury car, less fuel-consuming car or high-speed car. So the assembler may change and the assembly to meet their own wishes and desires. Tata must study this and other cultural issues before they start outsource their assembling line. When one company outsources there business they are putting their business reputation in the hand of other people, if those people have bad customer service that will directly affect the Tata business. In addition, Tata will face many political issues when outsource its assembling. Unless they understand and made good approach for the country political issues they will face the hardship. Political business challenges include the numerous rules and regulations including tax implications, importing and exporting rule and regulation, trade agreements and others. The import and export regulation will make the assembling process longer than the previous process time.
2. How would governance and compliance affect Tata Motors?
Governance is a method or system of government to create and to implement public policy, and Compliance is either a state of being in accordance with established guidelines, specifications, or legislation or the process of becoming so. When Tata outsourcing its assembly, the...