Media Analysis

Topics: Tata Motors, Land Rover, Jaguar Cars Pages: 8 (2443 words) Published: May 11, 2013
Media Report Analysis
The New York Times: “Tata Motors finds success in Jaguar Land Rover” By Vikas Bajaj. Published: August 30, 2012

BBA340 Media Analysis
The New York Times: “Tata Motors finds success in Jaguar Land Rover” By Vikas Bajaj. Published: August 30, 2012

The article ‘Tata Motors finds success in Jaguar Land Rover’ by Vikas Bajaj seeks to explore the acquisition of English car brands Jaguar and Land Rover by Indian based auto company Tata Motors. The article discusses how the multinational enterprise has dealt with and reacted to the economic context and cultural differences related to the acquisition. To better comprehend how this acquisition has affected key stakeholders and the implications on top management, we must look to relevant cross-cultural management theories. Tata Motors Limited is India's largest automobile company; with consolidated revenues of INR 1,65,654 crores (USD 32.5 billion) in 2011-12 ( . The firm bought the English automotive brands Jaguar and Land Rover back in 2008. The firm since then has implemented and executed key core strategies in order to gain maximum market share and hone in on opportunities associated with developing markets such as those in the countries China and India. Also to minimise risk of failure in stagnant markets that may possibly be at risk of economic decline in the near future such as England. This article also examines how the acquisition coped with the global financial crisis that hit in 2009 just one year after the deal was made and how the firm in turn generated a large amount of sales in a range of markets from China to England.

Foreign acquisitions have created managerial issues in the past and these issues are predominantly motivated by cultural differences. An example of this would be EBay’s failure to succeed in the Japanese marketplace due to not thoroughly understanding and researching the typical Japanese consumer and therefore having no competitive advantage in an unforgiving market. There are significant differences in purchasing behaviours across countries globally in relation to consumer-to-consumer electronic marketplaces (Zhu, Yan, 2009). Page 1

With this in mind Tata Motors chose to retain its employees in England as well as its top executives. As quoted by (Kumar, Nagesh, 2008) a relationship between venture and alliance partners is assumed to be one of relative equality and independence; each partner preserves its own cultural identity as well as control over its basic operations. As stated in the article Tata Motors succeeded primarily because the firm did not seek to run the acquired brands from its Tata headquarters in India. Instead the firm left its operational and tactical management in the hands of its executive counterparts in England. As a result the acquired brands were able to carry on with their previous knowledge and expertise in play and operate efficiently and effectively. Considering the convergence versus divergence theory, transnational managers should aim to work towards consistency and coordination and look to the company a whole across all subsidiaries. As mentioned in the article Tata Motors recognized that forcing its work ethics and methods on to their British counterparts would negatively affect the company and this damage future success.

Foreign acquisitions have increased in popularity over the past decade (Kanter, Rosabeth Moss, 1994) and therefore the emphasis of staffing policies and procedures should be considered of paramount importance to chief management. It can be said that this strategy Tata Motors used can be linked to Schwartz Value Dimensions, which includes firstly conservatism versus autonomy secondly, hierarchy versus egalitarianism and finally mastery versus harmony (Deresky, H & Christopher E. 2012, pg 116). . In this case the parent company left its British counterparts to work relatively autonomously and actively participate and...
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