Tata Buys Jaguar (Pest Analysis)

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Tata buys Jaguar in £1.15bn deal

Thousands of workers at Jaguar and Land Rover plants were told that the marques have been sold to the Indian conglomerate Tata. A deal between Tata and Ford over the sale of two of the best known names in British car making was concluded after months of painstaking negotiations.

Overview of the two companies:

Tata:

Tata Motors Limited is India's largest automobile company, with revenues of Rs. 32,426 crores (USD 7.2 billion) in 2006-07. It is the leader by far in commercial vehicles in each segment, and the second largest in the passenger vehicles market with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fifth largest medium and heavy commercial vehicle manufacturer, and the world's second largest medium and heavy bus manufacturer.

PEST ANALYSIS

Political:
Strong tax incentives for inbound investors
Strong political motivation for globalization
Strong reputation and trust
Adaptive legislative framework
Negative effect on the IT industry after 2009 as the government’s initiative of Tax holiday under STPI expires (Thinking Street 2007).

Economic:
Strong technical skills
Strong export base
Strong infrastructure links
Competitive labour cost model
Adaptive investment authority to technological investments •Highly mobile work force

Social:
Strong science and educational culture
Strong management culture
Adaptive English speaking population

Technological:
Strong R & D culture and facilities
Strong tie-ups with western technology companies
Adaptive to new technologies

Jaguar:

Jaguar Cars Limited is a luxury car manufacturer based in Whitley, Coventry, United Kingdom with two production plants in Castle Bromwich and Halewood. It was founded as the Swallow Sidecar Company in Blackpool in 1922, changing to SS Cars Ltd in 1934 in Coventry, and finally becoming Jaguar Cars Ltd in 1945, followed by several...
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