Tata Case Study: International Business

Topics: Tata Group, Corporation, Tata Motors Pages: 2 (454 words) Published: December 6, 2012
Tata Case Study : International Business
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Question 1

Describe the various advantages that firms like Tata employ to become large industrial conglomerates. How can Tata use these same advantages to success in foreign markets?

A conglomerate company is a highly diversified field company. It is a combination of two or more different business lines or different corporations operated by a single corporate structure. In other words it is a multi-industry company. Tata Company was initially started as a textile company in 1868 but later grew in other various fields of business like hotels, steel production, chemical etc. Ratan Tata, the present chairman of the Tata group, is the fifth successor since 1868. Before the Government of India favored International Trade in the 1990s’ Tata had strongly set up its base. The advantages like firms Tata employ to become large industrial conglomerates are,

A) The Government support in financing the company

B) Passing of high quality contacts within the family successors.

C) Groups like Tata Steel, Tata Motors, Tata Chemicals, etc. of the corporate structure can aide its fellow group if it’s not doing well financially for a given year.

E) High Brand image

F) Superior market knowledge

H) Access to capital on favorable terms

I) High-quality business partners

J) Long standing relationship with national and state governments.

K) Competitive cost structure because of low-cost wages in India.

L) Market entry barriers to competitors by the government

Tata has operations in almost every continent in the world. It possesses a greater advantage than other MNC’s because of its vast experience in India which transformed from developing...
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