Preview

Tata Group Business Strategy

Powerful Essays
Open Document
Open Document
2163 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Tata Group Business Strategy
TATA steel strategy was to integrate the value chain of steelmaking to aid the growth of Asia’s bubbling construction economy. When presented with the opportunity (financially the government policies made it easier) to gain access to the other markets, they later acquire CORUS which was an established name in Europe, but were not cost effective in their operations (Tarun Khanna, Krishna G. Palepu and Richard J. Bullock, 2009). This acquisition provided them the right synergy by combing the low cost upstream production in India with the high-tech research aspects of Corus and areas like procurement, marketing, back office operations and R&D. This was also required due to the trends in world steel industry whereby there has been a global consolidation (Tarun Khanna, Krishna G. Palepu and Richard J. Bullock, 2009) as key players look to gain economies of scale, accessing new and growing markets and increasing their purchasing power when negotiating with supplier and buyers (Kimberly Freeman, Suresh Gopalan and Jessica Bailey, unknown). TATA Steel therefore had to acquire Corus or risk being acquired and it also provided with them with the added capability of entering the global supply chain business. TCS on a contrary had a global presence and was considered born global (Charles Schell, Axele Giroud, Rudolf Sinkovics and Mo Yamin, 2013) since 91% of their revenue was from outside India. The uniqueness of TCS business was that their service could be delivered from India to any part of the world and TCS leveraged on cheap skilled labour via arbitrage, aggregation and adaptation as they had the economies of scales to deliver cheap solution and later on, they started to adapt according to their customers’ requirements across the different industries (i.e. Financial, Aviation, etc). In order for them to increase their revenue and prevent other competitors challenging their position in the market through arbitrage and aggregations, TCS grew organically via undertaking


References: Charles Schell, Axele Giroud, Rudolf Sinkovics and Mo Yamin (2013) International Business Strategy. McGraw Hill: Manchester Business School Tarun Khanna, Krishna G. Palepu and Richard J. Bullock (2009) House of Tata: Acquiring a Global Footprint. ECCH: Harvard Business School Mohit Chandra (2010) Emerging market acquisitions in developed economies. KPMG LLP Rishikesha T. Krishnan* Srivardhini K. Jha** (2011) Innovation Strategies in Emerging Markets:What Can We Learn from Indian Market Leaders. ASCI Journal of Management 41(1): 21–45 Rafiq Dossani and Martin Kenney (2004) Moving Tata Consultancy Services into the “Global Top 10”. Senate Hall Academic Publishing: Journal of Strategic Management Education Kimberly Freeman, Suresh Gopalan and Jessica Bailey (unknown) Achieving Global Growth through Acquisition: Tata’s Takeover of Corus. Journal of Case Research in Business and Economics

You May Also Find These Documents Helpful

  • Better Essays

    Extended Essay

    • 1587 Words
    • 7 Pages

    Moeller, S.B., Schlingemann, F.P. and Stulz, R.M. (2004) ‘Firm size and the gains from acquisitions’, Journal of Financial Economics, 73, pp. 201-228 ScienceDirect [Online]. Available at: http://www.sciencedirect.com/ (Accessed: 12 September, 2012).…

    • 1587 Words
    • 7 Pages
    Better Essays
  • Good Essays

    House of Tata

    • 2820 Words
    • 12 Pages

    In 1991 the Indian government introduced a series of drastic reforms, liberalizing its government owned and controlled economy. Product expansion and new market entry became easier for companies in virtually every sector of the economy. This presented Tata with many opportunities to leverage its strong brand equity and financial resources to enter new markets and industries. The strong brand image gave it a tremendous advantage over competitors in a variety of industries. However, the government reforms also lowered barriers to entry and increased competition in all of Tata’s industries. Foreign companies flooded into India, threatening to take market share from Tata companies. The world was globalizing and India was liberalizing its economy. Tata was forced to consider its strengths and weakness, analyze its many businesses and their industries, and evaluate the threats and opportunities presented by this changing global economy.…

    • 2820 Words
    • 12 Pages
    Good Essays
  • Powerful Essays

    A TNC (transnational corporation) is a company that operates in no less than two countries and has a global outlook. TNCs have a long history going back to the 16th Century in terms of trade such as spices, but it’s not until C. 1945 that companies started to form acquisitions and mergers. The one key reason why these businesses have been so successful in their area of expertise globally is because they can take advantage of spatial differences in the factors of production worldwide. They are able to exploit differences in the availability of capital, labour costs and land cost, which we as a world have seen, especially in far-east Asia.…

    • 3262 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    Tata Company

    • 1437 Words
    • 6 Pages

    The Tata Group (Marathi: टाटा समूह) (Hindi: टाटा समूह) is a multinational conglomerate company headquartered in Mumbai, India. In terms of market capitalization and revenues, Tata Group is the largest private corporate group in India. It has interests in steel, automobiles, information technology, communication, power, tea and hospitality. The Tata Group has operations in more than 85 countries across six continents and its companies export products and services to 80 nations. The Tata Group comprises 114 companies and subsidiaries in seven business sectors,[3] 27 of which are publicly listed. 65.8% of the ownership of Tata Group is held in charitable trusts.[4] Companies which form a major part of the group include Tata Steel (including Tata Steel Europe), Tata Motors (including Jaguar and Land Rover), Tata Consultancy Services, Tata Technologies, Tata Tea (including Tetley), Tata Chemicals, Titan Industries, Tata Power, Tata Communications, Tata Teleservices and the Taj Hotels.…

    • 1437 Words
    • 6 Pages
    Good Essays
  • Better Essays

    The article at hand ‘Have You Restructured For Global Success?’ written by Nirmalya Kumar, professor of marketing and Phanish Puranam, professor of strategy and entrepreneurship, at London Business School. They also are the codirectors of the school’s Aditya Birla India centre and the coauthors of India Inside: The Emerging Innovation Challenge to the West . It was published in the Harvard Business Review in October 2011, pages 123 – 128.…

    • 1190 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Today's modern India in a way is very much indebted to Jamsetji Tata, known as "The Father of Indian Industry.” While, he himself couldn’t completely fulfill the missions of starting Tata industries, he laid the foundation for success, only to be fulfilled by his great grandson, Ratan Tata who became the successor of Tata Group and gave a glorious expression to each of his dreams. Ratan Tata is the present Chairman of Tata Group, who consolidated and expanded the business from him and made Tata one of the most prestigious brands in Southeast Asia. His Vision led the Tata Group become one of India's largest business conglomerates and in recent years has made significance presence at international level by various Acquisitions.…

    • 601 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Tata-Jlr Turnaround

    • 735 Words
    • 3 Pages

    The story of IBM was always considered to be the greatest turnaround stories of all times but wait, have you heard how an Indian MNC Tata has turned it around for itself through its acquisition and revival of the global luxury brand , Jaguar-Land Rover(JLR).…

    • 735 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    project 28

    • 1872 Words
    • 8 Pages

    Growing the Tata Power businesses, be it across the value chain or across geographies, and also in allied or new businesses…

    • 1872 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    The story of IBM was always considered to be the greatest turnaround stories of all times but wait, have you heard how an Indian MNC Tata has turned it around for itself through its acquisition and revival of the global luxury brand , Jaguar-Land Rover(JLR).…

    • 1019 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Over the past three to four years, overseas acquisitions by Indian firms have increased in terms of number and average deal size. According to UBS Investment Research Report 2007, they believe this is a consequence of Indian corporate' strong balance sheets and rising global ambitions. In this essay I am going to use a specific acquisition example based on the article named “Tata Motors’ Acquisition of Daewoo Commercial Vehicles” to illustrate the Indian Acquisition problem. Statistically, there are 12 per cent to 14 per cent of Tata Motors’ revenue is from overseas at current status. And Tata Motors sets its communicated target at 25 per cent to 30 per cent, which means that the company aims to reach 25%-30% revenue from overseas in three years, eventually wants to build a global automotive brand. (UBS Investment Research, 2007)…

    • 2419 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Haier Strategy

    • 3043 Words
    • 13 Pages

    * Cavusgil, S. Tamer. International business: strategy, management, and the new realities/S. Tamer Cavusgil, Gary Knight, John R. Riesenberger…

    • 3043 Words
    • 13 Pages
    Powerful Essays
  • Powerful Essays

    Bartlett, C., & Ghoshal, S. 1991. Global strategic management: Impact on the new frontiers of strategy research.…

    • 11577 Words
    • 47 Pages
    Powerful Essays
  • Good Essays

    In the beginning, Tata Group’s initial organizational approach was to develop location bounded FSA’s and expansion in diversified SBUs in home country which build the capacity of TATA as centralized exporter. Restructuring of Tata was the basic step towards approach shift and development of internationally transferable FSAs like technical expertise, novel management practices and human capital. To take advantage from the FSAs which Tata developed, it used many expansion strategies like outsourcing, joint ventures and wholly owned subsidiaries which assist TATA to recombine its resources and gained competitive position in IT and communication industry which is evident from the establishment of TCS.…

    • 767 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    On January 31st, 2007 India’s Tata Steel acquired Corus, the erstwhile British Steel Major at a price of 608 pence per Corus share totaling $12.1 billion/ Rs 54,000 crore/ £6.1 bn, which was five pence per share higher than the offer of Brazil’s CSN (Companhia Siderugica Nacional). The deal is the largest Indian takeover of a foreign company, and creates the world's fifth-biggest steel company from the present 56th rank.…

    • 3111 Words
    • 13 Pages
    Powerful Essays
  • Powerful Essays

    References: [1] Matthew EyringMark W. JohnsonHari Nair. 2011. New Business Models in Emerging Markets. [ONLINE] Available at: https://hbr.org/2011/01/new-business-models-in-emerging-markets. [Accessed 01 December 14].…

    • 2312 Words
    • 6 Pages
    Powerful Essays