Tata-Jlr Turnaround

Satisfactory Essays
TATA MOTORS & JLR- THE SUCCESSFUL TURNAROUND
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).
In the past few years, Tata motors have gone from a sheen losing family business to a global profitable brand. In April 2012 share price of Tata motors surged 90 % (6 months data) when the BSE rose 10% and the BSE auto Index rose 21% in the 6 month period.
What caused this turnaround?
The beginning was not smooth, TATA acquired JLR from Ford Motors, when world was entering recession and the worst recession of them all. There was a bad sentiment everywhere. JLR was a failing brand and TATA paid $2.3 billion. Business Analysts feared that TATA has made a mistake and that they will not be able to handle what they have entered.
Also, JLR being a British powerhouse brand, the deal was not very well perceived due to the coming Indian ownership and the fears of outsourcing of jobs, technology and the brand to India. On the other hand, Indian analysts feared that this whole acquisition may bring the almighty TATAs down.
But that was 2008 and today JLR is contributing 50% of the overall profits of TATA Motors. All the stories and rumors were put to rest when the £400m engine plant in the Midlands was announced that would potentially create up to 2,000 jobs in England and not India as feared.
The most important things which TATA prioritize to start the change were:
1) Cost Management: The most important task on hand for TATAs was the reduction in the costs. Consultants from Roland Berger Strategy Consultants and KPMG were hired for this. Strategy plans were made for cross functional teams and the management was shaken at the top.
Also one major cut down was done on the IT front. The systems and software for managing operations were now handled by Tata’s own IT firm

You May Also Find These Documents Helpful

  • Powerful Essays

    Tata Jlr Acqusition

    • 1943 Words
    • 8 Pages

    Case Study | Strategic Management | 10th August 2010 | ------------------------------------------------- Introduction In June 2008, India-based Tata Motors Ltd. announced that it had completed the acquisition of the two iconic British brands - Jaguar and Land Rover (JLR) from the US-based Ford Motors for US$ 2.3 billion. Forming a part of the purchase consideration were JLR's manufacturing plants, two advanced design centers in the UK, national sales companies spanning…

    • 1943 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Tata Jlr Deal

    • 851 Words
    • 4 Pages

    challenges which a cross-border acquisition of this type may produce and the steps that both Tata and Jaguar/Land Rover need to take in order to make this a successful Anglo-Indian story. The current trend towards international mergers, acquisitions and joint ventures is resulting in organisations not only having to deal with the merger of different corporate cultures, but also of two or more national cultures. While Tata will be more familiar with British business culture following the recent acquisition…

    • 851 Words
    • 4 Pages
    Good Essays
  • Good Essays

    TATA MOTORS JLR - THE SUCCESS STORY 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). In the past few years, Tata motors have gone from a sheen losing family business to a global profitable brand. In April 2012 share price of Tata motors surged 90 % (6 months data) when the BSE rose 10%…

    • 1019 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    STRATEGIC MANAGEMENT INTERIM REPORT TATA MOTORS-JAGUAR LAND ROVER ACQUSITION Table of Contents Executive Summary 3 Introduction 4 SWOT Analysis of Ford Motor Co 5 Business Strategy of Ford 6 SWOT Analysis of Tata Motors 7 Why Acquisition 9 Future study 9 References 10 Executive Summary: This project aims at analysing the acquisition of Jaguar Land Rover by Tata Motors. Jaguar and Land Rover brands were…

    • 1825 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    ------------------------------------------------- CASE STUDY: Tata Motors Acquisition of Jaguar and Land Rover in 2008 ------------------------------------------------- VenkitV Introduction India-based Tata Motors Ltd. successfully acquired two British automotive brands – Jaguar and Land Rover (JLR), in June 2008 from Ford Motors for $ 2.3B. As part of the deal, Tata Motors gained 100% stake in companies, 3 UK plants, 2 advanced design and engineering centers, 26 national sales companies…

    • 1589 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    Strategy Behind JLR Acquisition by TATA Motors By Shubhra Mani Behind acquisition of Jaguar Land Rover, Tata Motors had following strategic considerations: 1. Long term strategic commitment to automotive sector. 2. Opportunity to participate in two fast growing auto segments (premium and small cars) and to build a comprehensive product portfolio with a global footprint immediately. 3. Increased business diversity across markets and product segments. 4. Unique opportunity to move…

    • 455 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    The Turnaround at Ford

    • 699 Words
    • 3 Pages

    Running head: CASE ANALYSIS – A TURNAROUND AT FORD 1 Case Analysis – A Turnaround at Ford Jerald Peet Saint Leo University THE TURNAROUND AT FORD 2 The story of Ford (F) in the last…

    • 699 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Tata

    • 20075 Words
    • 81 Pages

    Team Tata Motors pg. 1 of 70 Tata Motors Limited (TML) Team Project C562 – Developing Strategic Capabilities November 24th 2008 – February 29th 2009 Indiana University – Kelley School of Business Team Members: Krishna Tavvala Matthew Brinker Peter Eshelman Andrew Matuszak Rahul Shankar C562 Developing Strategic Capabilities– Team Project: TATA MOTORS LIMITED Krishna Tavvala, Matthew Brinker, Peter Eshelman, Andrew Matuszak, Rahul Shankar Team Tata Motors pg. 2 of 70…

    • 20075 Words
    • 81 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Turnaround Strategies

    • 612 Words
    • 3 Pages

    Explain steps required in turnaround strategies. Justify with an example.  Emphasis is on speed of change and rapid cost reduction and/or revenue generation. Managers must prioritise things that give quick and significant improvements. Although used interchangeably, restructure is different from turnaround.   Operational Turnaround The focus is on ways of improving the operation of the business and designed to halt the decline. Strategic Turnaround The focus is on adjusting…

    • 612 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Johnson Turnaround

    • 2124 Words
    • 9 Pages

    QUESTION 1 Refer to the case on “Johnson Turnaround” in Appendix A. The newly appointed CEO of Johnson Pte Ltd., Encik Azmi, is tasked with the design and implementation of a turnaround strategy for the company. An effective turnaround strategy consists of assisting the company to identify, develop and implement initiatives that increase profits and market share, or position the firm to raise needed capital. The objective of the turnaround initiative is to focus on areas of business risk…

    • 2124 Words
    • 9 Pages
    Powerful Essays