Tutorial 6 1. The various advantages that firms like Tata employ to be large industrial conglomerates: * Vast financial resources * Access to capital favorable terms * Strong corporate image * Connections with countless high-quality business partners * Competitive cost structure * Huge, low-cost Indian labor * Long-standing relationchips with national and state goverments in India
Their reputation is growing. They counts on sister subsidiary Tata steel to continuously provide steel.
The emerging giants tap abudant low-cost labor, tech talent, and mineral resources to increasingly target the world’biggest growth market.
Tata caotalizes on its family conglomerate networks to enhance its position as government supplier in numerous business sectors.
2. Emerging markets attractive for international business because a) Emerging markets as target markets: * Emerging markets have become important for marketing a wide variety pf products and services. The growing of midle class in these countries implies subsantial demand for a variety of consumer products. * Emerging markets are excellent targets for manufactured products and technology. * Governments and state enterprises in emerging markets are major targets for sale of infrastructure-related products and services. b) Emerging markets as Manufacturing bases * Emerging markets have long served as platforms for manufacturing. The reason is that these markets are hone to low-wage, high-quality labors for manufacturing and assembly operations. In addition, some emerging markets have large reserves of raw materials and natural resources. c) Emerging markets as Sourcing Destinations
In recent years, companies sought ways of transferring or delegating non-core tasks or operations from in-house groups to specialized contractors (outsourcing)
Outsourcing helps foreign firms become more efficient, concentrate on their core