Reference no: EM133047608
Problem:
Tata Group, a Mumbai based giant conglomerate was founded in 1868 and now consists of 90 companies focused on seven business segments that span, industrial products, consumer goods and high technology. 31 of the 90 companies are public listed and the rest are privately held. The Tata Group employs more than 450,000 people and generate revenue of USD100 billion almost every year. About 59% of this revenue is generated from outside India. Such diversified conglomerates are common in emerging markets.
Each Tata company operates as an independent entity, with its own management team, board of directors and shareholders. The Tata Group is proud of and is concerned about maintaining the integrity of the Tata brand. To be able to use the Tata name, the independent companies must act according to the Tata Business Excellence model which stresses the importance of unity, responsibility, integrity, understanding and excellence.
A key element in Tata's brand-strengthening strategy is to acquire foreign companies to aid the competitiveness of firms within the Tata Group. In 2000, Tata purchased Britain's Tetley Tea for USD432million; in 2004, it purchased the heavy vehicle unit of Daewoo Motors; in 2008 it purchased the land Rover and Jaguar brands from Ford Motor company for USD2.3 billion and in 2007, it purchased steel giant Corus, an Anglo-Dutch company for USD13 billion.
Unlike many other companies, Tata often leaves the management teams of its acquired business intact, but provides corporate support, investment capital or other needed resources. It usually sends Tata managers to learn from the new subsidiaries. In the case of Tetley, Tata was interested to learn about tea cultivation, product branding and export development. Tata Global Beverages is now the world's second largest seller of tea.
The Corus acquisition paved the way for the Tata to enter the UK steel sector. However, this acquisition saw a 20 percent decline in turnover which dragged down the Tata Group performance.
Tata decided to sell the UK steel business in 2010. Explaining the rationale behind the decision, Tata said in a statement: While the global steel demand, especially in developed markets like Europe, has remained muted following the financial crisis of 2008, trading conditions in the UK and Europe have rapidly deteriorated more recently, due to structural factors including global oversupply of steel, significant increase in third country exports into Europe, high manufacturing costs, continued weakness in domestic market demand in steel and a volatile currency.
Required:
Question 1: Tata chose to retain the existing management teams of the companies it acquired. Evaluate the benefits of this decision.
SBM1300 Research Project Assignment
: SBM1300 Research Project Assignment Help and Solution, Asia Pacific International College - Assessment Writing Service
|
ELA513 Teaching English as an additional language Assignment
: ELA 513 Teaching English as an additional language Assignment Help and Solution, Charles Darwin University - Assessment Writing Service
|
Identify three stocks that pay a 4 percent or more dividend
: Identify three stocks that pay a 4 percent or more dividend. To learn more about each stock, click on its ticker symbol. What is the dividend rate (yield) of ea
|
Mitigating factors-solutions for npa management
: 1. Indian Banking has witnessed major changes starting from nationalization in 1969 of 14 private sector banks again to privatization of banks in 1990s.
|
Evaluate the benefits of decision by tata group
: Tata Group, a Mumbai based giant conglomerate was founded in 1868 and now consists of 90 companies focused on seven business segments that span, industrial prod
|
Utilitarian benefits of public order
: Which is more important human rights to free speech or utilitarian benefits of public order?
|
What should Richman Co report as unrealized gain
: What should Richman Co. report as unrealized gain to other comprehensive income for the year 2022
|
Las vegas condominium-california real estate
: A developer is marketing his new condominium development on the Las Vegas Strip to upscale, Westside Los Angeles residents. Which law(s) must he follow: Subdivi
|
How much is the deposit in transit at the end of November
: Bank debits for November, P600,000, including outstanding checks of P170,800 and November service charge of P1,200. How much is the deposit in transit
|