International Business Across Borders

This presentation discusses the international competitive strategy and entry strategies of Tata Motors. It covers the financial KPIs, design structure and control issues, operational control and production, and management of human resources. Recommendations are provided for improving the business and expanding into global markets.

INTERNATIONAL BUSINESS ACROSS BORDERS

EXECUTIVE SUMMARY
• The assessment considers the business of Tata Motors and the nature of operations which is
undertaken by the business. The assessment would be including a review of the international
competitive strategy of the business and how the same can be further improved.
• The assessment further includes the organizational and control issues which is discussed in
details of the business and also various entry strategies which are implemented by the
management of the company.

INTRODUCTION
• The management of Tata Motors are considering expanding the business in foreign
markets
• The different strategies which are formulated by the management of Tata Motors
are to be considered and shown in slides below.

OVERVIEW OF THE
BUSINESS
• Tata Motors Limited is an Indian Multinational company which is engaged in the business of
manufacturing automobiles which can be used for domestic uses as well as commercial uses.
• The first production of motor vehicle was undertaken by the business in 1954
• The company is engaged in producing passenger’s cars, trucks, buses and coaches and also
other variety of vehicles
• Some of the countries where the business already has operations are India, Great Britain, South
Korea, Thailand, Spain and South Africa

FINANCIAL KPI OF TATA
MOTORS

INTERNATIONAL
COMPETITIVE STRATEGY
• The business of Tata Motors is mainly engaged with the production and distribution of both
light weight and heavy weight vehicles and the market conditions which are present in India is
considered to be quite favorable for the business.
• The management of the company has a policy of acquiring a business of local market or set up
a collaboration business by merger or acquisition.
• An example can be given regarding the policies which was adopted by the company while
setting up the business in Korea. Tata Motors entered the advanced Korean Market by
acquiring Daewoo, with which it has tremendous synergies in terms of product strategy and R
& D.

DESIGN STRUCTURE AND CONTROL
ISSUES
• The management of the company as per the annual reports of the business has increased the
emphasis on the design and research processes for developing a new product or making
improvements in the old product of the business
• The management also has the responsibility of effectively controlling the costs of the business
and ensure that overall prices of the products which is offered by the business are not out of
reach for the consumers of the business

ENTRY STRATEGIES OF THE
BUSINESS
• The entry strategies which are applied by businesses are formulated in such a way that would
help the management of the company to penetrate new markets and ensure that the business is
effectively able to set itself up in the new market
• The market entry strategy of Tata Motors includes appropriate survey of the market for the
purpose of establishing whether the market is favorable for the products which is the business
is about to offer.
• The market entry strategy of the business in most cases involves acquisition or merger with a
local brand so that effective utilization of the local resources can be appropriately done by the
business and the products are can effectively market

OPERATIONAL CONTROL
AND PRODUCTION AND
DISTRIBUTION• The operations of the business are handled by different departments who are responsible for
creating an automobile. Tata Motors is not only limited up to Indian market where the company
has been doing wonders, it has also started expanding its footsteps into international market.
• The business has effectively set up its supply chain function which helps the business to supply
the products to the final customers. The production of the vehicles takes place at one of the
factories of the company and thereafter the same is distributed among different customers in
different regions.

MANAGEMENT OF HUMAN
RESOURCES
• The management has an effective policy which is relating to human resource management of
the business in different areas. The company considers the employees of the business as assets
and some are even irreplaceable
• The management meets the employment needs of the country in which it operates as large
numbers of employees are required to effectively carry out the operations of the business.

KEY ISSUES
• The level of competition in global countries is always a huge problem for businesses and in
major markets there are always big players who would be causing problems for the business.
• There are certain risks which automobile industries faces which is related to changes in the
taste and preference pattern of the consumers.
• There is also a risk of getting appropriate level of skill labour in new markets and access to
financing sources for any new projects which might be taken up by the management of the
company.

RECOMMENDATIONS
• The management of Tata Motors needs to establish an effective control system which can ensure proper
supervision over the activities of the business and also keep a tap on the operations which is carried out by
the business.
• The management needs to undertake research and development in order to ensure that product which is
produced by the company is unique and has the ability to generate competitive advantage for the business
in foreign markets.
• The management needs to improve the costs of the business so that the overall level of profitability of the
business can be enhanced and better control over the operations of the business can be attained.
• The management of the business needs to select an appropriate financing source so that the business has
access to funds as and when required by the management of the company for any new projects.

CONCLUSION
• The management of the company also needs to consider the competition and other issues which
the company is likely t face in global markets and then take decision regarding expansion of
the business

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