International Business Across Borders

This assessment analyzes the business of Tata Motors and its international competitive strategy. It also discusses organizational and control issues, entry strategies, operational control, and human resource management.

Running head: INTERNATIONAL BUSINESS ACROSS BORDERS
International Business Across Borders
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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 considers that the business of Tata Motors is trying to enter a new market for the
purpose of enhancing the revenue generations of the business and also the profitability of the
business. 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. The key opportunities and human resource requirements
are also covered in the discussion part which is shown below. The assessment concludes with
a section of recommendation which can improve the business structure of the company.
Table of Contents

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Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Overview of the Business.......................................................................................................3
International Competitive Strategy........................................................................................4
Design Structure and Control Issues......................................................................................4
Entry Strategies of the Business.............................................................................................5
Operational Control and Production and Distribution...........................................................6
Management of Human Resources........................................................................................7
Key Issues or Opportunities...................................................................................................7
Recommendations......................................................................................................................8
Conclusion..................................................................................................................................8
Reference..................................................................................................................................10

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Introduction
The main purpose of this assessment is to analyze the business of Tata Motors which
is engaged in the business of producing and designing automobiles. The company has a wide
scale of operations in the country and appropriate serves the needs of many consumers (De
Villa, Rajwani and Lawton 2015). The management of Tata Motors are considering
expanding the business in foreign markets and the assessment would be dealing with different
strategies which is followed by the management of Tata Motors for ensuring that the strategic
management and different market strategies are effectively formulated for planned expansion
of the operations of the business of Tata Motors.
Discussion
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 company has its headquarters situated in Mumbai and has a number of
holdings of different businesses under the head of Tata Groups. The company is engaged in
producing passenger’s cars, trucks, buses and coaches and also other variety of vehicles. The
first production of motor vehicle was undertaken by the business in 1954. The Company has
undertaken a large amount of projects and the business is also listed in other stock exchanges.
The company is known to be one of the leading businesses which is engaged in the
production and distribution of automobiles as per the needs of the customers of the business.
The current operating position of the business is efficient as the management of the
company is planning to expand the scale of operations by trying to expand the business in
foreign markets. Some of the countries where the business already has operations are India,
Great Britain, South Korea, Thailand, Spain and South Africa. The management of the

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company is planning to expand the operations of business in Turkey, Indonesia, and parts of
Eastern Europe. The management of the company has appropriate capital source which can
be used by business for further expansion of the business.
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 and therefore, the management of
the company is planning to expand the operations of the business in countries where the
market situation is quite similar to the markets in India. 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. This is done by the management of the company, in order to ensure that the
business is able enhance the sales and appropriately increase the overall revenue of the
business. 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. In case the management of the company is trying to expand the business in new
markets, an appropriate survey of the market is necessary for ensuring that the product which
is offered by the business are appropriate as per the demand in the market.
Design Structure and Control Issues
The design structure of the products which is offered by the company are done on the
basis of demand requirement in the market. 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 (Buckley et al. 2016). The management has also enhanced the focus on
sustainability and efficiency in the design structure of the business. Products are to great

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extend standardized. Electric vehicles provide solutions for air pollution issues and
urbanization requires new design. The products of the company are designed in such a way
which can ensure that effective control of cost and incorporation of modern technology in
developing the products which is offered by 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. The management of the company is also responsible for corporate governance of
the business and also framing strategies in the business in order to ensure that efficient
control is maintained over the operations of the organization.
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 entry strategies of a
business refers to the policies which are adopted by businesses for the purpose of entering
new markets with a view of achieving expansion of the business (Eriksson et al. 2015). 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. In addition to this, 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 (Tulung 2017). For example, Tata Motors formed a joint venture with Thonburi
Automotive Plant to enter Thailand. In Latin America, Tata Motors has taken its alliance with
Fiat to produce a new one-tonne pick-up truck, for Latin American markets from Fiat's
facility in Argentina.

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In addition to this acquisition, the management of the company also extensively
engages in proper advertisement of the products which is being offered by the business. The
products which are offered have unique features which makes the products which are offered
to the business more attractive and thereby becomes preference of the consumers of the
business.
Operational Control and Production and Distribution
The management of the company plays an active role in overall activities and
operations of the business. 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. Today Tata Motors is a global player
having markets in several countries around the world including Europe, Africa etc. Some of
the vehicles such as land rover, SUV have become extremely popular in the region and is
extensive demand. The business in terms of operations aims to identify the needs of the
customers and on the basis of the same are known to formulate strategies for improving the
operational structure of the business. Differentiated targeting strategy is used by Tata Motors
to target the customers and satisfy their needs and wants.
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. This is possible as the business has an effective supply chain
system which allows the management to take full advantage of the resources which is
available to the business and thereby also increase the overall revenue which is generated by

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the business. Therefore, it can be said that the management has an effective supply chain
management system on which the management of the company can totally rely upon.
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 of the company in
foreign countries tend to recruit more of the locals into the employee workforce so that the
company can contribute to the employment needs of the community and also effectively take
care of the CSR policies of the business (Schuler, Khilji and Ruël 2015). Human resource
management is considered to be an important aspect of the managerial functions of the
business. The strategies of the business is to recruit employees who are skilled and semi-
skilled and who are fit for the job which is offered by the business. 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 or Opportunities
The key opportunities which are available to the management of the company
effectively relates to the growth opportunities which are available to the business. The
automobile industry are really on a growth phase and therefore the management of Tata
Motors can effectively capitalized on such a fact and ensure that the revenue which is
generated by the business are appropriate (Sako and Zylberberg 2015). There is also an
opportunity to the business to effectively tap into new markets and thereby build an
international reputation of the business. There are certain key issues which can be identified
for the business of Tata Motors and such problems needs to be faced by the management in a
positive manner. Some of the issues which can be identified are listed below:

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 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 following recommendations can be given to the management of Tata Motors for
ensuring better performance and better generation of revenue in global markets.
 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.

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Conclusion
The above discussion effectively shows insights of Tata Motors business and also
provides different factors which can affect the expansion plan which s formulated by the
management of the company. 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. The above discussion shows analysis of
the entry strategy, operational strategy, supply chain function and human resource
management strategy of the business.

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Reference
Buckley, P.J., Munjal, S., Enderwick, P. and Forsans, N., 2016. Cross-border acquisitions by
Indian multinationals: Asset exploitation or asset augmentation?.
De Villa, M.A., Rajwani, T. and Lawton, T., 2015. Market entry modes in a multipolar
world: Untangling the moderating effect of the political environment. International Business
Review, 24(3), pp.419-429.
Eriksson, K., Johanson, J., Majkgård, A. and Sharma, D.D., 2015. Experiential knowledge
and cost in the internationalization process. In Knowledge, Networks and Power (pp. 41-63).
Palgrave Macmillan, London.
Sako, M. and Zylberberg, E., 2015. From governance to strategy: Injecting management
studies into global value chains.
Schuler, R.S., Khilji, S.E. and Ruël, H., 2015. 6. Role of human resource management in
international mergers and acquisitions and international joint ventures in emerging
markets. Handbook of Human Resource Management in Emerging Markets, p.122.
Tulung, J.E., 2017. Resource Availability and Firm’s International Strategy as Key
Determinants Of Entry Mode Choice. Jurnal Aplikasi Manajemen, 15(1), pp.160-168.