International Management: Analysis of Tata Group's M&A Operations and Alternatives

Running head: International Management 1
International Management
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International Management 2
Table of Contents
1.0 Source Problem....................................................................................................................3
2.0 Secondary Problems.............................................................................................................3
2.1 Integration Process...........................................................................................................3
2.2 International Merger and Acquisition..............................................................................3
3.0 Analysis................................................................................................................................3
3.1 M&A Operations..............................................................................................................3
3.2 BCG Matrix......................................................................................................................4
4.0 Alternatives..........................................................................................................................4
4.1 Customer...........................................................................................................................4
4.2 Financial...........................................................................................................................4
4.3 Learning Growth..............................................................................................................5
4.4 Internal business Process..................................................................................................5
5.0 Justification of Recommendations.......................................................................................5
5.1 Creation of Subsidiary Company.....................................................................................5
6.0 Implementation....................................................................................................................5
7.0 References............................................................................................................................7

International Management 3
1.0 Source Problem
The major problems facing the Tata Group are the recruitment of a variety of brilliant people
and sustaining the known value system of the company while establishing a group of
organizations that can survive in the stiff competition in the 21st market as it grows and gets
diversified. Also, the inability of both the old and new companies to meet the exceptional
standards and ethics after the departure of Ratan Tata and attain the standards of the founder
Jamsetji Tata (Hodgetts, Luthans, & Doh, 2006).
2.0 Secondary Problems
Short Term
2.1 Assimilation Process
The group will experience the difficulty in establishing the capability to comprehend the
country’s culture where the acquisition is to occur, in addition to the work environment
(Luthans & Doh, 2009).
Long Term
2.2 International Merger and Acquisition
Tata Steel will face difficulties since it is in possession of Corus whose acquisition possesses
the problems of balancing traditional ways with the current economic trends. The contract
creates a debt of $7.4 billion with the Indian manufacturer of steel; also incorporating the
substantial operating costs of Coru will further harm its profit margins.
3.0 Analysis
3.1 M&A Operations
The management of almost 100 companies is cumbersome as is evidenced in the increasing
inorganic growth of Tata, through subsidized buyouts and in some cases daring transactions,
which poses the problem of assimilation and efficient administration of the range of
companies. The group’s executive has in most cases responded to the challenge of the role of
the business in bringing all these companies under a single umbrella. Tata operates in seven
broad categories namely steel, vehicles, energy, substances, restaurants and buyer
commodities and communication systems (Sen, 2009). For over ten years, the focus of the
group has been establishing a resilient manifestation in the global markets. For instance, the