Report TATA Motors - International Business Challenges
Added on 2020-02-03
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INTERNATIONALBUSINESS ANALYSIS
Table of ContentsINTRODUCTION...........................................................................................................................3PART 1............................................................................................................................................3Question 1 Company profile.......................................................................................................3Question 2 Analyses Company’s status related to 'globalisation of business'............................4PART 2............................................................................................................................................5Question 3 Regional factors affects company's choice of country.............................................5Question 4 Porter's diamond model............................................................................................6PART 3............................................................................................................................................8Question 5: Foreign entry strategies...........................................................................................8PART 4............................................................................................................................................8Question 6: Key business challenges of a company...................................................................8Question 7: What areas the MNCs needed to focused................................................................9CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONMultinational Corporation is the enterprise which provides services in more than twocountries. It has a powerful influence on local economies and international relations. Thebehaviour of MNCs is different in relations to human resource, marketing, finance and otherelements regards to the goods or services (Gold,Seuring and Beske, 2010). Thus, the maincharacteristics of the multinational corporation are that they are big in size and overall activitiesare controlled at central level through the parent firms. The report has been studied in context toTata motors that are discussed further on key international business challenges. It also definesthe area which will be required to focus in their future and current business.PART 1Question 1 Company profileMultinational Corporation is that enterprise that has an assets and other facilities whichare required at least one country rather than their home country. It is that type of companies inwhich it factories or offices in other different countries. Thus, where they have a coordinateglobal management where have a generally centralized head office. It generates high paying jobsand also delivers technologically advanced products in the countries (Tarique and Schuler,2010). They tend to develop their operation in those markets where its capital is effective orlowest wages. They provide products to the country with same quality at lower cost; it alsominimizes prices and improves purchasing power of customers at the worldwide. Tata motorsLimited is a leading international automobile manufacturer and it is one of the 18th world largestmotor vehicle manufacturer firm, 2nd largest manufacturer of bus by its volume and 4th largesttruck manufacturer. It has wide range of product portfolio which mainly includes sports vehicles,buses, cars, defence vehicles, construction equipment and buses (Harzing,Reiche and Pudelko,2013). They are now operating their business over 175 countries around the world and itsturnover is 32.31 million. Global footprint of Tata motors is that they are now selling theirvehicles products in 50 countries approx. Thus, it logo went at international level in 1961 yearand it also selling trucks, buses and cars products at 20 locations all over the world and ranks 7thin India. The rest part are mainly involves in South Korea, South Africa, UK, Thailand, Spainand Indonesia.
Question 2 Analyses Company’s status related to 'globalisation of business'Uppsala model shows the procedure of globalisation of business which emphasis that thecompanies will tend to globalize and eventually move more towards distinct markets. It is thosemodels that show the company internationally expanded in various types of service industries.The model also suggested to the company whether to expand their business internationally as perits psychic closeness to the host country (Kolk and Van Tulder, 2010). It gives facilitates toobtained knowledge about company's past international operations and facilitates foreign entrymodel decisions. It is based upon whether the firm started manufacturing in home country or hostcountry. Thus, the primary decision can be made through adopting uppsala model that related toexporting versus foreign (local) production. The second decision is related to who should controlthe manufacturing process. Illustration 1: Uppsala model Source:( Flack,2010)
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