TATA GROUP GROWTH STRATEGIES

This report analyzes the growth strategies of the TATA Group, a leading Indian multinational conglomerate. It examines the company's portfolio management, integrated organization perspectives, and competitiveness. The report also analyzes business model innovation, technological innovation through strategic alliances, and the role of corporate governance and social responsibility in TATA's success. The report concludes with a personal reflection on the learning gained from the analysis.

TATA GROUP GROWTH
STRATEGIES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Question 1: Portfolio, integrated organization perspectives and competitiveness.................1
Question Two: Business Model innovation and Technological innovation through strategic
alliances..................................................................................................................................4
Question Three: Corporate Governance, corporate social responsibility and Leadership.....5
Question 4: Personal reflection on learning...........................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Global Corporate strategy can be defined as strategic guide in business world towards
globalization. In worldwide market a business can employ a global enterprise strategy. Global
strategy involves aspects of businesses like production sites, markets, competition and its
suppliers. It also involves assessing every product and service from each and every perspective
at both domestic and international markets. The current report provides detail knowledge and
understanding about global corporate strategy that have implemented by Tata Group. It is an
Indian multinational steel making corporation which is one of the top steel producing company.
It has manufacturing operations in 26 countries such as India, China, Australia, Netherlands,
Singapore, Thailand and UK. Tata companies and subsidiaries includes Tata steel, Tata Motors,
Tata consultancy service, Tata Power, Tata chemical, Tata coffees, Tata communications, Tata
services and steel. Business model innovation and technological invention through strategic
alliances has been also discussed in this study with respect of Tata Group. The main objective of
this report is to understand global corporate strategy of Tata group company.
MAIN BODY
Question 1: Portfolio, integrated organization perspectives and competitiveness
Integrated Organisation Perspective can be understood as nonlinear procedure and
connectivity between organisations in a managerial context. Portfolio management is the
selection, prioritisation and control of organisation's project in order to achieve determined
objective and goal. It is a procedure that balance of investment, create and close the project,
program etc. related to business (Button and Cross, 2017). It mainly involves consensus based
decision making, search for better efficiency and coexistence for both diversity and uniformity.
Its advantages are described below:
1. An integrated Organisation Perspective can provide advantage to organisation through
effectiveness and efficiency. Through several external audits cost reduction is possible by
minimizing the disruption.
2. Increased performance, customer satisfaction and regular improvement of organisation are
some other aspects of this perspective.
3. With this integrated system, organisation work with a single goal and every department is
aligned properly to improve its performance. All workers have coordinated effort towards the
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functioning of each unit and which is greater than sum of its parts and is not only efficient but
also appreciable.
44 It provides a uniform, transparent image of complete organisation with the associated
risks and how they influence each other. It becomes easier to adopt new systems for the
firm to adopt fresh system (Button, Nicholls and Owen, 2014).44 Portfolio organisation perspective approach helps corporation in removing overlapping,
ineffective and poor program and project from the business organisation.44 This approach helps in increasing realisation and identify the future requirement to
business and create additional value for business.
Disadvantages are as follows:
 Project portfolio management requires an effective setting of priorities. If management do
not set effective priorities, then it will affect the overall objective.
 For effectively performance of the project portfolio management, it is important to
consider organisation’s size and resources. Inappropriate size and resource of company
can directly affect business’s objective and performance (Fisher, 2015).
As per the above discussion it has been analysed that Portfolio organisation perspective
provides a clear and effective image of business to company by which future requirements can
be easily met. Tata Group have effectively followed the Portfolio organisation perspective in its
business enterprise. As Tata group is India's largest business group that have 5.2% of country's
GDP and it operates its enterprise in more than 80 countries with group revenue amounting to a
whopping USD 62.5 billion in 2008. Tata group operates its business in seven sectors such as
chemical, hotels, customer goods, steel, auto-mobiles, energy, Tata motors, Tata consulting
services and Tata power accounting for nearly 50% of the group revenue. With help of portfolio
perspective, Tata group has improved its performance and productivity by delivering range of
products and services in market (Bautista and et.al., 2016). Corporation have successfully
performed at global level with help of its portfolio organisation perspective. In present time,
there are huge changes occurs within the global business environment but Tata company have
successful cope up with changes with help of portfolio organisation perspective.
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Political and legal- Tata motor acquired a land of 997 acres for manufacturing Nano cars by
state government support. On the 3 October 2008, TML closed its plant from Singur.
Social and cultural- Tata have effectively focused on the customer requirement and needs
regarding product and services. It is involved in philanthropy and supports 600 NGOs.
Technological- Tata faced a technological hurdle while two units of its revolutionary Nano cars
caught fire in the 2009 (PESTLE Analysis, 2017).
Environmental- Corporation have manufactured its vehicles and other products according to
norms of the Indian and Euro standards of emission (Bhaduri and Selarka, 2016)
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Illustration 1: Pestle Analysis
(Source: PESTLE Analysis, 2017.)

Economical- Tata GDP growth rate around 7% and high interest rate and low freight availability
impacted its financial infrastructure.
Question Two: Business Model innovation and Technological innovation through strategic
alliances
In the business world, innovation and development plays a very crucial role for
improving quality of products and services and deliver impressive satisfaction to customers. By
bringing innovation in the product and services, organisation can develop impressive competitive
advantage and create strong brand image in the market. In the context of Tata group, innovation
and creativity has helped corporation in large manner as it improved its products and services
and deliver effective customer satisfaction. Company have focused on the blue Ocean strategy
and business innovation model for improving its product and service innovation and creativity.
This strategy is a method of value creation and the exploration of non-customer creates a blue
ocean new market (Erkens, Hung and Matos, 2012). Organisation requires building their blue
ocean strategy in the sequence of buyer’s utility, price, cost and adoption. With help of blue
ocean strategy, company can easily diagnose the action framework that company requires in
future. This is usually used as an innovation technique and helps organisation in identifying the
areas where invention can occur. Blue ocean strategy can be used for both business model
generation and innovation.
Tata company have focused on the strategic alliance and merger and acquisition strategy in
order to enter into the new market. With help of these strategies it has successfully entered in the
new market. Tata have the mix of resources and capabilities to bring the digital and mobile
technologies together in order to achieve its aims and intentions.
Strategic alliance is an agreement between two and more parties to pursue a set of agreed
objectives needed while remaining independent organisation. It is an agreement between two
parties that have decided to share resources to undertake a specific, mutual beneficial project.
Tata Group has used this strategy in its business and expand its programs and functions in
significant manner. Another strategy it uses in the business is merger and acquisition. In this
strategy, two companies convert in one organisation. Merger is combination of two companies to
form one while acquisition is one company taken over by other organisation. Tata group have
effectively used this merger and acquisition strategy in its business for entering into the new
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market. With help of merger and acquisition strategy, organisation can effectively work with
other companies and improve its performance. With help of the strategic alliances and merger
and acquisition strategy, company have successfully implemented innovation and invention in its
product and services (Wintoki, Linck and Netter, 2012). Tata steel company have launched
Pravesh wood finished steel doors in financial year 2015-15. The expansive OEMs are served
straightforwardly through 20+ deals workplaces crosswise over India. Goodbye Steel Limited
has persistently put assets and endeavours in building cross-practical Customer Service Teams
for key records to encourage fabricate and support connections at different levels of the
association. For the Automotive portion, Tata Steel Limited expanded its piece of the overall
industry from 42% to 44% in Financial Year 2014-15. In Tata Steel Europe, the market
separation procedure proceeded in segments i.e., car, development, bundling, rail, lifting and
excavating, vitality and power segments. Goodbye Steel Europe's new item improvement process
was distinguished as one of the Tata Group's "Promising Practices". Goodbye Steel Europe
marketed 30 new items amid Financial Year 2013-14. This year, a record 35 items were
propelled. There are currently more than 110 new items financially accessible.
As per the discussion it has been assessed that with help of merger and acquisition
strategy at global level company has successfully improved its business and earn effective
profitability in the market.
Question Three: Corporate Governance, corporate social responsibility and Leadership
Corporate governance is the system of rules, practices and processes by which
organisation is controlled, directed and managed (Harford, Mansi and Maxwell, 2012). It
includes several policies, practices and strategies that helps to firm in managing and controlling
its business so as all activities can be carried out by company. Governance structure and
principles identifies the distribution of rights and responsibilities among various participants.
Corporate governance alludes to the assortment of principles, control, strategies and practices
which each organization need to follow in their business exercises and capacity. It gives
powerful security and health to each business venture so as deceptive and unlawful exercises can
defeat the market (Tricker and Tricker, 2015). With help of the Corporate governance,
organization's capacity and exercises are methodically coordinated and controlled. It is a strategy
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for controlling and representing the organization like a sovereign state, instating its own
traditions, strategies and laws to its workers from the features to the most reduced level.
Standards of Corporate governance
Following are some real standards of Corporate governances that have followed by the Tata
group in its business-
Shareholder recognition- The real guideline of Corporate governance is to perceive investors. It
is a key to keep up stakeholder ship's stock cost (Blair and Roe, 2010). Powerful Corporate
governance tries to ensure that all investors gets a voice at general meeting and are permitted to
take part. Tata group have always recognised its stakeholders by providing them accurate
information regarding business activities, functions and financial performance.
Stakeholder interest- According to the rule of Corporate governance, stakeholder intrigue
should be perceived. In addition to this, there must be a successful and positive connection
between the organization and its investors. Tata group have effectively considered interest of
stakeholder in each and every business decision making by which it have successfully performed
at global level and developed impressive corporate strategy.
Ethical behaviour- Ethical conduct is another significant standard of the Corporate governance
under which a set of accepted rules with respect to moral choice ought to be set up for all
individuals from board. In the context of Tata Group, it has effectively followed the principles
and practices of corporate governance (Giroud and Mueller, 2010). It evolved and followed the
corporate governance guidelines and best practices sincerely to not just boost up long term
shareholder value but also respect minority rights. Tata group chairman always conducts one to
one meeting with independent director and the chairman of nomination and remuneration
committee has one to one meeting with executives and non-executive directors.
It always follows the corporate governance guideline and best practices by disclosing
timely and accurate information regarding financial performance and leadership of company. It
always discloses fair information regarding the revenue, profitability and other business decision
in front of stakeholders like employees, customers, government, suppliers etc. In senior
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management includes the parties such as nominations committees, remunerations, audit
communities, non-executive directors etc. (Armstrong, Guay and Weber, 2010). In the Tata
group, these all members have effective contribution in the corporate governance board of
director are responsible to develop the strategic management policies and practices.
Tata companies are involved in wide variety of community development and project for
supporting environmental preservation. Tata's has developed a group social activities to promote
health, primary education, skills training and entrepreneurship, livelihoods, women
empowerment and strengthening services. Company work towards empowering people by
helping them develop the skills they need to succeed in a global economy. This initiative of Tata
is consolidated into a CSR programme called Tata Strive. This programme includes education of
children and encouraging them by showing importance of education. TATA Steel and its
subsidiaries provides business opportunities to small and underprivileged business units.
Company has developed many institutions like R.D. Tata Technical Education Centre, National
institutes of Technology to encourage higher education among youths in order to serve nation
more effectively (Giroud and Mueller, 2011). Tata group is involved in a variety of community
development and environment preservation projects. It organises social activities, health care
program, community health activities, primary education, skill training, women empowerment,
livelihood and strengthening service for the different abled. With help of effective corporate
social responsibility, Tata group have successfully developed its strong position in the market.
Following are various CSR activities of Tata group-
 Education and training- Tata group have organised adult literacy program for over
15000 adults. In addition to this, 49000 students in 383 government school were covered
under the mid-day meal schemes.
 School project- Tata group have opened school project in many blocks such as Jaipur,
Keonihar, Sundergarh in the Odisha.
 Scholarship- Company have launched new scholarship program like Tata steel scholar. It
has main purpose is to support bright SC/ST students who are pursuing professional
course from reputed institutes.
 Agriculture- Tata group have provided livelihood opportunities to more than 6000
farmers through agriculture development.
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 Renewable energy- As per research it has been found that in the Jharkand and Odisha,
Tata group have installed 1400 solar street lights in the solar street light project.
 Ethnicity- Tata group have followed several ethics related to the society, customer,
employees etc. It has worked with several facets of tribal culture such as tribal dance,
music, etc.
As per the above discussion it been analysed that there are various kinds of CSR activities that
has been organised by the Tata group. This CSR activity contributes to increasing company’s
value in a strategic and sustainable way. These all corporate social responsibility activities
helped company in maintaining its corporate image in market and sustain in the competitive
business environment for long time (Bhaduri and Selarka, 2016). Corporate Social responsibility
approach adopted by TATA company shows that group evolves and executes strategies to
support community development in stakeholder ships with government, civil society and relevant
stakeholders. Company has motivated employees to be the part of this social activity and deliver
their responsibility by acting as integrated group. Employees of TATA are encouraged to deliver
quality services to their clients, uses their experience and talent to serve communities and help
them to raise their business. TATA is among the top 10 corporate volunteering programmes in
the world.
Question 4: Personal reflection on learning
From this entire analysis and discussion regarding global steel manufacturing industry I
have assessed that with help of strategic alliance's corporation can easily work with another
company and share their resources to undertake specific and mutually beneficial project. I have
analysed that Tata Group have successfully improved its revenue and profitability in the
competitive business environment with help of strategic alliances. I have learnt that Tata group
have successfully performed at global level and it clearly focused on the internationalisation with
contribution of international operations to the revue having gone up to 61%. Thus, from this
study, my knowledge an understanding about the Tata group success story has been improved.
Further I have also acknowledged that with help of several corporate strategies like strategic
alliances, merger and acquisition, Tata group has successfully improved its profitability and
market share. I have learnt about the merger and acquisition strategy under which two companies
joining together to become one corporation. It is a kind of growth strategy by which organisation
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have chance to improve their resources, capabilities and equipment’s through which it can
improve their profitability. I have learnt that Tata group have range of product and services in its
portfolio like air conditioning and refrigeration, chemicals, construction equipment. Steels,
consumer products, defence and aerospace, drugs, engineering services, financial services, hotel
and hospitality, investment services, logistics, media and entertainment, mining, renewable
energy, retail chain, steel product and services, telecom product and solutions etc.
From the above analysis I have been assessed that Tata group continues to follow the
inorganic route to growth, the challenges of integration required to be carefully dealt. In the
present time, Tata Group comprises 96 companies and operates in 6 continents. It has more than
3500000 numbers of employees who continuously involved in business for improve business
performance and profitability.
By conducting research study upon the Tata group, my knowledge has been improved in
this sector as I have acquired knowledge regarding corporate strategy, its significance, impact in
the business, corporate social responsibility, corporate governance etc. By conducting this
investigation on the Tat group, my research and analytical skill has been also improved. In
addition to this, I have improved my knowledge regarding external and internal business
environment, its associated factors that affect organisation performance. I have learnt about the
business policies and strategies that helps to Tata Group in improving business position and
competitive advantage.
CONCLUSION
From this entire study it has been concluded that in order to earn maximum success and
profitability in the market, organisation must have to focus on corporate strategy. With help of
Merger and acquisition strategy, Tata Group have successfully improved its innovation and
creativity along with product and services. It has been also concluded that Corporate governance
alludes to the assortment of principles, control, strategies and practices which each organization
need to follow in their business exercises and capacity. Tata has developed a group social
activities to promote health, primary education, skills training and entrepreneurship, livelihoods,
women empowerment and strengthening services.
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REFERENCES
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Wintoki, M.B., Linck, J.S. and Netter, J.M., 2012. Endogeneity and the dynamics of internal
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Online
PESTLE Analysis, 2017. [Online}. Available through.
<https://www.swotandpestle.com/marks-and-spencer/>
through.<https://www.swotandpestle.com/marks-and-spencer/>
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