Tata Group and its Subsidiaries: Advantages, Internationalization, and Corporate Social Responsibility

This article discusses the advantages of Tata Group, including its financial resources, corporate image, and business partners. It also explores the company's internationalization strategy and country-level factors affecting its operations. Additionally, it highlights Tata's corporate social responsibility initiatives and ways to reduce environmental impact. The article concludes with an overview of Tata's history and reputation.

Introduction
This assignment is about the Tata group and its various subsidiaries. Tata is an Indian
organization or a brand that is run by Ratan Tata. Despite being an Indian brand Tata has
successfully made a place for itself in the international market. Tata is known for the acquisition
of the luxury car brand jaguar and land rover and for its cheapest car called Nano.
1. The Tata firm has various advantages and they use these advantages in a proper manner to
become large industrial conglomerates. These advantages are as under (Kalsi, 2014):
 It has a vast financial resource and can assess to capital market for money on its own
terms.
 The firm has a strong corporate image in the Indian as well as the international market.
 The firm has countless high reputed business partners that give them another reason of
competitive advantage (Shetty, 2017).

1 B) Tata is already succeeding in emerging foreign markets like South Korea, Kenya etc.
The company has a vast financial reserve to finance its various international projects
(Shekhar, 2017).
 Its strong corporate image is another advantage that the organization can easily put in use
to become a large industrial conglomerate on international level.
 The organization has a steel plant and has recently purchased another plant of steel that
has increased its steel producing capacity by 5 times, again an advantage to become
industrial giant internationally.
2. India is a country, where the government imposes hundreds of restrictions over the
import and export of the businesses. The numbers of legal conditions that are to be
satisfied by the business houses are so many that, it becomes almost impossible for small
or middle level of firms to rise (Shah, 2016).
B. In the year 1990 when the liberalization policy was introduced, it was the time when
Tata became almost free to internationalize there business, it was the time when
government intervention decreased and the international operations of Tata flourished.
Tata can manage country risk in India and in other countries by studying political risk,
legal risk and environmental risk (Kukreja, 2016).
3. Tamo or the Tata motors should concentrate on countries like Thailand, Vietnam and
Indonesia. These countries have a vast population that would love to own a 5 seated
cheap car. Tamo should choose these countries as they are the markets that will give
instant positive results. Another reason that why they should choose these countries

because due to acquisition of jaguar and land rover their international worth has increased
which is a plus point in their goodwill.
3B. The country level factors are the factors that an organization needs to face when it is
planning to expand its business on domestic or on international front. There a number of
country factors such as income of the people, economic condition of the country, political
conditions and the environmental conditions of a country. The potential implications of these
factors are many and these are discussed below (Anand, 2014):
 The income of the people of these countries are quite low which can seriously impact the
operations of the the organization. For example, if the organization plans to manufacture
a car having a very low price tag and people who have low earnings will not go for a car
they will go for savings instead.
 Economic Conditions: A country level factors are those factors that talks about the
positive or negative impact of a countries different situation over the operations of
business, Kenya & Africa are those countries that do not even have proper means of
fulfilling their basic needs. In such countries, even if the Tata organization set up its
business then they will not be able to succeed as the economic conditions in these are not
quite favorable.
 Political Factors: These factors do effect the business operations, prior to the period of
liberalization the Indian market was struggling to get basic earnings for them. The
introduction of this policy made the market open for many global brands which brought
boom in the Indian market. So it is always said that before entering into the market of a
new country, the organization must study its political factors with due consideration so
that they do not fall on their face afterwards due to harsh political strategies.
4A. Corporate social responsibility is the responsibility of the organization or an approach by the
organization to develop or to create products or services that are meant for the welfare of the
society and the environment. Tamo being the biggest organization of India and having all the
access to the capital market and it itself have a strong financial status can really improve the
scenarios of some of the emerging markets, this will not only make them more responsible but
will also bring them as socially strong organization on the international platform. The
organization can build various public utilities in the country like Kenya or Africa. These
countries have less or no access to even basic education. Tamo can start programs to educate the
peoples of these countries not only to look good but also to prove the world that Tamo is really
concerned about its corporate social responsibility (Network, 2018).
4B. Tamo motors being one of the largest motor vehicle organization of the world has several
eyes on their operations and on even on their minimal movements. Tamo has built goodwill for
itself that states that this organization is not only financially strong but has a very clean image in

terms of doing business. Tamo can reduce the environmental effects in Asia and elsewhere in the
following ways (C, 2016):
 By using recycled material in the manufacturing of their cars,
 By manufacturing motor engines that emit no or very less pollution.
 By building engines that is fuel efficient, as if the engines are fuel efficient there will be
less consumption of the natural resources.
 By giving free check of the vehicle after every 6months, to check if the engines are doing
well in terms of pollution emitting.
Conclusion
Tata despite being the India’s biggest business house is an organization that has a very clean and
decent history. It has never indulged in any business war or has never used any malpractice to
earn profits. The final conclusion about Tata is that this organization has come a long way and
still have a long way to go.
Bibliography
Anand, K., 2014. Top five factors that are likely to chart market direction this week. The Journals of
Economic Times, 10(50), p.40.
C, P.V., 2016. How Tata Motors is Going Green. The Journals of Indian Businesses, 40(130), p.52.
Kalsi, A., 2014. Competitive Advantages of TATA Motors. Economic Journals of Indian Organization ,
12(30), p.40.
Kukreja, R.K., 2016. Tata Motors International Business Strategy. Journals of Big Business Gaints, 13(20),
p.30.
Network, I.C., 2018. Tata Motors spends Rs. 25.94 Cr on Corporate Social Responsibility programs. India
CSR , 23(200), p.43.
Shah, M., 2016. Doing Business in India. International BusinessJournals, 3(140), p.40.
Shekhar, M., 2017. A Study on Capital Structure of Tata. Indian Journals Times, 10(30), p.43.
Shetty, S.N., 2017. Tata motors. Business Journals, 3(120), p.10.