Strategic Planning for Tata Motors: Germany Market Entry Report

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Added on  2022/09/18

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This report assesses the business environment in Germany to determine the feasibility of Tata Motors' market entry, considering Brexit. The analysis employs the PESTEL framework to evaluate the political, economic, social, technological, environmental, and legal factors impacting Tata Motors. The report highlights Germany's technological advancements, environmental challenges, and legal environment, offering a comprehensive view of the strategic landscape. It analyzes key strategic issues, providing recommendations for Tata Motors to navigate the complexities of the German market. The analysis also leverages Porter's Five Forces and SWOT analysis. The conclusion supports the strategic choice of Germany for Tata Motors' long-term benefits, emphasizing the importance of strategic management tools in decision-making.
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Technological environment in Germany
The technological environment forms another crucial part of the PESTEL analysis and it
assists in ensuring that the country is able to remain updated with respect to the latest
developments which take place. According to Ansoff et al. (2018), Germany is often identified
as the leading car manufacturing nation and hence, there are no such issues related to technology
in the country. The country is the 5th best technologically advanced country present around the
globe and has a proud generation of innovation and research. The country has a global market
share of 14% and tends to employ all the techniques relating to the green products, services and
processes (Morden 2016). The country is investing heavily in the field of Artificial Intelligence.
Moreover, being the global motor leader, the country choice would be a good fit.
Environmental factors in Germany
The tourism can be understood to be a major industry in Germany and contributes to
around 4.5% of the national GDP. The culture, history and cathedrals are popular amongst the
masses. However, the country is based by some enormous environmental challenges and faced
global warming challenges (Hill 2017). In addition to this, water pollution, air pollution, acid
rain and emission issues are a common part of the country. The government of the country has
been adopting initiatives to undertake some method so that the burning of coal can be limited.
Legal environment in Germany
The Legal environment can be understood to be the last part of the PESTEL analysis. The
German law believes that there is no difference between the German nationals and foreign
nationals regarding the investments which are concerned and hence, the government rules allow
the presence of all kinds of investments in the particular country (Lasserre 2017). This can make
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it considerably convenient for the Tata Motors to invest in the country and carry out its
operations successfully. The firm looks out for sustainable ideas before testing the nationality of
investment.
Conclusion
Therefore, from the given analysis it can be largely understood that, the report examined
the overall business environment of the country and based on this, the decision regarding the
investment opportunity of Tata Motors has been assessed. The report follows a comprehensive
format which has outlined the different Strategic Management tools which can be made use of in
order to engage in the analysis of the external and the internal environment of the firm. Various
tools like the Strategic Management tools of PESTLE, Porters Five forces and the SWOT
analysis has been made used of. Hence, from the research it can be stated that making the choice
of Germany can be considered to be beneficial for Tata Motors in the long run. The use of the
Strategic Management tools can be taken to be a wise choice while taking decisions.
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References
Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R., 2018. Implanting
strategic management. Springer.
Hill, T., 2017. Manufacturing strategy: the strategic management of the manufacturing function.
Macmillan International Higher Education.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Morden, T., 2016. Principles of strategic management. Routledge.
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