International Expansion: A Case Study of Tata Group's Management

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Case Study
AI Summary
This case study delves into the international management strategies of the Tata Group, highlighting both successes and areas for improvement. It identifies the lack of managerial power in successors as a primary problem, alongside secondary issues like unclear strategies for foreign market expansion and handling acquisitions like Corus. The analysis underscores Tata's strong brand reputation and the potential for growth in Western markets through strategic joint ventures, such as the one with British Petroleum. The study suggests alternative strategies, including business innovation models and consolidated takeover approaches. Recommendations focus on increasing market share in retail, investing in Western markets, and utilizing joint ventures effectively. Implementation, control, and follow-up plans emphasize proper market assessment and monitoring by the executive committee, ideally under the guidance of Ratan Tata before his retirement. The case study concludes by referencing relevant academic sources.
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Running head: INTERNATIONAL MANAGEMENT
International Management
Name of the Student
Name of the University
Author Note
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1INTERNATIONAL MANAGEMENT
Table of Contents
1. Source problem............................................................................................................................2
2. Secondary problem......................................................................................................................2
3. Analysis.......................................................................................................................................2
4. Alternatives..................................................................................................................................3
5. Recommendations........................................................................................................................4
6. Implementation, control and Follow-up......................................................................................4
7. References....................................................................................................................................5
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2INTERNATIONAL MANAGEMENT
1. Source problem
The source problem for this case study is the lack of the managerial power of the
successors of Ratan Tata since the expansion of the company will need much effort from the
managers and make joint ventures for the future sustainability (Cartwright & Cooper, 2012). The
traditional views of the company could also affect the operations of the company in better ways.
The Tata managers also have not showed much interest in showing the dominance in the
emerging markets.
2. Secondary problem
There are some secondary problems in this case study as well. As per the critics, it can be
said that the Tata Group of Companies have not been applying the strategies to their operations
that would be much beneficial for their foreign market expansion (Kotabe & Helsen, 2014).
There have not been much clear plans on how the company will handle Corus and its operations.
They also have not been able to make high bids for the Land Rover and Jaguar because of the
high entry costs (Cartwright & Cooper, 2012).
3. Analysis
As per the critics of the case study, it has been found that the Tata is the leading
conglomerate company in the entire India. The various types of business services and products
will be very much important for the growth of the company in the Western markets. During the
study, it has been found that the company has grown up to be the biggest producer of their
products in abundance (Yan & Luo, 2016). Ratan Tata is considered as the main man behind
implementing the projects within the country. The executives of the company have not shown
much interest in the bidding process for Land Rover and Jaguar. The company has been facing
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3INTERNATIONAL MANAGEMENT
some problems in their profit margins for the lack of leadership expertise. There are the
opportunities for the company that they can earn millions of dollars by profits. As they have
begun to joint venture with British Petroleum (BP) it will probably bring a positive change to
their operations.
It is very important for the company to analyze the opportunities they have in front of
them. They must know that they have a huge market share and a good brand reputation due to
the image of Ratan Tata. This will surely be beneficial for the organization to raise the profits.
Ratan Tata has always favored the innovation process for the proper growth of the company. He
had initially dreamt of the car made of plastics (Yan & Luo, 2016). This would seem to be an out
of the box thinking. The services and products have been increasing as per the words of the
critics. The major services and products like the Tata Steel, Tata Motors, Tata Tea and many
other brands. Some of the executives have not been interested in the foreign market expansion
for some definite reasons (Baker, 2014). The comparisons between that of India and China had
been made to prepare the various strategies for the foreign market expansion. These things could
be the basic steps for the future market success according to the words of the scholars (Anuradha
2016).
4. Alternatives
The alternatives could be suggested that the company should look to implement some
alternative strategies (Gillespie & Riddle, 2015). They might intend to make a proper business
innovation model to cater to the cause of the foreign market expansion. The takeover of the
Corus Group and joint venturing strategy with the British Petroleum should be more
consolidated. The transformation of the company should be the primary focus of the company
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4INTERNATIONAL MANAGEMENT
(Baker, 2014). The successor of Ratan Tata must be eyeing for the global expansion as the
company should look to increase their revenues.
5. Recommendations
Some recommendations should be given in this section to judge how the company can
flourish more in the Western countries. As the critics have argued, there are huge resources for
the future success of the company (Armstrong et al. 2015). Tata can look to increase their market
share in the retail industry. This should be much beneficial for them if they look to grab a large
portion of the Asian market (Morgan, 2012). The focus of the executives must be on investing
more money on the Western markets and competing with the Western conglomerates. These
promising markets should be utilized by making joint venturing strategy in the best ways
(Armstrong et al. 2015).
6. Implementation, control and Follow-up
The plan for the joint venturing strategies should be implemented properly by assessing
the market size and the need for the proper resources within the region. The control of this
program must be in the hands of Ratan Tata before he decides to retire. The proper monitoring
and follow up should be made by the executive committee of the company positively.
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5INTERNATIONAL MANAGEMENT
7. References
Anuradha, B. A. (2016). Management Challenges in Uncertain Environment. Universal Journal
of Management, 4(8), 432-443.
Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing. Pearson
Australia.
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction.
Baker, M. J. (2014). Marketing strategy and management. Macmillan International Higher
Education.
Cartwright, S., & Cooper, C. L. (2012). Managing mergers acquisitions and strategic alliances.
Routledge.
Gillespie, K., & Riddle, L. (2015). Global marketing. Routledge.
Kotabe, M., & Helsen, K. (2014). Global marketing management.
Morgan, N. A. (2012). Marketing and business performance. Journal of the Academy of
Marketing Science, 40(1), 102-119.
Singh, S., & Srivastava, P. (2012). The turnaround of Tata Nano: reinventing the
wheel. Vision, 16(1), 45-52.
Yan, A., & Luo, Y. (2016). International Joint Ventures: Theory and Practice: Theory and
Practice. Routledge.
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