Tata Motors
Should Ratan Tata acquire Jaguar and Land Rover?
New technology and markets
But they really focused on the middle class
Is M&A the best route for Tata to move forward globally?
Wanted to diversify country risk
Infrastructure lim itations
Regulations loosened
Growth of the indian economy
Watches, hotels, steel, tea
competitiveness diminished by aid from government thru tarrifs
Steel deomestic expansion or de-integrated strategy
Mature market m&a
Raw materials security
Downstream products
Logistics control
Acquisition of corus put Tata from 56th to 6thlargest steelmakjer in theworld
Global supply chain services business
Up front financial contribution with heavy risks for Corus
Jaguar and Land rover would bring well known global brands, new tecnoloy and advanced market distribution channels to thetata motrs portfolio
High debt / equity levels
So grounded in India
Maintain the character of the company versus realizing synergies
Risk averse managmenet
Tata Motors is the staple of Indian transportation and the company has grounded itself within the Indian culture for its life-span. As the company contemplates its next moves for internationalization going forward, it is important to think about the way it will integrate the companies and the techniques it will use to expand. The company must consider how the acquisition of Jaguar and Land Rover will change its core business model and culture, while also considering whether the acquisition is financially feasible. Moving forward in its globalization strategy, Tata Motors must try to find a balance between mitigating country risk, maintaining its core culture, realizing synergies, and maintaining financial health.
New technology and markets
But they really focused on the middle class
Is M&A the best route for Tata to move forward globally?
Wanted to diversify country risk
Infrastructure lim itations
Regulations loosened
Growth of the indian economy
Watches, hotels, steel, tea
competitiveness diminished by aid from government thru tarrifs
Steel deomestic expansion or de-integrated strategy
Mature market m&a
Raw materials security
Downstream products
Logistics control
Acquisition of corus put Tata from 56th to 6thlargest steelmakjer in theworld
Global supply chain services business
Up front financial contribution with heavy risks for Corus
Jaguar and Land rover would bring well known global brands, new tecnoloy and advanced market distribution channels to thetata motrs portfolio
High debt / equity levels
So grounded in India
Maintain the character of the company versus realizing synergies
Risk averse managmenet
Tata Motors is the staple of Indian transportation and the company has grounded itself within the Indian culture for its life-span. As the company contemplates its next moves for internationalization going forward, it is important to think about the way it will integrate the companies and the techniques it will use to expand. The company must consider how the acquisition of Jaguar and Land Rover will change its core business model and culture, while also considering whether the acquisition is financially feasible. Moving forward in its globalization strategy, Tata Motors must try to find a balance between mitigating country risk, maintaining its core culture, realizing synergies, and maintaining financial health.