Tata Motors Acquisition of Daewoo
Tata Motors Acquisition of Daewoo Commercial Vehicles
Table of Contents
Introduction 3
Tata Motors 3
Daewoo Motors 4
Strategic and Economic Aspects behind the Acquisition 5
Strengths of Daewoo Motors 7
The Challenges 9
The major potential synergies from the deal: Realisation of the same 11
Conclusion 13
Reference 14
Bibliography 16
Introduction
This report will look into the case of Tata motors and Daewoo Commercial Vehicle to understand the various factors in a cross border acquisition. The report would also look into the reasons for this acquisition, the integration processes and the synergies achieved after the acquisition process.
Tata Motors
The story of Tata group started back in the year 1868 with the establishment of a Textile Mill at Nagpur by Jamsetji Tata. Starting from there, the company has emerged as one of the leading business group in India with more than 90 business operations in seven different business sectors. Tata group has its operations in over 80 countries in some six continents. Moreover, the companies export their products and services in around 85 countries, which have enabled the group to earn revenue of $67.4 billion in the financial year of 2009-10. Around 57 % of this revenue was earned from the operation outside India. The group has employed more than 395,000 people across its businesses, worldwide (Tata Sons Ltd, 2011).
Tata Motors is the leading automobile manufacturer in India and is among the leading commercial vehicle companies across the globe with revenue of $20 million in the last financial year. The company has also emerged as the one among the top four truck manufacturers as well as top two bus manufacturer across the globe. Established back in the year 1945, the company now employs more than 24000 employees with a vision to be the best in its operation and to be in compliance to its value systems and ethics. Tata Motors has also got the
Table of Contents
Introduction 3
Tata Motors 3
Daewoo Motors 4
Strategic and Economic Aspects behind the Acquisition 5
Strengths of Daewoo Motors 7
The Challenges 9
The major potential synergies from the deal: Realisation of the same 11
Conclusion 13
Reference 14
Bibliography 16
Introduction
This report will look into the case of Tata motors and Daewoo Commercial Vehicle to understand the various factors in a cross border acquisition. The report would also look into the reasons for this acquisition, the integration processes and the synergies achieved after the acquisition process.
Tata Motors
The story of Tata group started back in the year 1868 with the establishment of a Textile Mill at Nagpur by Jamsetji Tata. Starting from there, the company has emerged as one of the leading business group in India with more than 90 business operations in seven different business sectors. Tata group has its operations in over 80 countries in some six continents. Moreover, the companies export their products and services in around 85 countries, which have enabled the group to earn revenue of $67.4 billion in the financial year of 2009-10. Around 57 % of this revenue was earned from the operation outside India. The group has employed more than 395,000 people across its businesses, worldwide (Tata Sons Ltd, 2011).
Tata Motors is the leading automobile manufacturer in India and is among the leading commercial vehicle companies across the globe with revenue of $20 million in the last financial year. The company has also emerged as the one among the top four truck manufacturers as well as top two bus manufacturer across the globe. Established back in the year 1945, the company now employs more than 24000 employees with a vision to be the best in its operation and to be in compliance to its value systems and ethics. Tata Motors has also got the
Bibliography: Advani, H. A. 2005. Business India, Issues 700-705. The University of Virginia. Coyle, B. 2000. Mergers and acquisitions. Lessons Professional Publishing. Defense Systems Management College. 2000. Acquisition Strategy Guide. Government Printing Office. Finkelstein, S. No Date. Cross-Border Mergers and Acquisitions. [Pdf]. Available at: http://mba.tuck.dartmouth.edu/pages/faculty/syd.finkelstein/articles/Cross_Border.pdf [Accessed on March 05, 2011]. Hubbard, N. 2001. Acquisition Strategy and Implementation. Purdue University Factor. Johnson, D. & Turner, C. 2010. International Business: Themes and Issues in the Modern Global Economy. USA: Routledge. Kohli, H. S. 2008. Growth and development in emerging market economies: international private capital flows, financial markets and globalization. USA: Sage. Kusstatscher, V. and Cooper, C. L. 2005. Managing emotions in mergers and acquisitions. Edward Elgar Publishing. Misra, S. & Yadav, P. K. 2009. International Business: Text and Cases. New Delhi, India: PHI Learning. Peng, M. W. 2008. Global Business. Cengage Learning. Robbins, S. P. et. al. 2009. Fundamentals of Management. New Delhi, India: Pearson India. Sudi, S. 2003. Creating Value from Mergers and Acquisitions. Pearson Education. Sudarsanam, S. P. 2003. Creating Value from Mergers and Acquisitions, 1st Edition. FT Prentice Hall.