TATA MOTORS-JAGUAR LAND ROVER ACQUSITION
Table of Contents
Executive Summary 3
Introduction 4
SWOT Analysis of Ford Motor Co 5
Business Strategy of Ford 6
SWOT Analysis of Tata Motors 7
Why Acquisition 9
Future study 9
References 10
Executive Summary: This project aims at analysing the acquisition of Jaguar Land Rover by Tata Motors. Jaguar and Land Rover brands were held by Ford Motor Company. Ford had acquired Jaguar in 1989 and Land Rover in 2000. This project analyses the causes of selling of both the brands by Ford at a price half of what it had paid to acquire them. Further this project looks into the strategy behind Tata Motors acquiring these global brands. Tata Motors were in a process of expanding their global presence through various mergers and alliances. They had alliances with various international firm for mutually beneficial purposes. In this background, acquiring Jaguar Land Rover is of high importance in their strategy. It further studies the synergies between the firms and critically analyse the acquisition decision. The gains for both the firms from a merger are studied. The post-merger operation strategy and performance is also taken up in the study. It has been observed that though the immediate effect on the share values and financial ratings were negative, in due course the deal has proved to be highly beneficial.
Introduction:
Tata Motors a subsidiary of Tata group was founded in 1945 as a manufacturer of locomotives. They entered Commercial vehicle sector in 1954, entered passenger Vehicle market in 1991, launched Indica in 1998, acquired Daewoo’s truck manufacturing unit in2004,Acquired 21% stake in Spanish bus and coach manufacturer Hispano Carrocera in 2005, Established a JV with Brazil based Marcopolo, in 2006 for building buses and coaches.
The Vision of Tata Motors (Passenger Car Business Unit)
References: * 2007-2008 Annual Report, Tata Motors * Tata Motors- Speed Breakers Galore ( ICMR Case Study) * Cross Cultural Management Integration in M&A.M&A’s from China and India to mature markets in two key sectors- Vladi Finnoto * Financial and Strategic Analysis of Tata Motors- Miel van Blitterswijk & Rosen Karadzhov * KPMG’s India Automotive Study 2007- Domestic Growth and Global Aspirations * http://en.wikipedia.org/wiki/Jaguar_Land_Rover * http://en.wikipedia.org/wiki/Tata_Motors * www.tatamotors.com * www.jaguarlandrover.com/