Background on the Tata Group
This assignment is about the Tata group and its various subsidiaries. Tata is an Indian organization or a brand that is run by Ratan Tata. Despite being an Indian brand Tata has successfully made a place for itself in the international market. Tata is known for the acquisition of the luxury car brand jaguar and land rover and for its cheapest car called Nano.
1. The Tata firm has various advantages and they use these advantages in a proper manner to become large industrial conglomerates. These advantages are as under (Kalsi, 2014):
- It has a vast financial resource and can assess to capital market for money on its own terms.
- The firm has a strong corporate image in the Indian as well as the international market.
- The firm has countless high reputed business partners that give them another reason of competitive advantage (Shetty, 2017).
1B. Tata is already succeeding in emerging foreign markets like South Korea, Kenya etc. The company has a vast financial reserve to finance its various international projects (Shekhar, 2017).
- Its strong corporate image is another advantage that the organization can easily put in use to become a large industrial conglomerate on international level.
- The organization has a steel plant and has recently purchased another plant of steel that has increased its steel producing capacity by 5 times, again an advantage to become industrial giant internationally.
2. India is a country, where the government imposes hundreds of restrictions over the import and export of the businesses. The numbers of legal conditions that are to be satisfied by the business houses are so many that, it becomes almost impossible for small or middle level of firms to rise (Shah, 2016).
2B. In the year 1990 when the liberalization policy was introduced, it was the time when Tata became almost free to internationalize there business, it was the time when government intervention decreased and the international operations of Tata flourished. Tata can manage country risk in India and in other countries by studying political risk, legal risk and environmental risk (Kukreja, 2016).
3. Tamo or the Tata motors should concentrate on countries like Thailand, Vietnam and Indonesia. These countries have a vast population that would love to own a 5 seated cheap car. Tamo should choose these countries as they are the markets that will give instant positive results. Another reason that why they should choose these countries because due to acquisition of jaguar and land rover their international worth has increased which is a plus point in their goodwill.
3B. The country level factors are the factors that an organization needs to face when it is planning to expand its business on domestic or on international front. There a number of country factors such as income of the people, economic condition of the country, political conditions and the environmental conditions of a country. The potential implications of these factors are many and these are discussed below (Anand, 2014):
- The income of the people of these countries are quite low which can seriously impact the operations of the the organization. For example, if the organization plans to manufacture a car having a very low price tag and people who have low earnings will not go for a car they will go for savings instead.
- Economic Conditions: A country level factors are those factors that talks about the positive or negative impact of a countries different situation over the operations of business, Kenya & Africa are those countries that do not even have proper means of fulfilling their basic needs. In such countries, even if the Tata organization set up its business then they will not be able to succeed as the economic conditions in these are not quite favorable.
- Political Factors: These factors do effect the business operations, prior to the period of liberalization the Indian market was struggling to get basic earnings for them. The introduction of this policy made the market open for many global brands which brought boom in the Indian market. So it is always said that before entering into the market of a new country, the organization must study its political factors with due consideration so that they do not fall on their face afterwards due to harsh political strategies.
4A. Corporate social responsibility is the responsibility of the organization or an approach by the organization to develop or to create products or services that are meant for the welfare of the society and the environment. Tamo being the biggest organization of India and having all the access to the capital market and it itself have a strong financial status can really improve the scenarios of some of the emerging markets, this will not only make them more responsible but will also bring them as socially strong organization on the international platform. The organization can build various public utilities in the country like Kenya or Africa. These countries have less or no access to even basic education. Tamo can start programs to educate the peoples of these countries not only to look good but also to prove the world that Tamo is really concerned about its corporate social responsibility (Network, 2018).
4B. Tamo motors being one of the largest motor vehicle organization of the world has several eyes on their operations and on even on their minimal movements. Tamo has built goodwill for itself that states that this organization is not only financially strong but has a very clean image in terms of doing business. Tamo can reduce the environmental effects in Asia and elsewhere in the following ways (C, 2016):
- By using recycled material in the manufacturing of their cars,
- By manufacturing motor engines that emit no or very less pollution.
- By building engines that is fuel efficient, as if the engines are fuel efficient there will be less consumption of the natural resources.
- By giving free check of the vehicle after every 6months, to check if the engines are doing well in terms of pollution emitting.
Conclusion
Tata despite being the India’s biggest business house is an organization that has a very clean and decent history. It has never indulged in any business war or has never used any malpractice to earn profits. The final conclusion about Tata is that this organization has come a long way and still have a long way to go.
Anand, K., 2014. Top five factors that are likely to chart market direction this week. The Journals of Economic Times, 10(50), p.40.
C, P.V., 2016. How Tata Motors is Going Green. The Journals of Indian Businesses, 40(130), p.52.
Kalsi, A., 2014. Competitive Advantages of TATA Motors. Economic Journals of Indian Organization , 12(30), p.40.
Kukreja, R.K., 2016. Tata Motors International Business Strategy. Journals of Big Business Gaints, 13(20), p.30.
Network, I.C., 2018. Tata Motors spends Rs. 25.94 Cr on Corporate Social Responsibility programs. India CSR , 23(200), p.43.
Shah, M., 2016. Doing Business in India. International BusinessJournals, 3(140), p.40.
Shekhar, M., 2017. A Study on Capital Structure of Tata. Indian Journals Times, 10(30), p.43.
Shetty, S.N., 2017. Tata motors. Business Journals, 3(120), p.10.
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