HOUSE OF TATA Harvard Case Solution & Analysis

Abstract

The case discusses the globalizationstrategy ofthe biggest giantof India“TATA”, which has been operatingin the industry for more than 100 years, with 3200000 employees worldwide and 130 companies publically owned. Tata groups operates in the industry through mergers andacquisition.The company offers the services of supply chain, distribution and along with other offerings in consumer goods liketea. Thecompany has also enteredinto steel industry through accruing Corus, which offers it to elevate its global position on 6th numbers among 56 largest companies in the world. Recently the company is seeking to acquireJaguar and LAND ROVER, andSBU of Ford Motors, which is facing losses in Europeanmarket. Tatagroup has notacquired any of the loss bearingproject before, yet the acquisition offers a gateway to the company to enter in European markets.

HOUSE OF TATA Harvard Case Solution & Analysis

Keywords:  Mergers &Acquisitions, Jaguar, Land rover, Globalization

Assess the global strategy of TATA group- Tata Tea, Hotels and Tata Steels?

TATA TEA

Tata tea served as the tea producer in Indian market and offered the country tea, as a supplier in the market.Laterthe company stated making its own brandtea. InIndian market, tea is taken as a commodity product, and since there are other big players in market, Tata tea faced immense competition and rigor market landscape, to acquirethe market shareand increase the sales.Thus encountered loses.Dueto this, the company strategized to offer the teaintoglobalmarket, especiallyEurope and Middle East where the teaconsumption is high.

Doing this, the company acquired the Tetley tea, a Europeanbrand which sixed 3 times bigger than Tatatea. Theacquisitionincreased the footprint of Tatagroup in global world.Toconsolidated the tea supply in major regions like Europe and Middle East.

In acquiring the Tetley, the company farmed the following global strategy, so to align the function of both the companies, in order to hold the competitive advantage in the market. The company acquired Tetley in 2000 and transformed its overall brand image and business strategy, to harvest the best outcomes of the merger. Also the company incorporated the business strategies of both companies and developed a unified corporate strategy, to serve the European and Indian market under one-brand strategy.

Followed the year, Tata tea also acquired the local tea companies, in Germany and France to increase its footprint in European region and increase its market share by,strengthen its distribution and supply chain.Since, the company itself is the pioneer in producing tea, the company utilize the resources in maintaining low cost ofoperations, and thusincreased its revenues in the long run. AlsoTata group took the advantage of its agricultural basein India, which enabled the company develop its core competence in European region.

TATA STEEL

Tata group and Mittal steels are the largest steel producers and distributors in the steel industry. Recently Mittal steel a biggestcompetitor of Tata group acquired Arceler, which itself is the combination of three other countries. The acquisition gavethe strength to the Mittal group to consolidate its supply chain and manage its resources effectively, to reduce the cost of the operations. Observing the advantage, Tata group also acquired the Corus, a European steel company to increase its footprint in European market and reduce the supply chain management cost. The acquisition enabled the company to enter into Europemarkets. Also, the company increase its global presence, by acquiring the local companies in Australia Philippines, China and Vietnam and expanded its competitive advantage,by increasing its power and market share in steel industry and globally both.Also the company practiced the joint venture and strategic alliancesstrategy,to enter into different market, making it the one of the biggest company in steel industry................

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