House of Tata: Acquiring a Global Footprint Harvard Case Solution & Analysis

House of Tata: Acquiring a Global Footprint Case Solution

Globalization Strategy of Tata Group

The company acquired many properties, particularly for the hoteling business. The Tata group initially used acquisition strategy for its hotel business, as the business was among its earliest additions in the whole portfolio. In addition, the company faced several losses in the initial acquisition strategy. However, the company shifted its strategy to small equity position since the company faced significant losses while purchasing hotels outside its home country. (Boundless, 2016)

Globalization strategy of Tata Hotels

            The company firstly purchased properties for its hotel business in New York, Washington DC, and Chicago. However, the company failed to produce significant profits. Therefore, the company sold its business and divested the less profitable units. The company shifted its strategy and started to purchase higher end properties by taking small equity portion to keep the risk lower. Finally, the company established its presence in stable and high-end markets to stay profitable by lowering down the operational and strategic risk.

International Growth Strategy for Tata Tea

            The company was successfully doing business in Indian market, but the company was facing slow growth in the Tea industry. Therefore, the company decided to move to the international market. The company first acquired an English company called Tetley, which was the most expensive acquisition by an Indian company in 2000. The company also decided to make its tea a valuable brand and the company therefore decided to use mergers and acquisitions (M&A) strategy as the best way to expand in the global market. Moreover, the company also acquired a US based company, which was Czech tea, the acquisition of Czech Tea allowed the company to enter the segment of flavored tea and to expand its product line.

Tata Steel expanding the global Market

            Tata steel also acquired many companies to make a strong footprint in the international market. The company first acquired Mat Steel Asia in order to enter the stable and emerging markets in Asia. The acquisition gave the company entry to Malaysian and Chinese market; the Chinese market was very important for the company, as the per capital income of the country was six times higher than India. Afterwards, the company also signed a joint venture with a Japanese company and finally, the company become the world’s 6th largest steel producer after its acquisition of Corus.House Of Tata Acquiring A Global Footprint Case Solution

Role of the Tata Group Center in International Expansion

            Tata group center plays a vital strategic role in the company’s international growth; it helped the company to make integration among its strategic goals and their implementation. Moreover, the center helped the company to establish offices at pioneer locations, which allowed the company to coordinate with the regulatory bodies and media. Moreover, the center also allowed the company to promote its brands and create public awareness, while it also contributes to the company by performing effective and efficient promotion.

            Afterwards, the center also allowed the company to make integration among its acquired companies during and after the acquisition process. The most valuable advantage of the center was that it allowed the company to maintain centralization among the local and international companies, which fall under the Tata Group...................

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