Tata Group Harvard Case Solution & Analysis

The Tata group has emerged as an one of the conglomerate in the business world. There is no sector in which TATA group has not sealed its mark of success and glory with pride. It is the one of the largest shareholder of Indian capital market. A century ago, no one could imagine that this group will be responsible for providing the largest number of employment in India and would lead 96 companies itself. This group has served India through its various innovative moves which have shown its presence in each and every sector that contributes towards Indian economic growth. These sectors include manufacturing, telecommunication, consultancy based companies, food and beverages and much more.

After recession, it has been observed that multinationals of the world have forgotten their corporate social responsibilities and are engaged in maximizing their profits by making large investments on their brand marketing strategies. However, among all those multinationals TATA group has maintained an excellent balance between its company’s growth and its contribution in making the society a healthy place where people could enjoy their existence.

Every corporate comes into existence for a long term strategic goal, for the same purpose TATA focuses on the sustainability of its growth and does a continuous gap analysis in the market so that they could grab opportunities in it. For this TATA invest immense time and efforts to build minds that can keep a balance between organizational sustainability and its survival goal.

SWOT

Strengths:

TATA group has earned its brand equity with the passage of time through its restless hard work and continues efforts. If people wanted to know the real meaning of diversification then they must have a look at the product portfolio of TATA group. From beverages in the food sector to the technology and communication, TATA group is famous for its brands which include Tata tea, Tata consultancy services, Nelito system, Tata communication and sky. This conglomerate has been highly appreciated on its leadership and ethical governance model.

Weaknesses

Although the corporation is growing day by day and its success stories live everywhere. The structure of the company is becoming more complicated because of its continuous marching towards diverse business unites. This could be a potential threat faced by Tata group that is highly related to its strength and with a little act of negligence could be converted into its weakness. So the company should work to organize its various business units to remove loopholes.

Opportunities

By capturing the Indian market in almost every aspect of the life Tata group is now heading towards global expansion. However, this requires a lot of homework on Tata’s end, but will increase its wealth by five folds and multiply its strengths and will provide potential growth opportunities.

The Tata group has also been a successful player in performing mergers and acquisition. Tata steel a famous name in the steel industry has acquired NatSteel Asia a Singapore based enterprise in 2005.

Threats

Operating in an environment where government policies are highly volatile and fluctuate with the changing behavior of its politicians is a challenge in itself.

It's highly suggested by the advisory to remain focused on the competitive advantages and take right moves at the right time by having eagle-eyed on the  competitor’s marketing scheme.

Business economic risk comes under non-diversifiable risk and it is a constant threat to the company. Tata Company is being aware of its risk management qualities, but no steps can be taken in advance.

Critical Issues

Tata group’s strategic move in its global expansion has shifted public attention towards its plans and policies for the international market. The conglomerate acquired its diverse portfolio, including both manufacturing and service sector through its world class mergers and acquisition from corner to corner in India. Tata group has applied the same strategy of acquiring famous brands internationally, to make its global appearance strong and sustainable.

Whereas, sustainability depends highly upon the availability of continuous financial support, as a result of which company has become able to deliver innovative and high quality products persistently. The main issue regarding Tata’s expansion strategy is that they are concentrating highly on their international mergers and acquisition, which, in their opinion will help them to expand globally. Tata is acquiring all these firms through borrowed funds that in turn had a negative impact on its financial stability..................

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