Introduction: The Tata Group and Its Story
The Tata Company, whose headquarters are based in India, deals with the steel processing and production. According to the existing records, the company started its growth after purchasing the shares for Corus, an Anglo-Dutch steel company (Freeman, Gopalan, & Bailey, 2009, p. 2).
The Current Strategy in the Global Context: Taking a New Course
At present, two major tendencies can be observed in Tata, i.e., the tendency for growth and acquisition.
Concerning the benefits: stretching worldwide
There is no doubt that the acquisition through growth strategy opens a whole pool of new opportunities for Tata, one of which is joining the world market. To start with, the Tata Group’s authority is going to grow increasingly with every new acquisition (Trivedi, 2012).
Another obvious advantage that the chosen strategy involves being able to analyze the chosen market closer and learn more about what customers demand.
After processing the data concerning customers’ demands obtained from different affiliates of the Tata Group, one will be able to provide the products that will satisfy the needs of the majority of the target population (Vora, 2013).
The last, but definitely not the least, the power of such brands as Jaguar, whose shares Tata Group has recently bought, will also add to the profitability of the company.
It is worth mentioning, though, that Tata should As Bajaj explains, “Tata Motors appears to have succeeded in large part because it did not seek to run Jaguar Land Rover from Tata headquarters here.
Instead, it has left day-to-day management in the hands of executives in England” (Bajaj, 2012).
Assessing the risks: financial policy and the related issues
Among the most obvious obstacles that the company is likely to face in the course of adapting towards the specifics of the world market and, more importantly, merging with the companies that exist in differently cultural settings.
The PEST evaluation will be required to represent the issue more graphically:
Judging by the above-mentioned evaluation of Tata’s greatest risks concerning the growth through acquisition plan, the Tata Group’s greatest risk is signing the wrong company up for partnership. To avoid this risk, the company will have to develop a flexible system of risk assessment.
Conclusion: There Is Yet Much to Strive for
Judging by the current situation, there is still a number of steps to be made for the Tata in order to achieve worldwide success.
However, to the company’s credit, it has enough potential to achieve success; and, which is even more important, Tata is worth this success. Having much to offer to its customers, the company definitely has the potential for further development.
Reference List
Bajaj, 2012. Tata Motors Finds Success in Jaguar Land Rover. Web.
Freeman, K, Gopalan, S, & Bailey, J 2009, ‘Achieving global growth through acquisition: Tata’s takeover of Corus,’ Journal of Case Research in Business and Economics, vol. 1 no. 1, pp. 1–17.
Trivedi, A 2012,’Ratan Tata, the man who brought Tata to the world,’ India Ink, n.p. Web.
Uemura, A & Shirai, M 2003, ‘New Technologies for Steel Manufacturing Based upon Plant Engineering,’ NKK Technical Review no. 88, pp. 37–45.
Vora, S 2013, ‘India’s Tata Group maps U.S. expansion,’ India Ink, n.p. Web.