Essay on Case Study: Tata Motors Acquisition of Jlr

1593 WordsNov 28, 20107 Pages
------------------------------------------------- CASE STUDY: Tata Motors Acquisition of Jaguar and Land Rover in 2008 ------------------------------------------------- VenkitV Introduction India-based Tata Motors Ltd. successfully acquired two British automotive brands – Jaguar and Land Rover (JLR), in June 2008 from Ford Motors for $ 2.3B. As part of the deal, Tata Motors gained 100% stake in companies, 3 UK plants, 2 advanced design and engineering centers, 26 national sales companies, IP rights, $1.1B in capital allowances for taxes, and $600M in pension contributions. In order to facilitate the deal, Tata Motors raised $3B through bridge loans through a number of banks, including JP Morgan, Citigroup and State Bank of…show more content…
Will Tata Motors be able to achieve its desired results for purchasing Jaguar and Land Rover? This acquisition highlights the underlying need for Tata Group’s global growth. Enclosed below is the Strengths and Weakness section of the SWOT analysis, which is used to determine whether the goals are achievable. STRENGTHS | WEAKNESS | * A strong reputation for successful acquisition and integration of other automotive companies. (Daewoo) * Experienced management capability and human resource capacity. * Strong balance sheets, due to diversified non-automotive product portfolio. * Established synergy of Corus, TACO and TCS. * Developing and creating brand value and experienced new product development and deployment process. | * Inexperienced in luxury automobile branding. * Inexperienced in turning loss-making ventures; prior to the acquisition (except NELCO), Tata Group had acquired already successful brands. * Lack of global R&D and design capability, compared to its competitors. | What steps could it take to add value to the acquisition? On acquiring JLR, Ratan Tata, Chairman, Tata Group, said, “We are very pleased at the prospect of Jaguar and Land Rover being a significant part of our automotive business. We have enormous respect for the two brands and will endeavor to preserve and build on their heritage and competitiveness, keeping their identities intact. We aim to support their growth,

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