Tata's Time

2850 Words Jun 5th, 2015 12 Pages
1. Discuss the advantages and drawbacks of going international using Tata Group’s experiences.
Based on Tata Group’s experience, we can see the advantages and drawbacks of going international as follows:
Advantages of going international; ①
The first advantages of going international for Tata is to achieve benefits of economies of scale; Tata has more than 100 operating companies in seven main business groups doing business in 80 countries: chemicals, information systems and communications, consumer products, energy, engineering, materials, and services. Its two largest businesses are Tata Steel and Tata Motors. Its Tata Tea, which owns the valued Tetley brand, also is one of the largest tea producers in the world. It ranked 6 on the
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Quality issues: a series of recall due to quality defect; More than 70,000 Range Rovers are being recalled by Jaguar Land Rover North America due to fears that one or both front brake hoses causing a loss of brake fluid. Range Rover and Range Rover Sports from years 2013 and 2014 are being recalled over concerns that brake vacuum hoses may not have been fitted properly. Almost 5,000 Jaguar XK cars from 2012 to 2015 will also be recalled over fears their side lights may switch off after five minutes ②
Difficulty in finding similarities in markets or operational capabilities; Tata has more than 100 operating companies in seven main business groups doing business in 80 countries: chemicals, information systems and communications, consumer products, energy, engineering, materials, and services. It’s difficult to find similarities in markets or operational capabilities, so they need more effort to develop to different strategies for different markets especially for consumer products. More complex and challenging process of managing strategically it face.
Protectionism, especially in scenarios with continued high unemployment and economic malaise; India exploits scrutiny of India’s own restrictions on inward foreign investment. The rules are particularly tough on foreign investment in banks.

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