House of Tata Essay
• The following table shows the Liquidity, Profitability, Efficiency and Financial Ratio of each Tata operating group companies in year 2007.
|Group company |Liquidity Ratio |Profitability Ratio |Efficiency Ratio …show more content…
|Tata reduce the cost of consumer goods production and selling. |Tata lose the market share and revenue of consumer goods. |
|Tata has more funds to improve core business. |Divest only one business sector may not help to increase better |
| |performance of core business. |
3. Restructuring- Downsizing
As we know that the target customers of Tartar Motors in India are people who have low to middle income levels. Tata always find the way to reduce the cost of production and reaps the benefits of economies of scale which Tata does it very well. This competitive advantage make Tata is the largest automaker and hold highest market share of light trucks, medium/heavy trucks and buses in India. So if company would like to expand its market to global, Tata should use these advantages to compete with international competitors and also maintain sales in domestic market. We