2.5 Ambitious Projects
The company has entered into a deal that could see it acquire Jaguar Land Rover and thus establish its presence in the European market. This is contrary to the company’s deal of producing the cheapest car in the world, which could compromise its core business focus. There are claims that …show more content…
The chairman saw it fit to counter threats in the markets and take advantage of the opportunities to spur the company to growth.
The great threats and opportunities were presented by liberalization for it set the company free but at the same time exposed it to competition. Therefore, Ratan Tata streamlined operations by focusing on telecoms, steel, information technology, power, motor vehicles, and hotels by increasing the shareholding in such industries. The next strategy was to embrace globalization through foreign acquisitions, such as the 2007 acquisition of Corus for $12.1 billion, Tetley Group takeover by Tata Tea for $450m as well as investments in Jaguar Land Rover for a sum of $2.3 …show more content…
The group’s stars, which represent a high market growth and high market share businesses, include The Tata Hotels, Motors, and Steel, which the management should retain and capitalize on to accelerate its growth. However, investments, such as Tata Communications, Voltas, and Telecoms represent the group’s question marks, which are low in market share but have a potential for market growth. These investments should be encouraged by increasing their market share. Tata Tea and Chemicals are the company’s cash cows for they represent investments in high market share with low market growth and as such should be capitalized on before they can prove irrelevant in the market.
4.0 Criteria of Evaluation
An evaluation of alternatives would be crucial for the company’s growth and expansion strategies. The management can thus apply a Balanced Scorecard to ascertain its financial, customer objectives with regard to the internal business processes. The company should also establish learning and growth indicators and establish performance measures for its strategic framework. Another criteria of evaluation, Tata Group can use is the key performance indicators, KPIs to determine its internal competencies and capabilities.