Tata Case Study

706 Words 3 Pages
The string of M&A’s presents a challenge to the Tata Group as it is plunged into debts, for instance, the acquisition of Corus in addition to lowing the company’s growth. This would be generally contributed by the struggles of the Corus business, which is sure to eat up a great chunk of the Tata’s profit margin. Additionally, the Corus workers’ union demands that Tata to invest without cutting jobs thereby threatening its profitability.
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
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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
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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.
5.0 Alternatives
These alternatives represent the courses of action that Tata Group can use to sustain its competitiveness in the market.
Short Term:
5.1 Financial
Tata Group would be better-off if it improves its financial performance by targeting positive cash flow present values. This would be critical in the repayment of debts and dividends to the

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