Tata Group has conducted its business prevailing in a highly diversified environment. Tata Group has been searching for strategies of shifting expansion to become global heavyweight; therefore, its companies can compete in the rich West as well as progress in the developing world. With commitment to the corporate social responsibility, Tata is currently at the fore in the internationalization of Indian companies (Goldstein 2008).
2. Secondary Problems
2.1 Successor’s follow-up actions to pursue growth
There is a lingering doubt as to the succession of the Tata group’s plans for the future, as would there be continuation in its current growth plans or would there be formulation of a new plan and shift its direction and focus. …show more content…
For example, integration of Tetley tea with Tata tea took over three years and assistance from professional consultants (Duysters, et al. 2009).
To keep true with its commitment to the corporate social responsibility, Tata Group has been actively involved in initiatives that promote the social and economic development of host countries (Goldstein 2008).
However, Tata’s acquisition of Corus disconcerted that whether the commitment of social responsibility will be able to translate into the British and European context.
2.3 Tata’s Rural Development Projects
There will be a dilemma existing when the Indian economy slows; consequently, certain branches of the Tata Group would inevitably be affected. As a result, expensive burdens and non-essential liabilities like rural-development projects will be an obvious target for cuts (Luthans and Doh 2009).
3. Analysis
3.1 Internationalization
Ratan Tata visualized that the companies would be the international face and can compete with the Western economies as well as reap benefits from developing world. “It has been preaching the need to internationalize in giants strides” (Goldstein 2008, …show more content…
Then in early 2007 Tata Steel acquired Corus for US$11 billion. “Because Tata is one of the few biggest steelmakers with its own abundant coal and iron ore reserves, it can produce raw steel at low cost in India and then ship it to Corus’ first-rate mills in the West to make finished products” (Luthans and Doh 2009, 374). During 2007, benefits of the merger for Tata were realized in the area of manufacturing, whereas profits of Corus were gained through reductions in taxes (Freeman, Gopalan and Bailey