Essay about The String Of M & A

706 Words Feb 9th, 2016 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 the European consumer is worried about the standards of quality Tata presents as it tries to acquire such high-end brands.
3.0 Analysis
The chairman, Ratan Tata has worked to build a multinational corporation through mergers and acquisitions, which have paid off in the long run. It is thus the challenge of the management and his successor, as he plans to step aside, to balance the portfolios and keep the business profitable while maintaining CSR in its books. The international presence has been successful thanks to well-calculated integration strategies.
The Tata group has gone global through the diversification strategy more than the western companies have dared, and as such engaging more in community life and equipping employees to…

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