THE TATA GROUP

The Tata Group Case Study



The Tata Group Case Study

Introduction

The Tata Group of Companies is an international company that has acquired many other international companies. India's Tata Group, with a 2009 turnover of $71bn, accounts for almost 6% of the country's GDP and has subsidiaries in engineering, agricultural chemicals, energy, consumer products, telecommunications and services such as hotels and consultancy (Blanco 2007 2-5). It has grown from a local Indian company in the 1990s to a multinational that derives 65% of its income from outside of the country. Between 2000 and 2010 Tata took over, or acquired a stake in, 44 businesses outside India. In the UK, Tata snapped up the BT's Mosaic business, Tetley Tea, Jaguar, Land Rover and Corus, the steel giant. Tata UK is now the country's largest manufacturer, employing 40,000 people, with a further 5,000 in services such as consultancy (Yaprak 2010 245 - 262).

Discussion

The internationalization process has become one of the most important perspectives in the history of the companies. The companies have been overtaking other firms in order to expand their business activities. The renowned companies are more concerned with the overtaking of new companies. The internationalization of the Tata group of companies is considered to be the chief components of Tata's strategy. The company was established 150 years ago and is operating in 96 companies at present. The company employs 330,000 individuals in all over the world (Yiu & Lu 2005 183-206). The company had been raising revenues of U.S $ 28.8 billion dollars in the year 2006 and 2007. The company has been operating in seven major sectors of business that are the services sector, energy sector, engineering sector, information systems and communications, chemicals and consumer products. However the main business lines of the company are leather and engineering. The Tata Group is one of the largest industrial conglomerates in India and most respected, with revenues in 2006-07 of 28.8 billion dollars (Lala 2007 65-74).

The Tata Group comprises a total of 98 companies in seven economic sectors:

Communications and systems;

Engineering;

Materials;

Services;

Energy;

Consumer Products;

Chemistry

The Tata Group was established by Jamsetji Tata in the mid-19th century, even under British rule, therefore, somehow one of the missions of the company has been helping nation building. The Tata Group is one of the largest industrial conglomerates in India and more reputation, with 2007 revenues of 28.8 billion dollars (Rs 129.994 crore), equivalent to about 3.2% of GDP of the country, and a capitalization of of $ 77.5 billion (January 2008). The Tata Group employs about 289,500 people around the world. The Tata group's business activities are conducted through 98 companies operating in seven business sectors (Yaprak 2010 245 - 262). It has a presence on six continents and conducts business in many industry segments, including tea, software, automotive, energy, or hospitals (Kedia 2006 33-45).

The Tata Group has operations in over 85 countries on all continents and its companies export products and services to more than 80 ...