Tata Group Goes Worldwide Growth Through Acquisition

Introduction: The Tata Group and Its Story The Tata Company, whose headquarters are based in India, deals with the steel processing and production. According to the existing records, the company started its growth after purchasing the shares for Corus, an Anglo-Dutch steel company (Freeman, Gopalan, Bailey, 2009, p. 2).Advertising We will write a custom critical writing sample on Tata Group Goes Worldwide: Growth Through Acquisition specifically for you for only $16.05 $11/page Learn More The Current Strategy in the Global Context: Taking a New Course At present, two major tendencies can be observed in Tata, i.e., the tendency for growth and acquisition. Concerning the benefits: stretching worldwide There is no doubt that the acquisition through growth strategy opens a whole pool of new opportunities for Tata, one of which is joining the world market. To start with, the Tata Group’s authority is going to grow increasingly with every new acquisiti on (Trivedi, 2012). Another obvious advantage that the chosen strategy involves being able to analyze the chosen market closer and learn more about what customers demand. After processing the data concerning customers’ demands obtained from different affiliates of the Tata Group, one will be able to provide the products that will satisfy the needs of the majority of the target population (Vora, 2013). The last, but definitely not the least, the power of such brands as Jaguar, whose shares Tata Group has recently bought, will also add to the profitability of the company. It is worth mentioning, though, that Tata should As Bajaj explains, â€Å"Tata Motors appears to have succeeded in large part because it did not seek to run Jaguar Land Rover from Tata headquarters here.Advertising Looking for critical writing on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Instead, it has left day-to-day management in the hands of executives in England† (Bajaj, 2012). Assessing the risks: financial policy and the related issues Among the most obvious obstacles that the company is likely to face in the course of adapting towards the specifics of the world market and, more importantly, merging with the companies that exist in differently cultural settings. The PEST evaluation will be required to represent the issue more graphically: Political The Tata Group is likely to face a number of issues when negotiating with the companies set in different countries and, therefore, following different principles and laws Economic When choosing its new partners, Tata risks greatly. Since the Tata Group budget cannot stretch far enough to get the most influential steel companies to join it, Tata has to invite less influential firms, whose potential is not quite clear. Social The members of the Tata Group will have to deal with unavoidable misunderstandings that will inevitably appear in the course of commun icating with the Tata’s subsidiaries. Technological To conquer the market, Tata will require the latest technological advances concerning steel production, such as plant engineering (Uemura Shirai, 2003). To achieve this, the Tata Group will have to make sure that each of the subsidiary companies has been equipped accordingly. Therefore, the company’s financial policy should be reconsidered. Judging by the above-mentioned evaluation of Tata’s greatest risks concerning the growth through acquisition plan, the Tata Group’s greatest risk is signing the wrong company up for partnership. To avoid this risk, the company will have to develop a flexible system of risk assessment. Conclusion: There Is Yet Much to Strive for Judging by the current situation, there is still a number of steps to be made for the Tata in order to achieve worldwide success. However, to the company’s credit, it has enough potential to achieve success; and, which is even more important, Tata is worth this success. Having much to offer to its customers, the company definitely has the potential for further development. Reference List Bajaj, 2012. Tata Motors Finds Success in Jaguar Land Rover. Web.Advertising We will write a custom critical writing sample on Tata Group Goes Worldwide: Growth Through Acquisition specifically for you for only $16.05 $11/page Learn More Freeman, K, Gopalan, S, Bailey, J 2009, ‘Achieving global growth through acquisition: Tata’s takeover of Corus,’ Journal of Case Research in Business and Economics, vol. 1 no. 1, pp. 1–17. Trivedi, A 2012,’Ratan Tata, the man who brought Tata to the world,’ India Ink, n.p. Web. Uemura, A Shirai, M 2003, ‘New Technologies for Steel Manufacturing Based upon Plant Engineering,’ NKK Technical Review no. 88, pp. 37–45. Vora, S 2013, ‘India’s Tata Group maps U.S. expansion,’ India Ink, n .p. Web. 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