INTERNATIONAL BUSINESS STRATEGY
In the wake of the developments realized across the global scene, the global economy has witnessed the introduction of significant aspects of development and one of the significant factors that has been enhanced in the attributes of globalization is the stabilization of globalization where various nations can join together for the purpose of engaging in business activates. In reality, the conduction of global business is based on the consideration of three ideal provisions and these factors include material culture, social structure and the ideology. According to these three attributes, international manager’s needs to take into account the various cultural factors based on the depiction of attitudes, values and beliefs. Culture is crucial in globalization because it harnesses the energy of the both social factors and the economic factors. Based on this depiction, globalization is based on the consideration of homogeneity and heterogeneity (CHARLES SCHELL, 2004, Spulber, 2007). Globalization as the conduction of international business is crucial because it enhances growth in the world trade and proliferation of global markets and it also influence that factors that enhances development and these factors includes the attributes of economic growth, innovation and protectionism. Over the period, various strategies have been adopted to help the regional companies in attaining the global recognition and the leading incentive that has been adopted by significant number of companies is the attribute of merges and acquisitions. In the same attribute, Tata motors have taken the initiative of acquiring the leading properties of the leading manufacturing firms in the Britain. Tata, an Indian company has launched significant attributions to acquire the provision of Ford motors in the European market. This consideration is extremely crucial because it highlights the attributes of globalization because it involves the combination of two different firms across the global divide. With the proposal to acquire land Rover and Jaguar, Tata seeks to establish itself as one of the leading international market participants (Chandavarkar, 2003, Witzel, 2010). Over the period of development, Tata has been expanded into various departments and this expansion has resulted in the attribute of formation of new business incentives. In this regard, the business incentives have developed to emerge as global participants.
With the attributes of globalization, Tata has encompassed the attributes of global participation that has been enhanced by the consideration of both regional and international development. In the recent past Tata has significantly developed into various branches that include Tata steel, Tata consultancy services, Tata Indian hotels and Tata tea. In reality, each of these establishments of Tata motors has applied the usage of unique approaches towards the obligation of attaining global incentive (Dash, 2010). The choice of the approaches for the globalization has been enhanced by the consideration of the prevailing factors that has enhanced the establishment of various trading environments, culture and values.
In consideration of the case of Tata steel, the ideal internationalization strategy adopted by the establishment is the approach of expansion. The expansion to the international market was aided by the consideration of the operation companies, selection of geographical locations, the aspects of Greenfield and acquisitions and further partner development companies from the selected nations. Over the period, the Indian Tata steel continued to be one of the leading producers across the globe and this prompted them to the global participants. This company provisions tops the depiction of the global steel dynamics it therefore exports to the leading economies like USA, UK, Germany and china (Susan Segal-Horn, 2010). In this regard, it has easy for the venture to establish development of interest in the geographical advantage to help it in the consideration of adopting geographical advantage for production of steel.
The internalization of Tata consultancy services has rather taken a different approach because the attributes of acquisitions were not considered. One of the leading contributors of the venture was the provision that the Tata consultancy services were established In India but majority of the customers were the oversea companies. This attribute propelled the company to locate its offices Amsterdam where majority of the customers were located. This movement resulted in the establishment of more customers because they established wide range of customers upon assuming responsibility in international territories (Dash, 2010, Peng, 2008, R. Duane Ireland, 2008). The consideration of the other strategies adopted by Tata shows that acquisition is an ideal strategy that has been adopted by the corporate group. Tata tea has acquired international firms located abroad to enable them compete on the global perspective. With the acquisition of Britain’s Tetley, Tata tea has managed to expand to the global market and enhance participation of the product. analysis conducted across all the provision of Tata shows that overseas investments is a common strategy for attaining international expansion and this represents the consideration of internationalization. It is evident that the Indian firms employ the attribute of developing their core competence to attain competitive advantage (Debra Johnson, 2010). The establishment of competitive advantage is beneficial because it leads to the establishment of globalization strategy which is usually ideal for the establishments. Therefore, internationalization in this industry is largely attained through the aspect of international investments and acquisition of international firms.
Analysis conducted across the company has revealed that Tata motors are one of the players in the automobile market that has received less recognition because of the nature of the market. However, the recent past has witnessed the emergence of the company as a global player in the manufacture of automobile with the invention and manufacturing of Nano which have the record for being the cheapest cars in the world (Spulber, 2007). The development of these ensured that the company concentrates on one market and this is not ideal for the aspect of enhancing profits. As opposed to other branches of Tata like Tata tea and Tata steel, the considerations of Tata motors has the consideration of adapting to the center stage of the global motors competition where it will be able to compete with the other leading brands like Mercedes, Toyota and BMW amongst others (Franklin R. Root, 1992, R. Duane Ireland, 2008). The existing Tata motors have enhanced the global participation and the consideration of this initiative has resulted in the attribute of reducing the participation of the company on the global perspective. Therefore, acquisition of the subsidiaries of Ford motors is extremely crucial for the company because it has the attribute of enhancing global recognition and competition. The global automobile market is extremely crucial and competitive and this incentive propagated the aspects of acquisition of the world class land rover and jaguar. In reality, these two brands of automobile are regarded as some of the best models by buyers across the globe and therefore, their demand is also relatively higher that of Nano. The records have pointed out that both jaguar and land rover are recognized brands in the SUV class thus the acquisition of this venture is critical because it has the attribute of Fueling Tata’s ambitions towards the establishment of higher global ambition and participation (Franklin R. Root, 1992).
Another consideration for engaging in the attribute of acquiring the on going company for Tata meant that the company can reduce the number of rolling time. Over the period, Tata has been faced with the weakness of taking considerable amount of time while manufacturing their cars and presenting to the market. An example is the manufacturing of the Nano cars that took a total of 9 years. In reality, this is considerable long and its results can be detrimental for the organization and this called for the acquisition of the company with a reduced rollout time period of between 4 years and 5 years. This incentive is ideal in the mark3et because the attribute of increasing compatibility of the company. In this regard, it is evident that the acquisition of the subsidiary of food was entirely meant at increasing global presence and also increasing the efficiency of the company in the global perspectives (Heinz Weihrich, 2010). With the acquisition of the land rover and jaguar brands, the aspects of competition for the corporation are significantly enhanced and the new products can compete with the other existing products form the competitors. This incentive ensured that company can compete on highly priced cars and on cheaper products thereby enhancing global market dominance.
With regard, to technological advancement and the origin of the electric cars, Ford stated that it had the necessary requirement s to ensure that Tata will compete globally because the team will spearhead the attribute of incorporating the necessary technological components of the car. In this regard, acquisition of land rover and jaguar as extremely strategic for the company and has different attributions with the other attributes of acquisitions like that of the tea manufacturers in Britain.
The aspect of acquisition has been adopted by some of the leading emerging multinational corporations because it is ideal and it enhances easier expansion strategies in to the global markets. The consideration of adopting the aspect of acquisition has been practiced by the companies like Tata and other emerging multinationals because of the advanced speed within which it enables market dominance. The aspect is crucial because it provides adequate speed for the emerging multinational to acquire the resources and the competencies held by the other company. This is crucial because it allows the entry of the new products into the existing market with out incurring the initial cost of the market (Heinz Weihrich, 2010, Kandula, 2004). In this attribute, this aspect has an advantage in that the risks and costs of introducing anew products are decreased. This incentive has enabled ease of services for the emerging companies like Tata that perceive higher levels of risks before venturing into the new markets. This is also crucial because it overrides the uncertainties in the market that may enhance adverse market performance.
Secondly, this consideration has been preferred by most of the emerging multinational corporations because it has the capacity of building market presences. This venture is extremely beneficial for the corporations because it enhances the consideration of increasing the market shares thereby reducing the activities of competition from the other participants. Furthermore, excessive competition can be avoided by the shut down of the capacity while diversification is aggrieved and this leads to the establishment of synergic earnings. This consideration is extremely crucial for the emerging corporations like Tata because it enables them to overcome the challenges like the barriers to market entry and the risk of competitive reaction (Kazmi, 2008, Michael A. Hitt, 2008). This consideration is therefore suited for the emerging corporation because it helps them in the establishment of business ventures in the international territories.
The aspect of acquisitions also crucial for the emerging multinational corporations because it captures the attribute of financial gain and this is crucial for the organizations with low share value because it takes only limited time to reap short term gains through the aspect of asset stripping. Therefore, acquisition is an ideal business incentive that is responsible for enhancing growth and development of firms and thereby enhancing the consideration globalization where corporation are enhanced to participate across the regional boundaries.
Analysis of Tata Corporation has shown that the corporation has continued to develop over the period by increasing its broads and scopes. The corporation has taken to the initiatives of globalization by ensuring that its branches expand to the global territories so as to increase the market scope and earnings. In reality, globalization takes different formats but he leading braches of the corporation has chosen to use acquisition because of the advantage it has over the strategies like merging or direct investment organizational development and expansion. Specific analysis of Tata motors shows that it has acquired land rover and Jaguar to enhance its global market space and earnings. This acquisition has served to be crucial because it has presented the organization with a better chance of competition in the global market space and it has enabled the organization to increase competition and participation in the international market.
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