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.
Task
2
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.
Task
three
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.
Conclusion
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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