Achieving Global Growth Through Acquisition -Myassignmenthelp.Com

Question: Discuss About The Achieving Global Growth Through Acquisition? Answer: Introducation The major problems facing the Tata Group are the recruitment of a variety of brilliant people and sustaining the known value system of the company while establishing a group of organizations that can survive in the stiff competition in the 21st market as it grows and gets diversified. Also, the inability of both the old and new companies to meet the exceptional standards and ethics after the departure of Ratan Tata and attain the standards of the founder Jamsetji Tata (Hodgetts, Luthans, Doh, 2006). Assimilation Process The group will experience the difficulty in establishing the capability to comprehend the countrys culture where the acquisition is to occur, in addition to the work environment (Luthans Doh, 2009). International Merger and Acquisition Tata Steel will face difficulties since it is in possession of Corus whose acquisition possesses the problems of balancing traditional ways with the current economic trends. The contract creates a debt of $7.4 billion with the Indian manufacturer of steel; also incorporating the substantial operating costs of Coru will further harm its profit margins. MA Operations The management of almost 100 companies is cumbersome as is evidenced in the increasing inorganic growth of Tata, through subsidized buyouts and in some cases daring transactions, which poses the problem of assimilation and efficient administration of the range of companies. The groups executive has in most cases responded to the challenge of the role of the business in bringing all these companies under a single umbrella. Tata operates in seven broad categories namely steel, vehicles, energy, substances, restaurants and buyer commodities and communication systems (Sen, 2009). For over ten years, the focus of the group has been establishing a resilient manifestation in the global markets. For instance, the acquisitions of Tetley for $US432 M has further acquired the majority of the companies in its area of operation, Anglo-Dutch firm, and Corus which was worth $US11.2 billion. Other companies with commendable acquisitions include Daewoo Chemical Vehicle Company, Fords Jaguar Land rove r acquired by Tata Motors and many others (Mukherjee, 2008). However, the company should exercise care when assimilating all the companies together. Forthcoming acquisitions should be focused on methods that will foster easy integration as they seek to maintain the Tata culture. The Boston Consulting Group (BCG) Growth Share Matrix is to assist optimize the portfolio companies which are significant to the ever-increasing inorganic growth. BCG Matrix The exploration shows that Tata Steel, Tata Power, Tata Motors and Indian Hotels are the best performing with substantial market growth and market share. Therefore, these companies should be retained, and the own investments improved. Tata Chemicals and Tata Tea have a significant market share but low market growth and should, therefore, be put on hold for some time. The rest of the companies like Tata Teleservices and communications have a small market share and high market growth (Kakani, Joshi, 2008). A vital evaluation that would assist the group to improve growth and improve their presence internationally is to develop a broad business excellence foundation within the group. Such can be accomplished by adopting the balanced scorecard measured strategy to examine the companys performance based on their internal competencies evaluated by the key performance indicators (KPIs). The benchmarks of output distinction illustrated by the poised tally are based on four fundamental aspects that provide equilibrium to each other strategic framework namely consumer, monetary, in-house commercial practice and Knowledge and development (Tata Motors Ltd., 2008) Alternatives To seek to provide sustained exceptional products to clients with specified customizations, and to develop Tata Nano to sustain the international standards concurrently. Financial To enhance financial performance about cash flow by guaranteeing positive present current cash flow value. This will assist in the prompt repayment of the lump sum parts of the debt. Furthermore, it will also aid in the re-focus into the reward of dividends to shareholders to ensure continuous payment. Learning Growth To develop several plants in the shortest time possible to meet the service obligations of Tata Nano (Blitterswijk, Karadshov, 2009). Internal business Process To achieve that best from the acquisition agreement of Jaguar and Land Rover Creation of Subsidiary Company The present sustainability pillars of Tata include Tata Trusts, relief team, societal projects, and Tata Quality Management Services (TQMS). The establishment of a subsidiary company can augment well with this organizational structure in addition to sustaining the groups cultural values which are ecological agency. It would operate like any other business units of Tata, with the exception that it would initially exist as a support center instead of a profit center. Most of the company roles will be centralized by the subsidiary. Also, other functions of the subsidiary would comprise of both internal and external consultation roles, an innovation center, a unit of financial reporting and audit, and a team for fundraising both internally and externally (Freeman, Gopalan, Bailey, 2008). Implementation Global managers can adopt various methods to implement, control and monitor the companys functions (Jha, Joshi, 2009). Therefore, the company will; Implement the first-hand strategy through a complicated communication process of the company including business unit communications or training in county hall rooms or permitting the involvement of employees in the process. To officially create a distinct capitalized corporate subsidiary. Establish the guidelines for the use of the additional revenue generated from all company portfolios will be invested for development in the future. Team up with significant investors while drafting these rules (Goldstein, 2008). Create a cross-company unit comprising of senior managers, to authenticate that all internal opportunities for continuance have been ascertained and discussed. References Blitterswijk, M. V., Karadzhov, R. (2009). Financial and Strategic Analysis of Ford Motor Company and Tata Motors.Studenttheses@ CBS. 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,1, 1. Goldstein, A. (2008). The internationalization of Indian companies: the case of Tata.Center for the Advanced Study of India, Casi working Paper Series, (08-02). Hodgetts, R. M., Luthans, F., Doh, J. P. (2006). International management: Culture, strategy, and behavior. McGraw-Hill Companies. Jha, V. S., Joshi, H. (2009). Relevance of total quality management (TQM) or business excellence strategy implementation for enterprise resource planning (ERP)a conceptual study. In12th International Conference on Information Quality (ICIQ-2007) at MIT(pp. 9-11). Kakani, R. K., Joshi, T. (2008). The Tata group after the JRD period: Management and ownership structure. Mukherjee, R. (2008).A Century of Trust: The Story of Tata Steel. Penguin Books India. Sen, S. (2009). Tata Group: transforming the sleeping elephant.IUP Journal of Business Strategy,6(1), 31. Tata Motors Ltd. (2008) Tata Motors Ltd. Corporate Sustainability Report 2008: CORPORATE SUSTAINABILITY REPORT, 1-174.