TATA steel strategy was to integrate the value chain of steelmaking to aid the growth of Asia’s bubbling construction economy. When presented with the opportunity (financially the government policies made it easier) to gain access to the other markets, they later acquire CORUS which was an established name in Europe, but were not cost effective in their operations (Tarun Khanna, Krishna G. Palepu and Richard J. Bullock, 2009). This acquisition provided them the right synergy by combing the low cost upstream production in India with the high-tech research aspects of Corus and areas like procurement, marketing, back office operations and R&D. This was also required due to the trends in world steel industry whereby there has been a global …show more content…
They therefore had to transform itself into a high-margin global distributor of specialty teas and other healthy beverages and at the same time, looks towards vertical disintegration. Therefore, in knowing the demands of the market and in its attempt to meet it, they therefore acquired Tetley which not only was a brand with global appeal, but at the same time provided them access to the market in both the developed and emerging markets, thereby reducing dependency on one geography. Through this acquisition they also gained technology to create unique products (i.e. herbal, flavoured tea) which they could offer to the markets which they are already established (i.e. India, Middle East and Russia) and attain cost synergies through the manufacturing of tea and distribution via the global supply chain approach. In its bid to further diversify their portfolio and transform into a beverage company, they later acquired EBI which was sold 9 months later to earn them a profit of $600M. This was not due to the fact of a change in their strategy, but similar to Indian Hotel, they would prefer to have a controlling stake in the company in-order to attain the full benefits of gaining the technology of producing enhanced water and brand control which was lacking due to the fear of knowledge spill over. Overall their focus was on growth rather
Before we can talk about the Strategy Hudson Bay uses we must first answer the the question of what a Corporate and Business Strategy is and how The Bay inaugurates this into their company;
Kingfisher Airlines Limited was an airline group based in Bengaluru in India and it was subsidiary company of United Breweries Group. It was owned by CMD Vijay Mallya. It was established in 2003 and started its operation on 9 May 2005. It operated flights to 25 domestic destinations in India. On 3rd September 2008, Kingfisher Airlines started its first international operations by connecting Bengaluru to London. Kingfisher was originally launched as an economy airline with single – class configuration airlines with good food and impressive entertainment systems. After two year of operation, suddenly they shifted their focus to luxury. In order to expand quickly, they keep on changing their business model, there was no time for the airline
1. Discuss the trends in the steel industry and how it may impact Nucor’s strategy
Difficulty in finding similarities in markets or operational capabilities; Tata has more than 100 operating companies in seven main business groups doing business in 80 countries: chemicals, information systems and communications, consumer products, energy, engineering, materials, and services. It’s difficult to find similarities in markets or operational capabilities, so they need more effort to develop to different strategies for different markets especially for consumer products. More complex and challenging process of managing strategically it face.
Per your request I have analyzed Nucor Corporation and the steel industry. After performing both strategic and financial analysis I offer my recommendations.
Chapter 7: Merger and Acquisition Strategy ---- House of Tata: Acquiring a Global Footprint (written by Tarun Khanna, Krishna G. Palepu, and Richard J. Bullock)
Huge infrastructure demand: According to a PWC report Asian infrastructure market will be about 60% of the whole world. India is on the path to become the manufacturing hub in its endeavours to overtake China in that
Ratan Tata is an Indian representative, financial specialist, giver and executive emeritus of Tata Sons. He is a philanthropist and more than 65% of his share is put resources into beneficent trust. During his tenure, the gatherings income grew totalling over $100 billion in 2011-2012. He was the Chairman of Tata Sons from 1991 till his retirement on 28th December, 2012. He was executive manager of major Tata Companies , counting Tata Motors,Tata Steels,Tata Consultancy Services, Tata Power, Tata Chemicals ,Tata Sky, Tata Salt and many more.
|Tata can reduce at least 25-30 years to build global business on its own.|Tata has to confront with the making-loss of Jaguar. |
Ratan Tata organized the resource portfolio into capabilities, structured the firm to facilitate using those capabilities, and had chosen strategies through which the capabilities were successfully leveraged to create value for customers.
ACAD GROUP 27 - good effort, stock trend could be simpler and thus effective- 19.6
Political Tata Motors operates in a vast amount of places all across the world . They’ve had great success in regions like Europe, Africa, Asia, the Middle East and Australia. When it come to politics influences Tata Motors need to pay close attention to Laws and regulations as well as the governing bodies that control the area. Local governments regulate commerce, trade, and investments. The local markets and economies are all influenced by national and local influences.
In the late twentieth century, demand growth was strongly low. In contrast, the twenty –first century saw a boom in demand. For instance, Tata bought weaker players internationally, such as NatSteel in 2004, which was Tata Steel’s first overseas acquisition, and the Anglo – Dutch giant Corus in April 2007. Through the investment in Corus, Tata has created a manufacturing and marketing network in Europe, South East Asia and the pacific – rim countries. These acquisitions were also the result of using a strategy of
Tata steel has an objective of larger geographical area to provide the best service to the customers. Tata Steel is fast growing company collaborated with European and South east Asian countries. It has
Tata Steel Tata Steel is the largest steel producer in India. The main project described is the development of a model for adjusting the mix of products to compensate for different levels of power shortages at various times in the day. Prior to describing this project, the presenters show how they used a productmix model to improve profitability, comparing its results to those of their previous strategy of maximizing output. The electricity shortage model built on this one with the added element of incorporating the fixed costs associated with the adjustments necessary to compensate for a lack of power. The value in this tape is at several levels. The users of the model make the point that they were skeptical that anyone in management science could tell metallurgists how to improve their operation of a steel plant.