Tata Group


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Analysis of Tata Group's structure, history, business and challenges in face of the world financial recession.

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Tata Group

  1. 1. The Tata Group<br />PRESENTED BY:<br />IdrissBouhmouchRianneStokkel<br /> Lloyd Mellor Andrei Janca<br />Zile Yu<br />ABUS 1190 – Foundations of Asian Business<br />
  2. 2. Presentation Outline<br />Company Overview<br />Tata’s Corporate Culture<br />Tata and Innovation<br />Tata’s Future<br />2<br />
  3. 3. Company Overview<br />What is the Tata Group and what do they do?<br />
  4. 4. Brief Summary<br />Family-Owned international business (held by Tata Sons Ltd.) <br />based in Mumbai, India<br />Top 20 of the world&apos;s most reputed corporations<br />According to Forbes Magazine<br />International Growth propelled by International Joint-Ventures, Mergers and Acquisitions<br />98 companies in 7 business sectors <br />27 of which are publicly listed<br />4<br />
  5. 5. Tata’s 7 Main Sectors of Activities<br />5<br />
  6. 6. Market Capitalization of Tata’s Companies <br />6<br />
  7. 7. Tata’s International Diversification plan <br /> Mergers and Acquisitions<br />Jaguar and Land Rover from Ford Motor Company - $2.3 billion – (March 2008)<br />Corus Group, $12 billion (January 2007)<br />Millennium Steel, Thailand, $167 million – (December 2005)<br />Daewoo Commercial Vehicle Company, $102 million – (March 2004)<br />Tetley Tea Company, $407 million – (February 2000)<br />Current Targets<br />Close Brothers Group, $2.9 billion <br />Orient Express Hotels, $2.5 billion <br />7<br />
  8. 8. Tata’s Corporate Culture<br />Are Tata&apos;s mission statement and purpose aligned with traditional Indian business practices and values?<br />
  9. 9. Tata’s VS. Indian Business Practices<br />Main Business Values <br />Family Dominated<br />Inferior working conditions<br />Hierarchal decision making process <br />Other Business Values…<br />Competitive education system<br />Family unit is highly valued<br />Good Negotiating skills<br />Develop business relationships<br />9<br />
  10. 10. Tata & Zoroastrian core beliefs<br />Truth: Toxic Gas Leaking Incident (May 7, 2008)<br />National Problem: 40% of people in India earn under $1.40AUD per day<br />Nano – “The World’s Cheapest Car”<br />Sir DorabjiTata Trust<br />10<br />Tata’s Charity and Philanthropic Actions<br />
  11. 11. National Problem: 40% of Indians are illiterate<br />Tata’s Solutions: <br />Development of literacy program by Tata Communication IT’s department <br />Creation of the Tata Institute of Fundamental Research<br />11<br />Tata’s Charity and Philanthropic Actions (Continued)<br />
  12. 12. Tata and Innovation<br />What are the Tata’ Group’s innovations and how do these profitable?<br />
  13. 13. Tata’s Nano – The World’s Cheapest Car<br />“We will build a safe, road-worthy vehicle costing 100,000 rupees so affordable that it could allow millionsof peoplein the developing world to park their scooters”<br />- Ratan Tata - Tata Group CEO, 2003<br />Reference: Thottam 2009<br />13<br />
  14. 14. Reference: AutoBlogGreen.com, 2009<br />14<br />Tata Nano – The Concept <br />
  15. 15. The Car - a status symbol in India<br />Sales Price and Financial Support<br />Basic model retailed at US$ 2,000<br />Design & Physical Characteristics<br />“Small, but big enough”<br />Appealing look<br />Environmental Impact<br />Increase in Pollution<br />15<br />The Nano – Reflection of the Social & Economical Environment in India<br />
  16. 16. The Nano – Profitability Analysis<br />Reference: GreenProphet.com, 2009<br />16<br />
  17. 17. Tata’s Future<br />How will the Tata Group cope with the World Economic Recession?<br />
  18. 18. Tata’s Future Goals & Objectives<br />Result of Strong Business Ethics<br />Tata as “One”<br />A desire to be “loved”<br />“Tata offers its resources as much as possible in order to maintain and improve a clean environment, and in order to improve life in regions where it is settled.”<br /> - Tata Steel, Annual Report 2005 <br />Pro-Community Business Practices<br />Involved in businesses that are aligned with national priorities<br />18<br />
  19. 19. Tata’s Future Goals and Objectives<br />Increase in Research and Development (R&D) spending<br />Cutting edge technology<br />Expansion into new markets<br />19<br />
  20. 20. Tata’s Future VS. Global Financial Crisis<br />Some Cost Cutting Strategies:<br />Tata Consultancy set to layoff 1300 workers<br />Tata Motors set to layoff 6000 workers<br />Corus set to layoff 3000 workers<br />Jaguar set to layoff 1500<br />Liquidity Issues<br />Paying harshly for M&A shopping<br />Long-Term Cash Strategies<br />20<br />
  21. 21. Thank You!<br />
  22. 22. References<br />Academic Journals References<br />‘News: How Nano can effect ‘B’, ‘C’ segment car sales’, 2008. Businessline. Chennai: Mar 13. Available from: Proquest 5000 [2 May 2009]<br />‘Leaders: Not so nano; Emerging-market multinationals’ 2009, The Economist. London: Mar 28. Vol. 390, Iss. 8624; pg. 20. Available from: Proquest 5000 [2 May 2009]<br />‘Ready for the small time’ 2009. Business Asia. New York: Apr 6. Vol. 41, Iss. 7; pg. 11, 1 pgs. Available from: Proquest 5000 [2 May 2009] <br />22<br />
  23. 23. References (Continued)<br />Rupani, B., 2009. ‘Tiny car, big target’. Autoweek. Detroit: Apr 6. Vol. 59, Iss. 7; pg. 9, 1 pgs. Available from: Proquest 5000 [2 May 2009]<br />Layak, S., 2009. ‘Can Tata put India on wheels? Ratan Tata has changed the game in car manufacturing by producing the world’s most affordable car. Now he’s got to make it a money-spinner’. Business Today New Delhi: Apr 19. Available from: Proquest 5000 [1 May 2009]<br />Srivastava, M., 2009. ‘Why Indians Are So Thrilled by Tata’s Nano’. Business Week (Online) New York: Apr 30. Available from: Proquest 5000 [1 May 2009]<br />23<br />
  24. 24. References (Continued)<br />Thottam, J., 2009. ‘Nano Power’ Time International (Asia ed.). New York: April 6. Wol. 173, Iss. 13; pg. 39. Available from: Proquest 5000 [1 May 2009]<br />‘Investment world: What you need if you’re going for the Nano’. 2009. Businessline. Chennai: Apr 5. Available from: Proquest 5000 [2 May 2009]<br />‘Catalyst: The selling of the Nano’, 2009. Businessline. Chennai: Mar 26. Available from: Proquest 5000 [2 May 2009]<br />24<br />
  25. 25. References (Continued)<br />Financial Data<br />Tata Group – Google Finance: http://www.google.com/finance?cid=11071170<br />Taco Group: http://www.tacogroup.com/tatagroup/Images/pie-chart_feb08.jpg<br />Tata Market Capitalization: http://www.tata.com/investor/inside.aspx?artid=wufCjvCOgp0=<br />Pictures<br />GreenProphet.com, 2009<br />Reference: AutoBlogGreen.com, 2009<br />25<br />