Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Tata Group

31,012 views

Published on

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

Published in: Business, News & Politics
  • Be the first to comment

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 />

×