Tata Group’s growth strategies

Group 1

Introduction

India’s largest multinational conglomerate.

Founded in 1868 by Jamsetji Tata.

Comprises over 100 operating companies, with operations in more than 100 countries across six continents.

The revenue of Tata companies, taken together, was $103.27 billion in 2013-14

67.2 percent of the revenue coming from businesses outside India.

Tata companies employ over 581,000 people worldwide

Growth strategies

Exports from India Greenfield investments Joint Ventures and Acquisitions Relying heavily on introducing technology and innovation in all

the businesses. Inorganic growth has always been the crucial component of Tata

enterprises.

Under Ratan Tata

Created Group Executive Office.

Integration Strategy - Members were represented on the board of Tata companies

Increased stake of Tata Sons in Group companies to 26%

Tata Quality Management Services - Tata Business Excellence Model

Annual evaluation on various aspects like leadership, planning, customer & market focus, human resource focus, information, process management and business results.

Group Corporate Center – review monthly operations of the Group.

Focus on growth in both domestic as well as international markets.

Offloading of businesses which did not fit with his vision.

Organic Growth

Achieved through technology & innovation in the products offered.

TCS:

Tata Research, Design and Development Center (TRDDC).

Concentrated on the key areas in the market at that time – Y2K and Euro Conversion.

Web enabled products and platforms.

E-business consulting, solutions.

Developed products for different requirements of the industry.

Tata Steel:

Patented several new equipments.

Started selling its own products.

Tata Motors:

First car designed, developed and produced in India.

Manufactured the lowest priced car till date.

Inorganic Growth

Objective:

“Move towards becoming a globally competitive company and expand your market.”

“Risk mitigation by going global.”

Route adopted by Ratan Tata:

Acquisition of foreign companies.

Tata Tea – Tetley

TCS – CMC

TCS also setup development centres in several countries - US, Hungary, Australia, China and Japan – became local player and strengthened its position in their markets.

Tata Communications was created acquiring VSNL – Tyco International.

Tata Motors – Daewoo Commercial Vehicles and also JLR. But majorly focused on expanding into heavy commercial vehicles in all the big markets.