1. Global Drive for India’s Tata
Case Study All data relevant to April 2005
By:
Lalit Aggarwal Harleen Batra
Soham Banerjee Ankit Shrivastava
Deepak Sharma Tanya Chakraborty
Section A - Group 6

2. Quick Glance at Tata Group – 1991-’99
• Ratan Tata takes over in 1991 from JRD
• 300 firms listed under Tata Group, each
going it’s own way
• Tata’s own less than 5% of stake in many
of these companies
• Telco reeling under losses due to fall in
demand for trucks and heavy vehicles
• Indica wins less than half the expected
market share

3. Strategy and strategic moves
• Grow without joint ventures despite good offers from VW and
Toyota
• Acquire and grow inorganically in a global market
• Raise stakes in critical firms and exit crowded markets
• Takeover of Tetley Tea (British global brand) in 2000
• Turn Telco into a flagship company of the Tata Group
• Use TCS as cash cow
• Merge TCS and VSNL to seamlessly provide software and network
services
• $300m takeover of Singapore based NatSteel

4. Tactical Moves
• Float 14% of TCS ownership in the Indian market
• Use money from the market to pay down debts of Tata Sons (holding
company for the group)
• Use money from TCS to fund merger of TCS and VSNL
• Buying old AT&T fiber optic cable network from Tyco in Nov 2004
for a fraction of the price it was worth
• 4 group companies run by foreign nationals

5. Tata Motors
• Wish to prove world class manufacturing capabilities in India
• 40% job cuts and halving the number of suppliers
• Change in focus from trucks to passenger vehicles
• In 3 years, Indica and Indigo account for about 25% of their
respective markets
• 7 years after producing its first car, PBT is 10%
• Moving into markets like SA, EU and Central Asia

6. Parenting styles – Financialcontrol
control
Strategic Planning
Issues Actions Implications
• Identify core • Focus on certain • Streamlined
•
• Too manyareas
business firms
Reduce debt of Tata sectors with Tata
• Reduced number
• Used a Tata Steel operations
•
• Need of a flagship
Sons
Too less stake Motors group
of companies
• Better control of
Covered debt over
• Leveraging on core
company company as Tata conglomerate
sons
•
• Finance other new
Severe losses • and TCS as
Increased funds
source of stakes competencies
• Co-ordinate actions flagship cos • Ventured into
• Retaining
ventures • in companies from
and create • Bought VSNL,
Staying away competitive
proprietary
linkages AT&T fibre- optic,
JV’s business
technology
between • Tetley, Natsteel
Growth plans • Continuation as an
units • Succession mentor
planning

7. The Delta Model (Tata
Motors) Strategy-
Telco to be
Lock In
Flagship
Mission Of Business
Mission Of Business
•Remove focus from
•Scope
•tractors
•Passenger vehicles
• Competency
Cost effectiveness,
Competitive
Industry Market
Mass Structure
Indigenous Indica
Positioning
40% job cuts
Takeover of-Land Rover
Business Strategy
No JV
Innovation
Nano Vendors to assemble Nano
Operational Effectiveness
Customer Targeting
Foreign Brand
Adaptive processes

8. Thank you