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The 4 Market Position and an Example of a Product Essay Example

The 4 Market Position and an Example of a Product Essay Example The 4 Market Position and an Example of a Product Paper The 4 Market P...

Wednesday, June 24, 2020

Tata Jaguar Land Rover Case Study - 3850 Words

Tata Jaguar Land Rover Case Study (Coursework Sample) Content: Tata Jaguar Land Rover Case Study Name Institution Tata Jaguar Land Rover Case Study Q1. Firms are currently adopting common and modern approaches to market their brands around the world. That is, managers and business owners are discovering that marketing of goods on a global origin with few alteration in local markets can be more proficient than trying to adapt brands to each market (Swaminathan et al. 2007, p.248). Furthermore, the rising globalization of communications, simplified by the Internet, empowers the marketers in identifying global consumer sections. Therefore, global products are becoming the core to marketing strategies of multinational's growth, beyond the boundaries of global adaptation, industries are also strategically developing their brands through line extensions. Line extensions is the process whereby new goods hosted in an already surviving category under the existing brand title to acquire massive sales (Allman Fenik, 2013, p.121). When corporations market an international brand, the country of origin (COO), that headquarters the good's manufacturer could be risky, concerning client attitudes as well as behavior (Allman et al. 2016, p.41). Consequently, affecting the performance of the brand in different markets around the globe. Revolution of business strategies and the environment is a result of developmental ideas and concepts that have transformed the formulation of the strategy process. With the use of a sophisticated process, firms have strength to continuously and more efficiently anticipate upcoming opportunities, creating value-generating investment choices as well as determining the kind of products and services ideas to pioneer (Shen et al. 2011, p. 93). Creating a strategic formulation practice is one of the concepts that distinguishes the firm's ability to stay ahead in the competitive business world. Developing the strategy formulation that integrates logic, analysis, creativity and innovation nee d new ways of carrying out activities and thinking aspect. Q2. A strategy is a step of determining the long-term objectives as well as the goals of a firm or a business enterprise, and this also involves adopting a course of action to the industry so that the allocation of resources needed for the accomplishment of these objectives is sustained (Gokus, 2015, p.3). Before a strategy is adopted it should be compliant to the three top branches that is the context, content and the process. TATA Jaguar Land Rover multinationals pursue a transnational business strategy. A transnational approach is whereby a multinational's business actions often coordinated through the cooperation and interdependence among its head offices, operational sections in the firm and globally located subsidiaries. The strategy adopted by the TATA JLR will provide the multinational with the benefits of centralization offered by the global strategy in line with the local responsiveness features of the national strategies (White 2014, p.73). One of the major forward steps towards the acquisition and merger is that you need to have a good transnational strategy before shifting the products from one nation to another (Magdalena et al. 2008, p.1). The approach allows the business to perform its operations in many countries with a diverse degree of coordination as well as assimilation of the strategy and performance (Higgins et al. 2015, p.675). Q3. The strategy makes logic to TATA Jaguar Land Rover alliance. Since TATA acquired Jaguar Land Rover from British national enterprise and did not intend to do away with the JLR employees, consequently, they maintained them in the new alliance company (Merdzanovska, 2015, p.362). The only way the new alliance could be successful was to adopt a new approach to the business after the failure of DaimlerChrysler and Mitsubishi Alliance. The firm adopted the transnational strategy that was different from that adopted by their predecessor. TATA Jaguar Land Rover successfully employed the strategy when they opted to respect the existing management culture already in Jaguar Land Rover rather than imposing their new foreign culture (Abbott Snidal, 2013, p.95). TATA Jaguar Land Rover needed to do things differently from their counterparts DaimlerChrysler and Mitsubishi Alliance. Transnational strategy allowed TATA to leave the present management structures in both firms and therefore, no effort was made to put the Indian managers on JLR (Wangmo Sherab, 2016, p.86). Consequently, the strategy helped the alliance to become successful in managing their outlet retails and inspiring trust in JLR. Q4. Tata Motor's established a clear strategy concerning the consolidation of the alliance, which allowed continued investment on the Indian and global market by focusing on product development as well as acquisitions and partnerships. TATA acquired Jaguar Land Rover for approximately $2.3 billion in the 2008 and one feature highlighted from the collaborations is that TATA Motor Limited showed an interest in maintaining the products identities intact while integrating the experience and the skills of the employees to its evolution (Seema, 2016, p.17). The acquisition and merger indicated a major milestone since TML could now enter the global market by integrating the technology at their disposal and diversifying their product. Furthermore, TML could, therefore, reach a designated public evolving markets that nations have significant development in the short-term period. Besides the acquisition of JLR brought various advantages to TATA Motors due its potential strengths. Firstly, Jaguar Land Rover would provide access to technological development and skills that would be needed to improve the standards of TATA products in the Indian market (Chatterjee Banerjee, 2013, p.17). Because of the acquisition of JRL showed less dependency on Indian market once TATA would provide standard products and could remove competitors. The alliance means the acquisition of technology and skills to improve Tata Motor Limited low-ends with no additional expenses since the management aspect will be integrated. The strengths of JLR facilitated one of the key performance indicators, and the acquisition would offer synergy in parts of component sourcing, designing and engineering of the production process. The benefits entailed more zones such as JLR's service and network distribution that was fairly significant to globalized expansion. With the alliance, TATA Motors will be making a sale of cars from $ 2.5 billion (Nano car) to $65 billion (Jaguar). The future of the Jaguar and Land Rover brands under the ownership of the Indian TATA Motors was uncertain in 2008 since the global financial crisis spread-out with no reliable indicator of whether sales would ever grow again. In a competitive business market for achieving the objectives of the enterprise, the management requires being a global player to manage all the risk and uncertainty that come up with the prospects. Besides the company expects to develop strategies and plans built on the internal strengths and the external opportunities. Tata Motors acquisition of Jaguar and Land Rover was a unique instance of exploring this opportunity. Nonetheless, in the first ten months post- Alliance, the selling of the units dropped down by 32 per cent and the unit department recorded a decrease and subsequently a loss of approximately 281 million pounds ($461 billion). However, Jaguar Land Rover produced an unprecedented sale of approximately 462,678 vehicles worldwide in 2014, up from 425,000 during the previous year, with a projection to reach a half a million in the next year. The TATA and JLR Limited launched a manufacturing plant the same year, this was the fifth recorded globally, with a vision to reach 750,000 units to be sold yearly at the close of the decade. The acquisition of JLR brought a turnaround experience to the Tata Motors, for the fiscal year that ended 2010, automobile maker's returns in excess by 9.2 billion pounds ($15 billion) while the net revenue for the same period was approximately $1.5 billion. The strengths of JLR included globally positioned products, durable product collection of award superfluity goods and vehicles. The current financial status of the alliance will assist to analyze the success level of the acquisition strategy of the Jaguar Land Rover. The acquisition can be deemed essential to the growth of Indian auto industry. However, Tata Motors Limited recorded a fall in both passenger vehicle and commercial vehicles segment by an approximately 4.7 percent and 22.4 respectively in Financial Year 13-14. But there was a growth in Tata Motors by 73.3 per cent as a result of JLR luxury products and vehicles. During the financial year 2013-2014, the total sales rose to 429,861 units from 372,062 units in the fiscal year 2012-2013 an increase of 15.5 percent as shown in Table 2. The growth in the sales of units closely links with the high value of products from JLR. Furthermore, the passenger car sales achieved a new peak of approximately 18.4 million units during the year to the month of March, growing tremendously fast than any of the two previous years. The total JLR trades in the China, however, managed 103,077 up from 77,075 in the fiscal year 2012-2013. Jaguar sale volumes were doubled to 19,891 units whereas Land Rover sales were 83,186 units. Table 1: Comparing Demand of Autos in FY 12-13 of Industry and TATA Category Industry sales Nos. Company sales Nos. Market Share (%) FY 12-13 FY 13-14 Growth (%) FY 12-13 FY 13-14 Growth (%) FY 12-13 FY 13-14 Commercial vehicle 900,433 698,907 -22.4 536,232 377,909 -29.5 59.6 54.1 Passenger vehicle 2,557,566 2,438,502 -4.7 229,325 141,846 ...

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