Tata Case

The Tata Group plays a central role in the Indian economy and is currently at the fore in the internationalization of Indian companies. Tata has some specific features, including the role played by Tata Sons and Tata Industries in coordinating financial and managerial activities and managing the Tata brand, as well as the strong emphasis on corporate social responsibility, mainly though not exclusively through the Tata trusts. In this paper I will analyzes how internationalization is changing the nature and corporate culture of Tata and the implications of the Tata experience for the internationalization of large firms from India and other emerging economies.

Since the opening of the Indian economy in 1991, Tata has been subject to global competition, making it imperative for the group to become competitive in India against the new entrants. To gain scale, reduce their exposure to the cyclicality of India’s economy, survive, and achieve a sustainable competitive position in industries that are globalizing, most Tata companies then looked overseas. Tata’s recent experience is an excellent case for analyzing. As it pertains to a challenger conglomerate from formerly peripheral areas that goes international in order to access resources, the Tata group has been driven by multiple factors, including the need to access new markets, the opportunity to integrate the value chain, and the quest for brand control. This strategy proved feasible because Tata possesses strong leadership combined with vision; can exploit the possibility of leveraging increasingly developed financial markets in India, a large domestic market, and global liquidity; and reacted fast to the opening of specific opportunities at given times. The process of growth, especially when it takes form through international acquisitions, has considerable consequences on the nature of corporations, their internal characteristics, and their relationship with stakeholders. Changes take time...