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House of Tata: Acquiring a Global Footprint Case Solution & Answer

House of Tata: Acquiring a Global Footprint Case Solution

            Conclusively, it can be seen that the Tata Group Center allowed the company to increase its visibility and brand awareness in the local and international market by making an integration among the local and international company during the acquisition process. While this center also allowed the company to follow its M&A strategy smoothly. Finally, the center enabled the company to easily enter the global arena and to maintain and increase its brand equity in pursuit of higher margins.

Horizontal Integration: A strategy or Distraction

            It can be seen from the structure of the company that the company usually follows M&A strategy for international growth however, it can be also seen that the company usually follows the Acquisition strategy as a part of its diversification and horizontal integration strategy. Moreover, the question here is that is the acquisition strategy worth for the company or not? The answer is yes since, it is easy to purchase a running business regardless of whether the business is in profit or loss; effective management can lead that business towards higher profits. (QuickMBA, Horizontal Integration, 2016)

            On the other hand, it is quite difficult to merge the business with another business and synchronize the structure with the merged company. Therefore, the acquisition strategy is more preferable. However, in case of Tata group, it has been seen that the company usually acquires those companies, which have the potential to make handsome returns, but the company is not working in a potential condition or its being poorly managed. Tata group acquires this types of companies, injects capital and expertise and turns that company into a profitable venture. (QuickMBA, 2016)

            As far as the question of the acquisition of Jaguar and Land Rover is concerned, there are several pros and cons of the acquisition. The main advantage of the acquisition is that it will give easy entry towards the American market, the company will be able to enhance its global reputation and the company can add two world famous brands to its Tata Motors portfolio.

            On the other hand, the major risk of the acquisition is that Jaguar is in significant losses, which will require keen attention to become profitable, risk mitigation is difficult through this acquisition since both of the brands are in losses. Tata does not have significant learning, experience towards branded and premium cars, which can lead to more loss, the cost of the acquired infrastructure is very high, and finally, the acquisition is very risky as indicated by the discussed factors………………….

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