Based on Tata Group’s experience, we can see the advantages and drawbacks of going international as follows:
Advantages of going international; ①
The first advantages of going international for Tata is to achieve benefits of economies of scale; Tata has more than 100 operating companies in seven main business groups doing business in 80 countries: chemicals, information systems and communications, consumer products, energy, engineering, materials, and services. Its two largest businesses are Tata Steel and Tata Motors. Its Tata Tea, which owns the valued Tetley brand, also is one of the largest tea producers in the world. It ranked 6 on the …show more content…
Tata have operation in 80 countries, where it face competition from local competitors, it’s difficult in capturing and exploiting advantages;
Going international, Tata face increased global competition for jobs, markets, and talents. Other drawbacks of going international including disruptions in supply times/supply chains, Ethnic, religious, and cultural tensions; Disruptive changes such as terrorist attacks, natural disasters, disease outbreaks; Financial and economic risks;
2. What strategic challenges do you think Cyrus Mistry might face as he guides his company? Using what you know about managing strategically, how might he respond to these challenges?
Strategic challenges that Cyrus Mistry might face as he guides his company might include: acquiring companies larger and less efficient than themselves; possibility of greater economic and strategic risks; the difficult of managing become more complex and challenging; and capturing and exploiting advantages.
The legal-political environment in the United States is stable. Changes are slow, and legal and political procedures are well established. The laws governing the actions of individuals and institutions are fairly stable. The same can’t be said for all countries. Various assessments of global political risk categorizes countries into different stability categories. Some countries on the maximum