International Business Process Tata Group of India †Free Samples

Question: Discuss about the International Business Process Tata Group of India. Answer: International business is the process of doing all commercial and business activities between two or more countries, regions or nations (Wild, Wild, and Han 2014). International business creates more business opportunities for the business organizations; and this process leads to the increase in profitability for the business organizations. For the purpose of this essay, Tata Group of India is taken into consideration. Tata Group is one of the biggest multinational companies all over the world. Jamsetji Tata founded Tata Group in the year of 1868. From that time, Tata Group has been considered as a global enterprise as the group has its presence almost all over the world. Tata Group is comprised of more than 100 individual companies (tata.com 2017). The headquarter of the company is in India. Currently, Tata Group is operating in more than 100 countries across six continents. The mission of the group is to improve the quality of the global communities with the help of long-term stakeholders value, effective leadership and trust. The principal investment holding company of the group is Tata Sons; this is the main promoter of Tata group of companies. In the year of 2015-16, the total revenue of the company was $103.51 billion. All the companies under Tata Group collectively have an employee base of 660,000 people. Philanthropic trusts hold sixty-six percent of the total equity share capital of the gr oup. Several companies under the Tata Group have achieved effective global leadership in their various kinds of businesses. It can be seen that there are many Tata companies that are holding top positions among the international companies. In case of TATA Group, it can be seen that there are some major factors that influence the decision of firms choice for the group. Some of the major factors are political factors, economic factors; socio-cultural factors are others. TATA Group considers some of the major economic factors when they want to establish new business in a new country; like the supply of raw materials, means of transport, sources of capital, availability of power and other resources, availability of skilled labors and others. Apart from these, the flexibility of government policies is another major aspect as the business policies and regulations of the government of host country must support the business activities of TATA Group. Political situation of the host country needs to be stable as stable political condition of the host country is good for the business activities of TATA Group. Another important factor is socio-cultural factor. It can be seen that TATA Group uses to take many socio-cultural initiat ives to improve the lifestyle of the people of the host country. For their socio-cultural initiatives, TATA Group has been awarded with Golden Peacock Global Award. Globalization of Business refers to the process of expanding the business operations from one country to another or several countries (Dunning 2014). It can be seen that there are many theories about the globalization of businesses that helps to define various status of a business. One of those important theories is Porters Diamond Approach (Aghdaie, Seidi and Riasi 2012). This is an important globalization theory that is helpful to understand the competitive advantage of a multinational corporation. There are four major aspects of this model; they are strategy of the firm, structure and rivalry, related supporting industries and the condition of demand and supply. With the help of these four aspects, the status of a multinational company can be judged. The business status of Tata Group can be judged with the help of this theory. It can be seen that Tata Group has well developed business strategies that have been supporting the group in international business expansion. The main aim of the group is to provide world quality products and services that can touch the daily life of the customers all over the world. This strategy with the help of technology and innovation is a driving force behind the international success of the group. On the other hand, the worldwide demand of the products of Tata Group is a major reason of this groups international success. It can be seen that there are many upstream and downstream industries that are supporting Tata Group with the exchange of various kinds of business ideas. According to Porter, these are main factors behind the success of international business. At the time of the selection of the host countries for international business, there are certain factors that need to be taken into consideration. In case of Tata Group, it can be seen that there are many important factors that affects Tata Group at the time of selecting host countries. The first factor is political factor. Stable political condition is important for the selection of host countries as it largely affects the business operations of the business (Ezcurra and Rodrguez-Pose 2013). The next important aspect is the economic factors. The demand and supply of a country vastly demands on the rate of economic growth of the country. Hence, it is crucial that the host country have a stable and growing economy to support the growth in international business. The next aspect is the technological factor. The fate of the businesses in host countries largely depends on the technological infrastructure and technical capabilities of the host countries. Tata Group considers this aspect i n all the host countries. The last factor is the social factors. Various demographic factors like religion and culture largely affect the quality, features, demand and supply of the products. Tata Group considers all these four above discussed factors at the time of selecting the host countries (Cui and Jiang 2012). TATA Group has been adopting specific strategies in order to enter into a new market. Internationalization is one of the major strategizes adopted by TATA Group. As per TATA Group, internationalization is not a strategy; it can be considered as a challenge or objective that must be achieved. Another most important entry strategy adopted by TATA Group is the Merger Acquisition (MA) strategy. TATA Group has been using MA strategy for the purpose of horizontal acquisition. The acquisition of Brunner Mond by TATA chemical can be considered as a classic example of horizontal acquisition. In the near future, TATA Group is expected to adopt these entry strategies for new businesses. TATA Group has to face some major challenges while doing international business. As per the managing director of TATA Group, Noel Tata, cultural diversity is the greatest challenge in international business. As per him, the international managers of TATA Group need to appreciate and adopt differentmanagement styles in the multi-cultural organizations. Apart from this, there are some other challenges that TATA Group face in international business. They are to take the correct decision on the right business place, the adoption of appropriate business models based on the business environment of the host countries, effectivemanagement of corpoare restructuring and many others. As per the UN Global Compact Principles, there are ten principles that all the business organizations need to comply with while doing business. TATA Group is such an organization that has given importance to all these ten principles. However, due to the ever-changing business environment, there are certain areas that TATA Group needs to improve. One such area is environment. Various business activities of TATA Group have been affecting the environment. However, the group has taken much effective initiative for the betterment of the environment; but there is still scope for more developments. TATA Group needs to take effective strategies to prevent corruption from all of their business activities. OLI analysis is an important tool to identify a companys good points and competitive advantage. Three factors in OLI analysis are Ownership advantage, Location advantage and Internationalization advantage. As per the above discussion, TATA Group has an effective presence all over the world as TATA Group has invested in the business of different companies. It can be seen that TATA Group uses to consider many aspects before starting business in a new country. This provides the necessary competitive advantage to the group. TATA Groups adopted strategy of MA provides the company the necessary competitive advantage over their competitors. All these forces together provide TATA Group the necessary competitive advantage over the other countries. From the above discussion, it can be seen that Tata Group is one of the major multinational corporations all over the world. The adoption of effective strategies has helped the organization to expand internationally. References Aghdaie, S.F.A., Seidi, M. and Riasi, A., 2012. Identifying the barriers to Irans Saffron export by using Porters diamond model.International journal of marketing studies,4(5), p.129. Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G. and Rose, E.L., 2014.International business. Pearson Australia. Cui, L. and Jiang, F., 2012. State ownership effect on firms' FDI ownership decisions under institutional pressure: a study of Chinese outward-investing firms.Journal of International Business Studies,43(3), pp.264-284. Driving global strategy via @tatacompanies. (2017).tata.com. Retrieved 2 April 2017, from https://www.tata.com/aboutus/articlesinside/Y012M7gb5x0=/TLYVr3YPkMU= Dunning, J.H., 2014.The Globalization of Business (Routledge Revivals): The Challenge of the 1990s. Routledge. Ezcurra, R. and Rodrguez-Pose, A., 2013. Does economic globalization affect regional inequality? A cross-country analysis.World Development,52, pp.92-103. Penrose, E., 2013.The Large International Firm (RLE International Business). Routledge. Riasi, A., 2015. Competitive advantages of shadow banking industry: An analysis using Porter diamond model.BusinessManagement and Strategy,6(2), pp.15-27. tata.com. (2017).Tata group profile via @tatacompanies. [online] Available at: https://www.tata.com/aboutus/sub_index/Leadership-with-trust [Accessed 14 Mar. 2017]. Tata.com. (2017).Tata group. [online] Available at: https://www.tata.com/ [Accessed 14 Mar. 2017]. 'The biggest challenge is cultural diversity' via @tatacompanies. (2017).tata.com. Retrieved 2 April 2017, from https://www.tata.in/article/inside/The-biggest-challenge-is-cultural-diversity The Ten Principles of the UN Global Compact. (2017).unglobalcompact.org. Retrieved 2 April 2017, from https://www.unglobalcompact.org/what-is-gc/mission/principles The time to evolve is here via @tatacompanies. (2017).tata.com. Retrieved 2 April 2017, from https://www.tata.in/article/inside/p4U2FxQ!$$$$!fOM=/TLYVr3YPkMU= Wild, J., Wild, K.L. and Han, J.C., 2014.International business. Pearson Education Limited.