International Management: Tata - Book Report/Review Example

2.0 Secondary Problems The company has not fully utilized the mills it acquired including the one in Port Talbot, Wales. The absorption of the Corus Group means that the margins of the group will reduce as it has inherited a $7.4 billion debt. Tata is currently involved in corporate social responsible initiatives that burden it. The major question for analysts is whether this manoeuvre is sustainable in the future or whether the costs will be cut once the current chief executive has retired and when the boom in the economy slows down1.

Another indicator of the problems that surround the company is the failure in some of its investments. Short Term problems There are a few problems that face the company in the short term. These include: The underutilization of some of its assets including the steel mill in Port Talbot, Wales The underutilization of the vast resources including labour and raw materials in the country. The lack of marketing initiatives for the marketable brands. Reluctance to open up new markets in developing economies as well as the lucrative markets in the West.

Long Term problems There are problems that have dogged the company for many years and need addressing. They include: The reduction in the number of products that the company produces and which are not performing as to the envisaged standards. The lack of an organisational structure that can aid the company in management in the future The presence of business entities that are not profitable and add the least value to the Tata brand and range of products and services. 3.0 Analysis Ratan Tata has driven the business from a modest one into one of the most reputable companies in and outside India2.

He has been the brainchild behind the success that the company now enjoys3. His efforts have been on the production low cost products for the betterment of the poor. The worry is that if he leaves, then his successor, whom he is working with for a year, might abandon such projects and concentrate only on high-end brands in order to spin off during tougher times. The sayings that “if it is not broken then don’t fix it” can apply perfectly once the successor assumes the mantle at Tata. The system that has been adopted by the company has worked well in propelling it to the heights it is at presently.

The successor should therefore follow with the same model of operation while looking for areas where improvements might be required. India is the second largest country in the world in terms of population. Therefore, the company should aim at maximizing the opportunities that are present in the domestic market. Its strategy in the domestic market has been the production of low cost products using cheap labour. If the population at the disposal of the company was to be fully utilized, then, the company would produce more low cost products for the domestic markets.

The company uses the domestic scene as a source of raw materials. This is the reason why it mines metal ore in the country and then ships it to other countries for processing and manufacture. A strategy should be in place to ensure that the domestic market is utilized with both high end and low cost products being widely marketed and sold. Tata Company acquired Ford’s Jaguar brand as well as Land Rover. Undoubtedly, these brands will improve the company’s portfolio in the market but could face an uphill task in the resurgence of the brands to global prominence4.

Currently, the company has not built the capacity to produce products along the needs of the global citizens