Strategic analysis of tata motors with emphasison jlr. Tata motors acquisition of jaguar and land rover the. On march 26, 2008, tata motors entered into an agreement with ford for the purchase of jaguar and land rover. To understand the reasons behind ford motors decision. In the year 2007, the ford motor company, a widely respected company which also happened to be the worlds third largest automaker based on vehicle sales worldwide, reported the largest annual loss in the history of establishment of the company since 1903. Strategic analysis of tata motors with emphasison jlr acquisition 1. This paper aims to focus on tata motors, an automobile company from an emerging market, and its successful acquisition of two global marquee car brands in jaguar and land rover jlr. Tata motors and jaguar land rover merger case study. Case study tata jlr deal jaguar land rover acquisition by tata motors disclaimer names and numbers have been changed garbed wherever necessary to keep the real identities of the corporate and brand confidential. The main reason for selling jlr to tata motors was that the business was currently loss making and their new corporate strategy was to focus on their core us car. Tata motors is an indian conglomerate automotive company of tata sons based in india and also the parent of jlr. Tata motors acquisition of jaguar land rover hstalks. Tata motors acquisition of jaguar and land rover in 2008 venkitv introduction indiabased tata motors ltd. Giants like bmw and ford had tried to make things work at jlr before tata bought it from ford.
The analysis will increase our understanding of how and for what. Tata motors carefully handled shortterm challenges and continued to invest in the core competencies of jlr and reaped benefits over the long run. Tata motors benefitted from this acquisition with a firsthand experience in the development of highperformance designs through the implementation of some of the best practices from jlr. Tata motors stood to gain on several fronts from the deal. Will the acquisition of land rover and jaguar be a smooth ride for tata motors.
Emerging country multinationals henceforth, known as emnes are important because they are becoming the toyotas or samsungs of the next decade. Tatateleservices and power sectors but in cased of tata motor, steel. The acquisition of jlr by tata motors gave them an advantage on several fronts. After the acquisition of the british jaguar land rover jlr business, which also includes the daimler, lanchester and rover brands, tata motors became a major player in the international automobile market. Aug 04, 2010 tata motors acquisition of jaguar and land rover.
Tata motors acquisition of jaguar and land rover the case. Tata, chairman of tata sons and tata motors, was present at the. The paper considers the tata motors acquisition of jlr. Tata motors bought jlr on the 26th of march 2008 from the us automotive giant ford motor company. Separation or integration for successful acquisition. Jlr was a part of fords premier automotive group pag and were considered to be british icons. Jul 21, 2016 complete strategic analysis of tata mptors showing how it went ahead with acquisition of jlr and future plans of tata motors. Deepraj mukherjee on tata motors acquisition of jaguar land rover, part of a collection of online lectures.
Lenovo, the chinese computer hardware firm is now the second largest pc company. Tata motors successful crossborder acquisition of jaguar. These are the sources and citations used to research tata motors acquisition of jaguar land rover. Tata jlr acquisition ford motor company wheeled vehicles. Success of the deal has stunned many analyst, who initially claimed that tata motors was making a big mistake. Jun 02, 2008 tata motors is in an advanced stage of negotiations with leading auto finance providers to support the jaguar land rover business in the uk, europe and the us, and is expected to select financial services partners shortly. Tata motors acquisition of jaguar land rover revs up a company washington post. As a matter of fact in 2003, jlr sold just 431 cars in china, whereas in 2011 it sold an astonishing 51,000 vehicles up by 76%. According to an article by forbes, tata motors majorly focussed on three areas improving liquidity, cost control and new products. Stock prices of tata motors crashed in 2008 after the deal but revived soon. This situation is made worse if tata motors overpaid for the jlr acquisition, even if. However, it was tata, who was convinced the new acquisition will turn out well in future. Strategic analysis oftata motors with special emphasis on. Tata motors finds success in jaguar land rover the new york.
Strategic analysis of tata motors with emphasison jlr acquisition. Tata motors appears to have succeeded in large part because it did not seek to run jaguar land rover from tata headquarters here. Jaguar land rover is an integral part of the tata motors group and we are committed to it for the long term, according to a statement from natarajan chandrasekaran, the current chairman of tata. Tata might have acquired the jlr in 2008 but the plan for acquisition and internal due diligence started when the first real contact between tata and ford took place in early 2007. With a positive intent, tata motors began a ninemonth internal due diligence process before the acquisition. Entry motives of the emerging country multinationals. Jaguar land rover acquisition by tata motorsjaguar land rover. Mar 27, 2008 following tatas purchase of jaguar and land rover earlier this week declan mulkeen, marketing director at communicaid, europes leading culture and communication skills consultancy responds to the announcement and discusses the cultural and communication challenges which a crossborder acquisition of this type may produce and the steps that both tata and jaguarland rover need to take in. Strategic analysis oftata motors with special emphasis on inorganic growth strategy sibasis mohapatra um15111. Tata motors transformational resource acquisition path berlin. To examine the rationale behind tata motors acquisition of. Three clear and pointed strategy later worked out well for the company. Tata jlr deal free download as powerpoint presentation. Download annual report in pdf format 2019 2018 2017 2016 2015.
Jaguar land rover is looking to buy a luxury brand bloomberg. Jaguars incredible turnaround and how it got ready to. Tata motors acquisition of jaguar and land roverbusiness. Tata motors has acquired jlr, a british multinational automotive company, in 2008. The basic motive behind acquiring jlr by tata motors were long. This deal gave tata motors instant brand recognition, credibility and entry into the highend premier segment of the international automobile market. The two iconic brands of jaguar land rover are jaguar, with a range of luxury sedans, sports cars and luxury performance suvs, and land rover, encompassing a. Jaguar land rover acquisition by tata motorsjaguar land. Jlr was a part of fords premier automotive group pag and were considered to be. Jaguar land rover has roped in great profits for tata motors since then and is today one of most successful subsidiaries of the tata group. Tata motors will acquire outright ownership and sole control of jlr, by the acquisition of a combination of shares and assets.
Case study on tata motors and ford motors mergers and aquisition 1148 words 5 pages. Tata jlr deal mergers and acquisitions ford motor company. When tata acquired jlr back in 2008, it was matter of pride for every indian but it also generated lot of skepticism. Ratan tata jaguar owner and the jaguar acquisition story. Tata group is exploring strategic options for its jaguar land rover automotive plc unit including a potential stake sale in the struggling luxury carmaker, people familiar with the. One, the acquisition would help the company acquire a global footprint and enter the highend premier segment of. The story of ibm was always considered to be the greatest turnaround stories of all times but wait, have you heard how an indian mnc tata has turned it around for itself through its acquisition and revival of the global luxury brand, jaguarland roverjlr. This paper aims to focus on tata motors, an automobile company from an emerging market, and its successful acquisition of two global marquee car. This week we had a think about how tata motors turned things around for jlr in just a few short years. Rover jlr completed a transformational deal to become an international car. Sep, 2016 acquisition of jaguar and land rover by tata motors. Tata motors key financial ratios, tata motors financial. The aim of my thesis is to analyze the cultural challenges of the crossborder acquisition of jlr jaguar and rover by indian tata motors.
A case study of the acquisition of the jaguar and land. Tata is said to explore options for jaguar land rover unit. The current trend towards international mergers, acquisitions and joint ventures is resulting in organizations not only having to. Jaguar land rover automotive plc is the holding company of jaguar land rover limited, a british multinational automotive company with its headquarters in whitley, coventry, united kingdom, and a subsidiary of indian automotive company tata motors. Jaguar land rover, part of tata motors since 2008, is britains largest automotive manufacturer which designs, manufactures and sells some of the worlds bestknown premium cars. Tata motors finds success in jaguar land rover the new. Jaguar land rover acquisition by tata motorsjaguar land rover acquisition by tata motors 1. As part of the acquisition, tata motors did not inherit any of the debt liabilities of jlr the acquisition was totally debt free. Mar 09, 2018 on march 26, 2008, tata motors entered into an agreement with ford for the purchase of jaguar and land rover.
The acquisition of jaguar came during a detroit spending spree after profitable years in the mid80s. Jaguar land rover is part of tata motors, indias largest automobile company. At that time, many analysts were skeptical about the acquisition of luxury european brands by an indian company specialized in the lowcost cars. Roce for the tata motors and jlr is 79 which is by far the highest among large indian cross border takeover. Get tata motors latest balance sheet, financial statements and tata motors detailed profit and loss accounts.
Some closed down whereas some got involved in mergers and acquisition. This project aims at analysing the acquisition of jaguar land rover by tata motors. Tata motors acquisition of jaguar and land rover for case. Tata motors buys fords jaguar land rover jlr on march 26, 2008, tatamotors confirmed the agreement with ford to purchase jaguar land rover, its comprising brands, plants. In addition to the deal, tata motors also acquired two advance design studios and a deal to share automotive. Tata jlr acquisition free download as powerpoint presentation. Instead, it has left daytoday management in the hands of. Tata motors balance sheet, tata motors financial statement. Consolidated net profit beats street, jlr continues to improve 25. Aug 31, 2012 tata motors appears to have succeeded in large part because it did not seek to run jaguar land rover from tata headquarters here. Report tata motors jaguar land rover acqusition table of contents executive summary 3 introduction 4 swot analysis of ford motor co 5 business strategy of ford 6 swot analysis of tata motors 7 why acquisition 9 future study 9 references 10 executive summary. How ratan tata brought life to jaguar land rover triumph.
The principal activity of jaguar land rover limited is the design, development, manufacture and sale of vehicles. Pdf an understanding of tatajlr deal with the concepts of. Sep 12, 2016 while the general temptation in any acquisition is to extract synergies as quickly as possible, the tata motors acquisition of jlr is an exception. It is an example of a large, difficult crossborder acquisition by an emerging market based company. Tata motors strategy behind jlr acquisition essay 455 words. It traces the evolution of jlr under the stewardship of tata motors over an eightyear long period and examines the strategic reasons for the success of the acquisition. Apr 04, 2015 jaguar land rover acquisition by tata motorsjaguar land rover acquisition by tata motors 1. Acquisition of jaguar and land rover by tata motors. Tata motors resource acquisition and catchup in passenger cars.
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