INTERNATIONAL BUSINESS

PROJECT

MMS-II (Semi- III)

PRESENTED TO:

Dr. AMOL GORE

DATE- 10/08/2009
 GROUP MEMBERS

• PRADNYA BHALERAO C-03

• SWAPNIL CHAVAN P-04
• AVINASH KARDE P-14
• SAIDAS NAIK P-23
• SATISH RAJPAL C-30
• ANANDITA SINGH C-34
• PRATIKSHA RANE C-42
• JAYASHREE PRABHU C-43
INTRODUCTION ABOUT
GLOBALIZATION

BUILDING GLOBAL
COMPANIES

GLOBAL MANAGERS
Globalization
 WHAT IS GLOBALIZATION?
• The trend toward countries joining together
economically,
• Education
• Society
• Politics and
• Viewing themselves not only through their
national identity but also as part of the
world as a whole.
 NEED
FOR
GLOBALIZATION
Technology in developing countries.
 It has benefited women and
children’s rights.
• EXAMPLE:
• Uganda has the world's
youngest population, according
to a 2008 World Bank report.
• It also has the highest youth
(ages 15-24)
• unemployment rate: 83 percent.
• Uganda Rural Development
Programme / World Bank
It raises life expectancy.
It is reducing poverty worldwide.
It promotes world peace.
 IMPACT OF GLOBALIZATION

• COMMUNICATION
• TRANSPORTATION
• TRADE
• LIBERALISATION
 IMPORTANCE
AND
NEED

• Global Marketing / Advertising

• Outsourcing
 PROS
• Pros Of Globalization

• With globalization, there is a global market for companies to

trade their products & a wider range of options for people,
to choose from among the products of different nations.

• Developing countries benefit a lot from globalization, as

there is a sound flow of money and thus, a decrease in the
currency difference.

• To meet the increasing demands that follow globalization,

there is an increase in the production sector. This gives
loads of options to the manufacturers as well.

• Competition keeps prices relatively low, and as a result,

inflation is less likely to occur.
 ……CONTD
• The focus is diverted and segregated among all the
nations. No country remains the single power head;
instead there are compartmentalized power sectors. The
decisions at higher levels are meant for the people at large.

• Communication among the countries is on the rise, which

allows for better understanding and broader vision.

• As communication increases amongst two countries, there

is interchange of cultures as well. We get to know more
about the other's cultural preferences.

• As we feed to each other's financial needs, the ecological

imbalance is also met . Governments of countries show
concern about each other.
 CONS
• Globalization is causing Europeans to lose their jobs as
work is being outsourced to the Asian countries. The cost
of labor in the Asian countries is low as compared to
other countries.

• The high rate of profit for the companies, in Asia, has

resulted in a pressure on the employed Europeans, who
are always under the threat of the business being
outsourced.

• Companies are opening their counterparts in other

countries. This results in transferring the quality of their
product to other countries, thereby increasing the
chances of depreciation in terms of quality.
 ……CONTD

• There are experts who believe that globalization is

the cause for the invasion of communicable
diseases and social degeneration in countries.

• The threat that the corporate would rule the world is

on high, as there is a lot of money invested by them.

• It is often argued that poor countries are exploited

by the richer countries where the work force is taken
advantage of and low wages are implemented.
ADVANTAGES & DISADVANTAGES OF
GLOBALIZATION
 Advantages
Increased free trade between nations
Increased liquidity of capital allowing
investors in developed nations to invest
in developing nations
Corporations have greater flexibility to
operate across borders
Global mass media ties the world
together
Increased flow of communications allows
vital information to be shared between
individuals and corporations around the
world
Disadvantages
Increased flow of skilled and non-skilled
jobs from developed to developing
nations as corporations seek out the
cheapest labor
Increased likelihood of economic
disruptions in one nation effecting all
nations
Corporate influence of nation-states far
exceeds that of civil society organizations
and average individuals
Threat that control of world media by a
handful of corporations will limit cultural
expression
Greater chance of reactions for
globalization being violent in an attempt
to preserve cultural heritage
 Advantages
Greater ease and speed of
transportation for goods and people
Reduction of cultural barriers increases
the global village effect
Spread of democratic ideals to
developed nations
Reduction of likelihood of war between
developed nations
Increases in environmental protection in
developed nations
Disadvantages
Greater risk of diseases being
transported unintentionally between
nations
Spread of a materialistic lifestyle and
attitude that sees consumption as the
path to prosperity
International bodies like the World Trade
Organization infringe on national and
individual sovereignty
Increase in the chances of civil war
within developing countries and open
war between developing countries as
they vie for resources
Decreases in environmental integrity as
polluting corporations take advantage of
weak regulatory rules in developing
countries
 CHALLENGES
• Productivity: Productivity is improved by producing in countries
where production is most efficient. However, this often means
workers in one country lose jobs as their work moves to more
efficient locations.
• Consumers: Consumers benefit from a wider array of
competitively priced goods. However, they have less control over
supplies coming from abroad than over goods produced
domestically.
• Employment: Employment may increase as economic growth
and specialization take hold. However, domestic employment
fluctuates according to foreign conditions (such as economic
crises elsewhere that reduce demand for employment
domestically).
• The Environment: As global consumption increases due to
globalization, more natural resources deplete. Differing
environmental standards across countries create opportunities
for businesses to exploit resources in countries with the least
amount of environmental protection regulation.
• Monetary and Fiscal Conditions: As money moves more freely,
it is better able to seek out the best investment opportunities
on a global scale. However, governments have less control
over the inflow and outflow of funds. Furthermore, capital
seems to be flowing more freely to countries with lower tax
rates and less regulatory restrictions, putting additional
pressures on national fiscal and monetary policies.

• Sovereignty: Globalization may undermine national sovereignty

in two ways: First, contact with other countries creates more
cultural borrowing and may dilute a country's cultural
uniqueness. Second, countries are concerned that important
decisions may be made abroad by foreign owners of
domestically located firms.
 IMPACT
• India’s growth rate in the 1970’s was very low at 3% and GDP
growth in countries like Brazil, Indonesia, Korea, and Mexico
was more than twice that of India.

• Though India’s average annual growth rate almost doubled in

the eighties to 5.9%, it was still lower than the growth rate in
China, Korea and Indonesia. The pick up in GDP growth has
helped improve India’s global position.

• India’s position in the global economy has improved from the

8th position in 1991 to 4th place in 2001; when GDP is calculated
on a purchasing power parity basis.
• During 1991-92 the first year of Rao’s reforms program, The
Indian economy grew by 0.9%only.

• However the GDP growth accelerated to 5.3 % in 1992-93, and

6.2% 1993- 94.

• A growth rate of above 8% was an achievement by the Indian

economy during the year 2003-04.

• India is ranked 18th among the world’s leading exporters of

services with a share of 1.3% in world exports

• India’s GDP growth rate can be seen from the following graph
since independence
INDIA’s GDP Growth Rate
PESTLE Analysis
Political factors

• Stability of the government

• Type of government

- Democratic
- Theocracy (religious)
- monarchy ( kingdom)
• Control structure

Canada, USA ( decentralized province)

Japan, France( centralized)
• Govt take over of asset(with or without

permission)

• Operational restriction

• Remittance/ Repatriation restrictions

• Government policies

• Opposition parties, pressure groups,

external linkages
Economic factors

• Economic system ( open / mixed)

• Economic development

• Standard of living( per capita

income)
• Sectorial share in GDP

• Foreign Exchange reserves

• Economic indicators( inflation rate,

 Socio cultural factors
values
Behavioral
attributes

Socio cultural attitudes

environment

Demographic
factors

Age , sex
Population Geographi
distributio
growth c spread
n
Technological factors

 Differentiation strategy

 Competitive advantage
Legal factors

• Home country laws

• Host country laws

• International laws

UN resolutions, Patents & Trademark

protection & piracy laws, GATT, codes of
conduct
 Entry strategy for
global companies
• Exporting ( Direct or Indirect)
• Licensing
• Franchising
• Contract manufacturing/ International
subcontracting
• Strategic Alliance
• Joint ventures
• Wholly owned subsidiary
• Mergers & Acquisition
 TOYOTA

 Kiichiro Toyoda, founder of TMC, 1929

 From starting, eye on global

competition
 Use of cultural practices in business

 Taiichi ohno , founder of TPS

Customer 1st, dealer 2nd, manufacturer
3rd…
Elimination of 3 M’s

MURI
( Overburdening)

MURA
MUDA
(unevennes (Waste)
s)
 JIT
Higher Levels of Inventory Hides
Problems

Bad
Design
Lengthy Poor
Setups Quality
Machine
Inefficient Unreliable
Breakdown
Layout Supplier
Lower Levels Of Inventory To Expose
Problems

Bad
Design
Lengthy Poor
Setups Quality
Machine
Inefficient Unreliable
Breakdown
Layout Supplier
 “5 Why” investigation
process
Level of problem Corresponding level of
countermeasure

There is a puddle of oil on the Clean up the oil

shop floor
W
HY? Because the machine is leaking Fix the machine
oil
W
HY? Because the gasket has Replace the gasket
deteriorated
W
HY? Because we bought gasket Change gasket specification
made of inferior material
W
HY? Because we got the good deal Change purchasing policies
on those gaskets
W
HY? Because the purchasing agent Change the evaluation policy
gets evaluated on short term for purchasing agents
cost savings
5 S’s
SEIRI
Clear out rarely
used items by
red tagging

SHITSUKE SEITON
Use regular
Organize & label
management
a place for
audit to stay
everything
discipline

SEIKETSU
Create rules to SEISO
sustain the first Clean it
3 S’s
4 principle
categories Proble
m
solvin
g
“Kaizen
People
” &
Partners
Respect, Challenge &
Grow

Process
( eliminate
waste)

Philosophy
(Long term
thinking)
Toyota’s Global
Marketing
 Product research :
- 2 time visit to ford plant
- Design requirements “Genchi genbutsu “( go look, go
see)
- Customized product ( Toyota sienna for North America)

 Place or Distribution research :

- Trust in minds of supplier
( Be slow in choosing a person and much slower in
loosing that person)
- Few but Big supplier(JIT)
- Cross Docking
Toyota’s Global HR
functions
3 stage process of selection

- Written application process

- Attending Job fair

- 3 one hr. interviews

 Motivational strategies
Internal motivation
theories
Theory Concept Toyota Approach
Maslow’s need Satisfy lower level Job security, good pay ,
hierarchy Theory needs & move safe working conditions
employees up the satisfy lower level
hierarchy toward self needs. Culture of
actualization continuous
improvement supports
Herzberg’s Job Eliminate growth towards self
5S, visual
Enrichment Theory “dissatisfiers” actualization
management, HR
( hygiene factors) and policies address
design work to create hygiene factors.
positive satisfiers Kaizen, job rotation,
( motivators) and built in feedback
support motivators.
External motivation
theories ( splashy
reward system)
 Myth Vs Reality of TPS
Myth Reality
What TPS is not What TPS is

A tangible recipe for success A consistent way of thinking

A management project or A total management philosophy

program

A set of tools for implementation Focus on total customer

satisfaction

A system for production floor Quality built in process

only

Implementable in short or mid A never ending search for a

term period better way
Crisis handling
1948 1977
 McDonalds Corporation
• Emblem of Globalization

• World’s Largest Chain of Fast Food Restaurants

• Serves Nearly 47 million Customers Daily

• 119 Countries & Territories

• 31,000 Restaurants & 1.5 m Employees

• Hamburgers, Cheeseburgers, Chicken Products,

French Fries, Breakfast items, Soft drinks,
 Types of Restaurant
• Drive-Thru, Auto-Mac, Pay and Drive, or
McDrive

• Solid Gold McDonald's

• McCafé

• McExpress

• McStop
First Mcdonalds Restaurant
• On May 15th 1940, San Bernardino,
California.

• Menu of 25 Items (mostly Barbeque)

• 20 Employees

• Popular and highly profitable teen

hangout
• 1948: Innovative ‘Speedee Service
System’
• Only Hamburgers, Milkshakes &
French fries
• Introduced ‘Speedee’ as their mascot
• 1953: Franchised restaurant in Arizona &
Michigan

• 1954: Mr Ray Kroc proposed to Franchise

Mcdonalds outside Arizona & Michigan

• 1955: ‘Mcdonalds Systems Inc’ Legal Structure of

planned franchises

• 1958: 100 millionth Hamburger

• 1959: 100th Mcdonalds Restaurant & Billboard

Advertising

• 1960: Renamed as Mcdonalds Corporation

• 1963: 500th Mcdonalds Restaurant, Introduced

‘Ronald’ as their new Mascot
 1970-1980
 U.S. Virgin  Puerto Rico  Guam
Islands

 Japan (5000th)  Netherlands  Panama

 Germany (Beer)  Australia France
El Salvador Sweden Guatemala
 England Hong Kong  Bahamas
 New Zealand Switzerland Ireland
 Austria  Belgium  Brazil
 Singapore
 1981-1990
 Spain Denmark Philippines

Malaysia  Norway Taiwan

 Andorra Wales Finland

Thailand Aruba Luxembourg

Venezuela  Italy Mexico

Cuba  Turkey Argentina

Maca Scotland  Yugoslavia

South Korea Hungary  Soviet Union

 China  Chile
 1991-1995
Indonesia  Portugal Northern Ireland
Greece  Uruguay Martinique
Czechoslovakia Guadeloupe Poland
Monaco Brunei Morocco
Northern Marianas Iceland Israel
Slovenia Saudi Arabia Botswana
Kuwait New Caledonia Oman
 Egypt Bulgaria Bahrain
 Latvia United Arab Estonia
 Romania Emirates
Malta Colombia
Slovakia South Africa  Honduras
 Qatar Saint Martin
 1996-2008
Croatia Western Samoa  Fiji Islands
 Liechtenstein Lithuania Cyprus
 India  Peru Jordan
 Paraguay Dominican Republic  French Polynesia
 Belarus Ukraine  Yemen
(100th Country)
Republic of  Ecuador Réunion
Macedonia
Isle of Man  Suriname Moldova
Nicaragua Lebanon Pakistan
Sri Lanka Georgia San Marino
Gibraltar Azerbaijan  French Guiana
 American Samoa Mauritius Kazakhstan
Montenegro Algeria
 Business Model
• Earns Revenue as an Investor in
Properties

• Only 15% of the restaurants are

operated by the company itself

• UK Business model is different

• One out of eight workers in the U.S.

has been Employed with Mcdonalds
Break-up of Outlets (2008)
Type of Outlet No. Of Outlets

Company operated 6,502

Conventional 18,402
Franchises
Developmental 2,926
Licenses
Foreign Affiliated 4,137
Markets
TOTAL 31,967
 Controversies
• Often a Target of Criticism for its Menu

• The McLibel Trial, also known as McDonald's

Restaurants v Morris & Steel

• In 2001, Eric Schlosser's book Fast Food Nation

included criticism of the business practices of
McDonald's

• In 2002, misrepresention of French fries as

vegetarian

• Morgan Spurlock's 2004 documentary film Super

Size Me

• Soya supplied by agricultural giant Cargill

PEPSICO
Product Range
Financial Highlights
Global Centers
 History
• PepsiCo is a world leader in convenient
snacks, foods and beverages.

• Revenues of more than $39 billion .

• Over 185,000 employees.

• PepsiCo entered India in 1989.

PEPSI
Brand Ambassador
X - Global Ambassador
Market share of Soft drinks
 Global Marketing Strategies :
-Slim Cans to build personal connections.
Pepsi New Logo
PEPSI vs COKE
…Never
ending war
PEPSI PESTICIDE CASE –
(Ethical?)
 News Release
• PepsiCo Reaches Merger Agreements with
Pepsi Bottling Group and PepsiAmericas.(4th
Aug 2009)

- Fully-Integrated System

- Strategically Transform North American

Beverage Business
 GLOBAL
MANAGERS
 Manager’s global vision is
shaped by several factors

• Global mindset

"Think Local Act Global".

• Adaptation to local
conditions
 External forces which drive
global mindset

• Leadership View of the world

• Administrative Heritage

• Organizational Structure

• Industry forces
 Global Manager’s thought
process
• Multicultural approach to reflect global operations
• Shift of focus on "soft tools" - Vision, process and
people to achieve objectives
• Collaboration with a network of vendors, partners &
customers
• Recruitment from global talent pool - to get best set
of people
• Global transfer of human resources - global
learning/training process
• Creating a learning Organization
• Focus on big picture - respond rapidly to global
business environment changes.
 Roles of a Global Manager
• Select & Implement Foreign Market Entry
– Select Countries, Mode of Entry etc

• Perform Local Marketing Abroad

– Promote Products and Services
– Conduct Market Research
– Manage Advertising Campaign

• Manage Global Operations

 Skills of Global Manager
Skills Foreign Entry Local marketing Global
Management

Market Analysis Market Research Local Customer Global

Barriers to Entry Behavior Segmentation,
Local Market Targeting,
Research Positioning
Strategy Modes of Entry Local Marketing Global Marketing
Expansion Paths Strategy Strategy

Implement Finding the right Marketing in Meeting Goals,

& Execution Agent New Countries Motivating &
E-Commerce
 Culture & Managerial Skills
• Successful mangers tend to be good at
acceptable behaviors and avoid
unacceptable behaviors

• Lessens from past managerial experience

in other countries has little value in other
cultures.

• Success & Failures in the past will be

repeated elsewhere, before learning the
local implications
 Managerial Styles
• Cultures tend to generate different
managerial styles. Management styles is
heavily influenced by home country culture.
– Japan High Context culture influences mangers
to read body language while in US, a low context
culture tends to ignore body language

• Managers are usually inadequately trained to

handle different cultures.
– Time, Money pressure compromise training.
 Cultural Dilemmas
• Managers face cultural dilemmas
due to differences in cultures
– Universalism Vs Particularism : Doing the right
thing or doing things right?
– Individualism Vs Collectivism in decision making
– Neutral Vs Emotional
– Specific Vs General : Is it just business or the
whole person, individual or the entire firm
– Attitudes towards Time
– Attitudes towards Environment
“Jack" Welch, Jr.
• Born November 19, 1935 is the former
Chairmen and CEO of General Electrics
between 1981 and 2001.

• Graduating in 1957 with a Bachelor of

science degree in chemical engineering.

• Welch went on to receive his M.S and Ph.D at

the University of Llinois at Urbana
-Champaign in 1960.
• Welch joined General Electric in 1960. He worked as
a junior engineer in Pittsfield, Massachusetts, at a
salary of $10,500 annually.

• Welch was named a vice president of GE in 1972.

• He moved up the ranks to become senior vice

president in 1977 and vice chairman in 1979.

• Welch became GE's youngest chairman and CEO in

1981
 Welch strategies
• Welch worked to eradicate inefficiency by trimming
inventories and dismantling the bureaucracy that
had almost led him to leave GE in the past.

• Each year, Welch would fire the bottom 10% of his

managers.

• He would reward those in the top 20% with

bonuses and stock options.

• He is also known for destroying the nine-layer

management hierarchy and bringing a sense of
informality to the company.
• Delegating far greater authority to
empowered employees.

• Welch adopted Motorola's Six Sigma

quality program in late 1995.

• Welch launched the effort in late 1995

with 200 projects and intensive
training programs
INDIAN MANAGERS
The steel tycoon, Lakshmi
Mittal
Achievement: World's largest steel
maker, he is among the world's
richest person and richest person
in the UK with personal wealth of
US$19.3 billion
 The steel tycoon,
Lakshmi Mittal
• Founder of Mittal Steel
• Chairman and CEO of
ArcelorMittal.
• Member of the Foreign
Investment Council in
Kazakhstan, International
Investment Council in
South Africa.
• Member of the World
Economic Forum’s
International Business
Council.
 Introduction
• Born: June 15, 1950.
• Commerce graduate from St. Xaviers in
Kolkata.
• He split from his father and two younger
brothers in 1994 and took the
international arm.
• Lakshmi Mittal is married with two
children Aditya Mittal and Vanisha Mittal.
 Success Story
• Began his career working in the family's
steelmaking business in India.
• In 1976, Mittal founded Mittal Steel
Company
• 1989: Acquisition of Iron & Steel
Company of Trinidad & Tobago.
• In 1994, he set out to establish its
international division – buying of a run-
down plant in Indonesia.
• Purchased of International Steel Group
for $4.5 billion .
 Success Story
contd….
• 2003: He acquired the Kensington
mansion, said to be the world's most
expensive home, from Formula One
racing's Bernie Ecclestone for £70 million
($128 million).
• 2005: Investment of $9 billion in Jharkhand,
India announced.
• 2006: Merger between Mittal Steel and
Arcelor.
• 2006: Investment for 12 million tonnes
capacity steel plant announced in Orissa,
India.
 Success Story
contd….
• Today, Mittal Steel is global steel
producer in the world with
operations on 14 countries, spanning
4 continents.
• Mittal holds steel assets in South
Africa, Poland, Indonesia, and
Kazakhstan, Romania, Bosnia
Herzegovina, Ukraine and other
nations.
 Mittal merger Arcelor

One of the most controversial business deals

ever- the acquisition of Arcelor Steel by Mittal
Steel led to the creation of Arcelor-Mittal, the
largest steel maker in the world.
 Mittal Steel Company N.V. was formed by the
merger of

– LNM holdings & ISPAT International

– International Steel Group Inc.

 CEO Lakshmi Mittal’s family owned 88% of L.N.

the company and its headquarter was in Mittal
Rotterdam, Netherlands .

 The company was the world’s largest steel

producer by volume and also the largest in
turnover and is now a part of ArcelorMittal.

 Steel, Flat Steel products, Coated Steel,

Tubes and Pipes.
 Arcelor was created through the merger of

– Arbed (Luxembourg)

– Aceralia (Spain)

– Usinor (France)

 Merger was launched on 19 February 2001. Guy Dolle

 Choice of Arcelor name was anounced on 12

December 2001.

 It was a major player in all its main markets:

automotive, construction, metal processing, etc.

 Guy Dolle was the CEO of Arcelor and its

headquarter was in Luxembourg city.
 The big deal
 In January 2006, Mittal Steel launched a
$22.7 billion offer to Arcelor’s shareholders.

 The deal was split between Mittal Shares

(75 percent) and cash (25 percent) .

 Under the offer, Arcelor shareholders would

have received 4 Mittal Steel shares and 35
euros for every 5 Arcelor shares they held .
 End result- the final deal

 On 25th June, 2006 the deal finally

clinched when the shareholders of
Arcelor agreed to Mittal Steel’s offer.
 Mittal had to considerably sweeten
the initial offer-by raising
its valuation of Arcelor to $32.9 billion.
 The Mittal family holds 43 percent of the
combined group.
 The combined company holds 10 percent
of the global market for steel.
 Criticism and
allegations
• Slave-labour allegations.

• Controversial self-bonus.

• Environmental damage.
 Awards & Recognition
• Laxmi Mittal has achieved several awards and
accolades for his contribution to the steel
manufacturing industry :

 'Steelmaker of the Year' in the year 1996 by New Steel in

the USA .
 'European Businessman of the Year 2004' by Fortune
magazine.
 'Willy Korf Steel Vision Award' in the year 1998.
 'Business Person of 2006' by the Sunday Times.
 'International Newsmaker of the Year 2006' by Time
Magazine.
 'Person of the Year 2006' by the Financial Times.
 ‘Padma Vibhushan Award’ in 2008.
Strengths of Indian Managers
• Analytical skills.
• Resilience.
• Adaptability to unknown terrain.
• Good interpersonal skills.
• Trustworthy.
• Can work in complex and diverse
scenarios.
• Willingness to learn.
• Job knowledge.
 Areas of Improvement

• Open-mindedness, ability to build

juniors.
• Vision, values, strategic thinking,
decision making skills, risk taking.
• Learning orientation, self renewal
efforts, cross cultural sensitivity.
Which industries are looking for
Indian Managers?
• Information Technology
• Consulting
• Investment Banking
 What do they command in the
global market?

• 30% of IIM A students (2007 batch)

accepted offers from abroad.
• Packages were as high as $225,000
to $300,000 per annum.
• Average entry-level salary stood at
$115,300
RATAN
TATA
 At home in the world
Anchored in India and
committed to its
traditional values of
leadership with trust, the
Tata group is spreading
its footprint globally
through excellence and
innovation.
 Introduction
• Born on December 28, 1937.
• Graduated with a degree in Architecture and
Structural Engineering from Cornell University.
• Also completed advanced management programme
at Harvard Business School.
• Appointed the Director-in-Charge of The National
Radio & Electronics Company Limited (Nelco) in
1971.
• Became the Chairman of Tata Industries in 1981.
• Took over as Tata Group Chairman in 1991.
Tata Chemicals Titan TQMS
Tata Power Tata Share Registry TSMG
Tata international Tata Fin AMEX Tata Industries
Tata Steel Tata Home Finance TAL Automation
Tata Tea Tata Technologies NELCO
Tata Motors Tata Refractories Tata Tele Services
Tata Consultancy TAYO Rolls Tata Auto plastics
Services Tata Coffee Tata Johnson Controls
Rallis Telcon Tata Interactive
Indian Hotels Tata Services Systems
Tata Finance Tata SSL TCE Consulting Engrs.
Tata InfoTech TRF Tata Investment Corpn
Voltas Trent TECS
Tata Interactive TACO TFS
Systems
 Personality
• Very dignified.

• Ethical.

• Dependable.

• Believes in keeping promises.

• Loyal and believes in relationships.

• Questioning the unquestionable.

• Risk taker not a speculator.

• Exemplary leadership qualities and a

tremendous motivator.
 Managerial
roles

• Figure head.
• Entrepreneur.
• Resource allocator role.
• Disturbance handler.
 Ratan Tata - Going
Global
• 1998: Tata Motors came up with Tata Indica,
the first truly Indian car.

• 2000: Tata Tea acquired the Tetley group of

the UK for pounds 271 million ($435 million) -
the biggest acquisition in the history of Indian
Companies.

• 2003: Stepped down from executive position.

Bought the truck unit of South Korea‘s

Daewoo Motors.
A stake in one of Indonesia's biggest coal
mines, and steel mills in Singapore, Thailand,
and Vietnam
 Ratan Tata - Going
Global
• 2004: Takeover of Tony hotels including
New York's Pierre, the Ritz-Carlton in
Boston, and San Francisco's Camden Place.
Purchase of Tyco International's undersea
telecom cables.

• 2007: Tata Sons successfully acquired Corus

Group for an estimated £6.7 billion.
“A defining moment for Tata Steel” – Tata
said
The man and his dream
machine
• Year 2008:

“A promise is a promise”

A mini 4-seater priced, as

promised five years ago, at
Rs 1,00,000 (dealer price)
 March 2008:
Tata Motors under Ratan
Tata bought over Jaguar &
Land Rover from Ford Motor
Company. The icons of
British Luxury, Jaguar and
Land Rover were acquired for
£1.15 billion ($2.3 billion).
 Future prospects

• Priority markets: Tata group is

focusing on a clutch of priority
countries, which are expected to be
of strategic importance in the years
ahead.
• The regions are North America, UK,
China, the Netherlands, Germany,
South Africa, members of the Gulf
Cooperation Council, Brazil,
Vietnam, Thailand and Sri Lanka.
Vision

One hundred years from now, I

expect the Tatas to be much
bigger than it is now. More
importantly, I hope the Group
comes to be regarded as being
the best in India.. best in the
manner in which we operate,
best in the products we deliver,
and best in our value systems
and ethics. Having said that, I
hope that a hundred years from
now we will spread our wings
far beyond India.”
CONCLUSION
 Globalisation

• Definition:
– An economic phenomenon.
– A social phenomenon.
– A cultural phenomenon.
• The movement towards the
expansion of economic and social
ties between countries through the
spread of corporate institutions and
the capitalist philosophy that leads to
the shrinking of the world in
economic terms.
Globalisation

Globalisation
could involve
all these
things!
 Issues
• Accountability
of Global
businesses.
• Increased gap
between rich and
poor fuels potential
terrorist reaction.
• Ethical
There are plenty of people who believe that
globalisation is a negative development,
protests at the G8 summits, pollution, poverty
responsibility of
and concern over GM crops are just some of
the issues.
business.
• Efforts to remove
trade barriers.
 Corporate Social Responsibility
• The integrity with which a company governs
itself, fulfils its mission, lives by its values,
engages with its stakeholders, measures its
impact and reports on its activities.
• Includes Non polluting environment.
• Demand from civil society, consumers,
governments, and others for corporations to
conduct sustainable business.
• Being ethical while running their daily
operations.
BIBLIOGRAPHY AND
WEBLIOGRAPHY
• International Business – By V.K. Bhalla
& S.Shiva Ramu.
• www.tata.com
• www.mittalsteel.com
• www.arcelormittal.com
• www.ge.com