Cultural difference

Lack of Management Support due to

• Strength of European firms in
Technological and financial resources
• Winning the confidence of Korean
Managers and unions by communicating
key message of its world position and
ethical and good corporate government
structure
• Strong work ethics in Korea
• Language barrier
• Building trust and credibility
• Communicating the vision to
employees and others involved

More Hierarchical Structure putting

First Major overseas acquisition by Indian
Automobile Industry
• Tata’s success was largely domestic and
foreign sales accounted for only 5% of
revenue in 2003 making Daewoo not aware
about Tata.
• the challenge of communication with
every level which was personally taken
care by Kant
• Union Demands of not laying off
anyone before 3 years of acquisition
Source: http://ptgmedia.pearsoncmg.com/images/chap1_9780133014150/elementLinks/01fig01_alt.jpg
 • Acquired ISO/TS 16949 Certification
• Launched NOVUS Truck,
• Launched the biggest Medium-duty • Win the '2012 German Design
India • New PRIMA launched in
Truck(4.5/5Ton) Award' as the first Korean vehicle Korea
• Launched NOVUS Medium-
duty Truck • Won the 200million Dollar Export • Launch 2013 Prima & Novus SE
Tower

2006 2010 2013

2005 2007 2012 2017

• Won the 100 million Dollar • Launched a world-class Premium • 300 million dollar Export Tower and
Export Tower Truck ‘PRIMA’ received Gold

• Developed LNG Truck • Official Launch of Tata Daewoo • Tower Order of Industrial Service Merit
Commercial Sales & Distribution
Company Limited. • Singed MOU to newly establish Direct
Service Centre in Gunsan (Gunsan city)
 Threat of New Entry Buyer Power
• Emerging Indian market is attracting automobile • Increasing disposable income and availability of better
companies from all over the world. Threat of alternatives have raised the customer expectations and
• International car rental firms are posing a greater threat, New Entry
array of choice.
expected to enter the market • Decreasing loyalty towards particular vehicle brand.

Competitive Rivalry

• Indian automobile industry is highly competitive with Supplier Competitive Buyer

three major players, namely Maruti Suzuki, Tata and Power Rivalry Power
Hyundai.
• Major vehicle providers are highly competent to pursue
opportunities with aggressive strategies..

Threat of Substitution
Threat of
Substitution • Automobile industry in India may fear the rapid
development of cab aggregators, public transport,
Supplier Power
most economical and speedy being metros.
• High customization required due to demand which
makes supplier power high
 Acquisition Team
Mix of operations, marketing, HR
and finance manager in the
acquisition team unlike other
Acquisitions team comprising of
only financial staff.
Services of local law firm and
international accountants, not hiring
M&A consultants.
Research about other firms bidding
for Daewoo. Proper bidding by
evaluating scenario and other
competitors.
Influencer
Structured program to educate
DWCV about India, Tata Group and
Tata Motors and communicate the
vision.
Due diligence was taken care that
there is no breach in the Korean
Hierarchy, so Kant personally met
with everyone
Building the psyche “TATA is more
strategic partner than a venture
capitalist”
Employee Integration
Winning acceptance of DWCV
employees and managing the Korean
culture: 1)Respecting hierarchy and
values 2) Managing Unions
Communication (in Korean) to
management, unions and employees
emphasizing Tata Motors capabilities and
Tata Group’s reputation for good
corporate governance
Respecting strong work ethics of
Koreans through significant efforts
during the Due diligence process
Cyclical phase lag across geographies, spreading the business was like a hedge

Complementary product range and strength in product development

Considerable cost and development time saving in TM’s World Truck Program