TATA DAEWOO

An Indian Success Story In Korea

What is the project?
• Unique
• In 2004, Tata motors acquired Daewoo Commercial Vehicle, Korea (Group of
Daewoo Motor Co).
• After 4 years of acquisition, their exports increased 500%, revenue by 200%,
operating profit becomes 800%
• They have expanded their network to 60 countries so far
• Risk
• People in DCV never heard about Tata, they were against to sell to Indian
company. So there were lots of disappointment during the acquisition.
• Tata Daewoo overcome the crisis and succeed within such a short period of
time, eventually workers who knew little about the Indian company are
grateful for the acquisition
Why is it an international project?
•Involves multiple locations, entities, organizations, and business
units
•Mergers and Acquisitions - Tata (India) used Daewoo (Korea) to
reach Pakistan, Middle-east and Central Asia market.
•Entering new markets.
•Realization of efficiency.
•Search for new geographical presence.
What criteria?
•Goal commitment of project team and initial clarity of goals
• They promised more investments in R&D, facilities and plants during acquisition
and they did it after that
•Right balance between common methodology and flexibility
• Tata was flexible to appoint a native Korean as CEO and it respected the Korean
business style and corporate culture
•Consideration of context
• Tata decided to maintain the old Daewoo brand in Korea and in 10 overseas
markets, including Algeria which pleased the employees
 What can you expect from our work?
The acquisition of Daewoo helped Tata's globalization plans of competing world
class products in the advanced markets
We would mainly concentrate on below areas to show how this combination
was huge success.
• Decision by company to go for the project.
• Organization’s strategy
• Critical success factors for the project.
• Involvement of different Stakeholder
• Characteristics and complexity involved in the project.
• Organizational Culture.
• Elements involved for the success of the project.
What industry is project involved?
• Automotive
• Manufacturing of Commercial vehicles
• CKD (Complete Knock down) plant
• Export and Import of vehicles

What topic do we propose to our work?

•The Vision, Mission, Values of Tata Daewoo
• The excellence journey
• Drivers of this excellence
• Limitations
• Potential outcomes and Importance of this join ventures for the
success of the project.
References

• http://www.tata-daewoo.com/
• http://www.tata-
daewoo.com/ver5/content/pdf/TATA_DAEWOO_online.pdf
• http://www.biztechreport.com/story/378-tata-daewoo-indian-
success-story-korea
• https://en.wikipedia.org/wiki/Tata_Daewoo