Mini Case:

Tata Group:
India’s New Global
Challenger
Nabila Hanarania 19718386
Aulia Ismaya 19718382
Fico Devara Rozan 19718390
Jeffrey Yudiarta 19718366
Amanda Mark 19718395
 1 .Describe the various advantages that firms like Tata employ to become large
industrial conglomerates. How can Tata use these same advantages to
succeed in foreign markets?

● Tata has seven different business sectors which makes Tata able to reach out to
many markets, these markets could then develop to foreign markets as well.
● It has vast financial resources and access to capital on favorable terms, and
countless high quality business partners which can make it easier for Tata to
expand the domestic market into a foreign one as these advantages may lower
the barrier to entry of other countries.
● low- cost Indian labor pool; and long-standing relationships with national and
state governments in India. Both of these factors may also help Tata reach out to
the foreign market as the good connection with the government in India might
widen more the possibility of their entry to enter other foreign markets.
2.What makes emerging markets attractive for international business? Discuss
emerging markets as target markets, as platforms for manufacturing, and as sourcing
destinations.
● Emerging Markets as target market
○ Less saturated compared to advanced markets
○ Increasing middle class would result in rising demands for better goods as income rises
and expenditure following suit
● Emerging Markets as platforms for manufacturing
○ Cheap, high quality labour available
■ Low cost of living makes it so that they are cheaper to employ compared to workers
in advanced markets
○ Raw resource are widely available, allows for plenty of suppliers to be available for the
firm
● Emerging Markets as sourcing destinations
○ Outsourcing of tasks can reduce expenses and reduce liabilities
■ Outsourcing companies to gather data within the emerging market could be used
as a market research method
3a. What is the relationship between trade barriers, bureaucracy, country risk, and the emergence of Tata as
a major player in world trade?
● Before 1990, the Indian government posted high trade barriers and bureaucracy, prevented
foreign direct investment or the form of a joint venture. However, after the loosening of the
policy, Tata entered into the overseas market and started to lead the trend, indicating that
trade barrier and bureaucracy is no good for Tata’s international business as it is just holding
Tata back in terms of business.
● In a business sense, while it is mentioned that Tata “works hard to satisfy the government” ,
they are held back by slow bureaucracy, and facing civil unrest that results in wasted
investment by Tata in India itself. So, it makes sense that Tata would try to find their market
elsewhere, which moved Tata to the world trade
3b. What is the role of declining government intervention in Tata’s success in India and its ability to
internationalize? What should Tata do to manage country risk in India and other emerging markets?
● The declining government intervention paved a way for Tata to reach success in India.
Previously, the Indian government really held back Tata’s ability as a company to react to the
market environment, undermining the business success in the Indian and International
market.
● Thus, with government being more passive, Tata will have more freedom to steer the
company’s business as wished, whether it’s to play a more prominent role in the local market,
or expand further in the international market.
● However, playing by the government’s books has its merits for Tata. While developing their grip
in the local market, being more environmentally friendly to prevent pollution and
overcrowding. Also, it might be wise for Tata to start looking towards electric cars, which is
more friendly for the India’s agriculture growth yields, such as wheat and rice.
● At the same time, by being more environmentally-friendly, Tata can form stronger
relationships with consumers, internationally and locally, thus minimizing the country risk and
establishing a good brand image in the world. It would certainly not help Tata in any capacity if
scandals of them damaging the environment arises, especially coming from the local sector.
4.Given growth rates and other characteristics of emerging markets, what markets should Tamo target for sales of
Nano cars? What country-level factors should Tamo consider as it evaluates the potential of various emerging markets?

Considering from the case given, Tata Motors should target either Indonesia or Vietnam due to their
growing GDP with a forecast of respectively 6.7% for Vietnam and 5.1% for Indonesia in 2019. With a
population of more than 95 million and Southeast Asia’s fastest growing middle class, Vietnam
clearly represents an important market for foreign goods. Indonesia is also considered as obtaining
the fourth largest middle class in the world, numbered at 17.3 million in 2014. It is estimated to grow
to 20 million by 2030. Factors that needs to be considered would be how the technology is not as
advanced as in India so these two countries would be introduced to the more advanced technology
as one of the keypoints. Not to mention that the consumers also tend to prefer the imported brands
rather than domestic brands which is why it is likely to surpass the barrier from the government to
enter their market.
Improving CSR for future emerging Markets
● Tata has already proven to us that it is a leading economic figure in India /
greatly contributing to the economic growth. As such, it should target
developing economic countries, being active in CSR that improves the
economic environment garners trust and the company being able to
bream through the market easily and garner less competitors.
● Advanced economies are deeply saturated with their home markets, so
CSR from a non home country product is not effective.
Minimizing Operation impact on Environment
● Implement CSR programs by choosing environmental problems
associated with them most.
● Creating an electric car / develop cars to be less pollution contribution to
the environment.
● Implement go-green rules to industrialized organizational culture