Tata Motors & Jlr Acquisition
TATA MOTORS-JAGUAR LAND ROVER ACQUSITION
Table of Contents
Executive Summary 3
SWOT Analysis of Ford Motor Co 5
Business Strategy of Ford 6
SWOT Analysis of Tata Motors 7
Why Acquisition 9
Future study 9
Executive Summary: This project aims at analysing the acquisition of Jaguar Land Rover by Tata Motors. Jaguar and Land Rover brands were held by Ford Motor Company. Ford had acquired Jaguar in 1989 and Land Rover in 2000. This project analyses the causes of selling of both the brands by Ford at a price half of what it had paid to acquire them. Further this project looks into the strategy behind …show more content…
The most visible advantage being the reduction in time between introductions of new automobile models. * Rising Imports from Korea and Malaysia
The brands from Korea and Malaysia which includes Daewoo, Kia and Hyundai have made their presence felt in the western world. * Saturation of European Markets The annual growth rate of the automotive industry was only 2% and was virtually in a state of saturation.
Business Strategy Followed by Ford Motor Company
The business strategy followed by Ford for globalization was to cater to the local demands of the people in the geographies it did business. They did not try to push the products popular in one market to the other. Ford owned the Volvo, Mercury, Lincoln, Mazda and Aston-Martin brands in the US and the famous British brands Jaguar and Land Rover in the UK.
In 1993, Lord Alex Trotman took over as CEO of Ford Motor Company. He advocated centralization in the global strategies of Ford. In 1996 he merged the US and European Operations with the Latin American and Asian facilities joining in the subsequent year. He aimed to decrease the costs due to duplication of product development. The other objectives were to decrease 20% of top managers and creating multi-functional teams. Under the terms of Ford 2000, all decision making on market development and design was from Dearborn. This lead to constraints in the working of the company as no unit in a particular geography could take