Globalization, complexity and sustainability Free Essay Example, 2250 words

The Tata Group’s mission is reflected in the Tata Core Values of integrity, understanding, excellence, unity, and responsibility. The vision to achieve this mission is to grow aggressively in focused business areas. The latest strategic vision of the Tata Group was developed by Current Chairman and CEO, Sir Ratan N. Tata or RNT, the founder’s grandson, who led the company successfully venture into telecommunications, financial services, oil exploration, and biotechnology. The plan included the professionalisation of management, human resource development, and information technology. An important and relevant part of the plan was the design and production of an automobile priced at 1-lakh (100,000 Rupees or  £1,200). Car production, which began in 1998, reached 1 million in 2007. Tata therefore has an over-all strategic growth plan, but is the company delivering a sustainable competitive advantage? The answer becomes clearer after an analysis of the firm’s resources. An internal analysis of Tata Group’s strengths and weaknesses allows an evaluation of the value, rarity, and imitability of resources and whether it has the appropriate organisational structure using the VRIO framework. We will write a custom essay sample on Globalization, complexity and sustainability or any topic specifically for you Only $17.96 $11.86/pageorder now An external analysis of the opportunities and threats of the Tata Group would be done using the structure-conduct-performance (S-C-P) framework. Using these frameworks allows a better understanding of the firm’s past, present, and future business performance using the SWOT-PEST model to summarise the findings. Strengths: (1) Tata name, success and experience; (2) decisive and leader CEO; (3) global business reach; (4) competent workers from top management to factory floor; (5) investments in research and development, human resources management, and process technologies; (6) strong brand power in India; (7) profitability; (8) Tata Core Values; and, (9) diversification (needs a deeper study on the correlation of the seven business sectors). Weaknesses: (1) high level of risk-taking of management; (2) slow decision-making at several parts of the conglomerate; (3) weak brand image outside India; and (4) potential risks from being in too many businesses that might be similarly affected by the business cycle (e. g., a recession in India could affect several business sectors at the same time, leading to huge losses, in automo tive, consumer goods, and services; see Strengths no. 9 above). Opportunities: (1) growing domestic market; (2) India’s high rate of economic growth; (3) growing global market; (4) global economic growth; and (5) its home country is a low-cost production base with a large skilled labour force.