Subject category:
Strategy and General Management
Originally published in:
2023
Version: 20-Jul-2023
Length: 10 pages
Data source: Published sources
Abstract
The Tata Group was one of the most respected diversified conglomerates of India. Tata Motors was one of the flagship companies of the group. Coming back from bankruptcy following the high profile acquisition of Jaguar Land Rover (JLR) from the Ford Motor Company in 2008, Tata Motors was once again staring at a huge loss in 2019. To make matters worse Mr Guenter Butschek who had taken charge of the company in 2016 had witnessed drop in revenues in successive years in his short tenure. Although, the integration of JLR in Tata Motors was reasonably successful, the company still faced significant challenges. In the years following the acquisition, they had shifted production to China to lower costs, rationalised manpower in the United Kingdom, undertaken a debt restructuring plan and initiated new product development. However, the sales of JLR were continuously slipping affecting the overall performance of Tata Motors. Some of the reasons for the poor performance of JLR included the impending Brexit based recession, cyclicity in the automobile industry, market shifting from diesel to electric vehicles (EV), and downturn of the Chinese economy. In such a scenario, the questions facing Guenter were what was the best strategy to turnaround JLR and Tata Motors? Should they invest in Electric Vehicle technology given the uncertainties involved? How far could they reduce the costs before it started to erode their core competencies? How could they tackle the cyclicity in the automobile business environment?
Teaching and learning
This item is suitable for postgraduate and executive education courses.Time period
The events covered by this case took place in 2019.Geographical setting
Region:
World/global
Country:
India
Location:
Mumbai, Maharashtra
Featured company
Tata Motors
Employees:
10000+
Turnover:
INR 2,626,297.8
Type:
Public company
Industry:
Automobile
Other keywords:
Jaguar Land Rover; Emerging Market Multinational; Cross-border Acquisition; Turnaround Strategy
Featured protagonist
- Mr Guenter Butschek (male), CEO
About
Abstract
The Tata Group was one of the most respected diversified conglomerates of India. Tata Motors was one of the flagship companies of the group. Coming back from bankruptcy following the high profile acquisition of Jaguar Land Rover (JLR) from the Ford Motor Company in 2008, Tata Motors was once again staring at a huge loss in 2019. To make matters worse Mr Guenter Butschek who had taken charge of the company in 2016 had witnessed drop in revenues in successive years in his short tenure. Although, the integration of JLR in Tata Motors was reasonably successful, the company still faced significant challenges. In the years following the acquisition, they had shifted production to China to lower costs, rationalised manpower in the United Kingdom, undertaken a debt restructuring plan and initiated new product development. However, the sales of JLR were continuously slipping affecting the overall performance of Tata Motors. Some of the reasons for the poor performance of JLR included the impending Brexit based recession, cyclicity in the automobile industry, market shifting from diesel to electric vehicles (EV), and downturn of the Chinese economy. In such a scenario, the questions facing Guenter were what was the best strategy to turnaround JLR and Tata Motors? Should they invest in Electric Vehicle technology given the uncertainties involved? How far could they reduce the costs before it started to erode their core competencies? How could they tackle the cyclicity in the automobile business environment?
Teaching and learning
This item is suitable for postgraduate and executive education courses.Settings
Time period
The events covered by this case took place in 2019.Geographical setting
Region:
World/global
Country:
India
Location:
Mumbai, Maharashtra
Featured company
Tata Motors
Employees:
10000+
Turnover:
INR 2,626,297.8
Type:
Public company
Industry:
Automobile
Other keywords:
Jaguar Land Rover; Emerging Market Multinational; Cross-border Acquisition; Turnaround Strategy
Featured protagonist
- Mr Guenter Butschek (male), CEO