House of Tata Case Study Example | Topics and Well Written Essays - 1500 words

House of Tata - Case Study ExampleThe separate companies would superfluousdite been effective in purchasing the cares from Tata Sons. However, collusion between the companies with regard to the purchase of the exchange share would have violated the law. According to the media, the plan by Ratan of increasing the equity holdings would have embossed concerns regarding the overvaluation of the shares. The deal lacked the benefit for companies that invested in the initiative (Lynch 56). The initiative by Ratan of selling 20 percent stake in the TIL to colossal of the Hong Kong-based Jardine Matheson group. This was a good idea since the firm was significantly influential throughout Asia. This deal added value by pushing the share capital of TIL up by Rs. 119, and this heighten the venture start-ups forced through the TIL. Ratan anticipated of Jardine contributing to the expertise in most line of business activities corresponding distribution and retailing, hotels, engineering, r eal estate, financial services and construction. This move added value to TIL since the two companies had similar interests in geographic expedition of potential synergy in their financial businesses. This necessitated creation of major networks for distribution of cars. Jardine believed that Ratan was careful creative thinker and planner, with the long-term decisions being spot-on. Though Ratan admitted of the joint venture not reading the market accurately, it was worthwhile for Jardine having stakes in Ratan (Wiersema and Joseph 65). Tata was considering several steps they hoped would give the group strong collective identity. This aimed at making Tata home run take responsibility of promoting unified brand that could have been used by either members that subscribe to the Brand Equity Scheme. Every company could have derived the benefits of promoting the Tata brand and hence enhance the Tata affiliation. The Tata sons would have required annual net income contribution of each company to meet the development costs, protect and promote the brand. The idea was good since each company had to pay contribution based on the degree of brand association. Also, the involved companies had to pay the code of conduct in ensuring uniform ethical and high quality business practices. The participating companies must recognize the outstanding representation of the Tata values (Wren 98). The advantage of this initiative is that most of these countries further Tata adopt a globalized and strong corporate campaign. Though the companies wanted to take advantage of the ward and opportunities attain the competitive threats that emerged dramatically due to the expansion of the Indian economy, the Tata son used the fee paid by the companies in building a national and international group brand. This also enabled them emphasize on spunk ethics and values through advertisements. However, the domestic brand promotion would have cost the company extra Rs. 300 million yearly. The scheme also generated the debates on investment in media and public. The scheme was slated to be retroactively effective and was deferred in order to incorporate the additional features depending on the evolving views. This led to some Tata shareholders resenting the attempt by the Tata sons of asserting itself beyond the limits of the ordinary shareholder. Others doubted of the brand recognition offering immediate benefit to their companies while steady others claimed that it was not necessarily the Tata name that promoted their success. Most companies, which benefited from the use of Tata name,