Tata industry had set it sights firmly on the Indian economy before it’s internationalization phase

Tata industry had set it sights firmly on the Indian economy before it’s internationalization phase. The demographic catered to was endemic to the geographical and economical environment it encountered back home in India. Various cultural, economic and operational challenges were to be overcome if TATA was to be a global brand. The decentralized nature of the group companies made it hard to define a wide spectrum vision and operational setup that would provide both a united front in terms of strategy and resource pool at least in a tangible asset frame of thought. A field strategy was required to streamline the Tata group portfolio and achieve their goal of establishing a global footprint. A transition in the leadership DNA was needed to suit a growth based model of operation. Another challenge faced was on an economic policy front. The FERA act and other capital controls imposed by the Indian government limited foreign exchange. The limit imposed on net value based foreign investments was limited by the Indian government to a fraction of the net value of the company and as a result made it very hard for TATA Industries to take up international business opportunities. The action plan regarding Mergers ; Acquisitions was also a fairly ambiguous one and presented a dilemma to be addressed in the form of utilising the characteristics of the acquired company as opposed to pursuing brand synergy.

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