Tata Daewoo Merger
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- Category: Politics: Economics
- Date Submitted: 11/28/2010 03:52 AM
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The Road to GUNSAN
Case Study Presented by Group 11 (Malad Center, Mumbai) Geetanjali Singh, Manohar Suvarna, Sanket Shah, Satishkumar Deshpande, Sridhar Turaga and Ramachandran Iyer
Contents
Overview SWOT Analysis – TATA MOTORS & DAEWOO CV Acquisition Fitment – Demand/Supply/Policies Long Run Average Cost Increase in Production Effect of Acquisition Leveraging existing resources Win-Win Acquisition
2
Overview
Tata Motors
• Strong financial background and looking out for inorganic growth in global arena • • 6th Largest CV manufacturer in the world Tata Motors had 5% revenue from exports (Soft currencies countries) • Tata Motors had a turnover of 15,483 Crores (USD 3.09 Billion) • • • Dominant in LCV & pick-up range Future for multi-axle & high powered CVs USP - Cost effective solution for truckers • • • • • •
Daewoo CV
22% Market Share in Korea Daewoo went into bankruptcy Daewoo had a turnover USD 231 Million Dominant in 8 Tonne & above Daewoo was not present in 1 Tonne CV segment in Korea USP – Innovative design & power
The fit between the two companies seemed perfect fit
3
SWOT Analysis
Strength • Strong domestic player • Steady revenue growth • High level of innovation • Strong labor relations Weakness • Decline in vehicle sales • Employee productivity • Image of low quality makers • Large domestic market • Workforce with international exposure
TATA MOTORS
Threats • Competition from global players • Strengthening rupee • Environmental regulation Opportunities • International growth • New product lines
4
SWOT Analysis
Strength • Strong product base • High employee productivity • R&D activities • Workforce with international exposure Weakness • Weak financial position • Not present in 1 Tonne segment • Hierarchical work culture
DAEWOO CV
Threats • Company could close down without buyout • Strong domestic labor union Opportunities Attractive company for buyout
5
Acquisition...
Case Study Presented by Group 11 (Malad Center, Mumbai) Geetanjali Singh, Manohar Suvarna, Sanket Shah, Satishkumar Deshpande, Sridhar Turaga and Ramachandran Iyer
Contents
Overview SWOT Analysis – TATA MOTORS & DAEWOO CV Acquisition Fitment – Demand/Supply/Policies Long Run Average Cost Increase in Production Effect of Acquisition Leveraging existing resources Win-Win Acquisition
2
Overview
Tata Motors
• Strong financial background and looking out for inorganic growth in global arena • • 6th Largest CV manufacturer in the world Tata Motors had 5% revenue from exports (Soft currencies countries) • Tata Motors had a turnover of 15,483 Crores (USD 3.09 Billion) • • • Dominant in LCV & pick-up range Future for multi-axle & high powered CVs USP - Cost effective solution for truckers • • • • • •
Daewoo CV
22% Market Share in Korea Daewoo went into bankruptcy Daewoo had a turnover USD 231 Million Dominant in 8 Tonne & above Daewoo was not present in 1 Tonne CV segment in Korea USP – Innovative design & power
The fit between the two companies seemed perfect fit
3
SWOT Analysis
Strength • Strong domestic player • Steady revenue growth • High level of innovation • Strong labor relations Weakness • Decline in vehicle sales • Employee productivity • Image of low quality makers • Large domestic market • Workforce with international exposure
TATA MOTORS
Threats • Competition from global players • Strengthening rupee • Environmental regulation Opportunities • International growth • New product lines
4
SWOT Analysis
Strength • Strong product base • High employee productivity • R&D activities • Workforce with international exposure Weakness • Weak financial position • Not present in 1 Tonne segment • Hierarchical work culture
DAEWOO CV
Threats • Company could close down without buyout • Strong domestic labor union Opportunities Attractive company for buyout
5
Acquisition...