TATA MOTORS ACQUISITION OF DAEWOO COMMERCIAL VEHICLE COMPANY

PRESENTED BY:

SAGAR RAI

MANDA RAHUL REDDY

NAVYA KEERTHAN PERAVALI

Tata Group

Founded in 1868, Tata Group is one of the leading business giants of India.

Major businesses: Automobiles, steel, IT, telecommunications and tea.

The Group has operations in 40 countries with services available in 120 countries.

Aiming to expand in international markets in the industries the Group is operating in.

Tata Motors

Tata Group’s Automobiles Industry. India’s leading vehicle manufacturing company both in heavy and

medium sized trucks. Largely into domestic market With Tata Group’s aim of expanding in international market,

established goal of generating 25 per cent of its revenue from foreign sources while introducing the “World Truck Program”.

Daewoo Commercial Vehicles Company(DCVC)

Second largest automobile and truck manufacturer in South Korea. 1997 crises led to Daewoo’s bankruptcy. Car operation was sold to GM and bus arm to Korean firm resulting

the formation of DCVC. Program to introduce entirely new product and first medium truck.

Scenario

World Truck Program.

European Firm.

Never heard about Tata Motors or the group.

Unions were uncertain about their future.

Issue

The DCVC management had no prior knowledge about the Tata Group and Tata Motors

They therefore have a perspective that the European bidding firms are better than the Tata Motors, an Indian organization.

Stakeholders

Tata Motors. Daewoo Motor’s senior management. Employees.

Critical Criteria

Smooth acquisition of DCVC by TM. Smooth working of DCVC under TM after acquisition.

Alternatives

Raising the bid. Convincing Daewoo Motors senior Management that

Tata Motors has better standards than the European bidders.

Building Relationship with Senior management and employees.

Rising The Bid

TM can afford to raise bid as it will help in developing world truck program.

Senior management were more interested on the standards of the acquiring group.

Employees were also concerned about the standards. Moreover they are apprehensive about the Indian management.

Convincing the DCVC management on the standards of TM

An ethical approach for Tata Motors for the acquisition. DCVC’s senior management will know the standards. The employees will still be apprehensive about the Indian

Management on the concerns of relationship with the new management.

Educating the employees and management about the TM’s capability, standards and ethical

principles and values

TM can acquire smoothly and ethically. Senior management will be convinced with the standards. The Employees will be convinced with the fact that the relationship

with the Indian Group’s management will be good in the future.

Selected Approach

Convincing the senior management about the standards of the TM.

Ensuring job guarantee to the employees.

Giving presentation to the senior management about the TM’s standards.

Giving assurance to employees about their jobs and TM’s ethical behavior.

Meeting the customers and the transport operates.