INTERNATIONAL BUSINESS

STRATEGY-II
ASSIGNMENT REPORT
SUBMITTED TO:

Prof. Muqbil Burhan

SUBMITTED BY:

Group-3

Contents
1
TATA Motors........................................................................................................... 1

2.

1.1.

Introduction............................................................................................ 2

1.2.

Organization culture...............................................................................3

1.3.

Organization structure...........................................................................3

1.4.

Strategies in TATA motors......................................................................3

1.5.

Strategy formulation & implementation.................................................3

1.6.

Human resourse management...............................................................3

Coca-Cola Company..................................................................................... 4
2.1.

Introduction............................................................................................ 4

2.2.

Organization structure...........................................................................5

2.3.

Strategy formulation & implementation.................................................6

2.3.1. Overview...................................................................................... 7
2.3.2. BCG Matrix................................................................................... 7
2.3.3. Porter Generic strategy grid.........................................................7
2.3.4. Strategy Tactic Grid......................................................................7

3.

Deloitte Company........................................................................................ 9
3.1.

Introduction.......................................................................................... 10

3.2.

Organization structure & Culture.........................................................10

3.2.1. Organization Structure...............................................................10
3.2.2. Organization Culture..................................................................10
3.2.3. Impact of technology.................................................................10

3.3.

Strategy Innovation at Deloitte............................................................10

3.3.1. Professional Service innovation.................................................10
3.3.2. Edge Drive Innovation................................................................10
3.3.3. Talent Innovation........................................................................10
3.3.4. innovation Highways..................................................................10
3.3.5. Acquisition and Integration........................................................10

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1. TATA Motors
1.1. Introduction
Tata Motors, leader in commercial vehicles, is Indias largest automobile company. Through subsidiaries
and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, Spain, South
Africa and Indonesia. Among them is Jaguar Land Rover, the business comprising the two iconic British
brands. It also has an industrial joint venture with Fiat in India. With over 7.5 million Tata vehicles plying
in India, Tata Motors is the countrys market leader in commercial vehicles and among the top in
passenger vehicles. It is also the world's fourth largest truck and bus manufacturer. Tata cars, buses and
trucks are being marketed in several countries in Europe, Africa, the Middle East, South Asia, South East
Asia, South America, CIS and Russia.
1.2. Organizational Culture
The culture at Tata motors gives a lot of importance to ethics and moral values. It promotes strong
employee relationships and extends social welfare activities to communities around its industrial units.
The culture promoted is One Tata Motors. The culture at Tata motors has been about innovation and
results of this can be seen through its breakthrough products in the past which changed the market
dynamics and helped in providing a new customer experience such as India, Ace and Nano. The company
has moved onto the technical dimension of culture that focuses on improving the quality and contributes
towards efficiency. The total quality management and six sigma processes are an integral part of the
culture at Tata Motors.
1.3. Organizational Structure

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To focus effectively on the issues and ensure expedient resolution of diverse matters, the Board has
constituted a set of Committees with specific terms of reference/scope. The Committees operate as
empowered agents of the Board as per their Charter/ terms of reference. Targets set by them as agreed
with the management are reviewed periodically and mid-course corrections are also carried out. The
minutes of the meetings of all Committees of the Board are placed before the Board for discussions /
noting. The relationship between the Board, the Committees and the senior management functions is
illustrated alongside.
1.4. Strategy in Tata Motors
Tata motors had pursued the strategy of increasing its presence in the global automotive markets and
enhancing the product range and capability through strategic acquisitions/alliances.
The company made three major acquisitions, all towards expansion of Tata in different segments. Tata
Motors acquired the British car maker Jaguar Land Rover, Daewoo and Hispano. Its joint ventures with
Fiat, Marcopolo and Hitachi have been steps to increase global presence. The strategy of Tata Motors can
be said to be disruptive innovation, wherein it has offered lower priced products and surpassed market
expectations. Tata Nano is an example of its step in the same direction.
The current strategic business unit (SBU) structure evolved rapidly through acquisition, joint ventures and
partnerships.
Tata Motors has a sub brand strategy, under which there is no separate brand for Tata Motors, but the Tata
brand is used as a mother brand. This association with the parent brand benefits all products since the
brand stands for trust and reliability in India. The product strategy has been driven by two primary
objectives, namely identifying the market need and creating new market segments.
The operational strategy of the company aims to align their production to market conditions and have
inventory levels to meet the market demand.
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1.5. Strategy Formulation & Implementation

In 2013, Tata Motors announced HORIZONEXT, an aggressive customer focused strategy for its
Passenger Vehicles business. It also unveiled 8 newly upgraded and enhanced products, across 5 brands.
HORIZONEXT is a four-pronged customer-focused strategy which aims to provide the best customer
experience -- from best vehicle experience to superlative purchase experience and followed by
technology-intense aftermarket service support. The four pillars for this strategy are:
Intense product focus
Focus on world-class manufacturing practices
Enriched customer purchase experience
Consistent quality of service
Tata Motors is a forward looking company. The company aims to make new products for the segments
they are operating in and as well as attack segments they are not currently involved in. They already have
a portfolio plan in place till 2020.

SWOT Analysis
Strengths
Domestic stronghold
Positive brand image
Atmosphere of innovation
Location
Portfolio plan in place till 2020
Opportunities
International growth
New product lines

Weaknesses
Poor employee productivity

Threats
Intense competition
Global economic factors

1.6. Human Resource Management & Strategy Evaluation

The companys human resource strategies and culture have evolved with changing times. During the
1970s, when the company had an abundance of money and resources, it cared for its employees like its
children. After about two decades, the company moved into survival mode. New methods of appraisal
such as Balanced Scorecards, 360 degree appraisals were being implemented. The company started
downsizing and lost over 7000 employees. Finally, as a result the company had to adopt a profit oriented
face and become slightly skewed towards its business. Even now Tata is focused on its employees and
their engagement with the company. It has annual appraisal done by immediate superiors.

2. COCA-COLA COMPANY
2.1. Introduction
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The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer
and marketer of nonalcoholic beverage concentrates and syrups, which is headquartered
in Atlanta, Georgia. Established in 1886 with its flagship product Coca-Cola, the company is now
present in over 200 countries with a wide array of products.
Due to its large size and the presence of few aggressive competitors such as PepsiCo, effective strategy
management becomes imperative for the company. The Coca-Cola Company follows a blend of
traditional & modern strategy management process.
2.2. Organizational Structure
Primarily the company has a very tall hierarchy in place and subordinates that are then divided up by
regions. The Coca Cola Company being a truly global organization uses the design of division of work by
location. Each area/region has a certain amount of subordinates designated to that specific area; however,
the number of employees delegated to one region may be different to another. By dividing its employees
up according to geographic location, the company benefits on many levels. For example, being closer to a
certain market allows the teams involved to work accordingly with regards to advertising campaigns,
meeting the tastes of consumers of that region etc. Each region is then sub divided e.g. Europe divided up
in to North West and South East, Nordic and Baltic.

2.3. Strategy Environment, Formulation & Implementation

2.3.1. Overview
The first step to a successful strategy is to understand the environment &industry in which the company is
playing in, and the companys own strengths & weaknesses, which enables the company to realize its
current position & helps in formulating, implementing the strategies which can take it to the desired
position. The fundamental questions to be asked are What is a good strategy?, What factors should be
considered in strategic positioning & tactical implementation?
The Coca-Cola Company tries to understand Macro, Meso, Micro factors.
Macro: It comprises of PESTEL Analysis to understand structures & systems.
Meso: Understanding trends & concepts to make out behaviour & expression. (Porters Five
Forces Model)
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Micro: Individual, time, energy, money & resources to realize individual resources. (SWOT
Analysis)
Apart from the above mentioned methods, company believes that Marketing Mix has worked as a
Tactical Tool with which it implements effective & efficient strategy.
2.3.2. BCG Matrix
Due to its operation in a large number of economies, it is important to understand the market share and
the market growth in that economy. Since economies differ in size, growth, people, emotion, function etc.
therefore a universal strategy cannot work well for all. Hence customized strategies must be formulated to
suit different economies. Thats where BCG matrix comes into picture and helps The Coca-Cola
Company to devise effective strategy.
The company divides the region into 5 parts, namely North America, Pacific, Europe, Latin America, and
Eurasia & Asia. It helps in devising apt strategy for different economies to attain better position in the
market.

2.3.3. Porter Generic Strategy Grid

The Coca-Cola Company follows the differentiation strategy by spending enormous amounts of money
in advertising to differentiate and create a unique image for their products. It provides different products
to the customers and has been very much successful in gaining a leading position among the competitors.
Given that it is already well established around the world, it does not need to apply an overall cost
leadership strategy. The price of their products need not be set low as compared to the competitors in
order to gain an advantage. They also do not use Focus Strategy as it offers much variety of beverages
which enhances the scope of the brand. Hence we can conclude that the Differentiation Strategy has
worked well for the company.
2.3.4.

Strategy-Tactic Grid
Strategy
Effective
Efficien
t

Tactic

Inefficie
nt

Die (Slowly)
3
Die (Quickly)
4

Ineffectiv
e
Thrive
2
Survive
1

Considering Coca-Colas international performance, we can argue that the company is thriving as it is
effective-doing things right (having the desired effect, producing the intended result) and efficient-doing
the right things (able to work well without wasting time & resources). A successful company needs to do
both rights right to maintain the edge, and The Coca-Cola Company is exactly doing the things right.
Hence the current position of Coca-Cola is quadrant II i.e. Thrive.
3. DELOITTE
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3.1. Introduction
Deloitte Touche Tohmatsu Limited, commonly referred to as Deloitte, is the largest professional
services network in the world by revenue and by the number of professionals. Deloitte provides audit, tax,
consulting, enterprise risk and financial advisory services with more than 200,000 professionals in over
150 countries. In FY 201314, it earned a record $34.2 billion USD in revenues. Deloitte is one of the
"Big Four" professional services firms along with PwC, EY, and KPMG. Its global headquarters are
located in the United States. In 2012, Accountancy Age reported that, in the UK, Deloitte had the largest
number of clients amongst FTSE 250 companies.

3.2. Organization Structure

Deloitte structure allows the member firm network to be a leader at all levels locally, nationally and
globally because its central governance policies are sensitive to the professional environments and
culture of individual countries. Individual member firms have access to the skills and knowledge of other
member firms, the ability to consult with the entire Deloitte network, and the benefit of the networks
market recognition and reputation.
Member Firm Structure
The partners of Deloitte member firms are generally the sole owners of their respective firms. The
member firms are organized on an individual country or member basis, and each operates within the legal
and regulatory framework of its particular jurisdiction. The member firms structure fosters compliance
with rules of local ownership and management governing the accounting profession in many countries.
This structure confers significant strengths: a deep understanding of local markets and a sense of
responsibility among member firms professionals, who have a direct stake in the integrity and growth of
their local practices.
3.2.1. Organizational Structure and Culture in Deloitte
The type of organization structure Deloitte employs is what is known as the geographical organizational
structure. Organizations like Deloitte that are spread over a wide area may find advantages in organizing
along geographic lines so that all the activities performed in a region are managed together. In a large
organization, simple physical separation makes centralized coordination more difficult. Also, important
characteristics of a region may make it advantageous to promote a local focus.
For organizations that cover a span of geographic regions like Deloitte, it sometimes makes sense to
organize by the region. This is done to better support logistic demands and differences in geographic
customer needs. It also enables decentralization. This can be important because clients in various areas
have different tastes. Hence, a geographical structure enables the company to better serve the local
market. It also allows Deloitte offices to operate individually while adhering to company policies and
values. Each geographic location of Deloitte is overseen and directed by one or several executives. These
executives oversee and direct the functions of the location and have responsibility for its entire operations
and finances.
Hence, Deloittes employment of a geographic organizational structure has competitive advantages in its
coordination, offering of customized services, enhancement of communication, customized management
and problem solving, improved teamwork and decision making.
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Deloitte also practices and combines its geographical structure to another modern structure known
as network. While business giants risk becoming too clumsy act and react efficiently, the new network
organizations contract out any business function which can be done better or more cheaply. In essence,
managers in network structures spend most of their time coordinating and controlling external relations,
usually by electronic means.

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3.2.2. Culture
Organization culture is a pattern of shared basic assumptions that the group has learned through solving
problems that have worked well enough to be considered as valid and are passed on to the new members
as the correct way to perceive, think and feel in relation to these problems. Most important aspect of the
relationship between organizational structure and culture in Deloitte is to make sure that each individual
understands the full extent of responsibilities and work expected out of them. As Deloittes management
structure is decentralized, with shared power and authority at all levels, the culture is likely to be more
independent, personalized and accountable. Strength from cultural diversity is one of Deloitte's shared
values, and Deloitte recognize that their diversity represents an enormous opportunity. Long before their
competitors and the larger business community took actions to support diversity and inclusion in the
workplace, Deloitte member firms took the lead. Initiatives for cultural change based on local market
priorities were launched, and, in many instances, targets and goals were set to measure progress, and
leadership was held accountable for results. At Deloitte, cultural diversity program is all about
recognizing their cultural differences, celebrating them together, and tapping into the different things that
make their people perform best.
3.2.3. The impact of technology on Deloittes team functioning Structure
Technology can affect structure in number of ways. The impact influences three areas of structural design
- scale, function and integration.
Progressions in computers and communication technology improve the efficiency of a business. Deloitte
adapts to these changes by restructuring departments, modifying position requirements or adding and
removing jobs. Deloittes employees often require training on new software programs or equipment as a
job requirement if it becomes industry standard. The decision to launch the video department, to use web
video to communicate has really had a great impact on Deloitte. It has allowed people to communicate
quickly, share ideas, and transfer information without regard to physical locations, or to a reasonable
extent, even without regard to the temporal dimension. Thus, a key advantage of web video is to be able
to simplify organizational structures. In fact Deloitte with well-developed management information
systems and communication technology lend themselves to a move towards flat structures.
Communication technology enables Deloitte to better collect data around the workplace, allowing it to
make more informed decisions. Technology also creates a more connected workplace. Deloitte has also
proven to have successfully achieved coordination and integration amongst its employees and through
this all employees will be better connected to the Deloittes business strategy.
3.3. Strategic Innovation at Deloitte
3.3.1. Professional Services Innovation
Professional service firms like Deloitte have enjoyed recent macro-economic changes brought on by
extraordinary technological and regulatory developments such as the ERP, reengineering and Y2K craze
of the mid to late 90s and the requirements of Sarbanes Oxley legislation and regulations since 2002. The
question really is Whats Next. A key part of Deloitte's strategy is to develop new services, new ways to
serve it clients and new ways to attract, develop and retain the talent it must have for this growth." This is
Deloitte's Innovation and Creativity strategy to match its vision.

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3.3.2. "Edge" Drives Innovation

Innovation at Deloitte is driven by the thousands of talented people working at the edge on client
service engagements. Innovation for Deloitte is about accelerating the process of finding and refining
good ideas at the core, and then pushing them back out to the edge speeding up the process of turning
personal innovation that happens in the field into institutionalized innovation that can be systematically
delivered to its clients.
Deloitte recognizes challenges to this "Edge" model, specifically, on how to find ways to efficiently and
effectively commercialize the ideas happening at the edge. Deloitte has created Talent Innovation
centers, and Strategy, Research and Innovation Groups, Innovation Quests, and Centers of Excellence as
part of the Client Innovation Services to create game changing innovations.
3.3.3. Talent Innovation
Deloitte has tried hard to create a "youthful" yet "energetic" image of a company on the move toward
hiring new talent, by developing innovative approaches to the attraction, retention and development of
key talent. From a different approach to career management, to dealing with generational differences, to
women and diversity needs, and fostering a culture of learning and coaching - Deloitte does all of the
above to harness world class talent. Deloitte consistently ranks in the 100 best places to work, and 50 best
places to launch a career.
3.3.4. The Innovation Highway
So where exactly is Deloitte on the Innovation Highway? Deloitte admits that in the past, the innovations
at Deloitte were "Distributed Reactive" a condition it tactfully describes as- Innovation that happened at
the edge, was chronically under-invested and usually following anothers lead. Today, Deloitte Innovation
is "Programmed Proactive" - where Deloitte is proactively focused on connecting the edge to the core
(e.g. Innovation Quest), by challenging some norms, and realizing that it is not just a means to an end.
However, Deloitte wants Creativity and Innovation to be "Culturally Ingrained" tomorrow - innovation as
part of Deloitte's core DNA (processes, people, and technology), innovation as efficient and effective, and
as an externally recognized differentiator. A big portion of this is removing obstacles, and finding a way
to say yes", by failing fast and forward, however learning from the experience.
3.4. Acquisition and Integration
Deloitte has acquired substantially all of the business of Monitor, one of the worlds leading strategy
consulting firms. This transaction combines Monitors highly-influential brand, strong thought leadership
and top-notch talent with Deloittes extraordinary reach, access, and resources to solidify the Deloitte
network as a worldwide leader in strategy consulting. The acquisition of Monitor solidifies Deloitte as the
undisputed leading Strategy & Innovation capability in Africa. The enhanced capability, eminence and
global reach will bring additional value to its clients in Africa who are looking to drive their growth,
optimization and innovation strategies as well as enhance execution.

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