Organizational Change And Tata Motors

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Organizational Change and Tata Motors This is the case about Tata Motors India's largest automobile company, with revenues of Rs. 32,426 crores (USD 7.2 billion) in 2006-07 (, 2008). The company's 22,000 employees are guided by the vision to be "best in the manner in which we operate best in the products we deliver and best in our value system and ethics" (, 2008). In recent times Tata Motors have faced a lot of challenge especially from the growing competition and globalization. To fight back these external evils, Tata Motors came out with plans of expansion to fight back competition via mergers and acquisitions and to fight back globalization it decided to cut costs and thereby introduced the worlds cheapest car. But all these activities had severe implications on its internal organizational change. Change was seen both on the management and at the employee level. At the management level change was seen for cutting costs and providing the cheapest car to the world market and at the employee level change was seen because of the much needed Tata Motors to merge with Daewoo, which caused a lot of change in its employees. In 2004, Tata Motors took over Daewoo Commercial Vehicle Company of Korea. Tata Motors main motive for acquiring Daewoo Commercial Vehicles was to get a foothold in Korea and expand enormously and secondly to use Daewoo’s technology so that it can introduce high tonnage trucks in the world market. Thus this merger with Daewoo gave Tata a high end technology, global footprint and a new product portfolio (The Hindu Business Line, 2004). The main motive for Tata Motors to acquire Daewoo was because of the still competition from other Asian players which led the takeover move which is external in nature. Tata Motors when they were signing the deal, before that they went for a due diligence with Daewoo Commercial

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