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.