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Discussion Points

1) What are some of the benefits to Tata of being a ‘conglomerate’

- Diversification

- Economies of Scale

- Sharing Resources

- Market Power

- Brand Reputation

- Adaptability

2) Why do you think Tata’s managers have used takeovers as a method of growth?

Tata's managers might use takeovers for growth because it's like buying a ready-made business.
Instead of starting from scratch, they can buy a company that's already doing well. It saves time
and effort. Plus, by taking over other companies, Tata can expand its business quickly and enter
new markets without having to build everything from the ground up. It's like adding pieces to a
puzzle to make the picture bigger and more complete.

3) If the Tata Car division was to takeover a chain of garages selling cars, what form of
integration would this be? Do you think this would be a good idea?

If Tata's car division took over a chain of car-selling garages, it would be called vertical
integration. This means Tata would control more steps in the car-selling process, from making
cars to selling them directly to customers through their own garages.

Whether it's a good idea depends on factors like cost, efficiency, and customer satisfaction. It
could be good if it helps Tata cut costs or offer better services to customers. But if it's too
expensive or if customers don't like the change, it might not be a good idea. It really depends on
how well Tata can manage and benefit from having control over both making and selling cars.

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