Tata takes over Jaguar and Land Rover
Tata is an Indian multinational company with interests which range from car production and tea
plantations to IT. In 2008 it bought out the UK based car producers, Jaguar and Land Rover , From the
ford motor company. This will expand the range of vehicles that Tata produces into the luxury end of the
vehicles market.
In 2000 the company took over Tetley ,the famous tea brand ,and seven years later it bought the AngloDutch steel maker Corus and the Ritz Carlton hotel in Boston Massachusetts.
It is expected that Tata’s UK based branches will generate more of the company’s revenue than its India
based branches, however, are expected to be more profitable .Tata is planning to send some of its senior
managers to the UK to help run its UK based operations.
1. What evidence is there in the passage that Tata has been involved in conglomerate mergers in the
past?
2. Explain three types of economies of scale Tata may gain from taking over Jaguar and Land
Rover.
3. What does the passage suggest is the relationship between costs and revenue in its India based
branches and it’s UK based branches?
4. Discuss what factors a multinational company should take into account when deciding to operate
in a country.