A Case Study Of The Acquisition Of The Jaguar And Land Rover By Tata Motors

Topics: Case study, Scientific method, Qualitative research Pages: 38 (13712 words) Published: July 2, 2015
A case study of the acquisition of the Jaguar and Land Rover by Tata Motors

Abstract
Purpose – This research explores the key factors in the success of the integration and implementation process for creation of value through realization of synergy from the merger of firms. It also intends to study the managerial complexities associated with these key factors. Method – A case study method approach has been adopted in this research from Tata Motors acquisition of Jaguar and Land Rover a British Automotive brand in mid of 2008. In-depth semi-structured interviews, with managers and executives, having experience on change management & integration of the firms, constitute as empirical source. Findings & Discussion - The findings support that the internal factors involved in the integration and implementation phase are key to achieving success with the acquisition. Successful value creation activity can be undertaken by overcoming the challenges through an effective management of these key elements. Research Limitations – Potentially one sided view of the managers during the integration process as the response could be partially motivated in favour of the management, neglecting the sensitive issues of human factor and limitations concerning generalization from a single case study approach. Practical implications – Management of post-acquisition phase poses unique challenges and issues. So, this research would facilitate in developing an enhanced understanding of the key factors essential for creating value during the integration process. Further, given the growth in the Indian economy, this research would facilitate in highlighting the managerial complexities associated with the cross border M & A. Key words – Merger & Acquisitions, Integration & Implementation, Change Management, Communication, Culture Paper type – Case study

Chapter One – Introduction
Researchers have been studying the Mergers and Acquisitions (M & A) activity since early 1900 (Gaughan, 2002). However, they have been unable to solve the mysteries of M & A, regularly discovering new dimensions and encountering new issues, giving an unclear picture as to what destroys or enhances value. It therefore becomes important to examine the phenomenon of value creation process and develop strategies that mitigate the challenges associated with it. In the 21st century, the global M & A activity has increased from $ 352 billion in 1992 (Weston & Weaver, 2001) to $ 3.79 trillion until 2006 (Berman, 2007), showing a phenomenon increase. This has largely been to acquire competitive advantage and achieve the long term objectives of the firms. Although, there has been a many folds increase in M & A activity in the last two decades, but it faces certain issues and challenges. It has been constantly bogged down by high failure rates, with several researchers having found that close to 80 % of the firms fail to realize their initial financial goals (Nahavandi and Malekzadeh, 1993), while 50 % of the M & A fails to create any value for the buyer (Schneider, 2003). Yet interestingly, the M & A activity has surged, due to the potential value which exists from undertaking such an activity. For any M & A to be successful, value creation activity is regarded as the main goal through synergy realization, which exists between the similar related firms`. However, historically, M & A have been found to erode the acquiring firms` value after the merger (King et al, 2004). Mere existence of synergy does not create value. This is because; the value creation activity from the synergy is often faced with inherent challenges and issues, making it difficult to extract value out of the merger (Campbell and Luchs, 1992). This value can be generated by achieving success in the post acquisition phase (Yunker, 1983). And, it is the integration and the implementation process in the post-acquisition phase, which is the key to the success of the M & A activity (Haspelagh and Jemison, 1991)....

References: Business standard, 2007. ‘M&A Creating more value with less proportion of over payments’. Cited on 21/11/2009
http://www.business-standard.com/india/news/%5Cma-creating-more-valueless-proportionover-payments%5C/271372/
Birmingham Post, 2010. Cited on 11-08-2010 http://www.birminghampost.net/birmingham-business/birmingham-business-news/automotive-business/2010/08/11/jaguar-land-rover-announce-record-breaking-profits-65233-27039225/
Research and Markets, 2009. Mergers and Acquisitions Report: India 2008. Cited on 24/11/2009
http://www.researchandmarkets.com/reportinfo.asp?report_id=683285
The Times, 2008. Cited on 11-08-2010. http://business.timesonline.co.uk/tol/business/industry_sectors/transport/article4819974.ece
The Sun, 2009. Cited on 12-08-2010 http://www.thesun.co.uk/sol/homepage/news/2653837/Jaguar-Land-Rover-announce-plans-to-shut-Midlands-factory.html
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