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INTERNAL RESEARCH ASSIGNMENT Name of the candidate: Roopsi Bhandari Enrollment no. : 08315903911 Course: MBA-3B Batch: 2011-13 Subject: Management of International Business Subject code: MS-203 Topic of assignment: Acquisition of Daewoo by Tata

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Page 1: Mib assignment

INTERNAL RESEARCH ASSIGNMENT

Name of the candidate: Roopsi Bhandari

Enrollment no. : 08315903911

Course: MBA-3B

Batch: 2011-13

Subject: Management of International Business

Subject code: MS-203

Topic of assignment: Acquisition of Daewoo by Tata

Subject Teacher’s name: Ms. Deepika Varshney

Page 2: Mib assignment

TATA MOTORS

Tata Motors, with revenues of over $ 2.25 billion (FY 2002-03), is the largest company in the

Tata Group, which has a leadership position in engineering, materials, energy, consumer

products, services and communication and information systems. Over 3 million Tata vehicles ply

Indian roads, making the company a dominant force in the Indian automobile industry.

DAEWOO COMMERCIAL VEHICLE COMPANY

Established in 1983 as the Daewoo Motor Company, the business was spun off as Daewoo

Commercial Vehicle Company in 2002.Daewoo Commercial Vehicle Company (DWCV) is

Korea's second largest heavy truck maker with a modern plant in Gunsan that has an annual

production capacity of 20,000 medium and heavy vehicles. Its robust manufacturing and quality

processes that deliver a contemporary product range have enabled DWCV to enjoy a market

share in excess of 25 per cent of the Korean heavy truck segment.

Page 3: Mib assignment

Acquisition of DWCV by Tata Motors

In 2004, Tata Motors acquired Daewoo Commercial Vehicle Company of South Korea.

The Tata Daewoo Commercial Vehicle Company (TDCV) is South Korea's second largest

manufacturer of medium and heavy-duty trucks. With the acquisition of TDCV, Tata Motors has

grown to become the world's fifth largest manufacturer of heavy commercial vehicles. 

TDCV trucks are distributed locally through Daewoo Motor Sales Company and are exported to

over 60 countries worldwide, including South Africa and China and countries in the Middle East,

Southeast Asia and Eastern Europe.

TDCV has a product portfolio of over 75 types of trucks in the commercial vehicles segment.

Its product range includes flat beds, dumpers, mixers, tractors, arm-roll trucks, refrigeration

trucks and special-purpose trucks.

The company’s headquarters and plant are in Gunsan, South Korea. It has an office in Incheon

and sales offices across the country.

Page 4: Mib assignment

Mr. Tata said at the time of acquisition, "This is a historic occasion for Tata Motors and the

Tata Group. I am happy to note that this is the largest acquisition by any Indian company in

Korea and I look forward to increasing the Tata Group's presence in this country. Korea is a

shining example of what can be achieved with diligence and dedication, and I am sure we will

learn a lot from operating in South Korea."

The reasons behind the acquisition were:

Company's global plans to reduce domestic exposure. The domestic commercial vehicle

market is highly cyclical in nature and prone to fluctuations in the domestic economy. Tata

Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in the light

commercial vehicle (LCV) segment. Since the domestic commercial vehicle sales of the

company are at the mercy of the structural economic factors, it is increasingly looking at the

international markets. The company plans to diversify into various markets across the world

in both MHCV as well as LCV segments.

To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tata

Novus from Daewoo’s (South Korea) (TDCV) platform. Tata plans to leverage on the strong

presence of TDCV in the heavy-tonnage range and introduce products in India at an

appropriate time. This was mainly to cater to the international market and also to cater to the

domestic market where a major improvement in the Road infrastructure was done through

the National Highway Development Project.

Tata Daewoo is the second-largest heavy commercial vehicle manufacturer in South Korea. Tata

Motors has jointly worked with Tata Daewoo to develop trucks such as Novus and World

Truck and buses including GloBus and StarBus.

Page 5: Mib assignment

Analysis of TATA Daewoo: An Indian Success Story in Korea

o Daewoo unionists unhappy with the acquisition

Daewoo unionists found out that the new owner is Tata Motors, a company based in

India, which they had considered a lesser developed country. Tata was something they

had never heard about before.

It was a lesser known company for them who was trying to snatch their advanced

technology. They felt that India was inferior than their country in every terms.

There was a wave of disappointment among Daewoo unionists. They argued that it was

better not to sell than to be under a company nobody knows about.

o Impact of Acquisition

After the birth of Tata Daewoo Commercial Vehicle (hereafter Tata Daewoo), the new

company was back on track to roll to victory, calming the jitters of its Korean workers.

Over the four years from 2004, exports jumped about five times to 4,280 units from 874

units, revenues more than doubled to 673.1 billion won from 292.3 billion won and

operating profit grew more than eight times to 59.2 billion won from 7 billion won.

Page 6: Mib assignment

Tata Daewoo exports trucks to more than 40 countries including the UAE, Algeria and

South Africa, as well as domestic sales in India. In 2006, it was honored with a

government award to celebrate $100 million in exports of heavy-duty trucks.

In 2008, it achieved a $200 million milestone in exports. Employees grew to 1,281 from

the 806 registered at the start of the new company.

Tata Daewoo is the only one showing a stable and steady growth among the three

business arms that Daewoo Motor Co. sold. GM Daewoo is facing a liquidity crisis after

it posted billions of dollars in losses, and Daewoo Bus is reportedly in management

trouble. Tata Daewoo workers who knew little about the Indian company are grateful for

the acquisition. Loyalty to their company became strong.

o Reasons for overcoming the crisis and succeed in a short period

The key was tripartite cooperation between Tata Motors, new management and

employees.

First, the acquirer Tata Motors has performed operations with a 'humble

attitude.' Tata Motors is one of 82 affiliated companies owned by India's largest

conglomerate. But what made it more famous is not the business size but its

commitment to social responsibility and ethical business, leading to great

respect from the Indian people.

Tata Motors acquired the entire equity of Tata Daewoo, but it never behaved as if

it were an occupation force. It appointed a native Korean as CEO and it respected

Page 7: Mib assignment

the Korean business style and corporate culture, while slowly integrating its

strength of trust and ethical management into the whole organization.

For example, Tata Motors presented a mid- and long-term development plan to

Daewoo Commercial Vehicle employees during the acquisition, by promising

more investments in R&D, facilities and plants. That eased some concerns that

it might exit from Korea soon after garnering advanced technologies. Afterwards,

Tata realized most of its plans as promised. Employees showed trust towards

management and had their morale heightened. Its decision to maintain the old

Daewoo brand in Korea and in 10 overseas markets, including Algeria, pleased

the employees.

Attention also should be paid to the company's drive for business excellence

through the Tata Business Excellence Model. It is different from the Western

model that usually focuses only on efficiency. Tata's model is not only about

profit-seeking, but it considers the growth of both the company and the

community. This is well echoed in Tata Daewoo's vision, which is 'To be the

most admired commercial vehicle company of Korea.' It aims to achieve a

parallel growth of customers, shareholders, suppliers, employees and the

community based on ethical business principles. It details a mission for each

stakeholder as follows.

1) Shareholders: To ensure the company's growth and enhance shareholder value

by consistent profitable operation

2) Customers: To achieve customer satisfaction by providing products and

services that exceeds customer expectations

3) Vendors & Channel Partners: To ensure sustainable growth through mutually

beneficial long-term relationships based on trust

Page 8: Mib assignment

4) Employees: To provide an exciting work environment of equal opportunity,

hope and pride by promoting motivation and morale

5) Community: To be an environment-friendly and socially responsible company

The second key success factor is the appointment of excellent

management staff and 'strategic management.' President Chae Kwang-

ok is behind the success of today's Tata Daewoo. He took office as a

court-appointed manager to supervise the company, which was hard hit by

the foreign exchange crisis in the late 1990s in Asia. The trade union, who

wanted job security more than anything else, gave him full support to keep

afloat through a divestiture plan. Mr. Ravi Kant, then managing director

of Tata Motors, who led the acquisition work of Daewoo Commercial

Vehicle, named Mr. Chae as new CEO of Tata Daewoo instead of

appointing an Indian manager.

Chae, known as a leader with charisma, joined the efforts to help Tata

Daewoo get over the crisis. He directed the launch of new models almost

every year and dared to enter the mid-sized truck market. But many were

concerned that entering the mid-sized truck market was imprudent as the

market was then controlled by Hyundai & Kia Motors, Korea's No. 1

automaker. Nevertheless, he continued his push with his own firm belief.

Tata Daewoo's 'hidden card' was to produce 'a mid-sized truck like a

large-sized one,' a model as spacious and safe as a large-sized truck, but

with a medium-sized load carrying capacity. This was the outcome of

management innovation to minimize expenses in design and investments.

Page 9: Mib assignment

The new truck model sold like hotcakes. It took only 20 months for Tata

Daewoo to occupy a 35 percent share in the medium-sized truck market.

It was a remarkable event in the history of Korea's truck market that

showed unchanged purchase behaviors tamed by monopoly brands for a

long time. In April 2007, Tata Daewoo became the first automobile

company in Korea that received the ISO/TS 16949 standard

certification, which provided recognition of quality of the brand both at

home and abroad.

Influenced by Tata Group's management philosophy, Tata Daewoo has

also focused on developing environmentally-friendly low-emission

trucks, as it is always keen to resolve environmental and global warming

issues. It started to commercialize conventional low-emission trucks

powered by compressed natural gas (CNG) and also completed the

development of eco-friendly trucks that use clean fuels such as liquefied

natural gas and liquefied petroleum gas.

Last but not least, it is the management's trust towards employees and

efforts for mutual prosperity. The trade union of Daewoo Commercial

Vehicle was a die-hard union under the influence of the Korean

Confederation of Trade Unions. Nevertheless, its union members gave full

support to their management with a single goal in mind: to overcome the

crisis. They showed trust in Tata Motors even though they were unfamiliar

Page 10: Mib assignment

with the company. Of course, it was the result coming after both

management and union recognized each other and made the best possible

choice.

VIPER REPORT

Page 11: Mib assignment

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Report for 'MIB ASSGMNT.docx'Overall content match: 34%

Direct quotes: 0% of which 0% found online.

Actual content match minus quotes: 34%

INTERNAL RESEARCH ASSIGNMENT Name of the candidate: Roopsi Bhandari Enrollment no. : 08315903911 Course: MBA-3B Batch: 2011-13 Subject: Management of International Business Subject code: MS-203 Topic of assignment: Acquisition of Daewoo by Tata Subject Teacher’s name: Ms. Deepika Varshney TATA MOTORS Tata Motors, with revenues of over $ 2.25 billion (FY 2002-03), is the largest company in the Tata Group, which has a leadership position in engineering, materials, energy, consumer products, services and communication and information systems. Over 3 million Tata vehicles ply Indian roads, making the company a dominant force in the Indian automobile industry. DAEWOO COMMERCIAL VEHICLE COMPANY Established in 1983 as the Daewoo Motor Company, the business was spun off as Daewoo Commercial Vehicle Company in 2002.Daewoo Commercial Vehicle Company (DWCV) is Korea's second largest heavy truck maker with a modern plant in Gunsan that has an annual production capacity of 20,000 medium and heavy vehicles. Its robust manufacturing and quality processes that deliver a contemporary product range have enabled DWCV to enjoy a market share in excess of 25 per cent of the Korean heavy truck segment. Acquisition of DWCV by Tata Motors In 2004, Tata Motors acquired Daewoo Commercial Vehicle Company of South Korea. The Tata Daewoo Commercial Vehicle Company (TDCV) is South Korea's second largest manufacturer of medium and heavy-duty trucks. With the acquisition of TDCV, Tata Motors has grown to become the world's fifth largest manufacturer of heavy commercial vehicles. TDCV trucks are distributed locally through Daewoo Motor Sales Company and are exported to over 60 countries worldwide, including South Africa and China and countries in the Middle East, Southeast Asia and Eastern Europe. TDCV has a product portfolio of over 75 types of trucks in the commercial vehicles segment. Its product range includes flat beds,

Page 12: Mib assignment

dumpers, mixers, tractors, arm-roll trucks, refrigeration trucks and special-purpose trucks. The company’s headquarters and plant are in Gunsan, South Korea. It has an office in Incheon and sales offices across the country. Mr. Tata said at the time of acquisition, "This is a historic occasion for Tata Motors and the Tata Group. I am happy to note that this is the largest acquisition by any Indian company in Korea and I look forward to increasing the Tata Group's presence in this country. Korea is a shining example of what can be achieved with diligence and dedication, and I am sure we will learn a lot from operating in South Korea." The reasons behind the acquisition were: Company's global plans to reduce domestic exposure. The domestic commercial vehicle market is highly cyclical in nature and prone to fluctuations in the domestic economy. Tata Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in the light commercial vehicle (LCV) segment. Since the domestic commercial vehicle sales of the company are at the mercy of the structural economic factors, it is increasingly looking at the international markets. The company plans to diversify into various markets across the world in both MHCV as well as LCV segments. To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tata Novus from Daewoo’s (South Korea) (TDCV) platform. Tata plans to leverage on the strong presence of TDCV in the heavy-tonnage range and introduce products in India at an appropriate time. This was mainly to cater to the international market and also to cater to the domestic market where a major improvement in the Road infrastructure was done through the National Highway Development Project. Tata Daewoo is the second-largest heavy commercial vehicle manufacturer in South Korea. Tata Motors has jointly worked with Tata Daewoo to develop trucks such as Novus and World Truck and buses including GloBus and StarBus. Analysis of TATA Daewoo: An Indian Success Story in Korea o Daewoo unionists unhappy with the acquisition Daewoo unionists found out that the new owner is Tata Motors, a company based in India, which they had considered a lesser developed country. Tata was something they had never heard about before. It was a lesser known company for them who was trying to snatch their advanced technology. They felt that India was inferior than their country in every terms. There was a wave of disappointment among Daewoo unionists. They argued that it was better not to sell than to be under a company nobody knows about. o Impact of Acquisition Over the four years from 2004, exports jumped about five times to 4,280 units from 874 units, revenues more thaAfter the birth of Tata Daewoo Commercial Vehicle (hereafter Tata Daewoo), the new company was back on track to roll to victory, calming the jitters of its Korean workers. n doubled to 673.1 billion won from 292.3 billion won and operating profit grew more than eight times to 59.2 billion won from 7 billion won. Tata Daewoo exports trucks to more than 40 countries including the UAE, Algeria and South Africa, as well as domestic sales in India. In 2006, it was honored with a government award to celebrate $100 million in exports of heavy-duty trucks. In 2008, it achieved a $200 million milestone in exports. Employees grew to 1,281 from the 806

Page 13: Mib assignment

registered at the start of the new company. Tata Daewoo is the only one showing a stable and steady growth among the three business arms that Daewoo Motor Co. sold. GM Daewoo is facing a liquidity crisis after it posted billions of dollars in losses, and Daewoo Bus is reportedly in management trouble. Tata Daewoo workers who knew little about the Indian company are grateful for the acquisition. Loyalty to their company became strong. o Reasons for overcoming the crisis and succeed in a short period The key was tripartite cooperation between Tata Motors, new management and employees. First, the acquirer Tata Motors has performed operations with a 'humble attitude.' Tata Motors is one of 82 affiliated companies owned by India's largest conglomerate. But what made it more famous is not the business size but its commitment to social responsibility and ethical business, leading to great respect from the Indian people. Tata Motors acquired the entire equity of Tata Daewoo, but it never behaved as if it were an occupation force. It appointed a native Korean as CEO and it respected the Korean business style and corporate culture, while slowly integrating its strength of trust and ethical management into the whole organization. For example, Tata Motors presented a mid- and long-term development plan to Daewoo Commercial Vehicle employees during the acquisition, by promising more investments in R&D, facilities and plants. That eased some concerns that it might exit from Korea soon after garnering advanced technologies. Afterwards, Tata realized most of its plans as promised. Employees showed trust towards management and had their morale heightened. Its decision to maintain the old Daewoo brand in Korea and in 10 overseas markets, including Algeria, pleased the employees. Attention also should be paid to the company's drive for business excellence through the Tata Business Excellence Model. It is different from the Western model that usually focuses only on efficiency. Tata's model is not only about profit-seeking, but it considers the growth of both the company and the community. This is well echoed in Tata Daewoo's vision, which is 'To be the most admired commercial vehicle company of Korea.' It aims to achieve a parallel growth of customers, shareholders, suppliers, employees and the community based on ethical business principles. It details a mission for each stakeholder as follows. 1) Shareholders: To ensure the company's growth and enhance shareholder value by consistent profitable operation 2) Customers: To achieve customer satisfaction by providing products and services that exceeds customer expectations 3) Vendors & Channel Partners: To ensure sustainable growth through mutually beneficial long-term relationships based on trust 4) Employees: To provide an exciting work environment of equal opportunity, hope and pride by promoting motivation and morale 5) Community: To be an environment-friendly and socially responsible company The second key success factor is the appointment of excellent management staff and 'strategic management.' President Chae Kwang-ok is behind the success of today's Tata Daewoo. He took office as a court-appointed manager to supervise the company, which was hard hit by the foreign exchange crisis in the late 1990s in Asia. The trade union, who wanted job security

Page 14: Mib assignment

more than anything else, gave him full support to keep afloat through a divestiture plan. Mr. Ravi Kant, then managing director of Tata Motors, who led the acquisition work of Daewoo Commercial Vehicle, named Mr. Chae as new CEO of Tata Daewoo instead of appointing an Indian manager. Chae, known as a leader with charisma, joined the efforts to help Tata Daewoo get over the crisis. He directed the launch of new models almost every year and dared to enter the mid-sized truck market. But many were concerned that entering the mid-sized truck market was imprudent as the market was then controlled by Hyundai & Kia Motors, Korea's No. 1 automaker. Nevertheless, he continued his push with his own firm belief. Tata Daewoo's 'hidden card' was to produce 'a mid-sized truck like a large-sized one,' a model as spacious and safe as a large-sized truck, but with a medium-sized load carrying capacity. This was the outcome of management innovation to minimize expenses in design and investments. The new truck model sold like hotcakes. It took only 20 months for Tata Daewoo to occupy a 35 percent share in the medium-sized truck market. It was a remarkable event in the history of Korea's truck market that showed unchanged purchase behaviors tamed by monopoly brands for a long time. In April 2007, Tata Daewoo became the first automobile company in Korea that received the ISO/TS 16949 standard certification, which provided recognition of quality of the brand both at home and abroad. Influenced by Tata Group's management philosophy, Tata Daewoo has also focused on developing environmentally-friendly low-emission trucks, as it is always keen to resolve environmental and global warming issues. It started to commercialize conventional low-emission trucks powered by compressed natural gas (CNG) and also completed the development of eco-friendly trucks that use clean fuels such as liquefied natural gas and liquefied petroleum gas. Last but not least, it is the management's trust towards employees and efforts for mutual prosperity. The trade union of Daewoo Commercial Vehicle was a die-hard union under the influence of the Korean Confederation of Trade Unions. Nevertheless, its union members gave full support to their management with a single goal in mind: to overcome the crisis. They showed trust in Tata Motors even though they were unfamiliar with the company. Of course, it was the result coming after both management and union recognized each other and made the best possible choice. Whilst sentiment consumer is the US is …

Students Paper:… US is to a three-year low, intensifying fears of a double-dip recession, doubts v …

http://www.thestitchtimes.com/cover-stories.html… is down to a three-year low, intensifying fears of a double-dip recession, few doubts …

… , doubts v few linger …

Page 15: Mib assignment

Students Paper:… few linger about the Eurozone's sovereign debt issues. World Bank chief Robert Zoellick is more about the Eurozone crisis worried than Standard & Poor's US …

http://www.thestitchtimes.com/cover-stories.html… severity of Eurozone's sovereign debt issues. World Bank Chief Robert Zoellick is more worried about the Eurozone crisis than the Standard and Poor …

… & Poor's US downgrade.In India, point of view from them is …

Students Paper:… them is of bilateral trade, Europe's problems are more significant than those of the US. Indo-Europe trade stands at …

http://www.thestitchtimes.com/cover-stories.html… of view of bilateral trade, Europe's problems are more significant than those of the US. Indo-Europe trade today stands …

… stands at $68 …

Students Paper:… at $68 billion, making it India's largest trading partner globally. From industry …

http://www.thestitchtimes.com/cover-stories.html… at $ 67 billion, making it India largest trading partner globally. The industrial …

… . From industry's viewpoint, some of India's largest corporations have considerable exposure to Europe.ÿTata Steelÿgot 56% of its revenues of Rs 1,18,755 crore in 2010-11 from the EU and the UK.Tata Steel became the continent's second largest steelmaker after it acquired British steel giant Corus four and a half years ago. Rechristened Tata Steel Europe, the company's biggest steelmaking operations are in the Netherlands and in the UK. Two other Tata companies,ÿTata Motorsÿand TCS, earned over $8 billion in revenues from Europe last fiscal year.For Tata Motors, which had acquired Jaguar Land Rover three years ago, Europe accounted for $6.35 billion, or 23.48%, of its revenues, in 2010-11. TCS earned more than a fourth of its revenues from Europe. Other big companies with a high degree of dependence on Europe include Suzlon Energy (43.69% of revenues last year came from that region), Tech Mahindra (50.53%), Dr Reddy's Labs

Page 16: Mib assignment

(36.62%),ÿWiproÿ(21.93%) and Infosys (21.55%)..ÿ . more forthcoming and have a differentz …

Students Paper:… a differentz take on the subject. They feel India weathered the 2008 crisis well, but theng and …

http://www.thestitchtimes.com/cover-stories.html… a different take on the subject. They feel India weathered the 2008 crisis well, but there are …

… theng and have a different re …

Students Paper:… different re are fears that this time round, the country is alone a …

http://www.thestitchtimes.com/cover-stories.html… but there are fears that this time round, the country is not even …

… alone a full-blown …

Students Paper:… full-blown In so far as the downside risks are concerned, other analysts have been debt not …

http://www.thestitchtimes.com/cover-stories.html… it added. In so far as the downside risks are concerned, other analysts have been more forthcoming …

… debt not even default in Europe …

Students Paper:… in Europe ready for a crisis of much lesser magnitude, let or a …

http://www.thestitchtimes.com/cover-stories.html… not even ready for a crisis of much lesser magnitude, let alone a …

… …

Page 17: Mib assignment

Students Paper:… magnitude, let or a possible US recession. Weak finances, persistently high inflation and policy inertia have considerably. A expected a domestic meltdown is weakened the Government's position today. "This time our basics are weaknd our …

http://www.thestitchtimes.com/cover-stories.html… in Europe or a possible US recession. Weak finances, persistently high inflation and policy inertia have considerably weakened the Government's position today. "This time our basics are weak. A domestic meltdown is expected and our resilience won't …

… weaknd …

Students Paper:… are weaknd our resilience won't be as much as last time," said Nisha Taneja, Professor of Economics at ICRIER. are Growth down estimates to 7.2% in the current year, not far from 6.8% the country managed in crisis-ridden 2008-09, and every other indicator is pointing downwards. with that contrast 9.3% growth on the eve of the crisis when India could do no wrong. "This time we may be on weaker foundations," admitted Kaushik Basu Chief Economic Advisor to Washington Post. Just before the crisis in 2008, the repo rate, the key rate in the economy, was 9%, which was cut quickly to stimulate demand and investments.ÿImpact …

http://www.thestitchtimes.com/cover-stories.html… is expected and our resilience won't be as much as last time," said Nisha Taneja, Professor of Economics at ICRIER. Growth estimates are down to 7.2% in the current year, not far from 6.8% the country managed in crisis-ridden 2008-09, and every other indicator is pointing downwards. Contrast that with 9.3% growth on the eve of the crisis when India could do no wrong. "This time we may be on weaker foundations," admitted Chief Economic Advisor Kaushik Basu to Washington Post. Just before the crisis in 2008, the repo rate, the key rate in the economy, was 9%, which was cut quickly to stimulate demand and investments. Impact …

… investments.ÿ…

Students Paper:… and investments.ÿModel. It is different from the Western model that usually focuses only on efficiency.

Page 18: Mib assignment

Tata's model is not only about profit-seeking, but it considers the growth of both the company and the community. This is well echoed in Tata Daewoo's vision, which is 'To be the most admired commercial vehicle company of Korea.' It aims to achieve a parallel growth of customers, shareholders, suppliers, employees and the community based on ethical business principles. It details a mission for each stakeholder as follows. 1) Shareholders: To ensure the company's growth and enhance shareholder value by consistent profitable operation 2) Customers: To achieve customer satisfaction by providing products and services that exceeds customer expectations 3) Vendors & Channel Partners: To ensure sustainable growth through mutually beneficial long-term relationships based on trust 4) Employees: To provide an exciting work environment of equal opportunity, hope and pride by promoting motivation and morale 5) Community: To be an environment-friendly and socially responsible company The second key success factor is the appointment of excellent management staff and 'strategic management.' President Chae Kwang-ok is behind the success of today's Tata Daewoo. He took office as a court-appointed manager to supervise the company, which was hard hit by the foreign exchange crisis in the late 1990s in Asia. The trade union, who wanted job security more than anything else, gave him full support to keep afloat through a divestiture plan. Mr. Ravi Kant, then managing director of Tata Motors, who led the acquisition work of Daewoo Commercial Vehicle, named Mr. Chae as new CEO of Tata Daewoo instead of appointing an Indian manager. Chae, known as a leader with charisma, joined the efforts to help Tata Daewoo get over the crisis. He directed the launch of new models almost every year and dared to enter the mid-sized truck market. But many were concerned that entering the mid-sized truck market was imprudent as the market was then controlled by Hyundai & Kia Motors, Korea's No. 1 automaker. Nevertheless, he continued his push with his own firm belief. Tata Daewoo's 'hidden card' was to produce 'a mid-sized truck like a large-sized one,' a model as spacious and safe as a large-sized truck, but with a medium-sized load carrying capacity. This was the outcome of management innovation to minimize expenses in design and investments. The new truck model sold like hotcakes. It took only 20 months for Tata Daewoo to occupy a 35 percent share in the medium-sized truck market. It was a remarkable event in the history of Korea's truck market that showed unchanged purchase behaviors tamed by monopoly brands for a long time. In April 2007, Tata Daewoo became the first automobile company in Korea that received the ISO/TS 16949 standard certification, which provided recognition of quality of the brand both at home and abroad. Influenced by Tata Group's management philosophy, Tata Daewoo has also focused on developing environmentally-friendly low-emission trucks, as it is always keen to resolve environmental and global warming issues. It started to commercialize conventional low-emission trucks powered by compressed natural gas (CNG) and also completed the development of eco-friendly trucks that use clean fuels such as liquefied natural gas and liquefied petroleum gas. Last but not

Page 19: Mib assignment

least, it is the management's trust towards employees and efforts for mutual prosperity. The trade union of Daewoo Commercial Vehicle was a die-hard union under the influence of the Korean Confederation of Trade Unions. Nevertheless, its union members gave full support to their management with a single goal in mind: to overcome the crisis. They showed trust in Tata Motors even though they were unfamiliar with the company. Of course, it was the result coming after both management and union recognized each other and made the best possible choice. Whilst sentiment consumer is the US is … Impact on Indian exportsAcknowledgedly, both the US and the EU have been most important export destinations for Indian exports, particularly the garment exports with both the destinations traditionally accounting for some 66% of our total exports. The state of their economies is indeed of paramount importance to us. Unfortunately, both of them have not been fairing well.Asian economists …

http://www.thestitchtimes.com/cover-stories.html… and investments. Model. It is different from the Western model that usually focuses only on efficiency. Tata's model is not only about profit-seeking, but it considers the growth of both the company and the community. This is well echoed in Tata Daewoo's vision, which is 'To be the most admired commercial vehicle company of Korea.' It aims to achieve a parallel growth of customers, shareholders, suppliers, employees and the community based on ethical business principles. It details a mission for each stakeholder as follows. 1) Shareholders: To ensure the company's growth and enhance shareholder value by consistent profitable operation 2) Customers: To achieve customer satisfaction by providing products and services that exceeds customer expectations 3) Vendors & Channel Partners: To ensure sustainable growth through mutually beneficial long-term relationships based on trust 4) Employees: To provide an exciting work environment of equal opportunity, hope and pride by promoting motivation and morale 5) Community: To be an environment-friendly and socially responsible company The second key success factor is the appointment of excellent management staff and 'strategic management.' President Chae Kwang-ok is behind the success of today's Tata Daewoo. He took office as a court-appointed manager to supervise the company, which was hard hit by the foreign exchange crisis in the late 1990s in Asia. The trade union, who wanted job security more than anything else, gave him full support to keep afloat through a divestiture plan. Mr. Ravi Kant, then managing director of Tata Motors, who led the acquisition work of Daewoo Commercial Vehicle, named Mr. Chae as new CEO of Tata Daewoo instead of appointing an Indian manager. Chae, known as a leader with charisma, joined the efforts to help Tata Daewoo get over the crisis. He directed the launch of new models almost every year and dared to enter the mid-sized truck market. But many were concerned that entering the mid-sized truck market was imprudent as the

Page 20: Mib assignment

market was then controlled by Hyundai & Kia Motors, Korea's No. 1 automaker. Nevertheless, he continued his push with his own firm belief. Tata Daewoo's 'hidden card' was to produce 'a mid-sized truck like a large-sized one,' a model as spacious and safe as a large-sized truck, but with a medium-sized load carrying capacity. This was the outcome of management innovation to minimize expenses in design and investments. The new truck model sold like hotcakes. It took only 20 months for Tata Daewoo to occupy a 35 percent share in the medium-sized truck market. It was a remarkable event in the history of Korea's truck market that showed unchanged purchase behaviors tamed by monopoly brands for a long time. In April 2007, Tata Daewoo became the first automobile company in Korea that received the ISO/TS 16949 standard certification, which provided recognition of quality of the brand both at home and abroad. Influenced by Tata Group's management philosophy, Tata Daewo o has also focused on developing environmentally-friendly low-emission trucks, as it is always keen to resolve environmental and global warming issues. It started to commercialize conventional low-emission trucks powered by compressed natural gas (CNG) and also completed the development of eco-friendly trucks that use clean fuels such as liquefied natural gas and liquefied petroleum gas. Last but not least, it is the management's trust towards employees and efforts for mutual prosperity. The trade union of Daewoo Commercial Vehicle was a die-hard union under the influence of the Korean Confederation of Trade Unions. Nevertheless, its union members gave full support to their management with a single goal in mind: to overcome the crisis. They showed trust in Tata Motors even though they were unfamiliar with the company. Of course, it was the result coming after both management and union recognized each other and made the best possible choice. Whilst sentiment consumer is the US is …Impact on Indian exports Acknowledgedly, both the US and the EU have been most important export destinations for Indian exports, particularly the garment exports with both the destinations traditionally accounting for some 66% of our total exports. The state of their economies is indeed of paramount importance to us. Unfortunately, both of them have not been fairing well. The US market In …

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Students Paper:… fairing well.Asian economists are shrugging off for now the global market turmoil sparked by U.S. and European sovereign debt problems, saying that domestic demand in the region will hold up and help offset lower exports even if Western economies slip back into recession. Many economists had already trimmed their 2011 and 2012 growth

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forecasts for China, India and some other Asian economies in a Reuters poll in late July before the U.S. credit rating was downgraded, reckoning that policy tightening to tackle inflation made a slowdown in growth seem inevitable. However, Asian states are likely to retain their US Treasury holdings for now and European governments expressed confidence in the world's largest economy after Standard & Poor's cut the US's sovereign credit rating to AA+. Russia said the one-step cut "can be ignored" and France joined the US in questioning S&P's reasoning. South Korea affirmed its "faith" in Treasuries after an emergency meeting of officials near Seoul

http://www.thestitchtimes.com/cover-stories.html… World ReactsAsian economists are shrugging off for now the global market turmoil sparked by U.S. and European sovereign debt problems, saying that domestic demand in the region will hold up and help offset lower exports even if Western economies slip back into recession. Many economists had already trimmed their 2011 and 2012 growth forecasts for China, India and some other Asian economies in a Reuters poll in late July before the U.S. credit rating was downgraded, reckoning that policy tightening to tackle inflation made a slowdown in growth seem inevitable. However, Asian states are likely to retain their US Treasury holdings for now and European governments expressed confidence in the world's largest economy after Standard & Poor's cut the US's sovereign credit rating to AA+. Russia said the one-step cut "can be ignored" and France joined the US in questioning S&P's reasoning. South Korea affirmed its "faith" in Treasuries after an emergency meeting of officials near Seoul. China critical of …

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Model. It is different from the Western model that usually focuses only on efficiency. Tata's model is not only about profit-seeking, but it considers the growth of both the company and the community. This is well echoed in Tata Daewoo's vision, which is

Page 22: Mib assignment

'To be the most admired commercial vehicle company of Korea.' It aims to achieve a parallel growth of customers, shareholders, suppliers, employees and the community based on ethical business principles. It details a mission for each stakeholder as follows. 1) Shareholders: To ensure the company's growth and enhance shareholder value by consistent profitable operation 2) Customers: To achieve customer satisfaction by providing products and services that exceeds customer expectations 3) Vendors & Channel Partners: To ensure sustainable growth through mutually beneficial long-term relationships based on trust 4) Employees: To provide an exciting work environment of equal opportunity, hope and pride by promoting motivation and morale 5) Community: To be an environment-friendly and socially responsible company The second key success factor is the appointment of excellent management staff and 'strategic management.' President Chae Kwang-ok is behind the success of today's Tata Daewoo. He took office as a court-appointed manager to supervise the company, which was hard hit by the foreign exchange crisis in the late 1990s in Asia. The trade union, who wanted job security more than anything else, gave him full support to keep afloat through a divestiture plan. Mr. Ravi Kant, then managing director of Tata Motors, who led the acquisition work of Daewoo Commercial Vehicle, named Mr. Chae as new CEO of Tata Daewoo instead of appointing an Indian manager. Chae, known as a leader with charisma, joined the efforts to help Tata Daewoo get over the crisis. He directed the launch of new models almost every year and dared to enter the mid-sized truck market. But many were concerned that entering the mid-sized truck market was imprudent as the market was then controlled by Hyundai & Kia Motors, Korea's No. 1 automaker. Nevertheless, he continued his push with his own firm belief. Tata Daewoo's 'hidden card' was to produce 'a mid-sized truck like a large-sized one,' a model as spacious and safe as a large-sized truck, but with a medium-sized load carrying capacity. This was the outcome of management innovation to minimize expenses in design and investments. The new truck model sold like hotcakes. It took only 20 months for Tata Daewoo to occupy a 35 percent share in the medium-sized truck market. It was a remarkable event in the history of Korea's truck market that showed unchanged purchase behaviors tamed by monopoly brands for a long time. In April 2007, Tata Daewoo became the first automobile company in Korea that received the ISO/TS 16949 standard certification, which provided recognition of quality of the brand both at home and abroad. Influenced by Tata Group's management philosophy, Tata Daewoo has also focused on developing environmentally-friendly low-emission trucks, as it is always keen to resolve environmental and global warming issues. It started to commercialize conventional low-emission trucks powered by compressed natural gas (CNG) and also completed the development of eco-friendly trucks that use clean fuels such as liquefied natural gas and liquefied petroleum gas. Last but not least, it is the management's trust towards employees and efforts for mutual prosperity. The trade union of Daewoo Commercial Vehicle was a die-hard union under the influence

Page 23: Mib assignment

of the Korean Confederation of Trade Unions. Nevertheless, its union members gave full support to their management with a single goal in mind: to overcome the crisis. They showed trust in Tata Motors even though they were unfamiliar with the company. Of course, it was the result coming after both management and union recognized each other and made the best possible choice. Whilst sentiment consumer is the US is … Impact on Indian exportsAcknowledgedly, both the US and the EU have been most important export destinations for Indian exports, particularly the garment exports with both the destinations traditionally accounting for some 66% of our total exports. The state of their economies is indeed of paramount importance to us. Unfortunately, both of them have not been fairing well.Asian economists are shrugging off for now the global market turmoil sparked by U.S. and European sovereign debt problems, saying that domestic demand in the region will hold up and help offset lower exports even if Western economies slip back into recession. Many economists had already trimmed their 2011 and 2012 growth forecasts for China, India and some other Asian economies in a Reuters poll in late July before the U.S. credit rating was downgraded, reckoning that policy tightening to tackle inflation made a slowdown in growth seem inevitable. However, Asian states are likely to retain their US Treasury holdings for now and European governments expressed confidence in the world's largest economy after Standard & Poor's cut the US's sovereign credit rating to AA+. Russia said the one-step cut "can be ignored" and France joined the US in questioning S&P's reasoning. South Korea affirmed its "faith" in Treasuries after an emergency meeting of officials near Seoul.