MSc.

MANAGING GLOBAL BUSINESS

RESEARCH METHOD
SUMMITIVE ASSIGNMENT

"EXPANSION STRATEGY OF TATA IN UK WITH

REFERENCE TO CORUS AND JAGUAR"

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Table of Contents
Introduction............................................................................................................3
Rationale for the research:......................................................................................4
Research Aims........................................................................................................4
Research Objectives................................................................................................4
Research Process....................................................................................................5
Research Philosophy (Paradigm).............................................................................6
Research Approach.................................................................................................8
Research strategy...................................................................................................9
Grounded theory.............................................................................................................................................. 9
Action Research............................................................................................................................................. 10
Ethnography.................................................................................................................................................... 10
Survey................................................................................................................................................................ 10
Case Study........................................................................................................................................................ 11
Data Collection.....................................................................................................12
Primary data.................................................................................................................................................... 12
Questionnaires:................................................................................................................................................ 12
Interviews:.......................................................................................................................................................... 13
Secondary data............................................................................................................................................... 13
Advantages of using secondary data...................................................................................................... 13
Disadvantages of using secondary data................................................................................................ 14
Qualitative Data....................................................................................................14
Quantitative Data.................................................................................................15
Data Interpretation...............................................................................................16
The credibility of the research findings..................................................................16
Reliability.......................................................................................................................................................... 16
Validity............................................................................................................................................................... 16
Generalise-ability.......................................................................................................................................... 17
Research limitation...............................................................................................17
Reference.............................................................................................................18

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Introduction

The race is on for acquiring more, spreading business boundaries, reducing

operational cost and most important going global. Small local firms are trying to get
in the SME’s category; SME’s are trying to get the batch of MNC’s and MNC’s want
more. Over the past three decades, business, trade and investment has grownup a lot.
With the implementation of trade liberalization and free trade policies, business has
achieved new heights. This has helped many firms in becoming a global player.

Understanding the term “GLOBALIZATION” is very confusing. There are

different views of globalization. For some it means to expand the firm presence
abroad, for others it means standardizing a product and selling it globally. There are
others who take it as an approach towards management in which decision- making is
centralized at corporate headquarters. There are many reasons behind all these
confusions; one possible reason is the fact that the concept of globalization is
relatively new (Philippe, Lasserre, 2007).

According to Held, D (1999) Globalisation represents “Shrinking” of the

world with an increase in the “Thickness” of human interaction. Big local firms
nowadays want to spread their business beyond their national boundaries and capture
new markets. There are several ways of doing so:

 Merges & Acquisition

 FDI
 Joint ventures
 Franchising
 Strategic alliances

Many MNC’s are making their way into new markets. Tata, an Indian
company made two big deals in recent years by acquiring two big business giants in
UK: Corus in 2007(Professional Engineering, 2007) and then the Jaguar in 2008
(Marketwatch, Company Spotlight 2010). These acquisitions were necessary for the

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company to ramp up its scale and this was evident, as after the deal with Corus, Tata
became one of the top five companies in steel sector.
Tata is one of the oldest and biggest companies in India founded in 1868 by
Jamshetji Tata. Today company operates in more than 85 countries under the shed of
Chairman Mr. Ratan Tata. Tata business has grown in following fields - steel,
automobile, Information technology, communication, power, tea and last but not least
Hospitality (Company’s website). Tata was ranked 20th reputed company in the world
from 600 top companies (The Economic Times, 2006).

Rationale for the research:

The researcher is pursuing management course that includes subjects like

“Global marketing” and “Global business strategy”, this research will give him a
chance to further explore his knowledge. On the other hand, Tata, being a firm from a
developing country India, took a step towards globalization by acquiring Corus and
Jaguar. Therefore, this research could give an insight to firms from a developing
economy about how Tata made this possible and overcome the problems that came
along with these acquisitions. Furthermore, the researcher has a personal motivation
as he comes from the same city where the Tata steel was found.

Research Aims

The main aim of the research is to get a better understanding of the expansion
strategy of Tata in UK by acquiring Corus and Jaguar. It is also to examine the effects
of these acquisitions on the business of Tata. Furthermore, the researcher will try to
identify the motivation behind these acquisitions and at the same time will assess how
successful Tata has been in adopting these strategies. This would provide a picture of
the risks and opportunities present in UK market.

Research Objectives

 To study the factors that forced Tata to acquire Corus and Jaguar.
 To identify the key characteristics of the acquisitions done by Tata.

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  To analyse the changes that management has undergone in terms of
organisational structure, labour union and working pattern.
 To explore the importance of these acquisitions, its future scope, any
limitations and also to discover any change or requirements that can arise in
future.
 To study the growth and development in business of Corus and Jaguar before
and after the acquisition.
 To examine the effect of Jaguar acquisition on Tata’s automobile business in
India (home market).

Research Process

In this research, the researcher has used research onion as a base for his research. The
research onion consists of six layers
1. Philosophies
2. Approaches
3. Strategies
4. Choices
5. Time Zone
6. Techniques and procedures

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(Saunders, M. Lewis, P &Thornhill, A. 2009).

Research Philosophy (Paradigm)

The research paradigm is a philosophical framework that guides how research
should be conducted and development of knowledge based on people’s philosophies
and their assumptions about the world and the nature of the knowledge (Collis J &
Hussey R, 2009).

In research method, one can adopt four types of paradigm

 Positivist
 Realism
 Interpretivism
 Pragmatism

Positivist Paradigm: Working in the tradition of the natural scientist

Positivist paradigm provides the framework for the way research was
conducted in the natural science and the scientific methods are still widely used in
social science research today. Positivism is underpinned by the belief that reality is

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independent of us and the goal is the discovery of theories, based on empirical
research that is observation and experiment (Collis J & Hussey R, 2009). In
positivism paradigm, knowledge is derived from ‘positive information’ because
justification can be scientifically verified or it is possible to prove it logically or
mathematically (Walliman, 2001, cited by Collis J & Hussey R, 2009). Therefore,
researchers using this paradigm still apply logical reasoning rather than subjectivity
and intuitive interpretation (Collis J & Hussey R, 2009).

Interpretivism: Understanding difference between humans and social actors

Interpretivism was developed in response to criticism of positivism. It is based

on the theory that social reality is in human mind, and social reality is not objective
but subjective because it is shaped by our perceptions. Therefore, social reality is
affected by the act of investigating it (Collis J & Hussey R, 2009). On one hand,
positivism is focused on measuring social phenomena, while on the other hand
interpretivism is all about exploring the complexity of social phenomena.
Interpretivist research is not derived from the quantitative data as it relies on
qualitative data (Strauss and Corbin, 1990 cited by Collis J & Hussey R, 2009).

From the researcher point of view this research topic can be better understood
under the philosophy of interpretive paradigm because the research topic is socially
related and has subjective meanings. The topic is focused on the details of the
situation and there is a reality behind these details. In this research, the researcher aim
is to understand and enlighten the effects of Corus and Jaguar acquisition done by
Tata and also to understand the important factors behind these acquisitions. Same
time he will try to understand the opportunities and risks involved in these
acquisitions.

Comparison of all four philosophies

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(Saunders, M., Lewis, P &Thornhill, A. 2009).

Research Approach

A researcher can approach a research by two ways: deductive and inductive.

Deductive approach: testing theory

It is a dominant research approach in which, first a theory or hypothesis is

developed and then it is subjected to rigorous test, which implies that it moves from
theory to data and hence can be underpinned as positivism paradigm. The data
collected is more of quantitative data (Saunders, M., Lewis, P &Thornhill, A. 2009).

According to (Robson, 2002) Deductive research progresses through five stages

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 1. Deducting a hypothesis from the theory
2. Expressing the hypothesis in the operational terms
3. Testing this operational hypothesis
4. Examining the specific outcome of the inquiry
5. If necessary, modify the theory in the light of the findings

Inductive approach: building theory

It is the opposite of deductive approach. It is a research in which theory is

developed from the analysis of collected qualitative data. In this the researcher act as
an observer who understand the meaning of the event from the perspective of human
being. Researcher is a part of the research process (Collis J & Hussey R, 2009).

In this research, researcher aim is to explore the importance of the Corus and
Jaguar acquisitions done by Tata, its future scope, any limitations and also to discover
the effect of Jaguar acquisition on Tata’s automobile business in India (home market).
Therefore the researcher will try to evaluate, analyse and compare the existing data
and information to develop a theory that provides a clear understanding about the
research topic. Therefore the research approach is inductive approach.

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Source: Lecture Slide

Research strategy

Research is a voyage of discoveries, some call it as search for knowledge and

any researcher who is in search of information prepares some kind of plan to achieve
it, this plan is referred as research strategy (Kothari C.R, 1990). The strategy should
be such that it guides the researcher on the correct path where he/she gets answers
related to his/her research objectives. So, the researcher should be very cautious while
selecting the required strategies for the research. There are various strategies to select
from

Grounded theory

According to the Goulding, C. (2002) grounded theory helps the researcher in

building and developing “Theory” by going through series of observations. It is a
more of inductive approach as theory is developed from the collected data (Glaser and

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Strauss 1967, cited by Saunders, M., Lewis, P &Thornhill, A. 2009). The process of
data collection starts without the formation of any initial theoretical framework.

Researcher had used this strategy as it goes well with his research. Researcher
had tried to conclude sound theory out of the collected data. The research topic
contains some questions that need the use of this strategy.

Action Research

According to Mcniff, J. & Whitehead (2010) action research consist of two

parts
 Action = What you do
 Research = How you learn about and explain what you do.

The “Action” aspect of action research is all about finding ways to improve your
practice methods and “Research” aspect of action research is all about creating
knowledge concerning that practice.

Ethnography

Ethnography is assumed as a time-consuming research strategy, the main

objective of ethnography is to describe and explain your research subject to the social
world in such a way that they understand it in the best possible way or in a way they
would like to describe and explain. Therefore the research process should be flexible
(Saunders, M., Lewis, P &Thornhill, A. 2009). The researcher has tried to follow this
approach so that his research subject could be better understood by the social world.

Survey

The use of survey provides a way of data collection from a particular section
of population in an economical way. This is generally carried out in by the use of a
proper-formatted questionnaire. Once the process of collecting data is completed the
researcher can now sort the data and conclude the result (Saunders, M., Lewis, P

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&Thornhill, A. 2009). The researcher can make use of sampling technique to further
enhance his survey. “Sampling” can be understood as a mean of selecting
people/objects from a “population” in order to test the population for something.

Henry, (1990) cited by Saunders, M., Lewis, P &Thornhill, A. (2009) says that
use of sampling provide a higher overall accuracy than a census and same time
sampling can save time and money for the researcher if used wisely.

Case Study

According to Robson (2002, 178) “Case study is a strategy for doing research
that involves an empirical investigation of a particular contemporary phenomenon
within its real life context using multiple source of evidence”. Many Researchers
generally use case studies to gain deep and rich understanding about the research
subject (Morris and Wood, 1991, cited by Saunders, M., Lewis, P &Thornhill, A.
2009).
Case study also has the potential to answer questions like “what”, “how” and
“why”. For this reason case studies are often used in explanatory and exploratory
research (Saunders, M., Lewis, P &Thornhill, A. 2009).

According to Yin (2003), cited by Saunders, M., Lewis, P &Thornhill, A. 2009) Case
study can be divided into two sub-parts
 Single case
 Multiple case
A Single case is used where they represent a critical case or better say extreme
and unique case. It is selected because it is typical or it gives you the chance to
observe and analyse a phenomenon that only few have considered before. Some
prefer using multiple cases or you can say using more than one case. The rationale for
using multiple cases is that you have access to vast data from which you can conclude
your work. All though case studies are good source of data but they are also time
consuming and even not easy to collect.

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 The researcher has used several case studies as it provides vast amount of data.
Same time it can be both qualitative and quantitative data. The researcher subject
carries questions that need both qualitative and quantitative data to answer it.
Case studies can give quality information on an event such as “Mergers &
Acquisitions” which is the base of this research. The researcher will make use of
those case studies that contain progressive information about research topics such as
Jaguar and Corus business before and after acquisition or information on the
Expansion strategies of Tata in the past and the future.

Data Collection

There are a number of techniques for a researcher to collect and analyse the
data. A researcher can collect data in form of primary or secondary data or even both.

Primary data

According to Collis J & Hussey R, (2009) primary information/data are

generally generated from an original/new source such as interviews, questionnaires
and surveys carried out by the researcher. In the case of this research topic, the
researcher is not performing any kind of primary research or data collection because
for that the researcher has to visit India to interview corporate level management
authorities of Tata firm.

Questionnaires:

It is a technique of collecting data by asking same set of questions to a group

of people (deVaus, 2002, cited by Saunders, M., Lewis, P &Thornhill, A. 2009). The
information collected can be either quantitative or qualitative. Researcher has not used
this method of data collection because questionnaires are not ideal for “exploratory”
research or other researches that consist of large numbers of open-ended questions as
in the case of this research (Robson, 2002). Therefore, questionnaires can preferably
be used in the case of “descriptive” and “explanatory” research.

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Interviews:

It is described as “Purposeful discussion between two or more peoples”(Kahn

&Cannell, 1957, cited by Saunders, 2009)
Researcher has not used interview because in this case its not possible for him
to arrange interviews with the corporate level managers and by chance if researcher
gets the opportunity to interview someone, then also it seems to be much time
consuming and costly as he has to visit India.

Secondary data

It is a kind of research where researcher analyses or collects his/her data on the

basis of pre-existing data like articles, newspapers, reliable databases (for example Lit
search). Particular to this research, the researcher is dependent on reliable secondary
data from a trusted source. The researcher is dependent on secondary data collection
method because the aims and objectives can be better understood and examined by
the pre-existing data. For example, if the researcher needs to examine the effects of
Jaguar acquisition on Tata’s automobile business in India, which according to
researcher can be examined by comparing the sales, profit and loss figures before and
after acquisition. This will provide a flawless platform for the researcher to answer
this question.

Advantages of using secondary data

The first and fore most advantage of using secondary data is that it saves both
time and money (Ghauri and Gronhaug 2005, cited by Saunders, M., Lewis, P
&Thornhill, A. 2009). The researcher needs to devote less time and money to collect
the data which could have been opposite in the case of collecting primary data. If
someone needs data quickly, then there is no alternate other than secondary data.

Secondary data are prone to be high-quality data, than those collected by

researcher itself through primary research (Stewart and Kamins, 1993 cited by

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Saunders, M., Lewis, P &Thornhill, A. 2009). Therefore by using secondary data
researcher will try to provide reliable, valid and trusted result.

Researcher needs to analyse some of its aims and objectives, which requires
comparison for example - (To study the growth and development in business of Corus
and Jaguar before and after the acquisition by Tata). According to the Saunders, M.,
Lewis, P &Thornhill, A. (2009) comparative research is more feasible if you have
multiple source of data and also if there are comparable data available.

Secondary data provide a source of information that is both reliable and valid
as well as are permanent and available in various places in various forms, which mean
that your research and findings are more open to public for scrutiny (Denscombe,
2007, cited by Saunders, M., Lewis, P &Thornhill, A. 2009).

Disadvantages of using secondary data

Sometimes, you collect secondary data for your research, which might not be
specific enough to answer your questions or even can be misleading (Denscombe,
2007, cited by Saunders, M., Lewis, P &Thornhill, A. 2009).Sometimes accessing
secondary data may be difficult and costly.

Qualitative Data

Qualitative data can be understood as non-numeric data or the data that has not
been quantified. The motive of using qualitative data is to get a deep understanding of
people’s experience, their ideas in the context of their personal settings. The
qualitative data can be both shortlist of response or even open-ended questions in the
form of either online questionnaire or in the form of in-depth interview. With use of
qualitative data analysis, one can develop theory from data. Qualitative data can adopt
both approaches inductive and deductive (Saunders, M., Lewis, P &Thornhill, A, 480:
2009). We can say that, qualitative research focuses on collecting data in order to
identify quality aspects.

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Quantitative Data

Quantitative data is related to numerical data in raw form, which needs

processing and analysis so that one can get useful information from it. Quantitative
analysis techniques such as graphs, charts and statistics allow us to do so. Quantitative
data is suitable for count and measuring purpose.

The Difference between Qualitative and Quantitative Research Questions

Qualitative Quantitative
 Why; • How much;
• How; • How many;
• In what way? • How often;
• To what degree?

Source: Lecture Slide

The qualitative data provide answers to questions like “why”, “how” and “in
what way?” while quantitative give answers to questions related to count or
measurement like “how much”, “how many”, “how often” and so on.

In this Research, the researcher has used both qualitative and quantitative data
as the research aims and objectives cannot be answered by only using one type of
data. To answer, questions like, “understanding the expansion strategy of Tata in UK”
or“identify the motivation behind these acquisitions” one needs qualitative data. On
other side, to answer questions like “growth and development in business of Corus
and Jaguar before and after the acquisition” or “examine the effect of Jaguar
acquisition on Tata’s automobile business in India” need quantitative data. So
researcher prefers use of both the data.

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Data Interpretation

Data interpretation is a process of structuring and arranging collected data.

This research is based on inductive approach where theory is drawn from the
collected data. The theory is developed and presented in such a way that it delivers the
best possible result. According to Saunders, M., Lewis, P &Thornhill, A, (2009) it is a
“hybrid approach” which involves using of several established theoretical structures
and frameworks to make sense of your findings. The researcher will use Hofstede
Cultural Dimension and do PEST analysis to get deeper understanding about the
research.

The credibility of the research findings

Reliability

It implies that to what extent your data collection technique or data analysis
process will produce consistent findings. It can be assessed by putting three questions
(Easterby-smith et al. 2008, cited by Saunders, M., Lewis, P &Thornhill, A, 2009).

1. Will the measure produce the same result on other occasion?

2. Will other observers reach similar observation?
3. Is there transparency in how result was concluded from the raw data?
Reliability tends to be higher in positivist studies in comparison to interpretive
paradigm.

Validity

According to Saunders, M., Lewis, P &Thornhill, A. (2009) validity is

concerned with whether the findings are really about what they appear to be about.
Researcher is familiar with the truth that the result of the research should not only be
reliable but at the same time it should be valid and therefore, the researcher will use
reliable source of evidence. Researcher studied and analysed the condition of Corus
and Jaguar before and after the acquisition to get better and deeper understanding of

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acquisition effects on the business of these two companies. Researcher collected data
for analysis from several-trusted source to get to a valid result.

Generalise-ability

This is referred to as external validity. It is about designing your research in

such a way that your findings may be equally applicable to other research settings
(Saunders, M., Lewis, P &Thornhill, A. 2009).

Research limitation

As this research is carried out using secondary data, so researcher won’t face
many limitations, which are generally associated with research based on primary data.
Though there were few common limitations that researcher can face like limited
accessibility to data on Internet or else needs online account or money to access it. In
addition, this is a recent topic and not much information is available. One possible
limitation is that researcher cannot take benefit of primary data such as face-to-face
interview and questionnaires as the research company management staffs are located
in India and the researcher cannot go there. Therefore, the researcher will try to locate
maximum of data from secondary sources in the short timeframe.

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Reference

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Undergraduate and Postgraduate Students, 3 rd edition, London: Macmillan, 2009

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3. Evans, Rachel (2010) Tata's outbound strategy. International Financial Law Review,

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2007

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London: New York: Routledge, 2010

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Automotive, 2010

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 13. The economic times (2006) Tata in Forbes top 20 most reputed cos. [online] available

at < http://economictimes.indiatimes.com/news/economy/indicators/tata-in-forbes-top-

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