Global Strategies & Supply Chains (DP IB Geography)

Founded in 1868, Tata is India's oldest and largest private sector business

The Tata group now consists of more than 100 companies, with a turnover of more than $70 billion (half of which comes from overseas)

It operates in 80 countries and employs approximately 600 000 people

The group has a wide range of interests, including:

• Cars

• Steel manufacturing

• Chemicals

• IT consultancy

• Retail

• Hotels

Unlike most TNCs, Tata's control is not centralised but spread among the member companies, giving them more control over operation and strategy

However, it is the corporate brand values that unify all the companies in the group: loyalty, dignity and corporate social responsibility (CSR)

Not all the group companies use the Tata logo, such as:

• Starbucks in India

• Tetley tea

• Good Earth

• Air India

• Taj hotels

Before 1991, the Tata group was located mostly in India and focused on providing products with a strong Indian culture

With the purchase of Tetley Tea (one of the UK's leading tea brands), Tata stepped onto the world stage with a steady stream of business purchases around the world

Tata will only rebrand if the group feels it will add value. For instance, Tata motors refuses to rebrand Jaguar and Land Rover, as these are established names, and any changes would destroy their value

Tata has always prided itself on its social responsibilities

• An 8-hour working day was introduced in 1912

• By 1920, workers had paid annual leave

• Tata Trust spends over $105 million annually to fund causes such as

  • Clean water projects

  • Literacy programs

Jamshedpur (home of Tata Steel) is a model example of a successful company town

It was India's first planned city, built by the Tata group

Tata runs almost all of the city's institutions, including:

• A 1000-bed Tata Main Hospital with up-to-date ICU, CCU and burn care units

• A giant sports stadium and parks

• The local utility companies called Tata Town Services

• Tata Steel Zoological Park

Tata is currently committed to 'frugal innovation', where new products are produced at an affordable cost to poor people and the rising middle class

Products include:

• Tata Nano, a $2300 small, rear-engine, pod-shaped car

• Tata Swach is a water purifier using rice husk ash infused with nano-silver particles. It produces safe, clean, potable water without the use of electricity or running water, which are generally not available in rural areas

• Tata House Nano is a pre-fabricated house that can be built within a week for $500. It is small (an area of 20 m²), with a living room, bedroom, kitchen and bathroom, and can accommodate 2 adults

As of April 2024, Apple has a market cap of $2.628 trillion

Apple's supplier code of conduct states that

The manufacture of its products is spread around the globe, with most of them in China through partners such as Foxconn

Since 2005, Apple's supply chain in China has been criticised for human rights abuse and ethical issues

Foxconn, Apple's main supplier and the world's largest electronic manufacturing services company, employs approximately 1.6 million people in China

However, there have been allegations of poor working conditions, such as:

• 15-hour working shifts

• One day off every 14 days

• Paid around US$100 per month, they are required to live on the premises and pay for rent and food from the company

• Mandatory overtime

• Workplace bullying and harassment

• Recruitment discrimination based on ethnicity, religion and gender

In 2010, demands for improved working conditions and higher wages resulted in 18 attempted suicides, 13 of which succeeded

After the suicides, Foxconn installed mesh netting around its buildings to stop people from jumping

They also provided counselling for its workers and increased wages

In 2014, a BBC investigation found the problems still existed, despite Apple's promise to reform factory practices after the Foxconn suicides

Apple's social actions have been described as reactive, while Chinese labour laws and their lack of enforcement have done little to protect workers