FULLLY COMPLETED REPORT 1 ON TATA MOTORS (KENYA)LTD - Multinational enterprises (MNEs) that have a great deal of success in their home country may find it not that easy to replicate their successes in expanding operations to other locations around the globe. More specifically, expanding operations ...
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1. Executive Summary …………………………………………………... 1
2. Literature Search………………………………………………………. 2
3. Background…………………………………………………………….. 3
4. Formal Institutional Frameworks ……………………………………. 4
1) Political systems ………………………………………………….. 4
2) Economic systems ………………………………………………... 5
3) Legal systems ……………………………………………………... 6
4) Key implications for Management Action ………………………. 7
5. Informal Institutional Frameworks …………………………………… 8
1) Culture ……………………………………………………………… 8
2) Ethics ……………………………………………………………….. 9
3) Language …………………………………………………………... 10
4) 4) Key implications for Management Action …………………… 10
6. Conclusion ……………………………………………………………… 11
7. Bibliography ……………………………………………………………. 12
, Page 1
Executive Summary
This report focuses on the analysis of Tata Motors (Kenya) Ltd., an MNE
(Multinational enterprise), and its operations in a host country in Kenya, East Africa.
The report provides a brief history of Tata Motors' entry into these markets and its
subsequent expansion in East Africa.
The main purpose of this report is to highlight the significance of both the formal and
informal institutional frameworks on business operations, and how these institutions
are the key to success or failure within the MNE in the African context, as well as the
challenges they present.
In terms of formal institutions, the report highlights Kenya's presidential democratic
republic and political instability. Political instability can have implications for supply
chains and distribution networks and an uneven playing field for foreign companies.
However, Tata Motors (Kenya) Ltd.’s operations have not been significantly affected
by political instability.
Regarding economic systems, the report discusses Kenya's mixed economy, which
is heavily dependent on agriculture, tourism, and services. The economy has made
significant strides in economic development but is still characterized by poverty,
inequality, and high unemployment rates. This economic context presents
challenges for Tata Motors (Kenya) Ltd.'s operations.
Based on the findings of this report, it is recommended that Tata Motors (Kenya) Ltd.
continues to monitor the formal institutional frameworks in which it operates to
ensure compliance and adaptability to changes. Additionally, the company should
focus on sustainable business practices, localizing its operations to create a positive
impact on the local economy and society.
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