Abstract: The following bachelor thesis applies Business Clusters for managing the portfolio of TATA Group of India. The concept of Business Clusters is defined, explored and the logic for cluster embeddedness is explained. The synergetic relationship among Portfolio Management, Business Clusters and strategic management is then accordingly elucidated. Using trade data, trade patterns are mapped for India and key industries are then identified. Based upon the Indian cluster mapping and the market attractiveness, TATA firms are plotted on the Portfolio Management Matrix for assessment. Accordingly, strategic recommendations are given to the TATA Group to be more competitive. The thesis concludes that TATA can apply business clusters as a possible strategic tool to increase profitability.
Outline
- Introduction: The importance for TATA Group of knowing about BusinessClusters 2
- BusinessClustersandStrategicManagement: Firmsaremorecompetitiveinclusters 3
Business Clusters: Porterian Diamond’s dimensions attribute to company or industry success withinthenationalcontexttoincreaseglobalcompetitiveness 4
- Conceptual relevance for Strategic and Portfolio Management: Strong Clusters createtheknowledgebaseforinnovation,profitfromexportsandfacilitateportfolio management 8
- Background of Theory Application: The opportunity for TATA to use business clusters as a strategicleveragetool 12
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- ApplicationofBusinessClusters:DerivingaclusterbasedPortfolioforTATA 17
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- Portfolio Assessment and strategic recommendation: Areas of divestment/investment and strategicrecommendations 24
- Conclusion: Business Clusters as a possible strategic tool toi ncrease profitability 28
- References 30
- Appendix 33