Tata Group Research Paper Example | Topics and Well Written Essays - 750 words

Tata Group - Research Paper Example The overseas company was established in London. It was known as Tata Limited. In order to achieve this accomplishment, Tata Group invested in a hotel in 1902 (Paul & Kapoor, 2008). Through the establishment of ‘The Indian Hotels Company’, Jamsetji Tata was able to build ‘Taj Mahal Palace Hotel’ which became functional in 1903. Within a few years of investment, the hotel business was able to accumulate profit that was used to expand operations outside India (Witzel, 2010). Tata also started investing in ironworks by establishing ‘Tata Iron and Steel Company’ and used the profits to expand to other countries. The company maximized on profits by minimizing on wages and proper utilization of resources. For them to be able to expand, it was crucial for the company to take such action. Tata Group did business with countries such as England, China, Britain and Japan. The host governments demanded the investments. This is because the business brought about major economic benefits for the host countries. For example, Tata Group was able to contribute to taxes in the host countries. These taxes became a source of revenue that was used to improve the economic state of the host countries (Paul & Kapoor, 2008). Moreover, Tata group was able to utilize labor provided by the host countries. The economic benefit that came out of this is that people in the host countries were able to secure employment opportunities hence improving their livelihoods. Host countries also demanded the investment due to the benefits that they were bound to receive through infrastructure. Tata Group was definitely going to improve the infrastructure in the areas that they would operate. Nonetheless, they would receive ready market for their exports through trading with India. Countries highly regard trading since it is a major source of foreign exchange. The investment also co ntributed to technological