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BUS 323 International Management : Indian Hotels Company Limited

Discuss about the International Management, Due to the rise of global expansion, the HR policies in various companies are a challenge in recruiting the talents.


Source Problem

The main problem is that the Tata Group has several businesses in different sectors such as consumer products, automobile, hospitality and many others. The company aims to achieve its vision in 2025 and to be among the top companies that can create value globally and has allocated $35 billion as fund for this expansion plan for the next 3 years. The key driver for this global expansion is innovation and the considerations that need to be taken in to account such as marketing strategies and challenges, which will help in identifying the demands (Grant 2016).

Secondary Proble

Human Resource- Limited Talents

Due to the rise of global expansion, the HR policies in various companies are a challenge in recrui

ting the talents. Tata has exclusive benefit programs for its employees, which helps them in attracting new employees and retaining the employees who are underperforming by giving them training in a proper way. These things can lead to frustration, which may lead to more underperformance by the employees and might result in hampering the vision and the strategies of the company (Maharjan and Tomoki 2016).

Tata Motors- Decreased Sales for Nano

 For boosting up the sales of the car, which is the largest automobile company in India had plans to reposition its products as a smart car for the city. The major challenge for the company to plan its repositioning strategy is due to the poor management of the safety of the vehicle and the issues and probability of the perception of the customers that the car may catch fire (Biswas and Damodar 2016).

Indian Hotels Company Limited (IHLC)- Challenged perception of Ginger Hotel 

The operations of the hotel are that they target a type of customer group that will help them in achieving its profits. The Ginger Hotel targets the high-end customers who want value for their money as well as the price of the hotel is affordable. The main challenge for the hotel is that they are being compared by the other IHLC hotels, which are far more luxurious.


Human Resource- Limited Talents

It is feasible for everyone to think that working in Tata may be ethical in cultural in a highly professional manner. They feel a sense of ownership and continue to stay in the organization for the upcoming generations. Recruiting the right person for the right job has been a problem for Tata Group but they believe that talent recruitment poses no threat fort the company (Thite 2014).

Many underperforming employees in the company do not face the punishments that need to be present so that it can help the company achieve its goals. The equity Theory of Adam is concerned with the efforts and receiving the rewards in an input-outcome ratio. It creates a sense of inequity, which gives rise to the negative tensions that may result in low productivity within the organization. Due to the leniency that is shown by the senior management in the organization, the employees take for granted that their behavior is acceptable in the organization and according to the Expectancy Theory of Vroom, the employees will continue behaving in the same manner (Chittoor, Prashant and Phanish 2015).

Tata Motors- Decreased sales for Nano

Tata Nano was an innovative product for the Indian market that catered to the needs of the low-end customers as well. The price of the car was low due to its creativity, which had seen a loss in the current figure of sales due to its quality and safety issues where the car might catch fire. The cause of fire was not due to the defects in manufacturing process, but it had led a 30 percent decrease in the sales due to the heavy cancellations that were done by the customers.

The marketing strategy used by the Tata Group was based on the poor families who were owners of two-wheelers only, but the first million customers did not belong to the target group at all. There is a need for the company to understand the psychology of the consumers when planning the strategies so that it will help in reaching the target customers. The trend in buying the cars is seen as a status symbol for the family, which was wrongly noted by the poor families as they feared that when they will enter the showroom, they would be categorized as poor. Thus, the company needs to change its marketing strategies so that it can reposition itself in the automobile market (Cappelli et al. 2015).

Indian Hotels Company Limited (IHLC) - Challenged perception of Ginger Hotel

 The Taj group of hotels owned by the Tata Group comes with a notion that they offer luxurious and premium services to its customers where Ginger Hotel was labeled as ‘cheap brand’. The expectancy theory of the customers lets the customers imagine that they cannot have high expectations concerning Ginger Hotels because of the poor service quality, which might lead to dissatisfaction among the customers (Saravanan, Vasumathi and Subashini 2016).


The company needs to reward its employees both intrinsically and extrinsically and on a quarterly basis so that it will help in motivating the employees with respect to performance in the jobs. The top management needs to delegate 10 percent of its responsibilities to their subordinates who have served the company for at least three years so that it can motivate the employees and help them in reaching their level of satisfaction. The company needs to have endorsements done by celebrities so that the marketing strategies can be used extensively for the public.

The Ginger Hotel needs to identify the interests of the of the potential customers, which will help in identifying the intentions that are based on social and economic discourses. The perception of the hotel can be changed by providing good and high service quality in exchange of higher rates for the hotel rooms (Ulrich and Wayne 2016).


Thus, it can be recommended that proper rewards system will result in low rate of absenteeism, which will directly result in increasing the performance of the employees. The rewards system will help in having a positive impact on the HR team, which will result in positive publicity through the word-of-mouth marketing. From the viewpoint of the hotels, the company needs to build a trust between the customers and the brand by applying the concept of brand personality, which will help in gaining loyalty and better quality for the customers.

Reference List

Biswas, Mukesh K., and Damodar Suar. "Antecedents and consequences of employer branding." Journal of Business Ethics 136, no. 1 (2016): 57-72.

Cappelli, Peter, Harbir Singh, Jitendra Singh, and Michael Useem. "Indian business leadership: Broad mission and creative value." The Leadership Quarterly 26, no. 1 (2015): 7-12.

Chittoor, Raveendra, Prashant Kale, and Phanish Puranam. "Business groups in developing capital markets: Towards a complementarity perspective." Strategic Management Journal 36, no. 9 (2015): 1277-1296.

Grant, Robert M. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons, 2016.

Maharjan, Mohan Pyari, and Tomoki Sekiguchi. "The Influence and Effectiveness of US-style and Japanese-style HR Practices on Indian Firms: A Conceptual Perspective." South Asian Journal of Human Resources Management 3, no. 1 (2016): 58-74.

Saravanan, P., A. Vasumathi, and R. Subashini. "An empirical study on the issues and challenges faced by HR professionals in an IT company in Karnataka, India." International Journal of Services and Operations Management 23, no. 3 (2016): 257-276.

Thite, Mohan. "From local to global HRM: interviews with HR heads in emerging Indian multinationals." International Journal of Indian Culture and Business Management 9, no. 2 (2014): 151-163.

Ulrich, Dave, and Wayne Brockbank. "HR Business Partner model: past and future perspectives: international waters-HR strategy." HR Future 2016, no. Dec 2016 (2016): 16-21.

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