Both very successful global companies, Tata Motors are part of the Tata Group a sprawling conglomerate with a presence across many industries. Chiquita Brands International Inc. is the global market leaders in producing, distributing, and marketer of bananas (Chiquita story). Chiquita’s global expansion came from acquiring existing businesses. Through subsidiaries and associate companies, Tata Motors increased its global footprint operations in the UK, South Korea, Thailand, Spain, South Africa and Indonesia (Tata Motors). Tata Motors is India’s largest automobile company, employing over 60,000 staff.
Although Tata Motors had a comprehensive strategic plan, by purchasing land from the West Bengal government, it did not manage the micro risks well and had to abandon the Sanjur warehouse project (Luthans & Doh, 2012). By better environmental scanning and understanding the political risk, this could have been avoided. Tata Motors could have learnt from the Chiquita operations as it acknowledged the local risk and understood that suppliers, workers and communities are a critical element for success (Luthans & Doh, 2012), conversely Chiquita did not manage the macro risk well, or the political landscape. Essentially by putting all their eggs in one basket, without sourcing contingencies for supply and production that could have adverted the issue they later faced with the European Union restrictions.
Despite both companies strategic plan being built around long-term goals focused around key core values, Chiquita required an internal rebirth forcing them to be open and transparent across its global operations, driving a stronger ethical paternalistic leadership. Tata Motors ‘first mover’ strategic plan around total quality imperative management, purely focused around meeting and exceed customers’ expectations (Luthans & Doh, 2012) was not entirely successful either, forcing Tata Motors back to the drawing board. Both Chiquita and Tata Motors could have learned from each other in creating a cross breed of successful strategic plans through a shared insight of their stakeholders and customers.
With increased pressure and focus on multinational companies towards social, ethical and environmental responsibilities over the past decade, Chiquita and Tata Motors achieved a high standard through strategic alliances and partnerships with such groups as the Rainforest Alliance in 1993 (Chiquita...