The company's leadership needed to carefully balance monetary risks of leveraged transactions with opportunities for expansions. This was accompanied by the need to weigh domestic vs. global opportunities and maintain the character of acquired firms while completely realizing the strengths of the acquisitions. Internal Factors, Primary Resources, and Capabilities of Tata Group:

One of the major capabilities of Tata Motors is its reputation as a firm that produces sturdy vehicles that withstand the poor road networks and conditions in India and across the world. The company has attained this status because of its commitment to compete with Mercedes and Japanese brands in global markets by the strategic pricing of its spare parts. While Tata Motors has not pursued the mergers and acquisitions strategy like the other constituent firms of Tata Group, it has sought out similar acquisitions to complement its current business.

The other capability of the company has been its long-standing commitment and focus on...

While many firms in this industry have targeted top of the pyramid, Tata Group has successfully focused on the middle-of-the-market segment by targeting niches in its product development.
The internal factors that resulted in the firm contemplating to acquire Land Rover and Jaguar included its mergers and acquisitions approach towards developing global businesses and its commitment to use resources in realizing its global ambitions. Some of the firm's primary resources include its Information Systems and Communications, engineering resources, materials, and chemicals. These basic resources for Tata Group are the basis with which the group's operating companies are established.

Work Cited:

Khanna, Tarun, Krishna G. Palepu, and Richard J. Bullock. "House of Tata: Acquiring a Global Footprint." Harvard Business School (2009): 1-33. Harvard Business School Publishing, 30 June 2009. Web. 20 Feb. 2012.