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Case Study

Supporting Company

Tata Global Beverages

The Challenge

The predominant way of exercising an investment appraisal is a purely financial approach, but such a procedure ignores the effect of strategic investments on the competitiveness of a firm. Hence, an approach is needed to offer practitioners the possibility to overcome the limitations of pure financial evaluations and assess the positive influence of the planned investments relative to the performance of their competitors.

The Outcome

This gap was experienced by Tata Global Beverages (TGB), who initiated this research to find a way to assess their future investment appraisals holistically. The framework the paper provides, and the empirical testing showed contradicting results for the investment case, but two new competitive priorities were identified during the process. Additionally, the research highlights the perceptual differences concerning the competitive priorities, which may hinder the effective execution of the business strategy in the future. This is the first research in this context to focus on the effect of strategic supply chain investments on the competitiveness through comparing value propositions towards customers and consumers.