leadership with trust……

LEADERSHIP WITH TRUST……..

PRESENTED BY, POONAM WAGHULDE SHIVANGI,ASHISH,PRAJAKTA NEHA,SANKET.HASAN ROHIT,VISHWAS AND ASHISH sawant……….

MITALI

TATA MOTORS…..

TATA Motors: Commercial VehiclesTATA Motors: Commercial VehiclesProduct Range

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Malaysia*Thailand

Bangladesh *Nepal, Sri Lanka

Kenya*

Russia*Ukraine* U.K.

Italy

Senegal

Afghanistan Uzbekistan

Brazil

South Africa*

Egypt

Saudi Arabia Iraq, Iran

China South Korea*

LATAM

West Africa

North Africa

West Europe

Central Asia East Asia

South Asia

South East Asia West Asia

East Africa South Africa

* Assembly Operations also

OTHER COLLABORATIONS/M&A & JVs• Tata Daewoo Commercial Vehicle• Hispano in Spain & Marcopolo In Brazil• JV with Jardine Matheson for ConcordeMotors• Technology Tie Ups at Spain,Italy

Global Footprint

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The Ratan Revolution…..

Ratan Tata

A Man Who Believes In

“18 TILL I DIE”

Tata Motors• Established in 1945.• India’s largest automobile company.• India's largest commercial vehicle • manufacturer.• First Indian automobile company to list on the New York

Stock Exchange.• It ranks among the world’s top five manufacturers of medium

and heavy trucks.• It is the world’s second largest medium and heavy bus

manufacturer.• It is India’s second largest passenger vehicle player. • Has six R&D centers in India, South Korea, Spain and the UK,

with over 1,400 engineers and scientists.

Contd...• Starting with commercial vehicles in 1954, it entered the

passenger vehicles segment in 1991.• The Tata Indica, India’s first indigenously designed car,

launched in 1998.• In November 2007, the company rolled off the millionth

car on the Indica platform.• The company launched the Indigo in 2002, the Indigo

Marina in 2004, and the Indigo XL in 2007.• In January 2008, Tata Motors also launched the world’s

least cost car, the Tata Nano(Tata Motors’ People’s Car ).• Has alliance with Fiat.

Industry OverviewDomestic Market Share for 2008-09

Passenger Vehicles 15.96%

Commercial Vehicles 3.95%Three Wheelers 3.6%Two Wheelers 76.49%

•Commercial Vehicles segment grew marginally at 4.07 %. • While Medium & Heavy Commercial Vehicles declined by 1.66%,• Light Commercial Vehicles recorded a growth of 12.29%• Commercial vehicles and Passenger Vehicles exports grew by 19.10% and 9.37% respectively.

Industry Overview• Tata Motors for one, has made its position unique in

the commercial segment of Indian automobile by having a presence in all spheres, light commercial vehicles, heavy commercial vehicles and the like.

• However, the other leading automobile players like the Ashok Leyland and Swaraj Mazda too, are not lagging behind and they have their own aggressive expansion plans on show.

• In commercial vehicle, Tata Motors dominates over 60% of the Indian commercial vehicle market.

SWOT ANALYSIS….

Strengths Weaknesses

• Strong domestic player

• Steady revenue growth

• Research and development activities

• Decline in vehicle sales

• Employee productivity

Opportunities

• Product launches

• Recent acquisitions

• Increasing competition

• Environmental regulations

Threats

PEST Analysis• Political

- Operates in multiple countries- Legislation / Policy- Pressure Groups

• Economical- Tata Motors functions with a global economic perspective- Global approach enables Tata Motors to adapt and learn from the many different regions and use resources

CONT…

• Social- Cultural Integration Vs. Separation

• Technological- Focus on R&D as well as Innovation- Competition from world’s auto giants

Competitive advantage• Valuable:Does the resource help a firm neutralize threats or

exploit opportunities?• Rareness:Do many competitors posses it?• Costly to Imitate:Is the resource costly for a competitor to copy?• Non- Substitutable:Are there any structural/strategic equivalents?

Competitive Advantage

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Valuable? Rare?

Costly to Imitate?

Non-Substitutable

?

Competitive Consequence

PerformanceImplications

No No No No CompetitiveDisadvantage

Below averagereturns

Yes No No Yes/no CompetitiveParity

AverageReturns

Yes Yes Yes No TemporaryCompetitiveAdvantage

Average toAbove average

Yes Yes Yes Yes SustainableCompetitiveAdvantage

Above averagereturns

Porters 5 forces…..

BCG MATRIX…..

Business level Strategy

Value Chain Analysis

Inbound Logistics• Long term contract with service provider’s –

transporters and agents.• Personnel at regional offices for over seeing the

smooth transit of goods.• Transparency and monitoring through deployment of

IT – all transactions through SAP.• DTL supplies for critical high value items.• Efficient storage facilities – easy storage and

retrieval.

Operation• Capital Equipment Manufacturing division – tooling

development capabilities of global standard.• Apprentice Trainee Course – ensuring stable source

of skilled manpower.• Kaizen & TPM team – continuous drive to improve

efficiencies.• Automated manufacturing processes.• Distributed manufacturing – Assembly units at South

Africa, Thailand, Bangladesh, Brazil etc.

Outbound Logistics

• Stockyards, all across the country.• Long term contracts with transporter’s –

higher volume of business to transporters ensures competitive price.

• Regional Sales Office and Vehicle Dispatch Section linked through SAP.

• Efficient security system for prevention of any kind of pilferage.

Marketing & SalesStructured approach to understanding the requirements of individual customers – QFD’s conducted at regular intervals. Clear identification of product requirements, leading to development of innovative products – Tata 207 DI, Tata Ace Pan India presence and global footprint. Independent teams for addressing the requirements of institutional customers – Defense, State Transport Units Helping to augment the scarce resources – Fiat selling vehicles through Tata dealerships, in return Tata has access to Fiat’s technology and unutilized capacity. Quick assessment of the changing market dynamics and consumer preferences – Tata 407 LCV Large network of dealers – use of technology : DMS. 24

Service

• Easy availability of spare parts.• Efficient collection of data from field and

communication to the respective plants.• Pan India presence, as well as global presence.• Large network of workshops – Dealer

workshops and TASS.• Training facilities – for dealer end and TASS

personnel.

Infrastructure• Multi – Location facilities• Strong leadership – under the aegis of Tata Sons• Best in class prototype building facilities• Technology – SAP• Large product portfolio

HUMAN RESOURCE• Vast pool of technically competent engineers and

managers.• Focus on development of technical capabilities –

Technical Training Center’s, Alliance with technical Institutes

• Focus on development of managerial capabilities – MTC’s , TMTC, executive training programs at premier business schools

• Career advancement schemes – ESS, FTSS

Technology• Approximately 2% of the annual profits of the

company invested in research and development.• Knowledge portal – helps employees keep abreast

with the latest technologies.• Extensive prototype building and testing facilities.• Strategic partnerships – MDI (France), Fiat etc.• Formal benchmarking process.• “ Technology Day” organized across all plant

locations.

Procurement• E procurement initiative.• Global Sourcing Team – China , a key destination for

sourcing essential items like tires, power steering units etc., Steel procured from Belarus

• Long term relationships with a stable and loyal pool of suppliers.

• Technology driven procurement – SAP and VCM.• Strategic subsidiaries & JV’s – TACO group of companies ,

Tata Cummins• Centralized Strategic Sourcing for key components – FIP’s,

Steel etc.• Group resources – Tata Steel and Tata International .• Localized supplier base at mfg. locations – low inventory

levels.

Diversification

1977– First CV from Pune plant. 1983– First HCV rolled out. 1986– First LCV (Tata 407) launched followed by

Tata 608. 1991– First passenger car Tata Sierra launched. 1992– Tata Estate launched. 1994– Launch of Tata Sumo.

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Diversification cont…

1995– Mercedes Benz car E220 launched 1997– Tata Sierra Turbo launched. 1998– India’s first SUV launched. 1998– India’s first indigenous Passenger Car Indica

launched. 2001– Second Generation Indica v2 launched. 2008– Launch of Suma Grande 2008– Launch of Nano at ninth Auto Expo

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Blue Ocean Strategy….

Red Ocean Blue Ocean

Compete in the existing market place Create unconsolidated market space

Beat the competition Make the competition irrelevant

Exploit existing demand Create and capture new demand

Make the value cost trade off Break the value-cost trade off

Differentiation or Low cost Differentiation and Low Cost32

MERGERS AND AQUISITIONS

• In 2004, TATA Motors acquired the Daewoo Commercial Vehicle Company of

South Korea• TATA motors acquired jaguar and landrovers

(UK based) with a value of $ 2.3 billion in March 2008.

M & A CONT....• IN 2005 TATA Motors acquired 21% stake in Hispano Carrocera SA, Aragonese bus manufacturing company with an option to acquire 100% holding

Corporate Advantages from Diversified Business

Sharing of Activities/Resource

TataSteel

Tata Motor TCS Tata

Cummins

Sharing of Skills/Core CompetenceTataSteel

Core Competence

TataCummins

TAML TACO

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RECOMMENDATIONS• Industry analysts expect GM to sell the Hummer brand in

2009 and without a seller in sight, there is a real possibility that the brand will cease to exist.

A push in developing cutting-edge products in the Land Rover brand could enable Tata to capture Hummer customers as they look for comparable - or better products.

Company needs to focus on these 3 aspects to attract the consumers of the high-end market products:

• 1. Brand Appeal and Endorsement• 2. Performance Characteristics• 3. Quality

Thank You….