Add Your Company Slogan

CH INSTITUTE OF MANAGEMENT & COMMUNICATION

Presentation topic:- Comparison of corporate strategy of TATA Motors Private

Limited & Nissan Motors India Private Limited

Submitted To-Prof. Niranjan

Shastri

Submitted By-

(Group No. 4 )

Rajkamal Paroha

Sharad Pateriya

Vaibhav Zhelawat

Vijaypal Singh

CH INSTITUTE OF MANAGEMENT & COMMUNICATION

Presentation topic:- Comparison of corporate strategy of TATA Motors Private

Limited & Nissan Motors India Private Limited

Submitted To-Prof. Niranjan

Shastri

Submitted By-

(Group No. 4 )

Rajkamal Paroha

Sharad Pateriya

Vaibhav Zhelawat

Vijaypal Singh

Introduction On TTM

• Founded : 1945• Founder : JRD Tata• Headquarters : Mumbai,india • key people : Ratan

Tata,chairman• Parent : Tata Group

• Subsidiaries : Jaguar and land rover

• Products :automobiles and engines

• Revenue :Rs.70,938.85 crores(2008-09)

• Net profit :Rs.1001.26 crores(2008-09)

History

• Started in 1945 in Mumbai, India. • Original production was on locomotives.• 1954

• First car rolled off of the assembly line.• Tata’s are a family of Indian industrialists and

philanthropists.• The family founded:

• Ironworks• Steelworks• cotton mills• hydroelectric-power plants

• Are of their endeavors have been proved to be crucial to India's industrial development.

History

• Started in 1945 in Mumbai, India. • Original production was on locomotives.• 1954

• First car rolled off of the assembly line.• Tata’s are a family of Indian industrialists and

philanthropists.• The family founded:

• Ironworks

• Steelworks

• cotton mills

• hydroelectric-power plants • Are of their endeavors have been proved to be

crucial to India's industrial development.

History

• Tata Motors is India’s owns the largest independent company in India.

• Mercedes and Tata teamed up to create a truck line.

• First major business deal with another firm.

• Together both companies started their commercial vehicle operations in 1960.

• in 1986 the company created and sold the first LCV

• LCV = light commercial vehicle

• Was the Tata 407

History

• Tata Motors decided to pursue joint ventures.

• Cummins Engine Co., Inc., was the first company to jointly venture with Tata in 1993.

• Manufactured a diesel engine that had high horsepower and emitted less harmful chemicals.

• Began creating new lines in the late 1990’s and early 2000’s:

• Compressed natural gas buses

• 1109 vehicle, used for commercial purposes.

• Ex-series

• Newly designed LCV called the 207 DI

Vision

To devlop Tata into a world class India car brand for innovative and superior value vehicles.

Mission

To be the most admired multinational Indian car company producing vehicles that people love to buy.

Create an organization that people enjoy working for doing business with and investing in.

Products

• Passenger cars and utility vehicles

Tata Sierra Tata Estate Tata Sumo Tata Safari Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Magic Tata Nano Tata Xenon XT Tata Xover (2009)

Tata Xover

Products

• Concept vehicles 2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indiva 2004 Tata Indigo

advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante 2009 Tata Prima

Tata Prima

Products

• Commercial vehicles Tata Ace Tata TL Tata 407 Ex and

Ex2 Tata 709 Ex Tata 809 Ex and

Ex2 Tata 909 Ex and

Ex2 Tata 1109 Tata 1510/1512 Tata 1610/1616 Tata 1613/1615 Tata 2515/2516 Tata Starbus

Tata Globus Tata Marcopolo

Bus Tata 3015 Tata 3118 Tata 3516 Tata 4018 Tata 4923 Tata Novus Tata World

Truck

Tata Novus

Products

• Military vehicles Tata LSV Tata 2 Stretcher Ambulance Tata 407 Troop Carrier Tata LPTA 713 TC Tata LPT 709 E Tata SD 1015 TC Tata LPTA 1615 TC Tata LPTA 1621 TC Tata LPTA 1615 TC Tata Winger Passenger Mini

Bus

Military Trucks

Corporate Governance

• Process Approach – EPM (derived from APQC processes and TBEM model.

17

100

EPM Model of tata motors

Corporate Governance

• Tata Motors being part of the Tata conglomerate has its philosophy deeply linked to the core philosophy of the Tata group.

• It has fair, ethical and transparent governance practices along with highest standards of professionalism, honesty, integrity and ethical behavior. The company gives maximum importance to the value creation and sustainability of all the other stakeholders’ viz. customers, creditors, employees, vendors, community and the Government.

• Tata Motors have implemented the Tata Business Excellence model which is a part of Tata code of conduct applicable to all subsidiaries of Tata group. The company operates with a strong social conscience and believe in bringing benefit to people’s lives.

Corporate Governance(Contd..)

• Tata Motors strictly follows The Whistle Blower Policy, an extension of the Tata Code of Conduct, which requires very employee to promptly report to the management any actual or possible violation of the Code or an event he becomes aware of that could affect the business or reputation of the Company.

• Ethics and Compliance Committee who monitors the compliance of the ‘Tata Code of Conduct for Prevention of Insider Trading’ by checking monthly reports on dealings in securities and also decides penal action, if necessary.

• This is more important since in Indian market Tata brand is synonymous with Trust. CSR activities of Tata Motors cover major areas like environment, energy and water conservation, health, education and livelihood.

BCg Matrix

They have divided their business are:•Commercial Vehicles (Light weight trucks to multi-axle 40 ton vehicles)•Passenger Cars, economy and luxury (Indica, Nano, JLR)•Utility vehicles, standard and premium (Sumo, Safari)•Spare parts, components and accessories (HV Axles and transmission, High horse power engine via Tata Cummins)•Financing for customers and channel partners (via Tata Motors Finance)

Corporate Purpose

• TMF aspires to be a preferred financier by choice for Tata Motors customers & dealers across all its products. Tata Motor finance would be the top-of-the-mind choice for all stakeholders when it comes to Tata Motors products.

• with a core purpose to reach out & help customers realize the dream of owning a TATA vehicle easily, we are present across 150+ locations and at all Tata Motors Ltd authorized dealerships.

• Schemes designed to suit every customer requirement, flexible repayment options, hassle-free eligibility criteria, simple documentation and fast sanctioning process makes it the preferred choice of any customer desirous of owning a Tata Car or Commercial vehicle.

Corporate strategy of tata motors

• The current corporate strategy of the Tata Motors can best be summarized as ‘Disruptive Innovation’, wherein it has offered lower priced products and surpassed the market expectations.

• Its two latest offerings have further strengthened the Tata Motors position as a leading player. While Ace has been a rage in the market.

• As per their mission statement to be most admirable multinational company they continuously makes innovation in their product and as per the need of targeted customer they designed their product as they design Tata Nano has taken the world with awe.

Corporate Strategy from Diversified Business

• To buy premium vehicle brands such as Land Rover and Jaguar bolster Tata Motors’ image as a global company and increase its global reach and scale

• Overall, the Tata group has spent around $15.5 billion in acquiring foreign companies

• The Tata name is a unique asset representing leadership with trust,leveraging this asset to enhance group synergy and becoming globally competitive.

• Synergy developed as a result of the strengths of domestic and foreign market share, congregating under the umbrella of Tata group

• The Tata Group as a whole has over 20 publicly listed enterprises and operates in more than 80 countries world-wide - lots of experience and resources to draw from for research and development purposes , Strong corporate governance based on “rich legacy of fair, ethical, and transparent governance practices” to ensure that its employees act ethically and the business continues to run smoothly.

Advantages for tata motors from diversified business

Corporate Advantages from Diversified Business

Sharing of Activities/ Resource Tata

Steel Tata Motor

TCS Tata Cummins

Sharing of Skills/ Core Competence Tata Steel

Core Competence

Tata Cummins

TAML TACO

46

Corporate Strategy from Diversified Business

ENRICHING PEOPLE’S LIVES

Introduction On Nissian

• It is a multinational automaker headquartered in Japan.

• Nissan (Japan) is amongst the top three car manufacturers in Japan and the top five in the world.

• In 1999, Company joined with Renault SA, a French automobile manufacturer aiming to achieve profitable and balanced growth for the two partners through the creation of a bi-national group.

• Nissan Motor India Private Ltd. (NMIPL), a 100% subsidiary of Nissan Motor Limited Japan, was incorporated in 2005 with a vision of ‘Enriching People’s Lives’ through latest Nissan Technology and products.

New HQ building under construction(April, 2008) A Nissan dealership in Moncton, Canada

History

• The company was formerly established under the name Jiidosha Seizo Co Ltd. in December 1933.

• Late in 1934 June the company name was changed to Nissan Motor. Co. Ltd. (Nissan Jidosha Kabushki geisha shortened to Nissan).

• This accompany earlier marketed vehicles under the "Datsun" brand name.

Nissan’s MissionNissan’s Missionprovides unique and innovative

automotive products and services that deliver superior measurable

values to all stakeholders in alliance with Renault

Nissan Motor Company Ltd (Nissan) is Japanese Company engaged in the automotive industry worldwide.

The company and its brands designs, produces and sells more than 3.7 million passenger cars and commercial vehicles in more than 190 countries

Product of Nissan motors in india

• MICRA

• X-TRAIL

• TEANA

• SUNNY

• 370Z

Nissan - Porter’s Five Force

• Nissan recognized that their business and traditional values would be in need of a radical overall, to gain market share in Europe. Hence the improvements stated, such as the localisation of production and distribution channels in Europe.

1. Entry of competitors.

• There are many new products, but not many new competitors in the market place at the moment. The established car manufacturers have been established for years. This is a very difficult market for new organisations to enter. Although there is the occasional new electric car hitting the market place now and again, through a new company. They do not seem to last very long, however.

2. Threat of substitutes.

• Nissan’s strategy of continual improvement should assist them in surviving the threat of substitute products. The saturation of the manufacturer market place does not assist the situation, so the threat of substitutes is very real. However, Nissan are well equipped to handle it.

Nissian - Porter’s Five Force 3. Bargaining power of buyers.

• At the moment the buyer is being provided with a proliferation of alternative products in the car market. Advertisements show up on the television daily. In terms of the bargaining power of buyers this is very good as there are so many choices and products available.

4. Bargaining power of suppliers.

• Renault-Nissan Purchasing OrganisationThis purchasing organisation, established in 2001 is no one of the key ways in which Renault and Nissan combine their resources to create a more efficient organisation. Currently both Nissan and Renault share 60% of the same facts and or material suppliers.

• This means that Nissan have achieved greater purchasing power and have served to reduce costs and reduced the bargaining power of suppliers. There still remain still for the RNPO to decrease costs and provide increased competitive advantage.

Nissian - Porter’s Five Force

5. Rivalry among the existing players.

•In total there are now roughly 15 companies trying to compete for market share. To some extent, Nissan have staved off this particular threat, by focusing on making their operations more profitable and differentiating themselves from their competitors by creating unique vehicles. This allows Nissan to maintain their competitive advantage.

Corporate Strategy• Asia market: - Lower penetration coupled with strong rise in income levels, led

to continuous jumps in car sales in markets like china and India. Hence it is necessary for the major corporate strategy of Nissan to be present in these countries. In India in year 2009-10 domestic sales of car and utility vehicles has crossed the 1 million mark. Therefore Asia market will create a huge demand.

• Now Nissian corporate level makes there corporate strategy to be focus on relocate its manufacturing unit to reduce cost: - China, India and Thailand have been regarded as the Low Cost Production bases with their unique offering to the outsourcers. Low cost country will provide them the global clientele and technology and also have synergetic operation. Area of opportunity for India lies in the products which have high level of design and engineering requirements, low level of automation and significant assembly requirement.

• Renault-Nissan Purchasing Organization (RNPO): - The RNPO, was one of the main ways in which Renault-Nissan would combine their resources to create a more competent organization. This has led Nissan to achieve greater purchasing power and has served to reduce costs and reduce the bargaining power of suppliers.

Corporate Strategy

• The new Corporate plan, known as Nissan GT 2012, begins in fiscal year 2008. The “GT” name stands for growth and trust. During this five year plan Nissan GT 2012 will focus the company’s efforts on long-term performance and their responsibilities to stakeholders as Nissan becomes truly global business, they design there new corporate plan as per there mission statement provides unique and innovative automotive products and services that deliver superior measurable values to all stakeholders in alliance with Renault

Corporate purpose

Add Your Company Slogan

Thank you