tata business

7/30/2019 Tata Business

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-Janhavi Mahadik 08

-Sampada Purohit 24

-Bhavini Parmar 32

PROJECT ON STRATEGIESOF

TATA GROUP


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TATA GROUP Indias Largest business group

Diverse businesses in 7 sectors

International income 61% of Group Revenue

Operations in over 80 countries

Products and services exported to 85countries

Largest employer in private sector: over300000 employees


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PURPOSE

Tata group is committed to improving the qualityof life of the communities we serve. They do this

by striving for leadership and global

competitiveness in the business sectors in which

they operate.

practice of returning to society what they earn

evokes trust among consumers, employees,

shareholders and the community. Committed to

protecting this heritage of leadership with trust

through the manner in which they conduct our

business


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Core values

Integrity: To conduct business fairly, with honesty and transparency.Everything must stand the test of public scrutiny.

Understanding: caring, show respect, compassion and humanity forcolleagues and customers around the world, and always work for the

benefit of the communities.

Excellence: constantly strive to achieve the highest possiblestandards in day-to-day work and in the quality of the goods andservices.

Unity: work cohesively with colleagues across the group and withcustomers and partners around the world, building strongrelationships based on tolerance, understanding and mutualcooperation.

Responsibility: continue to be responsible, sensitive to thecountries, communities and environments, always ensuring that what


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Vision

To be a world class corporate constantly furthering

the interest of all its stakeholders.


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Mission

Shareholders: To consistently create shareholder valueby generating returns in excess of Weighted Average

Cost of Capital (WACC) during the upturn and at least

equal to Weighted Average Cost of Capital (WACC)

during the downturn of the business cycle.

Customers: To strengthen the Tata brand and create

lasting relationships with the customers by working

closely with business partners to provide superior valuefor money over the life cycle.

Employees: To create a seamless organization that

incubates and promotes innovation, excellence and theTata core values.


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Vendor and Channel Partners: To foster along-term relationship so as to introduce a

broad range of innovative products and

services, that would benefit our customers

and other stakeholders.

Community: To proactively participate in

reshaping the countrys economic growth. Totake a holistic approach towards

environmental protection


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Business sectors Tata steel Tata motors

TCS

Tata power

Tata communications Tata chemical

Tata teleservices

Tata global beverages

Titan

Voltas Tata autocomp systems

Indian hotels


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Division

Materials

Engineering

Information Tech. &

comm.Service

Energy

Consumer products

Chemicals


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CURRENT BUSINESS

STRATEGIES

Diversification

Inorganic Growth

Backward Integration

Market exploration

Blue Ocean Strategy

Globalization Strategy


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Defining Corporate Strategy

Corporate strategy is the way a company createsvalue through the configuration and co-ordination

of its multi-market activities.

Definition has three main aspects:-

Value creation

Configuration

Co-ordination


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Tata motors

Corporate team

PCBU CVBU


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ASSESSMENT FOR OVERALL

DIRECTION

Commercial Vehicle Business Unit

(CVBU) is Cash Cow for TATA Motors Ltd

TATA Motors is the only company in the IndianCommercial Vehicle (CV) Industry which has theproducts presence in each segment from SmallCommercial Vehicles to Medium & Heavy Commercialvehicle which includes. Competitors are havingproducts only in specific segments like Mahindra &

Mahindra in Indian CV Industry is known for SchoolBuses &Ashok Leyland is having expertise in Medium& Heavy commercial Trucks & Buses. So as theproduct segment changes, company changes inIndustry & every company has its own marketing

strategy.


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Porters Five Force Analysis

for TATA Motors

Marketing Channel:

TATA Motors being a big company the process of appointment adealership at the remote places is a very difficult process, asinvestment on the dealership is very high. As in case of Mahindra& Force Motors investment cost is less &they have dealerships

in every district place, which help then to get the rural marketcoverage. M&M has got a market share of 31% in 4 ton Busmarket.2.

Large Product Range:

TATA Motors is having a large product range of vehicles, due tothe same supply chain of the products become tedious & timeconsuming. Products are made on order with the deliverycommitment of at least 3 months. Whether in case of SwarajMazda, they can do customisation within 10 days as the range ofproducts is very less. Most of the mobile homes are set up inSwaraj mazda Buses only.


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Price Competition:

TATA Motors have to face a price competition withproducts of other companies which have lowqualities. First time user / captive customer whoareunknown to the products & industry will get intothe trap of these low cost options.

Changing Scenario of Industry:

From Oligopoly market CV industry in India willbecome aprefect competition market. As many of Indian companiesare now entering into the market place with JV with

foreign experts in CV. Mahindra & Mahindra is comingupwith Navistar (Mahindra Navistar in India) for Heavy CV.

Ashok Leylend is coming upwith Nissan for LightCommercial Vehicles (LCV). Similarly other player nicheplayers of world CV markets are coming up in Indianmarket like Volvo, Mercedes Benz & Scania.


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Upgrading Products:As in the changing scenario the needs of people are

changing atvery fast pace. Now the time Indian

market place is very demanding, there is

extremedemand for AC Buses & constructionequipments for building better infrastructure forIndia.

The company which come up with the customer

satisfaction will be the marketleader. For that TATA

Motors need to understand the market dynamics.


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Strategy according to the

Segmentation

TATA Motors should increase the dealerships /

channel partners for the rural marketing. In case of nonviability should force the old dealerships to open a branch

& increase the market share in that market.

Large range of products is increasing the gapb/w supply & demand: TATA Motors should standardize

the products. Product should be available at the time of

demand, sales & marketing should be pro active &

should plan before the demand by estimations.


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Territory infringement : division of the territories of the

dealership is not properly done and also the company

does not take any action against the practice of territory

infringement. Hence it becomes difficult for some dealersto manage thecustomers in their territory and also it de-

motivates them. This affects the sales of the product in a

major way. The Territory Infringement should imposed

ondealership strongly.

Lack of spare parts: certain bus fleet operators

complained of paucity of spareparts with the sales office.

The spare parts how so ever small they may be werenotavailable at certain times which led to the loss of revenue

being generated bythe bus on daily basis.


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Non- availability of product: Bus fleet operators arenot getting delivery of theproduct asked by thembecause of the non-availability of the products withthe dealer. In that case after waiting for some timecustomers moved to competitors product. This comes

as a cause of major concern because the actual salesof thatparticular product suffered leading to loss ofrevenue for the organization.

Product Improvements: Till now only few models arecoming with radial tyres asstandard fitments. Need towork on automatic transmissions, CommonrailEngines & many more technology advancements


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After sales service not satisfactory: Almostevery customer complained of

theunsatisfactory after sales service being

provided by the service stations of

thecompany. Either these people do not

deliver the vehicle on time or they hesitateto

provide on-route service. This type of

behaviour causes a feeling of beingignoredinside the customers mind. On the other hand,

Customers are verysatisfied with the after

sales service being offered by Ashok Leyland.

TATA Motors should make 24X7 service


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STRATEGY

Creation of Tata Sustainability Solutions(TSS)

Tata currently has four pillars of sustainability within

the organization

Tata Trusts,

Tata Relief Committee (TRC),

Tata Council for Community Initiatives (TCCI), &

Tata Quality Management Services (TQMS).


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ADVANTAGES

Centralized Consulting Support for All Business

Increased Transparency Units

Financial Independence

Management Development Fundraising Ease and Scalability

Strategic Continuity

Consistency of Business Practices

Local Sensitivity with Global Reach


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STRATEGIC PLAN

IMPLEMENTATION & TIMELINE

Specific EVA and Net Present Value (NPV)supported initiatives for consideration include:

Leveraging Tatas CSR core competency into a

sustainability software consulting practice, Increase Tata Teas competitiveness by

formalizing sustainability efforts throughRainforest Alliance Certification,

Efforts to reduce energy usage throughconservation efforts in the hotel chain andthrough supply chain management, and

ELV initiatives for Tata Motors.


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STATEGIC PLAN TIMELINE


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