MANAGEMENT PROJECT

STRATEGIC MANAGEMENT ON TATA MOTORS

TABLE OF CONTENTS INTRODUCTION ................................................................... ......................................................... SWOT ANALYSIS .................................................................. ............................................................. ...... 4 Strengths ............................................................................... ................................................ .......... 5 Wea nesses ....... ................................................................................ ........................................ ...... 7 Opportunities ................ ................................................................................ ............................... ... 8 Threats .................................. ................................................................................ ............. ............. 8 STEEPLED ANALYSIS ................................ ................................................................................ .............. 9 Social ........................................................ ....................................................................... ........ ..... 10 Technological ......................................................... ...................................................................... . 11 Econ omical ......................................................................... ...................................................... .... 12 Environmental ... ................................................................................ ............................................ 13 Political ...................... ................................................................................ ......................... .......... 15 Legal ......................................................................... ...................................................... .............. 16 Ethical ........................................................................ ....................................................... ............ 17 Demograp hical .......................................................................... ..................................................... 19 CONCLUSION ............ ................................................................................ ................................... ........... 21 BIBLIOGRAPHY ................ ................................................................................ ............................... ....... 2

EXECUTIVE SUMMARY This report is a brief SWOT and STEEPLED analysis of TATA motors. TATA m otors is the leading automobile company of India, and also having a major share outside the country. To ma e any company successful its very much required to ana lyse different factors those can influence companys performance. SWOT and STEEPLE D covers most of the factors from a managers point of view. Through this report w e are trying to show the strength and wea nesses that are present in the company . What are the opportunities the company have? And what are the threats to the c ompany? Again we are showing the different factors li e politics, economy, legal , technology etc. which are having influence on the company as well as environme nt, social, ethical, demographical etc. influence of the company. We have also c overed the actions ta en by TATA motors to improve some of the field

Scope of the Study: To find the Mar et position. For Economic and the industry environment. This study would be useful for companies to now what people perceive and thin i ng about Tata Motors and its products. This study would be useful to other students as a secondary data. This study would be useful to form strategies. Research Methodology: The purpose of methodology is to describe the process involved in research wor . Thisincludes the overall research design, data collection method, the field sur vey and the analysis of data. Objective of the Study: To now the consumer satisfaction. Financial performance in automobile industry. Mar et performance. Mar et position. Economic and the industry environment. Cost saving initiatives. To find out the satisfaction level of people. To find out the awareness level of customer. To find the satisfaction amongst the customers of TATA Motors. Sources of Data Collection: Primary: For my survey primary data have been used as a questionnaire to collect the data . SECONDARY: The secondary data has been collected from the following modes: Magazines Boo s Newspaper Data through internet sources

Limitation of the study: I will have to rely upon the information get from secondary sources (Balance she et, Profit& Loss Account and Cash Flow ) and given by respondents, which may not be fully true. This study will be limited to only some areas of Mandi District of Himachal Prad esh. It is only for short period of time. Lac of professional approach since researcher is a student The sample size is only 100 so the sample may not be truly representative of the Delhi population Introduction Established under the parent company, Tata Group, in 1945, Tata Motors Limited h as become Indias largest automobile company. It was the first Indian automobile comp any to list on the New Yor Stoc Exchange. Tata Motors began manufacturing commercial vehicles in 1954 with a 15-year collaboration agreement with Daimler Benz of Ger many. This partnership has led Tata Motors to not only become Indias largest automobile company but also Indias largest commercial vehicle manufacturer; the worlds top five manuf actures of medium and heavy truc s and the worlds second largest medium and heavy bus manufacturer. Having just entered the passenger vehicles mar et segment in 1991, Tata Motors now ran s second in Indias passenger vehicle mar et. Tata has enjoyed the prestige of having developed Tata Ace, Indias first indigeno us light commercial vehicle; Tata Safari, Indias first sports utility vehicle; Tata Indica, Indias first indigenously manufactured passenger car; and the Nano, the worlds least exp ensive car.

HISTORY Tata Motors Limited is Indias largest automobile company, with consolid ated revenues of INR 1,65,654 crores (USD 32.5 billion) in 2011-12. It is the le ader in commercial vehicles in each segment, and among the top three in passenge r vehicles with winning products in the compact, midsize car and utility vehicle segments. It is also the world s fourth largest truc and bus manufacturer. The Tata Motors Groups over 55,000 employees are guided by the vision t o be best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics. Established in 1945, Tata Motors presence cuts across the length and b readth of India. Over 6.5 million Tata vehicles ply on Indian roads, since the f irst rolled out in 1954. The companys manufacturing base in India is spread acros s Jamshedpur (Jhar hand), Pune (Maharashtra), Luc now (Uttar Pradesh), Pantnagar (Uttara hand), Sanand (Gujarat) and Dharwad (Karnata a). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The companys dealership, sales, services and spare parts n etwor comprises over 3,500 touch points. Tata Motors, also listed in the New Yor Stoc Exchange (September 200 4), has emerged as an international automobile company. Through subsidiaries an d associate companies, Tata Motors has operations in the UK, South Korea, Thaila nd, Spain and South Africa. Among them is Jaguar Land Rover, acquired in 2008. I n 2004, it acquired the Daewoo Commercial Vehicles Company, South Koreas second l

argest truc ma er. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean mar et, while also exporting these products to several international mar ets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors ac quired a 21% sta e in Hispano Carrocera, a reputed Spanish bus and coach manufac turer, and subsequently the remaining sta e in 2009. Hispanos presence is being e xpanded in other mar ets. In 2006, Tata Motors formed a 51:49 joint venture with the Brazil-based Marcopolo, a global leader in body-building for buses and coac hes to manufacture fully-built buses and coaches for India the plant is located in Dharwad. In 2006, Tata Motors entered into joint venture with Thonburi Automo tive Assembly Plant Company of Thailand to manufacture and mar et the companys pi c up vehicles in Thailand, and entered the mar et in 2008. Tata Motors (SA) (Pro prietary) Ltd., Tata Motors joint venture with Tata Africa Holding (Pty) Ltd. s et up in 2011, has an assembly plant in at Rosslyn, north of Pretoria. The plant can assemble, from semi noc ed down (SKD) its, light, medium and heavy commer cial vehicles ranging from 4 - 50 tonnes. Tata Motors is also expanding its international footprint, established through exports since 1961. The companys commercial and passenger vehicles are a lready being mar eted in several countries in Europe, Africa, the Middle East, S outh East Asia, South Asia and South America. It has franchisee/joint venture as sembly operations in Bangladesh, U raine, and Senegal. The foundation of the companys growth over the last 66 years is a deep understanding of economic stimuli and customer needs, and the ability to transla te them into customer-desired offerings through leading edge R&D. With over 4,50 0 engineers, scientists and technicians the companys Engineering Research Centre, established in 1966, has enabled pioneering technologies and products. The comp any today has R&D centres in Pune, Jamshedpur, Luc now, Dharwad in India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first indigenously developed Light Commercial Vehicle in 1986. In 2005, Tata Motors created a new segment by launching the Tata Ace, Indias first indigenously developed mini-truc . In 2009, the company launched its globall benchmar ed Prima range of truc s and in 2012 t he Ultra range of international standard light commercial vehicles. . In their p ower, speed, carrying capacity, operating economy and trims, they will introduce new benchmar s in India and match the best in the world in performance at a low er life-cycle cost. Tata Motors also introduced Indias first Sports Utility Vehicle in 1991 and, in 1998, the Tata Indica, Indias first fully indigenous passenger car. In January 2008, Tata Motors unveiled its Peoples Car, the Tata Nano. The Tata Nano has been subsequently launched, as planned, in India in March 2009, a nd subsequently in 2011 in Nepal and Sri Lan a. A development, which signifies a first for the global automobile industry, the Nano brings the joy of a car with in the reach of thousands of families. Tata Motors is equally focussed on environment-friendly technologies in emissions and alternative fuels. It has developed electric and hybrid vehicles both for personal and public transportation. It has also been implementing sever al environment-friendly technologies in manufacturing processes, significantly e nhancing resource conservation. Through its subsidiaries, the company is engaged in engineering and autom otive solutions, automotive vehicle components manufacturing and supply chain a ctivities, vehicle financing, and machine tools and factory automation solutions . Tata Motors is committed to improving the quality of life of communitie s by wor ing on four thrust areas employability, education, health and environme nt. The activities touch the lives of more than a million citizens. The companys support on education and employability is focused on youth and women. They range from schools to technical education institutes to actual facilitation of income generation. In health, the companys intervention is in both preventive and curat ive health care. The goal of environment protection is achieved through tree pla ntation, conserving water and creating new water bodies and, last but not the le

ast, by introducing appropriate technologies in vehicles and operations for cons tantly enhancing environment care. With the foundation of its rich heritage, Tata Motors today is etching a refulgent future. CORE VALUES OF TATA At the Tata Group our purpose is to improve the quality of life of the communities weserve. We do this through leadership in sectors of national econom ic significance, to which the Group brings a unique set of capabilities.This req uires us to grow aggressively in focused areas of business. Our heritage of retu rning to society what we earn evo es trust among consumers, employees, sharehold ers andthe community.This heritage is being continuously enriched by the formali zation of the high standards of behavior expected from employees and companies. The Tata name is a unique asset representingleadership with trust. Leveraging t his asset to enhance Group synergy and becoming globallycompetitive is the route to sustained growth and long-term success. FIVE CORE VALUES The Tata Group has always sought to be a value-driven organization. These values continue todirect the Groups growth and businesses. The five core Tata values un derpinning the way we do business are: Integrity: We must conduct our business fairly, with honesty and transparency. Everythingwe do must stand the test of public scrutiny. Understanding: We must be caring, show respect, compassion and humanity for our colleagues and customers around the world, and always wor for the benefit of the communities w e serve Excellence: We must constantly strive to achieve the highest possible standards in our day-t o-day wor and in the quality of the goods and services we provide. Unity: We must wor cohesively with our colleagues across the Group and with our custom ers and partners around the world, building strong relationships based on tolera nce, understanding and mutual cooperation. Responsibility: We must continue to be responsible, sensitive to the countries,communities and e nvironments in which we wor , always ensuringthat what comes from the people goe s bac to the people many timesover.

Main objective 1. Employee focus :Ma e the organisation a great place to wor . 1. Community focus :Be responsible corporate citizen. 1. Supplier focus :Treat supplies as patner 1. Shareholder focus :Demonstration superior result. 1. Customer focus :Improve customer satisfaction

Others :Financial performance in automobile industry Mar et performance Mar et position. Economic and the industry environment Cost saving initiatives Awareness regarding the facilities provided by Tata Motors. Overall opinion about Tata Motors. Satisfaction amongst the customers of Tata Motors

VISION & MISSION

SWOT analysis of TATA motors: SWOT analysis (alternately SLOT analysis) is a strategic planning me thod used to evaluate the Strengths, Wea nesses/Limitations, Opportunities, and Threats involved in a project or in a business venture. It involves specifying t he objective of the business venture or project and identifying the internal and external factors that are favourable and unfavourable to achieve that objective.

STRENGTHS: 1 Strong Domestic player (Indian mar et): Tata has a strong presence in Ind ia and is a ey manufacturer of commercial vehicles. It is a mar et share of ~64 % which has almost remained constant. Also, Tata Motors is Indias largest automob ile manufacturer by revenue .Tata Motors Limited is Indias largest automobile com pany, with revenues of `1,23,133.30 crore in 201011. It is the leader in commerci al vehicles in each segment, and among the top three in passenger vehicles in In dia with products in the compact, midsize car and utility vehicle segments. Tata vehicles are sold primarily in India, and over 4 million Tata vehicles have bee n produced domestically since the first Tata vehicle was assembled in 1954.

2. It is a demand driven, and customer-oriented, ta ing care of customers prefer ences and taste. 3. Long list of portfolios: Its products include passenger cars, truc s, vans an d coaches. It is worlds 4th biggest truc producer, it is also worlds second bigge st bus producer.

Global Presence Tata Motors has been in the process of acquiring foreign brands to increase its global presence. Through acquisition, Tata has operations in the UK, South Korea, Thail and and Spain. Among these acquisitions is Jaguar Land Rover, a business comprising two struggling iconic British brands that was acquired from the Ford Motor Company in 2008. In 2004, Tata acquired the Daewoo Commercial Vehicles Company, South Koreas second largest truc ma er. Today two-thirds of heavy commercial vehicle exports out of South Korea a re from Tata Daewoo. Tata Motors has expanded its production and assembly operations to several other countries including South Korea, Thailand, South Africa and Argentina and is planning to s et up plants in Tur ey, Indonesia and Eastern Europe. Tata also has franchisee/joint venture assembly operations in Kenya, Bangladesh, U raine, Russia and Senegal. Tata has dealerships in 26 countries across 4 continents. 5. Dealership, Sales and Service Access: The Companys dealership, sales, services and spare parts networ comprises over 3500 touch points. 6. Research and Development Activities:

Tata motors is nown as an innovative global leader. The company has a very stro ng R&D having over 3000 engineers and scientists. The Engineering Research Centre (ERC) in Pune was setup in 1966 and is among the finest in the country. It has been honoured w ith two prestigious awards - The DSIR National Award for R&D Effort in Industry - 1999 and National Award for Successful Commercialisation of Indigenous Technology by an Industrial Concern - 2000. Tata Nano was a recent outcome from the ERC . WEAKNESS :-

1. Return on Investment on TATA motors shares in low. 2. Tata motors products are not considered as luxurious The products are general ly targeted for economy class rather than for luxury. Hence, the company lac s a strong footprint in the sector of luxury products. 3. Safety standards are not maintained/ often ignored. This has led to diminish of public image of the TATA automobiles (eg Tata Nano). 4. Limited consumer base 5. Though Tata is present in many countries it has only managed to create a larg e consumer base in the Indian Subcontinent, namely India, Bangladesh, Bhutan, Sri Lan a and Nepal. Tata has a growing consumer base in Italy, Spain and South Africa. 6. Relatively smaller proportion of mar et share in Passenger vehicles in India. 7. One wea ness which is often not recognized is that in English the word tat means rubbish. Would the brand sensitive British consumer ever buy into such a brand? 8. The company s passenger car products are based upon 3rd and 4th generation pl atforms, which put Tata Motors Limited at a disadvantage with competing car manufacturers .

OPPORTUNITY: 1.In the summer of 2008 Tata Motor s announced that it had successfu lly purchased the Land Rover and Jaguar brands from Ford Motors for UK 2.3 millio n. Two of the World s luxury car brand have been added to its portfolio of brand s, and will undoubtedly off the company the chance to mar et vehicles in the lux ury segments. 2. Tata Motors Limited acquired Daewoo Motor s Commercial vehicle bus iness in 2004 for around USD $16 million. 3. Nano is the cheapest car in the World - retailing at little more t han a motorbi e. Whilst the World is getting ready for greener alternatives to g as-guzzlers, is the Nano the answer in terms of concept or brand? Incidentally, the new Land Rover and Jaguar models will cost up to 85 times more than a standa rd Nano! 4. The new global trac platform is about to be launched from its Kor ean (previously Daewoo) plant. Again, at a time when the World is loo ing for en vironmentally friendly transport alternatives, is now the right time to move int o this segment? The answer to this question (and the one above) is that new and emerging industrial nations such as India, South Korea and China will have a thi

rst for low-cost passenger and commercial vehicles. These are the opportunities. However the company has put in place a very proactive Corporate Social Responsi bility (CSR) committee to address potential strategies that will ma e is operati ons more sustainable. THREATS: 1. Other competing car manufacturers have been in the passenger car business for 40, 50 or more years. Therefore Tata Motors Limited has to catch up in terms of quality and lean production. 2. Environmental Regulation: Sustainability and environmentalism could mean extra costs for this low-cost producer. This could impact its underpinning competitive advantage. Obviously, as Tata globalizes and buys into other brands this problem could be alleviated. 3. Intense competition: Since the company has focused upon the commerci al and small vehicle segments, it has left itself open to competition from overs eas companies for the emerging Indian luxury segments. For example ICICI ban an d DaimlerChrysler have invested in a new Pune-based plant which will build 5000 new Mercedes-Benz per annum. Other players developing luxury cars targeted at th e Indian mar et include Ford, Honda and Toyota. In fact the entire Indian mar et has become a target for other global competitors including Maruti Udyog, Genera l Motors, Ford and others. Presently, Tata Motors face intense competition from its domestic as well as foreign competitors including General Motors, Honda Moto r, Maruti Udyog, Mitsubishi Motors, Fiat, Ford and so on. Competition is expecte d to intensify further as Indian automobile manufacturers obtain greater access to debt and equity financing in the international ca pital mar ets or gain acces s to more advanced technology through alliances. Additionally, in recent years, the government of India has permitted automatic approvals for foreign equity own ership of up to 100% in entities manufacturing vehicles and components in India. 4. Rising cost of manufacturing: Rising prices in the global economy could pos e a threat to Tata Motors Limited on a couple of fronts. The price of steel and aluminum is increasing putting pressure on the costs of production. Many of Tata s products run on Diesel fuel which is becoming expensive globally and within i ts traditional home mar et. 5. Low safety standards can hamper the public trusts it has already attained wh ich may prove fatal to its domestic mar et.

STEEPLED analysis of TATA motors STEEPLED is abbreviation for Social, Technological, Education, Ethnic , Political, Legal, Economic and Demographic factors STEEPLED analysis is a mean s of conducting a scan of an organisations external environment, with particular reference to the future and any changes that may come about. The purpose of STEE PLED is to identify factors that may impact on the services, customers (or Patie nts), products, mar ets, staff, profitability, etc. of the organisation. SOCIAL ANALYSIS Social factors include the cultural aspects and include health consciou sness, population growth rate,age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company s products and how that company operates. For example, an aging population may imply a smaller and less-willing wor force (thus increasing the cost of labour). Furthermore,co

1. For instance, the mar et in India for cars is much different than the ma r et for cars in Italy. For one, India has over one billion more people than Ita ly does, thus the mar et is much larger or not as limited. Second, you must also ta e into effect the demographics and the average income of each mar et. Italia ns have a higher average income per capita than Indians and Italian citizens ten d to drive larger and fancier cars. For this reason, the Tata Nano might not do so well in the Italian mar et. 2) In summation, Tata Motors views the economy from a global perspective with operations across the entire globe. However, they must also maintain a loca l mar et understanding and nowledge when it comes to product positioning and pl acement throughout the different mar ets Tata conducts business in. In 2004, Tat a Motors acquired Daewoo Commercial Vehicles Company, which was at the time Kore as second largest truc ma er. Rather than using de-culturation or assimilating D aewoo,Tata too an integrated approach, and continued building and mar eting Dae woos current models as well as introducing a few new models globally just as it h ad been done under Korean management. 3) With the new acquisition of Jaguar and Land Rover, Tata will have to be careful with how they handle the acquisition. While Land Rover is thriving wh ile under the helm of Ford, Jaguar was more of the trouble child. Jaguar cost For d some $10 billion during its 18-year stewardship and its sales were in headlong decline, especially in America, its most important mar et. Industry analysts al so struggled to see what value Tata could add that had eluded Ford, and what syn ergies there could be between a ma er of truc s and basic cars and two luxury ma rquees. Separation could be a good approach for the immediate future to eep the name of Jaguar and Land Rover distinguishable and associated with the luxury aut omobile mar et. Overall, Tata does a good job of integrating some aspects of the ir large multi-national conglomerate into new acquisitions; however, the company must also understand that separation from the name Tata can be valuable in some social areas. TECHNICAL ANALYSIS: Tata Motors and its parent company, the Tata Group, are ahead of the game in the technology field.The Tata Group as a whole has over 20 publicly listed enterpri ses and operates in more than 80 countries world-wide. This equates to Tata Moto rs having lots of experience and resources to draw from for research and develop ment purposes. Ratan Tata says that The foundation of the companys growth is a dee p understanding of economic stimuli and customer needs, and the ability to trans late them into customer-desired offerings through leading edge R&D.Employing 1,40 0 scientists and engineers, Tata Motors Research and Development team is ahead of the pac in Indias mar et and right with the rest of the field internationally. Among Tatas firsts arethe first indigenously developed Light Commercial Vehicle, I ndia s first Sports Utility Vehicle and,in 1998, the Tata Indica, India s first fully indigenous passenger car, as well as the increasingly famous Tata Nano, whi ch is projected to be the worlds cheapest production car. In the automotive indus try, it is becoming increasingly crucial for manufacturers to stay on top of the

mpanies may change various management strategies to adapt to these social trends (such as recruiting older wor ers). Undoubtedly, the beliefs, opinions, and general attitude of all the sta eholders in a company will affect how well a company performs. This includes every sta eholder from the CEO and President,down to the line-wor ers who screw the door panel into place, from the investor to the customer, the culture and at titude of all these people will ultimately determine the future of a company and whether they will be profitable or not. For this reason, Tata Motors tends to use an integration and rarely separation t echnique with foreign companies they acquire. On the other hand, some economic i ssues that Tata Motors face must also be loo ed at from a more localized perspec tive.

technology curve with new problems always rising such as escalating gas prices and pollution problems. Tata recognizes this and dedicates lots of resources and time into research and development to be even with or preferably ahead of other competitors, global trends, and changing economies. In all, an automobile manuf acturer must change, adapt, and evolve to stay competitive in the automotive gam e, and this is exactly what Tata is doing with their rapid growth, and extensive research and development.Indias only certified crash test facility for cars and hemi anechoic chamber for testing of noise and vibration is owned by Tata motors . Tata Motors European Technical Centre (TMETC) was set up in 2005, which is pri marily involved in design engineering and development of products, supporting Ta ta Motors s ill sets. Approximately 2% of the annual profits of the company inve sted in research and development. Tata established extensive prototype building and testing facilities in each plant. On May 11th of every year, Technology Day or ganized across all Tata plant locations. Tata Motors has the only world-class cr ash facility in Asia outside Korea and Japan. It has developed an A-ECU (Electro nic Control Unit) and low-cost accessories that would effectively manage critica l engine and vehicle systems without calling for a full-fledged and expensive co nventional ECU. The company is striding towards new emission standards. It is pl anning to equip vehicles of the future with technologies for improving communica tion, navigation and entertainment. One-CAT [Compressed Air Technology] conceptu al car with fibre glass is powered by air and it is emission free, which is an e xample of Tatas technological research. Another example is Tata Nano, which is a ci ty car manufactured by Tata Motors. It was a result of aiming at Production of mo re from less investment for more people. It is the smallest as well as lowest pow ered (624cc) cars in the World; it was designed to be the cheapest car in India aimed mainly at the lowest price segment in the Indian domestic mar et.Tata moto rs has strategic partnership with Motor Development International (a French comp any designing compressed air car prototypes mar eted under the title "the Air ca r"), and Ford for performing research to develop new automotive technologies. Fu rthermore, they will have to come up with hybrid and electric cars to compete wi th the already strong competition of the mar et.There are already some big playe rs, among them Chevrolet, which will be releasing its Chevrolet Spar in the fut ure, with hybrid and all-electric models. Tata motors should give more importanc e to R&D in order to develop highly efficient automotive technology at an optima l cost. The new product introduction [NPI] process followed by Tata motors for d eveloping a new product and releasing into mar et can be seen in the below figur e.

ECONOMIC ANALYSIS: Operating in numerous countries across the world, Tata Motors functions wit h a global economic perspective while focusing on each individual mar et. Becaus e Tata is in a rapid growth period, expanding or forming a joint venture in over five countries world-wide since 2004, a global approach enables Tata Motors to adapt and learn from the many different regions within the whole automotive indu stry. They have experience and resources from five continents across the globe, thus when any variable changes in the mar et they can gather information and res ources from all over the world to address any issues. For instance, if the price of the Aluminium required to ma e engine bloc s goes up in Kenya, Tata has the option to get the aluminium from other suppliers in Europe or Asia who they woul d normally get from for production in U raine or Russia. Tata Motors also has to pay close attention to shifts in currency rates throughout the world. Currency fluctuations can equate to higher or lower demands for Tata vehicles which in tu rn affect profitability. It can also mean a rise in costs or a drop in returns. But they also have to pay attention to not just the domestic currency, the rupee , but also to the dollar, euro and pound, to just name a few. Attention to curre ncy is important because it influences where capital investment will develop and prosper. In the case of Tata Motors, and the creation of the Nano and One CAT [ Compressed Air technology] from a line of service and military vehicles provide

a variety of different ways for other companies as well as other industries to c apitalize on the success that Tata has realized. Tata Motors integrates the mana gement, programs, and nowledge of the businesses it buys out. Tata Motors place s heavy investment into research and development. Tata has succeeded in growing, profiting, and reducing costs in developing mar ets for over half a century.

ENVIRONMENTAL ANALYSIS: TATA motors tries to preserve the environment by different means. All TATA motors manufacturing facilities (Pune, Jamshedpur, Luc now and Uttara hand) have been certified to the ISO: 14001 Environmental Management System (EMS) Standard. At J amshedpur the Engineering, Health Care & Civic Services to Tata Motors Township have also achieved certification to ISO: 14001. TATA motors have an environmenta l management system. The wor ing of system is described as follows: How it opera tes (Methods/ Practices). Assess the significant environmental aspects of products and activities as per established EMS procedures All Process Owner s identify the significant environmental aspects of products and activities with the help of ERC centrally & Environment Group at respective Wor s locations. Define Operational Controls, Emergency Action Plans and set Objecti ves and Targets Operational Control Procedures and Emergency Action Plans are established and d eployed. Process requirements are assessed in. Inputs National & International Legislation & protocols Quality & Environmental Policy Rules & Regulations Plant level waste disposal guidelines. ISO: 14001 New developments Global developments such as Climate Change Key Steps in -Environment Management Assess the significant environmental aspects of products and activities Set Control Processes and Objectives & Targets Deploy the process and implement Action Plans to achieve Objectives & Tar gets in cluding Climate Change related issues Review processes for improvements / and conduct internal / external audits Review the process Outputs Improvements in environmental performance (e.g.: reduction in pollution, redu ction in natural resources consumption, elimination of hazardous material etc.)

POLITICAL ANALYSIS Since Tata Motors operates in multiple countries across Europe, Africa, Asia, th e Middle East, and Australia, it needs to pay close attention to the political c limate but also laws and regulations in all the countries it operates in while a lso paying attention to regional governing bodies. Laws governing commerce, trad e, growth, and investment are dependent on the local government as well as how s uccessful local mar ets and economies will be due to regional, national and loca l influence. On March 26, 2008, Tata Motors reached an agreement with Ford to pu rchase Jaguar and Land Rover. In order to be capable of this acquisition, Tata M otors must have a full comprehension of the governing bodies and laws regulating commerce in the home country, the United Kingdom, but also in countries Jaguar and Land Rover operate in. In accordance, Tatas headquarters in Mumbai, India, st rictly controls and regulates operations in all dealerships and subsidiaries, in addition to nowing and abiding by all labour laws in the multiple countries wh ere they have manufacturing plants it has to watch political change. This will b e especially vital in the future as Tata Motors continues to expand and grow int o new mar ets. While currently about 18% of its revenues are from international b usiness, the company s objective is to expand its international business, both t hrough organic and inorganic growth routes (Tata.com). The foundation of the comp anys growth internationally is a deep understand of economic stimulation, custome r needs, and individual government regulations and laws. Although it is the head quarters ultimate responsibility to ma e sure each individual office and branch is operating and abiding by the local laws, it will become increasingly more imp ortant for that duty to be ta en care of at the regional or even local level. LEGAL ANALYSIS Since Tata Motors operates in multiple countries across Europe, Africa, Asia, t he Middle East, and Australia, it needs to pay close attention to the laws and r egulations in all the countries it operates in while also paying attention to re gional governing bodies. Laws governing commerce, trade, growth, and investment are dependent on the local government as well as how successful local mar ets an d economies will be due to regional, national and local influence. On March 26, 2008, Tata Motors reached an agreement with Ford to purchase Jaguar and Land Rov er. In order to be capable of this acquisition, Tata Motors must have a full com prehension of the governing bodies and laws regulating commerce in the home coun try, the United Kingdom, but also in countries Jaguar and Land Rover operate in. In accordance, Tatas headquarters in Mumbai, India, strictly controls and regula tes operations in all dealerships and subsidiaries, in addition to nowing and a biding by all labor laws in the multiple countries where they have manufacturing plants it has to watch political change. This will be especially vital in the f uture as Tata Motors continues to expand and grow into new mar ets. Tata says, Wh ile currently about 18% of its revenues are from international business, the com pany s objective is to expand its international business, both through organic a nd inorganic growth routes. The foundation of the companys growth internationally is a deep understand of economic stimulation, customer needs, and individual gov ernment regulations and laws. Although it is the headquarters ultimate responsib ility to ma e sure each individual office and branch is operating and abiding by the local laws, it will become increasingly more important for that duty to be ta en care of at the regional or even local level.

ETHICAL ANALYSIS Business ethics maintains a moral course in turbulent times, cultivates stro ng team wor and productivity, support employee growth as an individual, helps t

o ensure that policies are legal, and helps in detection of issues and violation s along with quality management and strategic planning. Corporate governance est ablishes policies and does continuous monitoring of their proper implementation, by members of governing bodies of the organization. Since Tata Motors is a part of a large conglomerate company it needs to have a strong corporate governance to ensure that its employees act ethically and the business continues to run smo othly especially during the ever changing and dynamic global economy. Tata Groups corporate governance is founded upon a rich legacy of fair, ethical, and transpa rent governance practices. One of the more important parts of this is the transpa rency of the company people have a right to now what the company is doing not o nly to ensure ethical practices, but for the insurance of their many shareholder s whom have a right to now the inner wor ings of the company. Tata has created some models for employees to guide themselves through everyday business practice s to ensure that the corporate governance is continuously being upheld. The Tata business excellence model is upheld by Tata quality management services. The tw o main processes that the quality management services employees focus on are bus iness excellence and business ethics. These two objectives have helped build Tat a into the strong, dynamic company it is today. These models are entrenched in t he companys ethical standards and Tata feels strongly about enforcing both throug hout the company. Tata quality management services play the role of supporter and facilitator in the journey that Tata enterprises underta e to reach the pea s o f business eminence while, at the same time, adhering to the highest ethical sta ndards. TATAS BUSINESS ETHICS PRINCIPLES: 1) NATIONAL Interest: Committed to benefit the economic development of the count ries in which it operates. 2) Financial reporting and records: prepare and maintain its accounts fairly an d accurately and in accordance with the accounting and financial of the country 3) Competition: fully support the development and operation of competitive open mar ets. 4) Equal opportunities employer: provides equal opportunities to all its employ ees and qualified applicants for employment. 5) Gifts and donations: Its employees neither receive nor offer or ma e, directl y or indirectly, any illegal payments, remuneration, gifts, donations or compara ble benefits. 6) Govt. agencies: A TATA company and its employees shall not, unless mandated u nder applicable laws, offer or give any company funds or property as donation to any government agency or its representative. 7) Political non-alignment: Be committed to and support the constitution and go vernance systems of the countries in which it operates. 8) Health, safety and environment: A TATA Company shall strive to provide a saf e, healthy, clean and ergonomic wor ing environment for its people. 9) Quality of product and services: Be committed to supply goods and services of world class quality standards, bac ed by after-sales services consistent with t he requirement of customers. Recommendation Matrix Based on a close scrutiny of the resource based view of Tata Motors and the chal lenges it faces, we propose a recommendation matrix arranged along three broad d imensions - Tangible, Intangible and Capabilities (see Exhibit 4). Exhibit 4 Three Dimensional Recommendation Matrix Tangible :The strategies in this domain are primarily directed at sustaining Tata Motors first mover advantage with respect to its offering in the Small Commercial Vehic le segment - ACE. Strategy Sustaining the First Mover s Advantage of ACE National Footprint Tata Motors has an unparalleled networ of dealers and s

ervice stations across the country for Medium and Heavy Commercial Vehicles (M a nd HCV). However most of these service stations are along inter-city routes. It would need to replicate this networ at intra-city level for its hugely successf ul SCV - the Tata ACE. For this Tata Motors can liaise with small garages, train them and certify them as Tata Authorized Service Station . Product Portfolio Tata Motors has positioned ACE as a multipurpose vehicle (MPV). This is where Tata Motors can learn from the Maruti small car strategy t hat posits that there is no such thing as a small car buyer . Hence Tata Motors should endeavour to move form a multi-purpose positioning to a mass customizati on positioning for ACE, wherein multiple variants are offered on the ACE platfor m, each uniquely suited for a specific application - such as tippers, long base trawlers, mil carriers. Intangible In intangible terms, Tata Motors needs to bolster its brand loyalty, by providin g a unique customer experience. Strategy Intangible Assets Unique Customer Experience In commercial vehicles industry, the uniqueness of customer experience is largely driven by the efficacy of the Support framew or . If your car brea s down, you can ta e a taxi to office. But that s not so f or a transport operator. For him, his vehicle is at the heart of his business an d hence responsive after-sales support is critical. Minimizing downtime calls fo r a service networ that is highly responsive and easily accessible. Besides, Ta ta Motors should also 1. Consider introducing mobile service units for Tata ACE that can respond to customer calls anywhere within a given city. 2. Start treating "Services" as a dedicated profit center. Towards this end , the company should "productize" annual maintenance contracts. Brand Reputation Building a reputation will help sustain sales, without h aving to engage in discount sales. Capabilities There are two broad capabilities that Tata Motors should see to acquire. Strategy Capability Acquisition Technology Appropriation Technology Appropriation is the ey to Tata Moto r s ambitions to offer products with engines larger than 210 HP. As the share of ultra heavy commercial vehicles grows, the company will need to face up to tech nologically superior players li e Volvo. Here, Tata will have to carefully spear head its World Truc program by carefully coordinating technology appropriatio n from its numerous international technology partners, notably Daewoo, Fiat and Hispano. Robust Supply Chain Tata Motors has made significant investments in IT syste ms to networ its countrywide service networ . This helps them maintain very hig h spares parts availability at their service stations and minimize downtime. In the years to come, it would need to include their SCV service station within thi s framewor . This will however be a big challenge, since these service stations would largely be managed by illiterate and not-so-tech-savvy repairmen. STRATEGY OF TATA MOTORS CORPORATE STRATEGY 1. TML built Balanced scored card approach . 2. TML forms a corporate team of 5 members across various functions to desi gn strategic approach . The people are cross functional expertise from SBUs. 1. Main Objective was to prioritize Vital Objectives of SBUs and initiative s & coordinate across SBUs for resources 2. TML started central resourcing through e-sourcing to minimize the cost o f shared inventory. 3. TML made most of the parts communized.

4. All the SBU leaders given autonomy in designing approaches inline with corporate strategic goals. 1. The performance measured based on the performance of various parameters such as product quality, process quality, safety, cost measures etc.( Behavioral control Finance strategy Realignment of TMF business sourcing channels Dealer driven business sourcing Direct sales agents ( DSAs) Direct mar eting for fleet customers in CV and corporate clients in PC Mar eting Service Providers to increase Feet on street Increase presence in M&HCV fleet segment Operating leases for high end M&HCV and for car fleet owners Refurbishment of old vehicles Used vehicle financing in CV and PC Improve collection efficiency, credit control & remedial measures to reduce ove rdues. Financial Performance of Tata Motors Over the years the conpany has performed exceptionally well financially inspite of the cyclical nature of the industry. A critical analysis of the financial sta tements provides us with the following insights. 1. The issue of Cyclicality is plaguing the automotive sector and the futur e outloo in India is not great considering the robust performance of the past 3 years. Tata Motors has countered this by increasing the share of exports in the sources of revenue. 2. Excess debt has led to a high Debt to Equity ratio and this is not good news as the company plans to go for further capital expansion. Also the percenta ge of cash flow used for CAPEX is increasing as shown in Exhibit 1. Exhibit 1 Percentage of cash inflow used for CAPEX 3. Rising interest rates in the economy is a cause of concern as it dampens both capital investments and softens the domestic demand. 4. Positives: The cash flow from operations has grown 11 times compared to last year despite a huge CAPEX. Tata Ace single handedly raised the mar et share of Tata Motors in LCV segment by 5%. The operating leverage for Tata Motors is higher due to the high fixed costs of CAPEX. But still the overall financial lev erage of Tata Motors is well under control when compared to Asho Leyland. Human Resource at Tata motors Few specific events related to downsizing at Tata Motors would help us describethe HR culture at the company.From 1970s to present Tata Motors share val ue has increased nearly 4000 pp,turnover has increased from about 1800Cr. to 750 00 Cr. But manpower figureshave not been following the same trend. From a figure of 11000 employees itrose to 35000, then came down to almost half (18000) and t he number is againon rise.For understanding the trend, we must become familiar w ith the factors affectingmanpower. Some of these factors are listed below: 5. Volume of business: a fast growing business li e Tata Motors needed morehands to wor on da y by day Locational delin age: Tata Motors started off a new unit at Pune Adopting new product or technology: advent of passenger cars and lightcommerc ial vehicles Shift in customer preferences: style and comfort became important li enever b efore Starting support activities Finance: the need to provide finance to people to buy their vehicles, Tata Motors started off Tata Motors Finance

7. IT: need for information was growing day by day and it needed to beaddre ssed soon 8. Automation: automation in assembly was introduced This has provided us w ith a fair bac ground of the changes in the company. Nowlet us try to understand the companys HR policies and culture against thisbac drop. Information Technology Strategy Enterprise Resource Planning Prior to the SAP implementation TML has a host of legacy applications which hadb een developed and maintained over a period of time. Thus the underlyingtechnolog ies and platforms were diverse along with diversity in functions andlocations. T his led to redundancy, inconsistency and inefficiency in datamanagement. A unifi ed real time database with an IT infrastructure that wasintegrated across the fu nctions, locations and even businesses was the need of the hour, in order to cut costs and manufacturing cycle times and also serve thecustomers more efficientl y. Why SAP? SAP has a clear superiority in the mar et. It has a large presence and good suppo rt, so we chose the SAP ERP Solution for our company. The results havedefinitely exceeded our expectations, says Probir Mitra, CIO, Tata Motors. SAP was the business leader in ERP solutions space. SAP offered strategic fit to TMLs TO-BE stage process mapping. SAP was able to integrate various functions across geographies yetmaintaining rea l time data updates. TMLs business processes were rationalized across all manufacturing unitsusing the power of SAPs ERP infrastructure. The existing environment prior to SAP implement ation was Oracle databasesolutions, Unix as operating system and predominantly I BM for hardware support. The implementation of SAP ERP solution (Version 3.1H) s tarted in about 1998 andwas finished by 2000 for about 3500 users. Later in 2003 TML moved to version4.6C on a single server platform. The major benefits from i mplementation included enterprise integration,reduction of inventories, better c ontrol over receivables, easier financialconsolidation, single unified database, improved efficiency by reducingredundancy and inconsistency, reduced response t ime to customers andreduction of operational costs. Customer Relationship Management With increasing competition from both Indian and foreign automa ers in acyclical business environment, Tata Motors needed strategies to build competitive advant age through strong relations with customers and goodcustomer service. Being a gl obal player with a widely dispersed dealer networ Tata Motors was in the need o f a common system to lin its company, dealersand customers. In 2005, Tata Motor s too a decision to implement a robust CRMthroughout the organization. Oracles S iebel Automotive CRM solutioncustomized for the automotive industry was chosen a s the CRM system for the organization. Standardizing Customer-Facing Processes Tata Motors aimed to standardize its customer-facing business processescompanyw ide through reengineering, thus improving operational efficiency andeffectivenes s, building stronger dealer relationships and a better customerexperience. This tas involves wor ing with about 250 dealers and more than1600 locations staffed by more than 10,000 salespeople across India. TML hasalso deployed a robust tec hnology platform consisting of an innovative dealermanagement system to improve the information flow across the enterprise. Thissystem helps dealers in function s such as inventory management, creditreporting, calculating commissions etc. Si ebel Automotive CRM, in conjunctionwith the dealer management system, has stream lined transactions, ensuring realtime capturing of customer data. The solution p rovides a 360-degree view of customers to the extended organization, with approp

6.

Logistics: the Hubn Spo e model of the dealer networ wasintroduced

riate visibility controls toensure that one dealer is not privy to information f rom another. Registering Strong Success with Dealer Siebel Automotive has transformed Tata Mo tors into a truly customer-centricorganization. Information redundancy and dispa rity has been reduced and thebusiness processes have been improved. By wor ing u pon real-time, centralizedcustomer and vehicle data, the employees and dealers h ave been empowered immensely. Mar eting Strategies of Tata motors 1. Product, Branding, and Advertising Every business started from 0, from no one nows it until everyone now it. Adve rtising isone of the most common ways to ma e car buyer or car enthusiast aware of the new car withspecial promotion price. Another more important way of advert ising is to create an image or brand image. Ta e BMW Z3 for example, it was int roduced in 1996 and shortly the car has been used in the famous James Bond movie . This is similar to Nissan 350 Fair lady Z in therecent 2007 Fast and the Furio us 3 To yo Drift. Over the years Tata Motors have beensuccessful in creating the ir brand image especially they use some famous stars as their spo esman.Other im portant mar eting strategies are such as the pac aging, innovations, and quality control. Tata Motors provide many innovative features to attract car lover. One of theseinnovations is the Tata Safari 4X4 Dicor that has Reverse Guide System. A weather-proof camera is fixed to the rear car to help the driver while reversing the car. 2. Pricing Strategy There are various factors to determine a price of a car. These factors are such as mar etcondition (it cant be too low or too high with the prices of same vehicl e from competitors, ithas to be at par), cost incurred to build a car, profit by company, dealer profit.Giving discount every month and special promotion for ce rtain type of vehicle also one of thestrong strategy use by Tata Motors. Discoun t can be made from Companys profit or fromdealers profit at certain range. 3. Place Place of dealership does play an important role. The channel of distribution, ph ysicallocation, and dealership method of distribution and sales is generally ado pted. Thedistribution of vehicle must be in a very systematic way, from the plan t to dealership and toend user. This is not only in India itself but also to the world-wide dealership. 4. Maintenance and Support After sales service is also another important mar eting strategy for most of the car buyer tochoose for the right car. End user will not want to spend a lot of time to travel to a far place just to service the car such as change engine oil, oil filter and some simple chec ing. Partsand accessories must also easy to acc ess when it is needed to eep the customer satisfy from buying tata car until ma intaining car or even until they sell the car to a newer tata model. FUTURE CHALLENGES Mahindra and Mahindra: JV with ITEC, North American leader in heavy truc s.M&M has formed a 51:49 JV called Mahindra International with ITEC, USA (parent Navistar International) , to manufacture commercial vehicles and to bolster its position inthe CV busine ss. ITEC is the leader in medium and heavy truc s and buses in NorthAmerica, and is the world s largest manufacturer of medium-duty diesel engines.Mahindra Inte rnational aims to have a presence across the CV mar et (6-35 tonnesGVW) with var iants of passenger transport, cargo and specialised load applications and isli e ly to start producing medium/heavy commercial vehicles from FY09. Force Motors Ltd: JV with MAN for manufacturing high-tonnage vehicles ForceMotors has paired up with MAN in a 70:30 JV to manufacture high-tonnage and specialtyvehicles, suc h as long-haul truc s, tippers, tractor trailers and multi-axle vehicles in the1 6-32 tonne range at its Pithampur plant, with an initial capacity of 24,000 unit s per annum and at an investment of Rs7bn. The JV plans to sell nearly half of i

ts production inthe domestic mar et, while the rest is to be exported to the Mid dle East, Tur ey, Russia,Asia and Africa. Further, the two companies have formed another JV to manufacture buses in India from end-2007. Asho Leyland: Acquisition of Czech Republic-based Avia. Asho Leyland (ALL)recently acquir ed the truc unit of Czech Republic-based Avia for US$35m. Aviamanufactures 6-9 tonne LCVs and has a capacity of 20,000 units per annum. Theacquisition has give n ALL direct access to an entire range of Avia truc s, Avias pressshop with dies and tools, welding lines, state-of-the-art paint shop and R&D facilities.ALL has also entered into technology agreements with Hino Motors of Japan and ZF of Ger many to complement its in-house R&D efforts and developing complementarycomponen ts and aggregates. Suzu i: Suzu i through its subsidiary, Maruti Suzu i in the Indian mar et may also be alarming. Maruti has aggressively launched family cars to undermine the Tata mod els.

Conclusion Tata Motors has never had it so good. Today the company is the undisputed mar et leader in the commercial vehicles industry in India and is gradually emerging a s one of the ey players internationally too. It has been forging ahead on a num ber of fronts in an attempt to further entrench its position as a mar et leader. In the SCV segment, the company has witnessed unprecedented success with the la unch of the pioneering Tata ACE. In the M and HCV segment, the company has been ta ing determined steps to further consolidate its position. The company enjoys a number of ey strengths that enable it to present a unique value proposition t o its customers. However this success is far from being a given. The company must focus on combin ing its unique strengths, as it endeavors to replicate its recent successes in n ew segments and across new geographies. Apart from product reliability, the most important determinant of future success would the company s ability to bolster its support framewor . If the company gets it right, the spoils could indeed be breathta ing. Not only will that catapult the company to the forefront of creati ng a unique customer experience, but also help spawn altogether new revenue stre ams. The future presents challenges and opportunities for the company in equal m easure both domestically and internationally. While pitfalls are many, Tata Moto rs loo s well positioned indeed to capitalize on these opportunities and ta e on the world.

Q1. How long have you been associated with Tata Motors? No. of Respondents Percentage From 1 year 0 0% From 1 3 years 0 0% From 3 5 years 0 0%

From 5 10 years 80 80% Above 7 years 20 20% Q2. (i) Knowledgeable Salesperson No. of Respondents Percentage Strongly Disagree 0 0% Disagree 0 0% Neither Disagree Nor Agree 0 0% Agree 86 86% Strongly Agree 14 14% Questionnaire Name: Address: _______________________________________________________________ _______ ________________________________________________________ _______________________ ____________________ Pin Code____________ Gender : 1. Female 2. male Occupation Age 1. Service Below 18 Business 18-25 student 25-50 house wife 51-above Q.1)How long have you been associated with TATA Motors? ________________________ _______________________________________________ Q.2.)How would you rate TATA Motors on the following parameter? .3)Are you aware of the following facilities provided by Tata Motors? Enrollment in local colleges, 2005 FACILITIES yes no i) Tata Motors insurance ii) Extended warrantty iii) True value iv) Tata finance v) Autocard vi) Genuine accessories Q.4) What is your overall opinion about Tata Motors? Very Bad Bad Neither Bad Good very Good nor Good 1 2 3 5 Q.5) Q.5) How li ely would you recommend Tata Motors? VeryUnli ely 1 2 3 Date Sign BIBLIOGRAPHY Boo s: 1.Philip Kotler, Kevin Keller (2009),Mar eting Management (Thirteenth Edition) 2.Mar eting Management, The McGraw.HillCompany Rajan Saxena (Third Edition)

Very Li ely 5

3.Berman, Berry and Joel r Evans (Oct- 1997)Retail Management: A strategic appro ach 8th editionEnglewood cliffs NJ printcehall 4.Country analysis 1997 A framewor to identify and evaluate the national busine ssenvironmentHardward business review. MAGAZINES: A) B) C) D) E) OUTLOOK BUSINESS (FEB, 2009) BUSINESS STANDARD (April-July 2009) 4PS OF BUSINESS AND MARKETING (June 2009) BUSINESS TODAY - Pic and Choose BUSINESS TODAY - Tata Motors to bring Jaguar, Land Rover to India

INTERNET: 1.Tata Motors Official Website2.Wi i - Tata Motors Ltd3.http://www.docasi.com/d oc/12248800/Grand-Project-on-NANO-Car 4.http://www.capitaline.com5.http://www.ta tamotors.com/our_world/press_releases.php?ID=458&action=Pull6.http://www.tatamot ors.com/our_world/press_releases.php?ID=500&action=Pull7.http://money.rediff.com /companies/tata-motors-ltd/10510008/cash-flow8.htttp://www.moneycontrol/com/tata -group/tatamotors9.http://www.yahoofinance.com/tatamotors10.http://www.carwale.c om/research/cars/tata