IndianInstituteofManagement,Indore

STRATEGICMANAGEMENT II
PROF.PRASHANTSALWAN PROJECT

INNOVATIONSINTATAMOTORS

Date:22ndAugust2009

SubmittedBy:
AbhayNegi DeepjyotiDeori DoifodeSamadhan PranabjyotiDas SonuPahariya VKalyan

StrategicManagement2

Page1

TableofContents
1) IntroductionofTataMotors:.....................................................................................................3 Milestones:....................................................................................................................................3 Innovation: ....................................................................................................................................3 . 2) HistoryofInnovationinTata.......................................................Error!Bookmarknotdefined. 3) ImplementationofinnovationinTatamotors:.........................................................................4 Product:.........................................................................................................................................4 Processes:......................................................................................................................................4 People:...........................................................................................................................................5 4) Innovationthroughproducts:....................................................................................................6 TATANANO ...................................................................................................................................9 . TATAACE.......................................................................................................................................9 TATAINDICA................................................................................................................................10 5) Conclusion:..............................................................................................................................10 6) Exhibits:...................................................................................................................................12 7) References:..............................................................................................................................14

StrategicManagement2

Page2

1) IntroductionofTataMotors:
Establishedin1945TataMotorsLtdgrewoverthelast50yearswithafoundationofdeepunderstandingofeconomicstimuliand customer needs, and the ability to translate them into customerdesired offerings through leading edge R&D. Now Tata Motors LimitedisIndia'slargestautomobilecompany,withconsolidatedrevenuesofRs.70938.85crores(USD14billion)in200809.Itisthe leaderincommercialvehiclesineachsegment,andamongthetopthreeinpassengervehicleswithwinningproductsinthecompact, midsizecarandutilityvehiclesegments.Thecompanyistheworld'sfourthlargesttruckmanufacturer,andtheworld'ssecondlargest busmanufacturer. Thecompany's23,000employeesareguidedbythevisiontobe"bestinthemannerinwhichweoperatebestintheproductswe deliverandbestinourvaluesystemandethics." Milestones: TataMotorshavereachedmanymilestonesintheAutomobileindustry.Tatamotorswhenitstartedthejourneyitwasthe automobilemanufacturerfromtheunderdevelopedcountry.InthebackdropofIndependenceCompanybegantogrowinthesize andalsointermsofitscapabilities. TataMotors,thefirstcompanyfromIndia'sengineeringsectortobelistedintheNewYorkStockExchange(September2004),has alsoemergedasaninternationalautomobilecompany.Throughsubsidiariesandassociatecompanies,TataMotorshasoperationsin theUK,SouthKorea,ThailandandSpain.AmongthemisJaguarLandRover,abusinesscomprisingthetwoiconicBritishbrandsthat was acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. Today twothirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, with an option to acquire the remaining stake as well.Hispano'spresenceisbeingexpandedinothermarkets.In2006,itformedajointventurewiththeBrazilbasedMarcopolo,a globalleaderinbodybuildingforbusesandcoachestomanufacturefullybuiltbusesandcoachesforIndiaandselectinternational markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufactureandmarketthecompany'spickupvehiclesinThailand.ThenewplantofTataMotors(Thailand)hasbegunproductionof theXenonpickuptruck,withtheXenonhavingbeenlaunchedinThailandin2008. Innovation:

Innovationinsimpletermscanbedefinedastheactofintroducingsomethingnew.Butforanorganizationinnovationmeansmuch morethanthat,whichincludes theabilityofanorganizationtocreatecustomervaluebyeffectivelydeliveringtheJobtobeDone throughthetransformationofcreativeideasandtherebygrowingthebusiness.

Fig1:InnovationinTata

StrategicManagement2

Page3

Innovation in Tata Motors is not a recent phenomenon, but is a part of its legacy. The Companys culture of perpetual search for excellence is highly attributed to the Tatas ethos and incessant efforts of its employees in the past several decades to serve the customersbybringingcontinuousinnovationinitsproductsandprocesses.TataMotorsproducedthefirstminitruck,firstlightand firstheavyvehicleandmanymorefirstsinIndia,beinganinnovatorintheirindustry.Ithasfollowedastrategyofacquisitionsand jointventuresinitsmidstageandlaunchednewproductsatarapidpaceindifferentmarketsegments.Today,TataMotorsenjoys thepositionofbeingIndiasleadingautomobilemanufacturerwithincreasingpresenceinEurope,SouthEastAsia,Africa,Australia andtheMiddleEast.

2) ImplementationofinnovationinTatamotors:
Strategy Implementation is the important task and is more important than strategy formulation. Tata Motors have constantly has come up with innovations and which is the reason for the success of the company in the long run. For implementing any of the strategyalltheinternalsystemsmustbeinplace.Tatamotorshaveimplementedtheinnovationmainlybythefollowingareas. Product: TataMotorscreatedseveralbreakthroughproductsinthepastwhichchangedthemarketdynamicsandhelpedinprovidinganew customerexperience.Someofthesebreakthroughproductsarelistedbelow: 1. 407platformsin1980s:DesignedtosuitIndianconditionsandstillenjoys2/3rdofthewholemarketofMCVinIndia. 2. Indicaatthelate90s(morecarpercar):ThiswasthefirstindigenouslydesignedpassengercarinIndiaanditwasinnovative inthesensethatitprovidedmorevalueformoneyintermsofinternalspace. 3. Ace:Firstminitrucklaunchedin2005.TheconceptoflaunchingofAceisthelatentneedoftheIndiancustomers.InIndianin mostoftheruralpartswidetruckscannotreacheverypartofthefieldsorthestorehouses.ThesmallwidthallowsAceto manoeuvreitselfinthesmallroads.IthasInnovative2cylinderIndicaengine.Rigidfrontaxleandrearwheeldriveforlow cost. 4. NANO(Thepeoplescar):PriceitselfisthebiggestinnovationinNANOfollowedbyspace,fuelefficiency.Itisoneofthemost hypedcarsandhasachievedsignificantmediaattentionbeforeitsformallaunch. TheseproductsarearedealtwithgreaterdetailsintheInnovationthroughProductssection. Processes: Sustainabilityofinnovationinproductsneededtobecomplementedwithinnovativechangesintheorganizationalprocessestoo. Someexamplesare: AdoptionofTataBusinessexcellencemodelItisbasedonMalcolmBaldridgeAwardforbusinessexcellenceandBalanceScore Card.Thishascreatedacultureofexploringvariousinnovativewaystoachieveexcellenceinalltheorganizationalprocesses.Tata MotorsinthepasthasreceivedtheHallofFameawardforBSC,JRQVaward,CIIEXIMawardandmanyothersuchawardswhich provetheeffectivedeploymentofthemodel. UseofITsystemthroughoutthevaluechain:ITsystemshavebeenwidelyusedintheprocessofinnovation.Theentirevaluechain fromdemandsidetothesupplysidealongwiththeincludingthemanufacturingiscontrolledbyhighlyefficientEnterpriseresource planningsystem.PLMsoftwareisusedinthedesigningoftheproducts.ItimplementedRelationshipManagementprogram,enabling ittogainmarketinsightsbyexploitingthehugeonlinecustomertransactiondatabase. OverallTataMotorsusedtheSystemscomponentof7Sframeworktoleverageitsinnovationcapabilities. Product development process: Institutionalized Stage Gate process in the organization is a benchmark in itself and ensures developmentofrightproductforthemarketandalsoaneffectiveandefficientprogrammanagement.Tatamotorshavetransitioned fromtheinhouseproduceofmostpartstotheoutsourcerofthemajorparts.TataMotorslaunchedfirstcommercialvehicleIndica

StrategicManagement2

Page4

in1999.In1997Tatamotorshad1200supplierssupplyingvariouspartstoTataMotors.Theyalsohadarmslength1relationship withthesuppliers.Oncetheorganizationdecidedtogofortheinnovation,thecompanyreframeditssupplierpolicy.Thenumberof supplierscamedownfrom1200to250.Longtermtechnologysharingagreementsweredonewiththesuppliers.Tatamotorsrealised thatdevelopingthesupplierswillpaythemofinlongrunandthereforetheyconductedmassivetrainingprogramsfortheirsuppliers. Theydevelopedsomeofthesuppliesformthecomponentsupplierstothesubassemblysuppliers. ProductdevelopmenthasreallyoneareawhichhascontributedtotheinnovationinTataMotors. Internalization philosophy: Tata Motors made some major global acquisitions like TDCV, JLR, Hispano, etc. Unlike many other Japanese/USplayers,wefollowedaninnovativeapproachtobeseenasalocalcompanyinthecountryofoperation,i.e,asaSouth KoreanplayerinSouthKoreaandasaSpanishPlayerinSpain.Thishashelpedustoappreciatetheneedandimportanceofallthe stakeholders and we achieve this in four stages. This involves Initiating, by understanding the language and basic facts of the country,Familiarizationwiththeirculture,HarmonizationandfinallySynergizingbysharingthebestpracticesandworkethics. People: Thechangingbusinessenvironmentandincreasingcomplexityofbusinessposedahugechallengeinachievementofbusinessplans. TataGroup,ofwhichTataMotorsisapartof,iswellknownforidentifyingandnurturingleaders.TataMotorsinthepasthasadopted severalinnovativemeanstoleverageitshumanresourcecapabilitiesforachievingextremelychallenginggoals. Identifyingleadersthroughassessmentcentres This process has been effectively utilized by Tata Motors to identify young managers with very high potential. This process was started some 20 years back and has progressively created a pool of very strong and effective leaders who have proven their capabilitiesinsomeverychallengingassignmentsgiventothem.Thisprocesshasnowbeenreplicatedbymanyotherorganizations too. PuttingthemintochallengingassignmentsandgivingthemInternationalexposure KeyprojectslikeACEandNANOareexamplesofsomechallengingprojectswhichconstitutedofyoungleadersandengineers. BreakingthefunctionalsilosbyshiftingfromahierarchicalorganizationtoamoreCFTapproach. All these experiences have helped Tata Motors to redefine the way they have looked at innovation. While innovation is normally understoodasintroductionofnewandradicalideasintheareaofproductsandservices,theexperiencesaysthereareseveralother areasthatalsorequireinnovationintandem,soastoeffectaninnovationinacompany. Apartfromtheabovementionedthreeimportantareasofinnovation,Fourotherareasofinnovationare: Sourceofinspiration/Purpose:fromwhichtheconceptemanatedwhichstressesuponthefactthatagilityandunderstandingthe unstated/unfulfilledneedofcustomersarethemostimportantsourceofinnovation.TataNano:Inthiscasetheideastruckinthe mindofChairmanRatanTatawhenhesawafamilyoffour(aman,hiswifeandtwokids)ridingonascooteronarainyday.Hefelt thattherewasanunfulfilledneedofsafe,affordableandanallweatheralternative. Price:ThepriceofNanogotfixedatRs1lakh.Theachievementofpricetargetwasdefinitetocreateamajordisruptioninthecar marketasitfellmidwaybetweenthepriceofascooterandthecheapestcaravailablewhichwaspricedatRs2lakh.Productdesign waschokedforoptionsbecauseofthepricetarget.Supplierswerechallengedwiththestringentcosttargetgiventothem,butthey acceptedthesame. Promotion: Innovationliesinreachingtherightcustomersalwaysandcommunicatinginasimpleandeffectivemanner.TataMotorsincaseof Nanodevelopedaportal,whichgotashigh30millionhitsevenbeforethelaunchofthecar.Afterthelaunchtherewereanother30
1

ArmslengthsupplierrelationshipisaprocessinwhichOEMmaintainsdistancewiththesuppliers.Theydonthavelongtermrelationshipwith thesuppliers.Suppliersarelookedfromcostconsiderationsratherthantechnologyandcompatibility.

StrategicManagement2

Page5

million hits in less than a month. This helped the customers in becoming more aware of the product features. We have received around2lakhapplications,whichisagoodresponsebyallstandards. Place/Reach: Consciousofthefactthatdemandforsuchcarswouldbesubstantialfromtheremotestcornerofthecountry,thesaleofformfor bookingwerefacilitatedthroughseveralbanks.Newinsuranceschemeswerecodesignedwiththeinsurancecompanies,andnow theyareintheprocessofenhancingthesalesandservicenetworkforbetterreachandservicetothecustomers. However,TataMotorsexperienceshowthatcreatingacongenialclimatewithintheorganizationismusttofosterinnovation.Thisis only possible if innovation is led and supported well from the top. It requires assigning challenging tasks to the team, but with sufficientempowermentandencouragementgiventothem.Thisshouldbebackedbyinvolvementandsupportofthetopleaders whichhelpsinkeepingtheteamcommittedandmotivatedtothetask.

TataInitiativespromotingInnovation
Tatahasbeenattheforefrontofinnovation.IthasbeentimeandagainbeenvotedasthemostinnovativecompanyinIndia.Tata looksatinnovationasastrategicapproachtoglobalgrowthandhasadoptedathreeprongedstrategytoencourageit.Thethreekey driversarebettercommunicationandrecognitionofinnovativeideasandefforts;facilitiesforlearningfromothercompanies;and supportforcollaborativeresearchandpartnershipswithacademicinstitutions.

Communicationandrecognition
Anumberofinitiativeshavebeenlaunchedtospreadthemessageofinnovationandrecognizeinnovators: o TataGroupInnovationForum(TGIF):ThisinitiativebringstogetheracommunityofinnovationenthusiastsfromacrossTata companies.TheroleofTGIFmembersistoassisttheircompaniesinexperimentingwithideas,propagatetherelevantones andspreadthemthroughtheenterprise. o Innovation workshops: Tata Quality Management Services invites experts to talk about various aspects of innovation and sharebestpracticeswithTatamanagers.ClaytonChristensen,LangdonMorrisandDavidWittenbergareamongthosewho haveheldsuchworkshopsintherecentpast. o Tata Innovation Day: Instituted to encourage creative thinking, this annual event and contest recognises and awards innovationamongGroupcompanies. o Tata Innovation Mission: Under this programme,senior Tata executives visit global companies to study how they foster innovation.These missions have visited companies such as Microsoft, Intel, HP and 3M in the US,and Nissan, Fuji, Ito En, Olympus,ToshibaandHitachiinJapan. o Thoughtleadership:Inordertocaptureanddisseminatethelearningfromvariousinitiatives,theTataManagementTraining CentreinPuneandtheGroupPublicationsunitatTataSonshavebeenbringingoutpublicationsthatfeatureinnovationcase studiesfromacrosstheworld,whilealsocoveringtheTatainnovationmissionstotheUSandJapan. o o Innovationawards:TGIFcelebratesTataInnovationDaytorecognizeinnovatorsintheTatagroup. Technology and research clusters: To create opportunities for technological innovation, TGIF brings together technologists andresearchersfromdifferentTatacompanies,andundertakesatechnologymappingexercise.

Researchorientationandpartnershipswithacademia
o TheTataGroupinvestsinbuildingoutstandingresearchfacilitiesandforgingpartnershipswithacademicandresearch organizationsinordertoencouragecreativethinkingandfindinnovativesolutionsthatimproveourqualityoflife.

StrategicManagement2

Page6

4) LeadershipdrivingEntrepreneurshipandInnovation
InthelastfewyearsTatahasextendeditsglobalfootprint,justasithasenhanceditsperformanceandcompetitiveness.Thekey driversofthiscriticaltransitionhavebeeninnovationandentrepreneurship.Tata,undertheableleadershipofRatanTata,looksat innovationasastrategicapproachtoglobalgrowthandhasadoptedathreeprongedstrategytoencourageit.Thethreekeydrivers arebettercommunicationandrecognitionofinnovativeideasandefforts;facilitiesforlearningfromothercompanies;andsupport forcollaborativeresearchandpartnershipswithacademicinstitutions. Successfulentrepreneurs,whatevertheirindividualmotivationbeitmoney,power,curiosityoragreatdesireforfameand recognitiontrytocreatevalueandmakeatangiblecontribution.Itistruethatsuccessfulentrepreneursaimhigh;theyarenot contentsimplytoimproveonwhatalreadyexistsortomodifyit.Theytrytocreatenewanddifferentvaluepropositionstoconverta materialintoaresource,ortocombinetheexistingresourcesinanewormoreproductiveconfiguration.And,itisthischangethat alwaysprovidestheopportunityforthenewanddifferent. TheGeneralElectricCompany(GE),oneoftheworldslargestbusinessesandmorethan100yearsold,hasalonghistoryofstarting newentrepreneurialbusinessesfromscratchandraisingthemintosizeableindustries.Wehaveseveralentrepreneurialexamplesin Indiatoo.RelianceIndustriesLimited(RIL)startedfirstwithitstextilesbusinessinNaroda,Gujarat,andthengraduallywentonto diversifyandsetupnewentrepreneurialbusinessespolyesters,fibresandfibreintermediaries,chemicals,polymers,petroleum products,telecom,energy,finance,andothersinarelativelyshortspanof25years.Intheinformationtechnologysectortoo, therearesomenotableexamplessuchasInfosysTechnologies,WiproInfotech,TataConsultancyServices(TCS),andSatyam.Inthe telecomsector,therearesimilarexamplessuchasBharti,RelianceInfocomm,andtheTatas. Eachofthesesuccessfulventureshadattheirhelmavisionaryleaderwhorecognizedtheimportanceofinnovationand entrepreneurshipinhiscompanyandworkedtowardsmakingitaninnovationdrivenorganisation.Tatamotorswerefortunate enoughtohaveRatanTata,whopioneeredthechangeinstrategicintentofthecompany.SincehetookoverthereinsoftheTata groupin1991,MrTatahasconvetedTatasfromarelativelyunwieldyconglomeratetoanimblefootedandcohesiveorganization.

EntrepreneurialManagement
Todaysbusinesses,especiallythelargeones,arenotlikelytosurviveinthisperiodofrapidchangeandinnovationunlessthey acquireentrepreneurialcompetence.Thisisnotonlyintheirselfinterest;theyalsohaveasocialresponsibilitytodoso.Arapid declineofexistingbusinessesespeciallythebigonesduetolackofinnovationposesagenuinesocialthreattodayto employment,financialstability,socialorder,andgovernmentalresponsibility.Therefore,inordertoimpartstabilityandleadershipin atransitionofthismagnitude,existingbusinesseswillhavetolearnhowtosurviveandprosper.Inmanycases,therequired entrepreneurshipcanonlycomefromtheexistingbusinesses.Whilesomeoftodaysgiantsmaynotsurvivethenext25years,the mediumsizedbusinessesareparticularlywellpositionedtobesuccessfulentrepreneursandinnovatorsprovidedtheyorganize themselvesforentrepreneurialmanagement.Theyalreadyhavethenecessaryresources,especiallythehumanresources,aswellas theopportunityandtheresponsibilityforeffectiveentrepreneurialmanagement. EntrepreneurialBusiness Accordingtoconventionalwisdom,bigbusinessesdonotinnovate.Thisistoalargeextenttrueconsideringthatnewandmajor innovationsofthiscenturydidnotcomefromtheold,largebusinessesoftheirtime.And,thoughtheautomobilecompaniesdidtry (FordandGeneralMotorspioneeredinaviationandaerospace),mostoftodayslargeaircraftandaviationcompanieshaveevolved outofseparatenewventures.Despitetheuniversalbeliefthatlargecompaniesdonotinnovate,thereareexceptionsandwecite instancesofmanylargecompaniesthathavedonewellasentrepreneursIntheUS,wehaveexamplesofJohnson&Johnsonin hygieneandhealthcare;3Minhighlyengineeredproductsforbothindustrialandconsumermarkets;andCitibank,worldslargest nongovernmentalfinancialinstitutionandwelloveracenturyold,inmanyareasofbankingandfinance.InGermany,Hoechst(now

StrategicManagement2

Page7

calledAventis)oneoftheworldslargestchemicalcompaniesandmorethan125yearsoldbynowhasbeenaverysuccessful innovatorinthepharmaceuticalindustry. Largerorganizationshaveagreatdealofbureaucracyandconservatismthatactasimpedimentsnotonlytoentrepreneurshipand innovationbutalsotoallotherfunctionsaswell.Inthecurrenteraofrapidchange,thesuccessofabusinesswillclearlydependon howmuchthetopmanagementencouragesandpracticesentrepreneurshipandinnovation.Iftheenterprisedoesnotinnovate,it willinevitablyageanddeclinerapidly. Astrategicintentbythetopmanagementtowardsmakinganinnovativeandentrepreneurialorganizationgoesalongwaytodevelop anorganizationthatisreadyforthecompetition.Itistheleadershipstylethatcreatestheappropriateclimateforentrepreneurship andinnovationinanorganization.Itiswellknownthatpromoters/foundersofbusinessesaregreatentrepreneursbutnotnecessarily goodleaders.Ontheotherhand,successfulbusinessexecutivesarenotonlygoodleadersbutinvariablyturnouttobegood entrepreneursaswell.Itisalsowidelyknownandwellrecognizedthattwobusinessleadersareneveridenticalintheirstylesof functioning.However,therearecertaincommontraitsamongsuccessfulleadersoftopcompaniesintheworldwhetherheisan entrepreneuroranexecutive. Wehaveidentifiedafewtendenciesthatreallyworkwellforleadersofsmallcompaniesorstartupsbutcouldbecomeaproblemas thecompanygrowslarger.Theseare: 1. Loyaltytocomrades:Leaderstendtobeloyaltothosefewcolleagueswhowerethereatthestartofthebusiness.However, blindloyaltytothesepeoplecanbecomeamajorliabilityinmanagingtheorganizationasitbecomeslargeandcomplex. 2. Taskorientation:Focusingonthejobathand,say,indrivingabigproductlaunch,iscriticalbutexcessiveattentiontodetail cancausealargeorganizationtoloseitsfocus. 3. Singlemindedness:Thisisanimportantattributeinavisionarywhowantstounleasharevolutionaryproductorservice.Yet, thisqualitycanturnintotunnelvisioniftheleadercannottakeabroaderviewofthingsasthebusinessgrows. 4. Workinginisolation:Whileitisacceptableforabrilliantscientistfocusedonaningeniousideatoworkinisolation,itcould be disastrous for a leader whose growing organization must depend on the customers, investors, analysts, media, governmentofficials,andvariousotherstakeholders. Leaderswhohaveachievedsuccessareabletoovercomethesetendenciesbyvirtueofselfdiscipline,listeningtoandseekinginput fromothers,andbeingwillingtochangetheiroutlook.Theydealhonestlywithproblemsandquicklyweedoutnonperformers.They establishstrategicprioritiesandmakeconcertedeffortstodowhatdoesnotcomenaturallytothemfortheorganizationssake.And, theylearntoworkandcommunicatewithdiverseemployees,customers,andexternalconstituencies.Mostimportant,theymakethe companyscontinuinghealthandwelfaretheirtoppriority.

RatanTata:LeadingtowardsanInnovativeandEntrepreneurialOrganization
RatanTataservesasthegroup'schiefdealmaker,visionary,andspiritualcement.Hejoinedthecompanyaftercollege,thensteadily rosethroughtheranks.Eventhoughheandotherfamilymembersownjust3%ofsharesinTataSons,theprivateholdingcompany withcontrollingstakesinitsbusinesses,TatahimselfchairskeyunitsincludingTataMotorsandTataSteel.Heisintimatelyinvolvedin allmajordealsandpushedforacquisitionssuchasCorus.Theventuresintopassengercarsandtelecomarehisbabies.AndTatais instrumentalinhatchingnewbusinesses,bouncingideasgleanedfromhistravelstomanagersforfollowup.

5) Innovationthroughproducts:
TataMotorshasbeenconsistentlyofferinginnovativeproducts.Inthecomingyears,thecompanywillcompletelychangeitsentire portfolio,withnewgenerationvehiclescomingoutfewamongthemarethenewIndica,thenewGrandeSumo,theMagic,the WingeraswellasthewellpublicizedTataNanoandAce.

StrategicManagement2

Page8

TATANANO Atabout$2,500retail,theNanoisthemostinexpensivecarintheworld.Itsclosestcompetitor,theMaruti800,madeinIndiaby Maruti Udyog, sells for roughly twice as much.It started by looking at everything from scratch, applying what some analysts have described as "Gandhian engineering" principlesdeep frugality with a willingness to challenge conventional wisdom. More fundamentally, the engineers worked to do more with less. The car is smaller in overall dimensions than the Maruti, but it offers about20%moreseatingcapacityasaresultofdesignchoicessuchasputtingthewheelsattheextremeedgesofthecar.TheNanois also much lighter than comparable models as a result of efforts to reduce the amount of steel in the car (including the use of an aluminiumengine)andtheuseoflightweightsteelwherepossible.ThecarcurrentlymeetsallIndianemission,pollution,andsafety standards,thoughitonlyattainsamaximumspeedofabout65mph.Thefuelefficiencyisattractive50milestothegallon. ThemostinnovativeaspectofNANOisitsmodulardesign.TheNanoisconstructedofcomponentsthatcanbebuiltandshipped separately to be assembled in a variety of locations. In effect, the Nano is being sold in kits that are distributed, assembled, and servicedbylocalentrepreneurs.ThedevelopmentoftheNanoistheresultofseriesofpathbreakinginnovations,harnessinglatest technologicaladvances.Theseinnovationshaveenabledthecompanytomakeitaffordableandyetdelightthecustomerwithdesired attributes. It has been designed to meet consumer requirements of personal mobility, comfort, all weather protection and at the sametimebeingsafe,stylish,environmentfriendlyandaboveallaffordable. Itispoweredbyall2cylinderrearwheeldriveenginewithcapacityof623ccandisproposedtobeavailablewitha33PSGasoline powertrain.Theleandesignstrategyhashelpedminimizeweight,whichhelpsmaximizeperformanceperunitofenergyconsumed anddelivershighfuelefficiency.Thehigherfuelefficiencyalsoensuresthatthecarwillhavelowcarbondioxideemission,thereby providingthetwinbenefitsofanaffordabletransportationsolutionthatalsoaddressestheimperativetocertainclimatechange. Itscontemporarydesignmaximizesinteriorspacebypushingthewheelstothecornersandplacingthepowertrainundertherear seat, making maximum utilization within the smallest foot print which helps in manoeuvrability, and also reducing parking space. Madeofallsheetmetalbody,ithasastrongpassengercompartment,withsafetyfeaturessuchascrumplezones,intrusionresistant doors,seatbelts,strongseatsandanchoragesandthereartailgateglassbondedtothebody.Tubelesstyresfurtherenhancesafety. TATAACE AcewasIndiasfirstminitrucklaunchedin2005.Whileheavytrucksplyonthehighways,researchshowedtheneedforasmallsub onetonnetruckforintracityandtruckterminaltonearbylocationsconnectivity.TheAcehelpedinmeetingthatlastmiledistribution needwithemergenceofHubandspoketransportationmodelinIndia.Thevehicleofferedthefeaturesof4wheelerinthesameprice asthatof3wheelervehicle.TataAcehascreatedanewminisegmentinIndia.Pricedbetween2.25to2.35lakhsINR,thecompany aims to convert three wheeler users to 4 wheelers. One of the idea that has made the launch of this vehicle might be that the governmentpolicyinIndianottoallowHMVs(thatarecategorizedbyvehiclesweighingabove3tonnes)toentercitiesafter7p.m.to reducetrafficjamsandpollution.TATAhasfoundthegapinthemarketandreleasedAce.The700ccenginedeliversapowerof16 hp(12kW)at3200rpmandatorqueof3.8m).Ithasapermissibleloadingcapacityof750kg.Italsohasamoderncabincompared toitsthreewheelerrivals.Itisbestsuitedforusebyvillagersincarryinggoodsovershortdistances. InJune2007TataMotorslaunchedthepassengervariantoftheAce,namedMagicandalsoIndia'sfirstMaxivanTheTataWinger, onanewplatform.Thecompany'sobjectiveis"tochangethewayanaverageIndiantravels"TataMotors'twonewvehiclesMagic andWingerwillattempttocatertothetwoendsofthelightcommercialpassengersegment

StrategicManagement2

Page9

 MAGICWINGER TheMagicisthepassengerversionoftheAceminitruck,thenewMagicfeaturesanallsteelcabin.Itoffersaflexibleseatingcapacity of47passengerswithadequatelegroom. MagicisPoweredbya16bhp(12kW),700ccdieselengine,itoffershighfuelefficiencyandverylowmaintenance.The12inchtyres providehighergroundclearance,andtherigidfrontaxleisdesignedtohandletoughroads.TheMagic'sturningradiusof4.3metres (14.1ft) is nimble enough to navigate the by lanes and traffic of India's crowded cities. The Magic has a clearly visible instrument cluster,utilitytrayandadigitalclockinthedashboardandalsoaprovisionforfittingaradio. TataMotors'twonewvehicles,MagicandWinger,areexpectedtocatertothetwoendsofthetaxisegment.TheWinger,whichisa sturdierandmorerefinedproduct,willattempttowrestlemarketshareintheStaff(ITES/BPOemployees)transportationsegments, Hotel&InterurbanTouristsegments,Airportdrop&pickupetc. TATAINDICA First launched in 1998, the Indica model has achieved leadership in its class and became the second largest selling model in the segment,notchingupasaleof144,690unitsin20072008.Sofar,1.12millionIndicacarshaverolledout. VistaisTataMotorsfirstallnewpassengercarplatformaftertheoriginalIndicaplatformwhichspawnedawholerangeofvehicles includingtheIndigoandIndigoXLSedan,IndigoMarinathestationwagonandmostrecentlytheIndigoCS. Tata Motors is celebrating the 10th anniversary of the Indica Vista , the vehicle that marked the companys foray into car manufacturing(apartfromtheerstwhileTataEstateofthemid1990s),andwhichremainsoneofitsmostsuccessfulvehiclesever.

Fig3:TataIndica

Tatahasbeenfinetuningthecarforalongertimetoupgradeitsqualityandtherebytogivethecaranupmarketfeel.Indicavistawill alsocomewithhostofspecialfeatures.

6) Conclusion:
<Negitoaddcontenthere> StrategicManagement2 Page10

StrategicManagement2

Page11

7) Exhibits:
Exhibit1:

Exhibit1:MilestonesofTataMotors

Exhibit2:

StrategicManagement2

Page12


Exhibit2:InnovationsinTataNano

StrategicManagement2

Page13

8) References:

StrategicManagement2

Page14