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Case Critique Tata Motors

In: Business and Management

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| Case 3 Critique | 21 July 2014 |

|

Pt 1 Strategy Formulation 1. Business and Corporate-level strategies a. Business-level strategies
Cost leadership strategy is utilized by Tata Motors, producing their goods in India at a low cost. The low costs of the Nano allowed consumers to own a vehicle when there was no way prior.

b. Corporate-level strategies
Tata Motors possess over 90 establishments in 80 countries. The globally owned organization allows for a large amount of diversification.

4 P’s framework-product, price, place, promotion

a. Position: The mission is to provide vehicles that will appeal to the global consumer. Values of Tata Motors are customer satisfaction, innovation and integrity, while the vision is to have a valued product and provide excellent service. b. Priority: Priorities include low cost, quality vehicle, expand the product line to include a luxury vehicle, and to increase capacity globally. c. Payment: Investment of a Spain organization to gain shares and technology as well as merge with Jaguar/Land Rover to produce a luxury vehicle. d. Performance: Improve image of the organization and to increase profits as expansions continue to grow globally.

Key Questions

Key Questions | Option | Decision Criteria | Pros | Cons | Purchase of HCPurchase of JLR | Purchase shares, brand rights and technologyTo add a luxury line to the products | Market/competitionCost/benefitsMarket/competitionCost/benefits | Increase product line, add safety features to vehicleTechnology/Rights/Brand | Global employees/customersDebtNegotiation with UnionGlobal employees/customers. |

Discuss Pros and Cons
Each option possess pros and cons, however the JLR purchase presents itself as more risky because of the needed loan/debt to make the purchase. To put the organization more at risk is the fact that other organizations have tried...

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