...Tata Motors Case Jordan Jenkins Professor Watson University of Rio Grande 11/14/2013 Tata Motor case Economic characteristics Describe the economic characteristics of the global motor vehicle industry. The past five years were tumultuous for the Global Car and Automobile Manufacturing industry. The price for fuel and other growing concerns have shifted consumer’s preferences away from big pickup truck to more fuel efficient cars. Some automakers embraced the change by expanding their small-car portfolios and diversifying into the production of hybrid electric motor vehicles. Other automakers were more reluctant to shift their focus from big to small cars, expecting the price of fuel to contract eventually, bringing consumers back to the big-car fold. When fuel prices did fall during the second half of 2008, it was due to the US financial crisis ripping through the global economy. The meltdown began when a debt binge overwhelmed many US consumers and businesses. This had a domino effect throughout the developed and emerging worlds, with many Western nations following the United States into recession. The Global Car and Automobile Manufacturing industry is deemed to have a low level of market share concentration. There are several major automotive companies across the globe, each with a significant share of the market, but concentration has been declining over the past five years as firms in emerging economies ramp up production a good example would be Tata in India. ...
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...Tata Motors 1. Describe the economic characteristics of the global motor vehicle industry. The characteristics of the global motor vehicle industry are a boom in certain places and a bust in others all due to economic conditions in different nations. Four years after tow of Detroit Michigan’s big three went into bankruptcy American car makers are going “full throttle” with sales in August hitting an annual rate that if substantiated can take them back over 16 million and that is a rate that was last hit before the economic crisis and 80% higher than 2009 when GM and Chrysler went into bankruptcy. The opposite is happening in Europe being in its sixth year slump now and with a weak economy, high petroleum prices and an aging population being weighing factors on mass market car makers. This has led to cost cutting and over capacity for European car makers. This seems to be a trend worldwide as well as car makers are depending on there luxury brands to make them profitable. Tata has seen a profit due to Jaguar and Land Rover surging there net sales up 71% to 566 million dollars and raising revenues 31% to 568.82 billion rupees. This came dispute as the company said “a weak operating environment in the India business which was more than offset by increasing wholesale volumes and richer product and market mixes at JLR”. This is similar to Renault depending on Nissan and sales of cars produced in low cost factories in Romania to cover domestic losses. Mercedes and BMW are generating...
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...TATA MOTORS FY 2014 Performance Overview: GLOBAL ECONOMY: The global economic situation showed signs of strengthening, with US economy speeding up, but the environment in the Euro zone remained weak with some early signs of improvement. GDP growth in China and India were low as compared to the high growth rates in the past. GLOBAL AUTO INDUSTRY: US, China and Europe The global auto industry recorded a surge in sales with impressive growth, with strong demand in the world’s top two automobile markets – China and the US. The automotive industry in the US came back to strength, supported by low interest rates and improving consumer sentiment. Sales in China, the world’s largest auto market since 2009 crossed the 20 million cars mark. In Europe there were some early signs of recovery, but with high levels of unemployment, a clear turnaround was not visible. Consumer behaviour in that region remains cautious. Indian Auto Industry: India’s GDP growth continued to be below 5%, while, Industrial remained negative. Consequently, the Indian auto industry witnessed a decline in both passenger vehicles and in commercial vehicles segment by 4.7% and 22.4% respectively. For most of last year, the economy was hamstrung by rising inflation and high interest rates, leading to relatively low consumer interest. However, reduction in excise duty later in the year did help in recovery of sentiment, to a limited extent. TATA MOTORS GROUP: The Tata Motors Group recorded a 22.2% growth...
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...Tata Motors Limited is India's largest automobile company, with consolidated revenues of INR 1,23,133 crores (USD 27 billion) in 2010-11. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is the world's fourth largest truck and bus manufacturer. The company's over 25,000 employees are guided by the vision to 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 indeed cuts across the length and breadth of India. Over 6.5 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad (Karnataka). 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 company's dealership, sales, services and spare parts network comprises over 3,500 touch points; Tata Motors also distributes and markets Fiat branded cars in India. Tata Motors, the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company...
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...Tata Motors: Can it become a global contender in the automotive industry? Executive Summary The objective of this report is to provide an analysis of Tata Motors’ current strategies and a detailed inspection of the financial situation, the company’s strengths, weaknesses, opportunities and threats and the competitive nature of the car market in order to make a recommendation as to whether or not it is in Tata Motors best interests, to propel itself into the global automotive industry at this point in time. On close inspection there were three key issues identified. Firstly the financial condition of the company is analysed to determine the viability of an expansion into the global automotive industry. Secondly the safety issues & standards of the vehicles produced, particularly related to the Tata Nano need to be addressed, and thirdly the detailed market research to be undertaken by Tata Motors in relation to the competitive needs and expectations of the motoring public in countries Tata Motors is trying to move into eg. United States and Europe when it comes to passenger cars as well as ability to continue to effectively capture the Jaguar and Land Rover markets globally, along with their bus and truck range which are strong in India but not as strong in other countries. Economic conditions not only in India but globally are a consideration for Tata Motors. As of 2012 India was the 7th largest nation in area, the second most populous country on earth with...
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...Tata entered the commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz of Germany. After years of dominating the commercial vehicle market in India, Tata Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra, a multi utility vehicle. After the launch of three more vehicles, Tata Estate (1992, a stationwagon design based on the earlier 'TataMobile' (1989), a light commercial vehicle), Tata Sumo (LCV, 1994) and Tata Safari (1998, India's first sports utility vehicle). Tata launched the Indica in 1998, the first fully indigenous Indian passenger car. Although initially criticised by auto-analysts, its excellent fuel economy, powerful engine and an aggressive marketing strategy made it one of the best selling cars in the history of the Indian automobile industry. A newer version of the car, named Indica V2, was a major improvement over the previous version and quickly became a mass-favorite. Tata Motors also successfully exported large quantities of the car to South Africa. The success of Indica played a key role in the growth of Tata Motors.[7] In 2004 Tata Motors acquired Daewoo's South Korea-based truck manufacturing unit, Daewoo Commercial Vehicles Company, later renamed Tata Daewoo.[8] In 2005, Tata Motors acquired a 21% controlling stake in the Spanish bus and coach manufacturer Hispano Carrocera.[9] Tata Motors continued its market area expansion through the introduction of new products such as buses (Starbus & Globus...
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...Marketing Management-1 Project: Tata Motors ------------------------------------------------- Submitted by- ------------------------------------------------- Ranjith Narayanan 0315/52 ------------------------------------------------- Ritesh Kumar 0325/52 ------------------------------------------------- Saahil Nagrani 0335/52 ------------------------------------------------- Sandeep Kumar Pal 0345/52 ------------------------------------------------- Sarthak A Nayak 0355/52 ------------------------------------------------- Shah Yash Virajbhai 0365/52 ------------------------------------------------- Shrey Chaturvedi 0375/52 INDEX Contents | Page no. | Pestel analysis | 2 | porter’s five forces analysis | 9 | STP Analysis | 12 | product portfolio | 16 | Distribution Channels | 22 | curious case of tata nano | 25 | conclusion | 28 | references | 30 | PESTEL ANALYSIS Political ENVIRONMENT:- TATA motors with more than 60,000 employees is plying more than 8million vehicles on Indian roads. It is operating in multiple countries across Europe, Asia, Africa, Middle East and Australia. Because of this it needs to pay a close attention to political climate across the world. Government policies like labor laws, corporate laws, land acquisition, import duties and exports laws have a deep impact on the working of the manufacturing giant, TATA motors. TATA motors has been involved in Singur plant controversy. TATA wanted to build a plant in Hoogly...
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...for TATA Motors TATA motors are one of the leading motor vehicle producers in the world. TATA motors have strong background and reputation in the market. The company is working to strengthen its position in automobile industry by adopting different strategies. Following are the strengths, weaknesses, opportunities and strengths of TATA motors. Strengths TATA Motors is one of the leading companies in automobile industry with more than 70 years of experience. During this period it had produced more than 3 million vehicles which is huge achievement for the company. TATA motors have been expanding its business which is obviously requiring more workforces. Currently TATA motors employee base is 23,000 Approx. One of the strengths which is very visible in the industry and also beneficial for TATA motors revenue are low price vehicles and low fuel consumption. Due to TATA motors strong brand and quality vehicles it has good reputation in the industry. It is India largest automobile company with revenues of Rs. 35651.48 crores (USD 8.8 billion) in 2007-08. TATA motors are expanding its network in International market by aggressively acquiring foreign companies. TATA motors has been famous to introduce new vehicles, this is possible just because of the strong research and development. TATA motors also play active role in corporate and social responsibility. Weaknesses There are strings attached with every new invention and improvement on products. These strings are Tata Motors weaknesses...
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...Giovanni Chirico By: Leyla Cabrera Alejandro Caravaca Giovanni Chirico Tata Motors Limited is India's largest automobile company and the fourth commercial vehicles, with revenues of INR 1,88,818 Crores (USD 34.7 billion) in 2012-13. It is one of the largest truck manufacturer and bus manufacturer in the world. The Tata Motors Group's over 60,000 employees are guided by the mission "to be passionate in anticipating and providing the best vehicles and experiences that excite our customers globally." The company is present in over 120 countries around the world. Tata Motors Limited is India's largest automobile company and the fourth commercial vehicles, with revenues of INR 1,88,818 Crores (USD 34.7 billion) in 2012-13. It is one of the largest truck manufacturer and bus manufacturer in the world. The Tata Motors Group's over 60,000 employees are guided by the mission "to be passionate in anticipating and providing the best vehicles and experiences that excite our customers globally." The company is present in over 120 countries around the world. TATA Motors Analysis TATA Motors Analysis Company Tata Motors belongs to the Group of companies Tata, one of the nine holding largest in the world, with more than 350,000 employees, presence in more than 120 countries and products as diverse as food industry, telecommunications, information technology and various industrial activities. Tata Motors is today the most important automotive brand of the India and fourth the...
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...Poor brand image of the TATA Nano -------------------------------------------- 5 2.3 Unnecessary Expenses --------------------------------------------------------------- 6 3. Analysis ------------------------------------------------------------------------------------------- 7 3.1 Alarming attrition rate of executives ------------------------------------------- 8 3.2 Poor brand image of the TATA Nano ------------------------------------------ 9 3.3 Unnecessary Expenses 4. Criteria of Evaluation ------------------------------------------------------------------------ 10 5. Alternatives ------------------------------------------------------------------------------------- 11 5.1 Managing Employees’ motivation in challenging times -------------------- 12 5.2 Reduce attrition rate by increasing salary --------------------------------------- 13 5.3 Managing perceptions and TATA Nano ----------------------------------------- 14 5.4 False perceptions by means of prestige pricing ----------------------------- 15 5.5 Reducing costs by relocating production lines ------------------------------ 16 5.6 Country of origin effect --------------------------------------------------------------- 17 6. Recommendations and Justifications ------------------------------------------------- 18 6.1 Managing Employees’ motivation in challenging times -------------------- 18 6.2 Managing perceptions and TATA Nano ------------------------------------------...
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...Crafting a Compelling Employee Value Preposition for Tata Motors This case has been prepared by Tata Motors Corporate HR for TML Case study competition- ‘Mind Rover’. This case study is recommended for being used for the ‘Mind Rover’ case study competition only and does not illustrate either correct or incorrect handling of an administrative situation. No part of this case can be used, reproduced or distributed in any manner without the approval of Tata Motors. Crafting a Compelling Employee Value Preposition for Tata Motors 2 As a part of his induction Prabir had visited Tata Motors’ manufacturing & assembly plants in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad and Pune. He met employees at not just these manufacturing units but also the sales and marketing offices across the country and the R&D centres. “I think we are doing just the right things that any company should. However, I find one best practice in one location is very different from how it is practiced in another location. As someone who is still new to the culture, I am still to discover ‘One Tata Motors’ way of doing things when it comes to employee initiatives”. He had commented. Having said that, the average attrition rate of 9%, was way below the industry average of 13.3%. There were employees who had been in the system for 24 to even 35 years and they carried a lot of tacit knowledge. This needed to be transferred and documented for the next gen. What bothered Prabir was there were still some quarters...
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... Tata Motors Ltd) is a corporation headquartered in Mumbai, India. Part of the Tata Group, it was formerly known as TELCO (TATA Engineering and Locomotive Company). Tata Motors is India¶s largest automobile company, with consolidated revenues of USD 20 billion in 2009-10. It is the leader in commercial vehicles. and among the top three in passenger vehicles. Tata Motors has products in the compact, midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer, the world's second largest bus manufacturer, and employs 24,000 workers. Since first rolled out in 1954, Tata Motors has produced and sold over 4 million vehicles in India.[ In this report we will discuss the various methods of analysis by means of which Tata Motors analysises its business environment. THE method used for analysis are- I. PEST Analysis In PEST analysis various Political,Economic,Social,Technological factors which affect the business are identified and analysed In addition to this Portar’s Five forces which are basically threats to the business are identified and analysed. TATA NANO INTRODUCTION The Tata Nano is an inexpensive, rear-engined, four-passenger city car built by the Indian company Tata Motors and is aimed primarily at the Indian domestic market. Tata Motors began selling...
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...Tata motors has two major market segment that it aims to penetrate with its line of vehicle that it produces. One target is the low income families and individuals looking to purchase a first car. This target group mostly concentrates itself in the developing nations such as China and India, Tata’s own home country. Tata’s offering of models such as the Nano and the Indica caters for this segment. This target segment also has been the most widely publicized target of Tata Motors. The other segment Tata targets is on the complete opposite side of the economic spectrum. This target segment also has been the most widely publicized target of Tata’s. Tata’s second target segment is the wealthy individuals and families looking to purchase luxurious cars. Tata targets this group with their offering of Land Rover and Jaguar lines of automobiles. Both of these highly recognized and respected brand name vehicles were recently acquired by Tata from Ford Motors in 2008. In order to cater itself to two such divergent groups, Tata motors offers different value proposition to each. The value proposition it offers to the first group, the low income individuals and families, is to offer a line of vehicles that are affordable while still being safe. This value proposition was clearly evident and communicated when the Nano was announced for release in 2009. However, since then the Nano has become somewhat of publicity nightmare for Tata as it failed to deliver these proposed value propositions...
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...Just call 1 800 209 7979.WHEREVER When you have a road network that spans 33,13,769 kms., the probability of a breakdown happening within hailing distance of a Tata Authorized Workshop is very low. It is precisely for this reason that Tata Motors have tied up with MyTVS, who will provide breakdown assistance including towing to the nearest Tata Authorized dealer workshop or Tata Authorized Service centre through their Authorised Service Provider (ASP).WHENEVER A breakdown does not come by appointment, nor does it respect working hours. We know how it feels, when you are stuck in the middle of a road, with no one to turn to. That is the reason Tata Motors has introduced 24x7 On Road Assistance Program. We are now on standby mode to offer you quality assistance – day and night.Response Time** Within City Limits | 60 minutes | On State or National Highways | 90 minutes | Ghat Roads and other places | 120 minutes +/- | (The response time will depend on the location,terrain, traffic density and the time of the day.) | The On Road Assistance program will be automatically available to all new Tata passenger vehicles purchased on or after February 1st 2009 for the duration of warranty period. The program shall also be available for extended warranty period for such customer who have opted for extended Warranty on new Tata vehicles bought after this dateStandard procedure when calling for On Road Assistance In case of a breakdown: * Dial the toll free help line number – 1 800 209...
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...| | | Tata Motors, Ltd., the automobile division of the global conglomerate the Tata Group, was India’s leading commercial vehicle manufacturer and the third largest passenger vehicle maker in 2012; culminating into unprecedented growth in several areas and, as mentioned in the case study presented by Turnipseed and Gamble of The University of South Alabama, helped to make Tata India’s highest revenue generating automobile company (as cited in Thompson, Peteraf, Gamble, & Strickland, 2013, p. C-246). In the international marketplace, Tata is also very competitive, particularly in China and emerging economies such as Brazil and several countries in Africa. Although the company’s 2012 annual report, along with the analysis conducted by Turnipseed and Gamble, provide an optimistic view of the company’s long-term fiscal health and ability to continue to compete; further research and analysis indicate several challenges and a variety of obstacles for Tata to overcome if it is to become “a global contender in the automobile industry.” The case study that follows offers insight into the macroeconomic environment in which Tata operates, specifically in India, the competitive forces applying pressure on, not just Tata, but the global auto industry as a whole and, finally, a brief analysis of the firm’s financial performance over the past five years. Subsequent to this, we shall uncover the key success factors for Tata and its core competencies and deficiencies; what...
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