SWOT Analysis of Tata

A detailed analysis of Tata and its SWOT Analysis.

1. COMMERCE PROJECT TERM - 1 . TOPIC :- Conduct SWOT Analysis of a Business Firm.

2. What is SWOT analysis ?

3. SWOT Analysis is a  strategic planning  and strategic management technique used to help a person or organization identify Strengths, Weaknesses, Opportunities, And Threats related to business competition or project planning. It is also known as Situational Assessment or Situational Analysis.

4. A SWOT analysis is a compilation of your company's Strengths, Weaknesses, Opportunities And Threats. The primary objective of a SWOT analysis is to help organizations develop a full awareness of all the factors involved in making a business decision.

5. Perform a SWOT analysis before you commit to any sort of company action, whether you are Exploring New Initiatives, Revamping Internal Policies, Considering Opportunities To Pivot or Altering A Plan Midway Through Its Execution. Use your SWOT analysis to Discover Recommendations and strategies, with a Focus On Leveraging Strengths And Opportunities to Overcome Weaknesses And Threats .

6. The SWOT Analysis consists of following four factors: STRENGTHS : Strengths are the Qualities that enable us to Accomplish The Organization’s Mission. These are the basis on which continued success can be made and continued/sustained. Strengths are the Beneficial Aspects Of The Organization or the Capabilities of an organization, which includes Human Competencies , Process Capabilities , Financial Resources , Products And Services , Customer Goodwill and Brand Loyalty.

7. 2. WEAKNESSES : Weaknesses are the Qualities That Prevent us from Accomplishing our Mission And Achieving our Full Potential. These weaknesses deteriorate influences on the organizational success and growth. Weaknesses in an organization may be Depreciating Machinery, Insufficient Research And Development Facilities, Narrow Product Range, Poor Decision-making, etc. Weaknesses are controllable. They must be Minimized And Eliminated.

8. OPPORTUNITIES : Opportunities arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it To Become More Profitable. Organizations can Gain Competitive Advantage by making use of opportunities. Opportunities may arise from Market, Competition, Industry/Government And Technology.

9. 4. THREATS : Threats arise when conditions in external environment jeopardize the reliability and profitability of the organization’s business. They compound the vulnerability when they Relate To The Weaknesses . Threats are Uncontrollable. When a threat comes, the Stability And Survival Can Be At Stake.

10. Tata Group . 1. About Tata Group. 2. Financial Analysis of Tata Group. 3. SWOT Analysis of Tata Group.

11. 1. ( a ) About Tata Sons Pvt Ltd.

12. Tata Sons Private Limited  is the  Private Entity  and the  Owner Of Tata Group and Holds The Bulk Of Shareholding In The Tata Group Of Companies Including Their Land Holdings Across India, Tea Estates And Steel Plants. It is a privately owned conglomerate of nearly 100 companies encompassing several primary business sectors like: Chemicals, Consumer Products, Energy, Engineering, Information Systems, Materials, And Services. 

13. Tata Sons Private Limited was established as A Trading Enterprise In 1868 by Jamsedji Tata , and engaged primarily in the lucrative opium and tea trade with Mongolia and China before moving from conducting businesses directly to becoming the principal holding company of Tata Group.

14. About 66%* of the Equity Capital of Tata Sons is held by Philanthropic Trusts endowed by members of the Tata Family. The Biggest Two of these trusts are the  Sir Dorabji Tata Trust And Sir Ratan Tata Trust. *in the pie only two biggest trust [53%] are mentioned. Other smaller trust sum up to 66% are not included.

15. 1. (b). ABOUT TATA GROUP.

16. Tata Group is an Indian multinational conglomerate headquartered in Mumbai. Founded in 1868 by Jamshedji Tata , the group gained international recognition after purchasing several global companies. It is One Of The Biggest And Oldest industrial groups in India.   Each Tata company operates independently under the guidance and supervision of Its Own Board Of Directors And Shareholders. The Tata Group is a business organisation owned by the Tata Sons PVT LTD.

17. Significant affiliates of Tata Group includes:- Air India. Tata Steel. Tata Communications. Tata Chemicals. Tata Consultancy Services. Tata Motors. Tanishq. Voltas . And many more.

18. Following Dorab’s death in 1932, Sir Nowroji Saklatwala became the group’s chair. Six years later Jehangir Ratanji Dadabhoy Tata (J.R.D.) took over the position. His continued expansion of the company into new sectors—such as chemicals (1939), technology (1945), cosmetics(1952), marketing, engineering, and manufacturing (1954), tea (1962), and software services (1968)—earned Tata Group international recognition. In 1945 Tata Group established the Tata Engineering and Locomotive Company (TELCO) to manufacture engineering and locomotive products; it was renamed Tata Motors in 2003.  In 1991 J.R.D.’s nephew, Indian business mogul Ratan Tata, succeeded him as chairman of the Tata Group. Upon assuming leadership of the conglomerate, Ratan aggressively sought to expand it, and increasingly he focused on globalizing its businesses.

19. Upon assuming leadership of the conglomerate, Ratan aggressively sought to Expand It , and increasingly he focused on Globalizing Its Businesses . In 2000 the group acquired London-based Tetley Tea , and in 2004 it purchased the truck-manufacturing operations of  South Korea’s Daewoo Motors. In 2001 Tata Group partnered with American International Group, Inc. (AIG) to create the insurance company Tata-AIG. In 2007 Tata Steel completed the biggest corporate takeover by an Indian company when it acquired the giant Anglo-Dutch steel manufacturer Corus Group . The following year the company made headlines worldwide when it ventured into the automotive industry. On January 10, 2008 , Tata Motors officially launched the Nano, a tiny, rear-engine, pod-shaped vehicle that eventually sold at a base price equivalent to $1,500 to $3,000. 

20.   Tata Motors purchased the elite British brands Jaguar And Land Rover From The Ford Motor Company In 2008 . Four years later Ratan Tata retired and was succeeded by   CYRUS MISTRY. Mistry was abruptly dismissed as chairman in October 2016 —reportedly over disagreements with members of the Tata family regarding business strategy —and Ratan returned to the position on an interim basis. Ratan’s second stint as chairman ended in January 2017 when NATARAJAN CHANDRASEKARAN was appointed to the position .

21. 2 . Financial Analysis Of Tata Group.

22. PROFIT AND LOSS STATEMENT.

23. Particulars Amount in 2021 [in ₹ Cr.] Amount in 2020 [in ₹ Cr.] Revenue From Operations: (a.) Revenue. 46,559.39 43,485.76 (b.) Other Operating Revenue. 472.08 442.41 1. Total Revenue From Operations 47,031.47 43,928.17 2. Other Incomes. 842.96 1,383.05 TOTAL INCOME. 47,874.43 45,311.22

24. PARTICULARS . Amount in 2021 [in ₹ Cr.] Amount in 2020 [in ₹ Cr.] Expenses : (a.) Cost of Materials Consumed. 30,010.61 26,171.85 (b.) Purchase of Goods for Sale. 5,490.667 5,679.98 (c.) Change in Inventories of Finished Goods, Work-In-Progress and Product Sales. 69.02 722.68 (d.) Employee Benefits Expenses. 4,212.99 5,384.31 (e.) Finance Cost. 2,358.54 1,973.00 (f.) Foreign Exchange Loss (Net). 1.67 239.00 (g.) Depreciation and Amortization Expenses. 3,681.61 3,375.29 (h.) Product Development/ Engineering Expenses. 907.64 830.24 (i.) Other Expenses. 5,801.90 7,720.75 (j.) Amount Transferred to Capital & Other A/C. (817.53) (1,169.46) TOTAL EXPENSES. 51,579.08 49,927.64 PROFIT/ (LOSS) BEFORE EXCEPTIONAL ITEMS AND TAX (3,704.65) (4,616.42)

25. PARTICULARS. Amount in 2021 [in ₹ Cr.] Amount in 2020 [in ₹ Cr.] EXCEPTIONAL ITEMS: (a.) Employee Separation Cost. 215.97 2.69 (b.) Write off/provision (reversal) for tangible/intangible assets (including under development). 114.00 (73.03) (c.) Provision/(reversal) for loan given to/investment and cost of closure in subsidiary companies/joint venture (net). 123.36 385.62 (d.) Impairment losses/(reversal) in passenger vehicle business. (1,182.21) 1,419.64 (e.) Provision/(reversal) for Onerous Contracts and related supplier claims. (663.00) 777.00 PROFIT/ (LOSS) BEFORE TAX. (2,312.57) (7,127.34)

26. PARTICULARS. Amount in 2021 [in ₹ Cr.] Amount in 2020 [in ₹ Cr.] TAX EXPENSES [NET]. (a.) Current Tax. 82.31 33.05 (b.) Deferred Tax. 0.56 129.24 TOTAL TAX EXPENSES. 82.87 162.29 Profit/(loss) for the year from continuing operations (VII-VIII) (2,395.44) (7,289.63)

27. Profit/(loss) for the year from continuing operations (VII-VIII) PARTICULARS. Amount in 2021 [in ₹ Cr.] Amount in 2020 [in ₹ Cr.] Total other comprehensive income/ (loss), net of taxes. 442.99 (378.72) Total comprehensive income/ (loss) for the year (1,972.47) (7,668.25) Earnings / (loss) Per Share. (a.) Ordinary Shares with Face Value of ₹ 2 each. i.) Basic. (6.59) (21.06) ii.) Diluted. (6.59) (21.06 ) (b.) ‘A’ Ordinary shares with face value of ₹ 2 each. i.) Basic. (6.59) (21.06) ii.) Diluted. (6.59) (21.06 )

28. BALANCE SHEET.

29. PARTICULARS. Amount in 2021 [in ₹ Cr.] Amount in 2020 [in ₹ Cr.] ASSETS 1.) NON-CURRENT ASSETS. 1. Property, plant and Equipment. 19,153.47 18,870.67 2. Capital Work in Progress. 1,400.82 1,755.51 3. Right of use Asset. 768.59 669.58 4. Goodwill. 99.09 99.09 5. Other Intangible Assets 6,401.95 5,538.64 6. Intangible Assets under Development. 1,605.64 2,739.29 7. Investments in Subsidiaries & Joint Ventures. 15,147.26 15,182.29 8. Financial Assets. a. Investments. 967.65 548.57 b. Loans & Advances. 126.05 138.46 c. Other Financial Assets. 1,631.83 1,512.96 9. Non-Current Tax Assets. 715.31 727.97 10. Other Non-Current Assets. 1,187.41 1,208.08 49,205.07 49,021.11

30. PARTICULARS. Amount in 2021 [in ₹ Cr.] Amount in 2020 [in ₹ Cr.] 2. CURRENT ASSETS. 1. Inventories. 4,551.71 3,831.92 2. Financial Assets. a. Investments. 1,578.26 885.31 b. Trade Receivables. 2,087.57 1,978.06 c. Cash & Cash Equivalents. 2,365.54 2,145.30 d. Bank Balance [other than(c.)] 1,953.40 1,386.89 e. Loans & Advances. 185.42 232.14 f. Other Financial Assets. 1,745.06 1,546.57 3. Assets Classified as Held for Sale. 220.80 191.07 4. Other Current Assets. 1,166.89 1,371.51 15,854.59 13,568.76 TOTAL ASSETS. 65,059.66 62,589.87

31. PARTICULARS. Amount in 2021 [in ₹ Cr.] Amount in 2020 [in ₹ Cr.] EQUITY 1.) Equity Share Capital. 765.81 719.54 2.) Other Equity. 18,290.16 17,668.11 19,752.14 18,391.40

32. PARTICULARS. Amount in 2021 [in ₹ Cr.] Amount in 2020 [in ₹ Cr.] LIABILITIES. 1.) NON-CURRENT LIABILITIES . 1.) Financial Liabilities. a.) Borrowings. 16,326.77 14,776.51 b.) Lease Liabilities. 593.74 522.24 c.) Other Financial Liabilities. 659.64 854.74 2.) Provisions. 1,371.94 1,769.74 3.) Deferred Tax Liabilities (Net). 266.50 198.59 4.) Other Non-Current Liabilities. 533.55 269.58 19,752.19 18,391.40

33. PARTICULARS. Amount in 2021 [in ₹ Cr.] Amount in 2020 [in ₹ Cr.] 2. CURRENT LIABILITIES. 1.) Financial Liabilities. a.) Borrowings. 2,542.50 6,121.36 b.) Lease Liabilities. 96.47 83.30 c.) Trade Payables. i.) Total outstanding dues of small enterprises 167.23 101.56 ii.) Total outstanding dues(excluding i) 7,947.78 8,000.69 d.) Acceptances. 7,873.52 2,741.69 e.) Other Financial Liabilities. 4,255.57 5,976.35 2.) Provisions. 1,043.54 1,406.75 3.) Deferred Tax Liabilities (Net). 37.84 31.49 4.) Other Current Liabilities. 2,287.50 1,347.63 26,251.55 25,810.82 TOTAL EQUITY & LIABILITIES 65,059.66 62,589.87

34. 3. SWOT Analysis Of Tata Group.

35. SWOT Analysis of the Tata Group is as follows:

36. 1. STRENGTHS Sublime Performance in New Markets-   Tata has constructed an ability at going to new business sectors and making them. The augmentation has helped the relationship with building new revenue sources and growing the monetary cycle peril in the business areas it works in . Strong Distribution Network-   Over the years Tata has built a reliable distribution network that can reach the majority of its potential market . Strong Dealer Community-  It has assembled a culture among wholesalers and sellers where the vendors advance the organization’s items as well as put resources into preparing the outreach group to reveal to the client how he/she can discrete the most extreme advantages out of the items .

37. Reliable Suppliers-   It has a solid base of dependable providers of unrefined substance in this way empowering the organization to conquer any inventory network bottlenecks . Strong Brand Portfolio-   Over the years Tata has invested in building a strong brand portfolio. The SWOT analysis of Tata simply underlines this reality. This brand portfolio can be amazingly valuable assuming the association needs to venture into new item classifications .

38. 2. WEAKNESSES. Organization Structure-   The organizational structure is only viable with the current plan of action accordingly restricting development in contiguous item fragments. Demand Forecasting-   Feeble product demand forecasting leads to a higher rate of missed opportunities compare to its competitors. One reason why the day’s stock is highly contrasted with its rivals is that Tata isn’t generally excellent at request anticipation and this winds up keeping higher inventory both in-house and in the channel . Financial Planning-   Financial Planning is not done properly and efficiently. The current asset ratio and liquid asset ratios propose that the organization can utilize the money more efficiently than what it is doing as of now.

39. High Attrition Rate In Work Force – Compared to other organizations in the industry Tata has a higher attrition rate and have to spend a lot more compare to its competitors on training and development of its employees . Inefficient Demand Forecasting – One of the reason why the days inventory is high compare to its competitors is that Tata is not very good at demand forecasting thus end up keeping higher inventory both in-house and in channel.

40. 3. OPPORTUNITIES. Further Development  – The market development will lead to dilution of competitors’ advantages and enable Tata to increase its competitiveness compared to the other competitors . Expansion  – Economic uptick and expansion in client spending, following quite a while of the downturn and slow development rate in the business, is a chance for Tata to catch new clients and increment its market share . Transportation Cost  – Diminishing the expense of transportation as a result of lower delivery costs can likewise cut down the expense of Tata’s items along these lines giving a chance to the organization – either to support its productivity or give the advantages to the clients to acquire a portion of the overall industry. 

41. New Emerging Trends – New trends in the consumer behavior can open up new market for the Tata . It provides a great opportunity for the organization to build new revenue streams and diversify into new product categories too . Stable & Free Cashflow: Stable free cash flow provides opportunities to invest in adjacent product segments. With more cash in bank the company can invest in new technologies as well as in new products segments. This should open a window of opportunity for Tata in other product categories.

42. 4. THREATS. Upgradation Of Competitors-   New upcoming technologies developed by their competitor or market disruptor could be a serious threat to the different industries in the medium to long term future. Expanding Patterns – Expanding patterns toward noninterference in the American economy can prompt comparable responses from different state-run administrations consequently contrarily affecting global deals.  Off-Season- The demand for highly profitable products is seasonal in nature and any unlikely event during the peak season may impact the profitability of the company in the short to medium term .

43. Political Environment-   As The Organization is working in various nations it is presented to money changes particularly given the unstable political environment in various business sectors across the world .   Extraordinary Rivalry-   Stable productivity has expanded the number of players in the business in the course of the most recent two years which has come down on benefit as well as on overall sales .

44. Conclusion. After research and analysis of this project, I conclude that Tata Group is in an Elite Industrial League that will prosper along with the country. It has the caliber of achieving further successful goals having the labor force as well as the resources are used in correct ways. That will lead to grabbing the Opportunities with its Strengths and having no Threats and Weaknesses.

45. Presented by: Harsh Kataria 12 th Lily [Commerce] Thank You.