Tata Motors Company Analysis Report 2015-2016

Comapny Analysis Report On Tata Motors 2015-2016

1. TATA MOTORS

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SHRI DHARMASTHALA MANJUNATHESHWARA COLLEGE OF
ENGINEERING AND TECHONOLOGY

(An Autonomous Institution Affiliated to VTU Belgaum)
Dharwad-580002, Karnataka

COMPANY ANALYSIS REPORT ON
TATA MOTORS


SUBMITTED BY:
RAGHUVEER BELLI (2SD15MBA31)
RAHUL V G (2SD15MBA32)

UNDER THE GUIDANCE OF
Mrs.SUPREETA M LAGALI
(Lecturer,Department of Management Studies)

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ACKNOWLEDGEMENT

With pleasure we are placing before you this report titled as “TATA MOTORS”.
I express my sincere thanks and heartful gratitude to professor Mrs. Supreeta Lagali department
of management SDMCET Dharwad, for her excellent and inspiring guidance and suggestions
through the repot work without her inspiring encouragement it would have been not possible for
us to bring out this report and giving us this opportunity, because it had been a very good attempt
to educate the youth regarding the report on company in a practical way, as we earlier studied in
theory, which makes us perfect in the subject.
We are very much greatful to professor Mr.Mdhusudhan K Vyapari(HOD of the Management
department) and also Dr. S.B. Vanakudre (principle of the college) for providing necessary
infrastructure facilities for preparing this report work.
Last but not the least, my sincere thanks to everybody who has helped us directly or indirectly
for the completion of this report work.

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Contents

Serial no particulars Page No
1) ORGANAZATIONAL PROFILE
1.1 REGISTERD NAME, LOCATION AND ADRESS OF THE COMPANY 6-7
1.2 NATURE OF BUISINESS 7-10
1.3 ORGANAZATIONAL STRUCTURE AND MAJOR ROLES 11-12
IN THE COMPANY
1.4 BRIEFE HISTORY OR MILESTONE OF THE COMPANY 13-17
1.5 OWNERSHIP PATTERN 18-19
1.6 VISION MISSION AND QUALITY POLICY OF THE COMPANY 20
1.7 BOARD OF DIRECTORS 21
1.8 AREA OF OPARATION 22-24

2) MARKETING STRATERGY
2.1 PRODUCT PORTFOLIO OF THE COMPANY 25
2.2 MARKETING MIX OF THE COMPANY 26-29
2.3 COMPETATOR ANALYSIS OF THE COMPANY 30-31
2.4 MARKET SHARE OF THE COMPANY 32-33

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3) FINANCIAL PROFILE
3.1 CAPITAL STRUCTURE 34-36
3.2 FINANCIAL STATEMENT 37-38

4) HUMAN RESOURCE PROFILE
4.1 SIZE OF THE ORGANAZATION IN TERM OF EMPOYEE 39
4.2 H R POLICY OF THE COMPANY 39-43

5) OPERATIONAL PROFILE
5.1 MANUFACTURING PROCESS OR DELIVERY MACHANISM 44
5.2 MAJOR RAW MATERIALS 45
5.3 MAJOR SUPPLIERS 45-46

6) STRATERGIC ANALYSIS
6.1 STRATERGY THE COMPANY FALLOWS TO DEFFERETIATE 47-48
FROM COMPETATORS
6.2 SWOT ANALYSIS OF THE COMPANY 49-51
6.3 MECKINYES 7S MODEL 52-53

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TATA MOTORS LIMITED

Phone: +(91)-22-66658282
Fax: [phone]
Bombay House, 24, Homi Modi Street,
Fort, Mumbai - 400001, Hutatma Chowk

Tata Motors Limited (formerly TELCO, short for Tata Engineering and Locomotive
Company) is an Indian multinationalautomotive manufacturing company headquartered
in Mumbai, Maharashtra, India, and a subsidiary of the Tata Group. Its products include
passenger cars, trucks, vans, coaches, buses, construction equipment and military vehicles. It is
the world's 17th-largest motor vehicle manufacturing company, fourth-largest truck
manufacturer, and second-largest bus manufacturer by volume.
[3]

Tata Motors has auto manufacturing and assembly plants
in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad, and Pune in India, as well as in
Argentina, South Africa, Thailand, and the United Kingdom. It has research and development
centres in Pune, Jamshedpur, Lucknow, and Dharwad, India and in South Korea, Spain, and the
United Kingdom. Tata Motors' principal subsidiaries purchased the British premium car
maker Jaguar Land Rover (the maker of Jaguar, Land Rover, and Range Rover cars) and the
South Korean commercial vehicle manufacturer Tata Daewoo. Tata Motors has a bus-
manufacturing joint venture with Marcopolo S.A. (Tata Marcopolo), a construction-equipment
manufacturing joint venture with Hitachi (Tata Hitachi Construction Machinery), and a joint
venture with FiatChrysler which manufactures automotive components and FiatChrysler and
Tata branded vehicles.
Founded in 1945 as a manufacturer of locomotives, the company manufactured its first
commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended in 1969.
Tata Motors entered the passenger vehicle market in 1991 with the launch of the Tata Sierra,
becoming the first Indian manufacturer to achieve the capability of developing a competitive
indigenous automobile.
[4]
In 1998, Tata launched the first fully indigenous Indian passenger car,
the Indica, and in 2008 launched the Tata Nano, the world's cheapest car. Tata Motors acquired

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the South Korean truck manufacturer Daewoo Commercial Vehicles Company in 2004 and
purchased Jaguar Land Rover from Ford in 2008.
Tata Motors is listed on the (BSE) Bombay Stock Exchange, where it is a constituent of the BSE
SENSEX index, the National Stock Exchange of India, and the New York Stock Exchange. Tata
Motors is ranked 287th in the 2014 Fortune Global 500 ranking of the world's biggest
corporations..




OPERATIONS:
Tata Motors has vehicle assembly operations in India, the United Kingdom, South Korea,
Thailand, Spain and South Africa. It plans to establish plants in Turkey, Indonesia, and Eastern
Europe..
Tata Motors Cars:

Tata Motors Cars is a division of Tata Motors which produces passenger cars under the Tata
Motors marque. Tata Motors is among the top four passenger vehicle brands in India with
products in the compact, midsize car, and utility vehicle segments. The company’s
manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra),
Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Dharwad (Karnataka) and Sanand (Gujarat).
Tata's dealership, sales, service, and spare parts network comprises over 3,500 touch
points.
[21]
Tata Motors has more than 250 dealerships in more than 195 cities across 27 states and
four Union Territories of India.
[22]
It has the third-largest sales and service network after Maruti
Suzuki and Hyundai.

Tata Hispano:

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Tata Hispano Motors Carrocera, S.A. was a bus and coach manufacturer based in Zaragoza,
Aragon, Spain, and a wholly owned subsidiary of Tata Motors. Tata Hispano has plants in
Zaragoza, Spain, and Casablanca, Morocco. Tata Motors first acquired a 21% stake in Hispano
Carrocera SA in 2005, and purchased the remaining 79% for an undisclosed sum in 2009,
making it a fully owned subsidiary, subsequently renamed Tata Hispano. In 2013, Tata Hispano
ceased production at its Zaragoza plant..






Jaguar Land Rover:

The Range Rover Evoque
Jaguar Land Rover PLC is a British premium automaker headquartered in Whitley, Coventry,
United Kingdom, and has been a wholly owned subsidiary of Tata Motors since June 2008, when
it was acquired from Ford Motor Company. Its principal activity is the development,
manufacture and sale of Jaguar luxury and sports cars and Land Rover premium four-wheel-
drive vehicles. It also owns the currently dormant Daimler, Lanchester, and Rover brands.
Jaguar Land Rover has two design centres and three assembly plants in the UK. Under Tata
ownership, Jaguar Land Rover has launched new vehicles including the Range Rover
Evoque, Jaguar F-Type, the Jaguar XF, the Jaguar XJ (X351 )the second-generation Range
Rover Sport, the fourth-generation Land Rover Discovery, and the Range Rover L405

TML Drivelines:
TML Drivelines Ltd. is a wholly owned subsidiary of Tata Motors engaged in the manufacture of
gear boxes and axles for heavy and medium commercial vehicles. It has production facilities at
Jamshedpur and Lucknow. TML Forge division is also a recent acquisition of TML Drivelines.
TML Drivelines was formed through the merger of HV Transmission and HV Axles .

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Tata Technologies:
Tata Technologies Limited (TTL) is an 86.91%-owned subsidiary of Tata Motors which
provides design, engineering, and business process outsourcing services to the automotive
industry. It is headquartered in Pune (Hinjewadi) and also has operations in Detroit, London,
and Thailand. Its clients include Ford, General Motors, Honda, and Toyota.
The British engineering and design services company Incat International, which specialises in
engineering and design services and product lifecycle management in the automotive, aerospace,
and engineering sectors, is a wholly owned subsidiary of TTL. It was acquired by TTL in August
2005 for ₹4 billion.

European Technical Centre:
The Tata Motors European Technical Centre (TMETC) is an automotive design, engineering,
and research company based at Warwick Manufacturing Group (WMG) on the campus of
the University of Warwick in the United Kingdom. It was established in 2005 and is a wholly
owned subsidiary of Tata Motors. It was the joint developer of the World Truck.
In September 2013, it was announced that a new National Automotive Innovation Campus would
be built at WMG at Warwick's main campus at a cost of £100 million. The initiative will be a
partnership between Tata Motors, the university, and Jaguar Land Rover, with £30 million in
funding coming from Tata Motors .
Joint ventures

Tata Marcopolo:

A Tata Marcopolo bus in use inChandigarh, India
Tata Marcopolo is a bus-manufacturing joint venture between Tata Motors (51%)
and the Brazil-based Marcopolo S.A. (49%). The joint venture manufactures and
assembles fully built buses and coaches targeted at developing mass rapid

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transportation systems. It uses technology and expertise in chassis and aggregates
from Tata Motors, and know-how in processes and systems for bodybuilding and
bus body design from Marcopolo. Tata Marcopolo has launched a low-floor city
bus which is widely used by Chandigarh, Kolkata, Chennai, Coimbatore, Delhi,
Hyderabad, Mumbai, Lucknow, Pune, Agra, Kochi, Trivandrum, and Bengaluru
transport corporations. Its manufacturing facility is based in Dharwad.




Fiat-Tata:
Fiat-Tata is an India-based joint venture between Tata and Fiat which produces Fiat and Tata
branded passenger cars, as well as engines and transmissions. Tata Motors has gained access to
Fiat’s diesel engine and transmission technology through the joint venture.
The two companies formerly also had a distribution joint venture through which Fiat products
were sold in India through joint Tata-Fiat dealerships. This distribution arrangement was ended
in March 2013; Fiats have since been distributed in India by Fiat Automobiles India Limited, a
wholly owned subsidiary of Fiat


Tata Hitachi Construction Machinery:
Tata Hitachi Construction Machinery is a joint venture between Tata Motors and Hitachi which
manufactures excavators and other construction equipment. It was previously known as Telcon
Construction Solutions...

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TATA MOTORS ORGANISATION CHART








Mr. Ravindra Pishrody
Executrive Directors of
Commmercial Vehicle
Mr. Mayank
President Passenger Vehicle
Purchase Unit
Mr. Satish Borwankay
Executive Director of Quality
Mr. C Ramkrishnan
President & Group Chief
Financial Officer
Dr. Timothy Liuerton
President & Head , Automated
Product Engineering
Mr. Ganjendra Chandela
Chief
Mr. Guenter Butschek
CEO & Managing Director

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Business Structure

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HISTORY:
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. Tata subsequently launched the Tata Estate (1992; a station wagon design based on the
earlier 'TataMobile' (1989), a light commercial vehicle), the Tata Sumo (1994; LCV) and the
Tata Safari (1998; India's first sports utility vehicle).
Tata launched the Indica in 1998, the first fully indigenous Indian passenger car. Although
initially criticized 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 favourite. Tata Motors also successfully
exported large numbers of the car to South Africa. The success of the Indica played a key role in
the growth of Tata Motors.
In 2004, Tata Motors acquired Daewoo's South Korea-based truck manufacturing unit, Daewoo
Commercial Vehicles Company, later renamed Tata Daewoo.

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BRIEF HISTORY/ MILESTONES OF THE COMPANY

It has been a long and accelerated journey for Tata Motors, India's leading automobile
manufacturer. Some significant milestones in the company's journey towards excellence and
leadership.

1945
 Tata Engineering and Locomotive Co. Ltd. was established to manufacture
locomotives and other engineering products.
1948
 Steam road roller introduced in collaboration with Marshall Sons (UK).
1954
 Collaboration with Daimler Benz AG, West Germany, for manufacture of medium
commercial vehicles. The first vehicle rolled out within 6 months of the contract.
1959
 Research and Development Centre set up at Jamshedpur.
1961
 Exports begin with the first truck being shipped to Ceylon, now Sri Lanka.
1966
 Setting up of the Engineering Research Centre at Pune to provide impetus to
automobile Research and Development.
1971
 Introduction of DI engines.
1977
 First commercial vehicle manufactured in Pune.
1983
 Manufacture of Heavy Commercial Vehicle commences.
1985
 First hydraulic excavator produced with Hitachi collaboration.
1986

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 Production of first light commercial vehicle, Tata 407, indigenously designed,
followed by Tata 608.
1989
 Introduction of the Tatamobile 206 - 3rd LCV model.
1991
 Launch of the 1st indigenous passenger car Tata Sierra.
 TAC 20 crane produced.
 One millionth vehicle rolled out.
1992
 Launch of the Tata Estate.
1993
 Joint venture agreement signed with Cummins Engine Co. Inc. for the
manufacture of high horsepower and emission friendly diesel engines.
1994
 Joint venture agreement signed with M/s Daimler - Benz / Mercedes - Benz for
manufacture of Mercedes Benz passenger cars in India.
 Joint venture agreement signed with Tata Holset Ltd., UK for manufacturing
turbochargers to be used on Cummins engines.
1995
 Mercedes Benz car E220 launched.
1996
 Tata Sumo deluxe launched.
1997
 Tata Sierra Turbo launched.
 100,000th Tata Sumo rolled out.
1998
 Tata Safari - India's first sports utility vehicle launched.
 2 millionth vehicle rolled out.
 Indica, India's first fully indigenous passenger car launched.
1999
 115,000 bookings for Indica registered against full payment within a week.

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 Commercial production of Indica commences in full swing.
2000
 Utility vehicles with Bharat 2 (Euro II) compliant engine launched.
 Indica 2000 (Euro II) with multi point fuel injection petrol engine launched.
2001
 Indica V2 launched - 2nd generation Indica.
 Indica V2 becomes India's number one car in its segment.
 Exits joint venture with Daimler Chrysler.
2002
 Unveiling of the Tata Sedan at Auto Expo 2002.
 Petrol version of Indica V2 launched.
 Launch of the EX series in Commercial vehicles.
 Launch of the Tata 207 DI.
 2,00,000th Indica rolled out.
 5,00,000th passenger vehicle rolled out.
 Launch of the Tata Sumo'+' Series
 Launch of the Tata Indigo.
 Tata Engineering signed a product agreement with MG Rover of the UK.
2003
 Launch of the Tata Safari Limited Edition.
 The Tata Indigo Station Wagon unveiled at the Geneva Motor Show.
 On 29th July, J. R. D. Tata's birth anniversary, Tata Engineering becomes Tata
Motors Limited.
 3 millionth vehicle produced.
 First CityRover rolled out
 135 PS Tata Safari EXi Petrol launched
 Tata SFC 407 EX Turbo launched
2004
 Tata Motors unveils new product range at Auto Expo '04.
 New Tata Indica V2 launched
 Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign investment agreement

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 Indigo Advent unveiled at Geneva Motor Show
 Tata Motors completes acquisition of Daewoo Commercial Vehicle Company
 Tata LPT 909 EX launched
 Tata Daewoo Commercial Vehicle Co. Ltd. (TDCV) launches the heavy duty
truck 'NOVUS' , in Korea
 Sumo Victa launched
 Indigo Marina launched
 Tata Motors lists on the NYSE
2005
 Tata Motors rolls out its 500,000 th Passenger Vehicle
 The Tata Xover unveiled at the 75th Geneva Motor Show
 Launch of Novus range of medium trucks in Korea, by Tata Daewoo Commercial
Vehicle Co. (TDCV)
2006
 Tata Motors unveils new long wheel base premium Indigo & X-over concept at
Auto Expo 2006
 Indica V2 Xeta launched
 Passenger Vehicle sales in India cross one-million mark
 Tata Motors and Marcopolo, Brazil, announce joint venture to manufacture fully
built buses & coaches for India & markets abroad
 Tata Motors introduces a new Indigo range

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OWNERSHIP PATTERN

CATEGORY OF SHAREHOLDER Total Number of
Shares
Percentage
ShareHolding (%)
Promoter
Indian Promoter 95,31,38,697 33.01
Foreign Promoter 0 0.00
Total Promoter 95,31,38,697 33.01
Non Promoter
Institutions
Mutual Funds / UTI 13,57,19,144 4.70
FI/Bank/Insurance 36,44,30,187 12.62
Govt 20,33,825 0.07
FII 68,26,10,449 23.64
Other 0 0.01
Total Institutions 1,18,47,93,605 41.04
Non-Institution
Bodies Corporate 1,29,53,787 0.45
Individuals (upto Rs. 1 lakh) 17,75,84,313 6.15
Individuals (in excess of Rs. 1 lakh) 1,00,01,232 0.35
NRIs/OCBs 1,19,56,059 0.41
Others 72,42,92,704 25.09
Total Non-Institution 74,92,02,550 25.95
Total Non Promoter 1,93,39,96,155 66.99

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CATEGORY OF SHAREHOLDER Total Number of
Shares
Percentage
ShareHolding (%)
Depository Receipts 0 0.00
Total 2,88,71,34,852 100.00

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MISSION,VISION&QUALITY POLICY


Mission Statement Of Tata Motors
To be passioniate in anticipating and provoiding the best vehicles and experiences that excite our
customers globally

Vision Statement Of Tata Motors
Most admired by our customers,employees,buisness partners and shareholders for the
experiences and value they enjoy from being with us.

Culture
> Accountability
> Customer & Product Focus
> Excellence
>Speed

Values
> Inclusion
>Integrity
>Accountability
>Customer
>Innovation
>Concern for environment
>Passion for excellence
>Agility

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TATA MOTORS BOARD OF DIRECTORS


Name Designation

Ratan N Tata
Chairman Emeritus

Guenter Butschek
Managing Director & CEO

Satish B Borwankar
Executive Director

R A Mashelkar
Ind. Non-Executive Director

N Munjee
Ind. Non-Executive Director

Falguni Nayar
Ind. Non-Executive Director

Name

Designation

Cyrus P Mistry

Chairman & Non-Exe.Director
Ravindra Pisharody

Executive Director
N N Wadia

Ind. Non-Executive Director
S Bhargava

Ind. Non-Executive Director
V K Jairath

Ind. Non-Executive Director
Ralf Speth Non Executive Director

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TATA MOTORS OPERATIONS

Domestic Operations:
Tata Motors continued to witness year-on-year growth in the M&HCV segment in February
2016, with a growth of 22%. Total sales of Tata Motors passenger and commercial vehicles
(including exports) were at 46,674 vehicles, higher by 6%, over 44,233 vehicles, sold in
February 2015. The domestic sale of Tata commercial and passenger vehicles for February 2016
were at 41,532 nos. higher by 3% over 40,322 vehicles sold in February 2015.
Cumulative sales (including exports) for the fiscal is at 458,654 nos., higher by 2% over 449,814
vehicles, sold last year.
Commercial Vehicles
In commercial vehicles, while M&HCV sales continued to grow at 14,872 nos., higher by 22%,
over February 2015, the Light & Small Commercial Vehicle sales has witnessed growth at
15,698 nos., higher by 10% over February 2015. The overall commercial vehicles sales for Tata
Motors in the domestic market at 30,570 nos., in February 2016, is an increase of 15%,
compared to 26,555 nos., in February 2015. This significant increase, has been enabled by the
growth in LCVs, supplementing the already prevailing MHCV growth. This is the third
consecutive month of growth in LCVs after many months, and if sustained, could see return of
growth in this segment, albeit on a low base.
Cumulative sales of commercial vehicles in the domestic market for the fiscal are at 288,895
nos., higher by 1% over last year. Cumulative LCV sales are at 150,472 nos., a decline of 13%
over last year, while M&HCV sales at 138,423 nos., were higher by 23%, over last year.
Passenger Vehicles
In February 2016, Tata Motors passenger vehicles sales were at 10,962 nos., a decline of 20%,
compared to 13,767 nos. The wholesales of passenger cars in February 2016 were lower by 21%
at 9,284 nos., compared to 11,805 nos., in February 2015 and the UV sales declined by 14% at
1,678 nos., in February 2016.

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International Operations:
With over 8.5 million Tata branded vehicles plying globally, Tata Motors is among the select
companies in the world to offer an extensive portfolio to its consumers. We have expanded our
international footprint through exports since 1961. In passenger vehicles, the company has a
strong presence in the hatchback and the sedan segment, going up to SUVs and MUVs. In
commercial vehicles, Tata Motors offers a wide spectrum of vehicles that are customized for
local conditions and meet the highest standards for quality, safety, environment norms and user
comfort. Today, the Tata Motors group is present in over 170 countries, with a worldwide
network comprising over 6,600 touch points. Tata Motors has R&D centres in UK, Italy, India
and South Korea. With vast global experience, the company brings deep understanding of
customer expectations from diverse markets, and is well positioned to cater to ever changing
autom
AFRICA:
In the continent of Africa, Tata Motors has significant presence in South Africa, Angola, Algeria,
Democratic Republic of Congo, Ghana, Kenya, Morocco, Mozambique, Nigeria, Seychelles,
Sudan, Tanzania, Tunisia, Uganda, Zambia and Zimbabwe. Africa has been a preferred
destination for Tata Motors since 1992. The roads of Africa are home to both left-hand and right-
hand drive versions of our cars, buses, SUVs and trucks. We have a manufacturing base in
Rosslyn, South Africa, which produces trucks ranging from 7 to 75 tonnes.otive norms and
consumer trends across the globe.
EUROPE:
Europe is the home of great automobile engineering and Tata Motors is proud to have a strong
presence here, through our design and development facilities – Trilix, our design and engineering
partner in Turin, Italy and the award-winning Tata Motors European Technical Centre in UK.
Europe is where our cars and trucks are benchmarked to international standards in styling,
design, craftsmanship, quality and reliability. Europe is where we create and fall in love with the
next generation of vehicles.

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RUSSIA:
Russia and the CIS form a large part of our global expansion strategy. Our manufacturing base in
Ukraine gives us access to local geographies and facilitates customisation and speed of delivery.
Our wide range of trucks and buses allows us to provide customers with the best fit vehicle. Our
local tie-ups with dealers and distributors give us the ability to provide our customers with
superior service experience.
LATIN AMERICA:
Tata Motors has been wooing customers in Latin America since 2009. Our most popular vehicles
here are our compact and mid-sized sedans including the Indigo and the Manza, our hatchback
Vista, and the Tata Xenon, our bestselling pickup. What our vehicles bring to the market are a
winning combination of power-packed performance and lower lifecycle cost of ownership.

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MARKETING STRATEGY
PRODUCT PORTFOLIO OF THE COMPANY :

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MARKETING MIX OF TATA MOTORS


1. PRODUCT (Brand, Packaging, Innovations, Quality) :

a. Brand : Advertising is often used to make consumers aware of a product’s special low price or
its benefits. But an even more important function of advertising is to create an image that
consumers associate with a product, known as the brand image. The brand image goes far
beyond the functional characteristics of the product.
b. Packaging : A vehicle cannot have a material packaging. Here, packaging refers to
and effective assembly of features. Tata Motors provide many innovative features to
suit the target customers and the product. E.g. Tata Safari Dicor has ‘Reverse Guide
System’ which includes a weather-proof camera to help the driver while reversing the
vehicle.
c. Innovations : The various motives behind buying an automobile are Need, Prestige,
Comfort, Fashion, Jealousy and Novelty. The R & D Department continuously strives
to bring new innovations in their product. Tatas have an industrial experience of over
100 years and they are well known with the Psychology of Indian customers, who
desire more at less price. This experience has helped them to develop products which
fulfill the expectations of Indian consumers.
d. Quality Control : Tata Motors have their Quality Control standards and the QC Dept.
ensures that the customer does not face any inconveniences of a defective product.

2. PRICE (Pricing Strategy, Alterations, Discounts)
MARKETING MIX
PRODUCT PRICE PROMOTION PLACE
Brand Pricing Strategy Personal Selling Channels of Distributions
Packaging Pricing & Quality Advertising Physical Distribution
Innovations Price & Alterations Public Relations Wholesaler & Retailers
Quality Discounts

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a. Pricing Strategy : The prices are fixed keeping in mind a number of factors. As
told by Mr. Desai, prices have to be at par with the prices of the competitors. Tata
Motors give a relative price advantage as compares to its competitors. The various
determinants of price are
i. Market Condition
ii. Costs incurred
iii. Profit percentage desired by the Co.
iv. Dealer Profit
b. Alterations : The Company does not allow any alterations to any of the features of
the product. If there is an alteration which affects the performance of the engine,
then the warranty becomes void. However, there may be alterations in the
accessories, if desired by the customer.
c. Discounts : Discounts are decided by the Co. every month. Any further discounts
made from the profits of the dealer. However, the Co. may compensate the dealer
for the discounts allowed to a certain extent.

3. PROMOTION (Personal Selling, Advertising, Sales Promotion, Public Relations)
a. Personal Selling : There is minimal personal selling involved. The Sales Officers
at the dealerships collect prospective customer databases and perform cold calling
to attract customers.
b. Advertising : Advertising is a form of commercial mass communication designed
to promote the sale of a product or service. Tata Motors is responsible for the
advertising of its products. The dealer does play any role in the advertising. The
various media used for advertising are T.V., Newspapers, Magazines, Hoardings,
Internet etc. The dealer conducts point-of-purchase displays to advertise the
products. The advertisements done by the Co.help the dealer to capitalize on the
market.
c. Sales Promotion : The purpose of sales promotion is to supplement and coordinate
advertising and personal selling; Sales promotions are designed to persuade
consumers to purchase immediately by providing special incentives such as cash

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rebates, prizes, extra product, or gifts. The Co. conducts intensive sales promotion
during festivals such as festive discounts during Diwali.
d. Public Relations : Public Relations is a management function that creates,
develops, and carries out policies and programs to influence public opinion or
public reaction about an idea, a product, or an organization. The Co. takes serious
measures to maintain good public relations. The Co. follows business ethics to
ensure that the customer is satisfied and receives good service whenever and
wherever he desires


4. PLACE (Channels of Distribution, Physical Distribution)
a. Channels of Distribution : In case of vehicles, dealership method of distribution
and sales is generally adopted. Tata Motors have also adopted dealership method
of distribution of its products. The dealers purchase products from the Co. at a
negotiated price. The MRP is fixed by the Co. and the dealer gets a profit within
these prices. As the Co. deals in commercial and passenger vehicles, there may be
a single or distinct dealerships to market its commercial and passenger vehicles in
a town. However, if there is a single dealership appointed, then the commercial
and passenger vehicles are managed under Commercial Vehicles Dept. and
Passenger Vehicles Dept. respectively.
Tata Motors have contracts with the Government of India and it supplies
buses and passenger vehicles, in some cases, to the Govt. Sometimes, bulk
quantities of vehicles are ordered by a Govt. Dept. or a private company. The
sales, distribution and billing of these are looked after by the Co. itself.
b. Physical Distribution : The commercial vehicles are manufactured
at Jamshedpur,Lucknow and Pantnagar whereas the passenger vehicles are
manufactured at Pune plant. From the plant, the finished product is transported to
the dealerships. The nation-wide dealership, sales, services and spare parts
network comprises over 2,000 touch points. The dealerships are strategically
located in the target and potential markets to ensure efficient and timely
availability of its products in the market.

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BRAND AMBASSADOR OF TATA MOTORS

LIONAL MESSI

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COMPITATOR ANALYSIS :

TATAMOTORS VS MARUTI SUZUKI

The first generation Swift was introduced in 2000 as a replacement for the Suzuki Cultus.
Outside Japan, the "Suzuki Ignis" name was used. Both three- and five-door hatchback body
styles were offered, although the three-door was not offered as part of the regular lineup in
Japan. The Swift was powered by a new generation of Suzuki inline-four gasoline engines, the M
family. Engine displacements of 1.3 and 1.5-litres were offered, both with a five-speed manual
transmission or optional four-speed automatic. The vehicle was available with
either front or four-wheel drive. Vehicles fitted with the 1.3-litre engine were designatedHT51S,
with the 1.5-litre version assigned HT81S.
[1]

The shorter three-door body variant formed the basis of the Swift Sport in Japan, or Ignis Sport
in export markets. Introduced in 2003..

Tata Motors Limited (formerly TELCO, short for Tata Engineering and Locomotive
Company) is an Indian multinationalautomotive manufacturing company headquartered
in Mumbai, Maharashtra, India, and a subsidiary of the Tata Group. Its products include
passenger cars, trucks, vans, coaches, buses, construction equipment and military vehicles. It is
the world's 17th-largest motor vehicle manufacturing company, fourth-largest truck
manufacturer, and second-largest bus manufacturer by volume.
[3]

Tata Motors has auto manufacturing and assembly plants
in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad, and Pune in India, as well as in
Argentina, South Africa, Thailand, and the United Kingdom. It has research and development
centres in Pune, Jamshedpur, Lucknow, and Dharwad, India and in South Korea, Spain, and the
United Kingdom. Tata Motors' principal subsidiaries purchased the British premium car

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maker Jaguar Land Rover (the maker of Jaguar, Land Rover, and Range Rover cars) and the
South Korean commercial vehicle manufacturer Tata Daewoo.

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MARKET SHARE OF TATA MOTORS

The Tata Motors Group sales for the year stood at 997,550 vehicles, lower by 2.3% as
compared to Fiscal 2014. Global sales of all Commercial Vehicles were 377,193 vehicles, while
sales of Passenger Vehicles were at 620,357 vehicles.
Tata Motors recorded sales of 504,369 vehicles, a decline of 11.5% over Fiscal 2014. Industry
grew during the year by 2.4%. However, the Company's market share decreased to 14.1% in the
Indian automotive industry from 16.5% in the previous year. The Company exported 49,936
vehicles.
Within the domestic market, the Company sold 317,780 Commercial Vehicles (CV), a decline of
15.9% from Fiscal 2014 primarily due to the decline in the LCV segment. However the critical
M&HCV truck segment has grown by 27% and the Company has been able to retain a stong
Market share of 58% in this category. Even under these difficult conditions, the Company has
been able to sustain market share in the critical M&HCV segment.
Some of the highlights for the year were:
 Launched the new Intermediate and Light Commercial Vehicle (ILCV) range of trucks
christened 'ULTRA', which offers superior technology and design that ensures lowest
total cost of ownership through higher uptime because of increased driver comfort,
superior aggregates and customized requirements. The PRIMA LX range of trucks were
extended with the launch of the Multi-axle truck variants – 2523.T & 3123.T. The
Company launched a new pickup – Super Ace Mint with 1.4 L DiCOR engine. With its
unmatchable combination of performance, ruggedness, comfort, superior ride &
handling, style and best-in-class cost of ownership, the Tata Super ACE Mint will
maximise revenues for its owners and will meet requirements of intra and intercity
transport.
 Launched a new trucking concept of 'TRUCK WORLD': Advanced Trucking Expo'
showcasing the Company's extensive offering from its' medium and heavy commercial

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vehicles business, all under one roof along with the Company's own service related
brands like Tata Genuine Parts, Tata Delight and Tata FleetMan.
 Announced partnership with UK based Microlise for advanced Telematics and Fleet
management services ushering in the latest technology in this segment.
 Conducted the Prima Truck Racing Championship Season 2 witnessed by over 45,000
spectators at India's F1 track, the Buddh International Circuit.
 Celebrated 60 years of truck manufacturing at its first manufacturing and engineering
facility in Jamshedpur.
 Participated strongly in the JnNURM Phase II bagging over 3500 orders and have
developed new Bus models for JnNURM including the Articulated and Hybrid buses.
 The flagship program of the Company 'Humare Bus Ki Baat Hain' won several
accolades this year and over 15,000 school bus staffs were trained on school bus safety
under the program.
 Launched the 'Tata SKOOLMAN', a telematics based tracking solution, aimed at
addressing pressing concerns over student safety as a standard fitment on the Tata Ultra
range of school buses.
 Celebrated the roll-out of 100,000
th
Tata ACE ZIP at the Dharwad facility in Karnataka.

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FINANCIAL PROFILE
CAPITAL STRUCTURE OF TATA MOTORS :

Capital structure is the combination of the capital raised by the company. This combination or
mix influences the overall cost of capital. Normally capital structure will be the mix of equity
and debt. The proportion of this equity and debt to the total capital is decided by the company
according to the important because it affects the earnings per share or wealth of the shareholders.
Capital structure is the crucial decision to be taken by every business, the positives and negatives
of these decisions plays a important role in determining the future of every business. The modern
theory of capital structure was established by Modigliani and Miller (1958). According to Myers
(2001, p. 81), ‘there is no universal theory of the debt--equity choice, and no reason to expect
one’. Many proven theories about capital structure help us to understand about the debt equity
mix that the firms choose. These theories can be divided into two groups – either they predict the
existence of the optimal debt-equity ratio for each firm (so-called static trade-off models) or they
declare that there is no well-defined target capital structure (pecking-order hypothesis).
Static trade-off models understand the optimal capital structure as an optimal solution of a trade-
off, for example the trade-off between a tax shield and the costs of financial distress in the case
of trade-off theory. According to this theory the optimal capital structure is achieved when the
marginal present value of the tax shield on additional debt is equal to the marginal present value
of the costs of financial distress on additional debt. On the other hand, the pecking-order theory
suggests that there is no optimal capital structure. Firms are supposed to prefer internal financing
(retained earnings) to external funds. And when the internal funds are inadequate, the firms may
opt for debt instead of equity. Therefore there is no well-defined optimal leverage, because there
are two kinds of equity, internal and external, one at the top of the pecking order and one at the
bottom. Thus, several conditional theories of capital structure exist but very little is known about
their empirical relevance. Capital structure decision is one of the key decisions to be undertaken
by every company at the time of raising their capital. Poor decisions would result in adverse
effects. Many firms which are financially healthy have lost because of poor decisions. This paper

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focuses on the capital structure of the company during 2004 to 2013 and will examine the results
of various capital structure.
Capital Structure (Tata Motors)
Period Instrument Authorized
Capital
Issued Capital - P A I D U P -
From To
(Rs. cr) (Rs. cr)
Shares (nos) Face Value Capital
2014 2015 Equity Share 900 643.88 3218680067 2 643.74
2013 2014 Equity Share 900 643.88 3218680067 2 643.74
2012 2013 Equity Share 900 638.02 3190115771 2 638.02
2011 2012 Equity Share 900 634.71 3173546570 2 634.71
2010 2011 Equity Share 900 634.61 634613990 10 634.61
2009 2010 Equity Share 900 570.56 570557544 10 570.56
2008 2009 Equity Share 900 514.01 514008314 10 514.01
2007 2008 Equity Share 450 385.5 385503954 10 385.5
2006 2007 Equity Share 450 385.37 385373885 10 385.37

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2005 2006 Equity Share 410 382.83 382834131 10 382.83
2004 2005 Equity Share 400 361.75 361751751 10 361.75
2003 2004 Equity Share 400 352.96 352958130 10 352.96
2002 2003 Equity Share 350 319.89 319784387 10 319.78
2001 2002 Equity Share 350 319.89 319782395 10 319.78
2000 2001 Equity Share 350 255.92 255856343 10 255.86

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FINANCIAL STATEMENTS OF TATA MOTORS

Report on the Financial Statements
We have audited the accompanying financial statements of TATA MOTORS LIMITED ("the
Company"), which comprise the Balance Sheet as at March 31, 2015, the Statement of Profit and
Loss, the Cash Flow Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the
Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements
that give a true and fair view of the financial position, financial performance and cash flows of
the Company in accordance with the accounting principles generally accepted in India, including
the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and estimates that are
reasonable and prudent; and design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and presentation of the financial statements
that give a true and fair view and are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
have taken into account the provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the provisions of the Act and
the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section
143(10) of the Act.

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HR POROFILE
SIZE OF THE COMPANY INTERMS OF EMPLOYEE NUMBERS
Nurturing diversity and making inclusion a part of Tata’s culture is a key focus area for the
organization. Their global workforce across 100 countries comprises employees from 101
nationalities. As on 31st March 2015, their workforce comprised of 242382 permanent
employees comprising of 30.2% women. Additionally, over 37200 individuals were engaged as
retainers or contractors.

Over the years, they have cultivated a strong ‘local national’ footprint in their international
geographies, and at overseas locations (outside India), 40.1% of the workforce is comprised of
local nationals. We have invested in specialized online tools such as ‘Globe Smart’ to develop
sensitivity towards various cultures.

HR POLICIES OF TATA MOTORS

Tata Motors believes in a progressive people culture. We ensure that a judicious mix of
people is maintained in our workforce. This is achieved through hiring multi-skilled
people both from within the automobile industry and from other sectors. In addition, a
regular and consistent recruitment programme at engineering and management institutes
ensures a steady stream of high quality people getting inducted to fuel the growth plans.
We also have ongoing partnerships with Industrial Training Institutes, besides our own
professional training centres, to recruit shop-floor workforce. A clearly defined HR
strategy is based on the premise that people drive annual performance, (a short-term
goal), and also strengthen long-term organisational objectives. Programmes like
miniassessments and the Fast Track Selection Scheme (FTSS) ensure that talent is
spotted early and given an opportunity to mature into leaders. Capability development,

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spearheaded by the Tata Motors Academy, has enabled knowledge-sharing through
initiatives, such as Learning Management Systems (LMS) and iTeach. The former allows
employees to take ownership of knowledge accretion, while the latter provides a platform
for senior management to share their expertise. Enablers, such as the ‘One Tata Motors’
culture, leverage interdepartmental synergies. Therefore, greater opportunities to learn
from and contribute to the organisation are created. Combined with a rearticulated
compensation philosophy and reworked variable pay plan, these initiatives ensure that
Tata Motors remains performance-oriented and talent-driven. To drive and support our
business growth, we have increased our total workforce to nearly 23,000 people at Jaguar
Land Rover. We recruited over 6,200 Salaried, Hourly and Agency workers during the
course of the year (including the highest ever intake of over 330 graduate trainees).
Jaguar Land Rover is recognised as a preferred employer in the UK. Increasing numbers
of International Service assignments have commenced to support global operations, and a
new National Sales Company has been established in China.
We work hard to retain our talented staff, and during the year our employee turnover rate
remained low at 1.8% for the salaried population and 0.9% for the hourly population.
Relationships with employees and their representatives remain positive and constructive,
with no strikes. The 2011- 12 Employee Engagement Survey was extended to all hourly
paid employees for the first time this year, and employee satisfaction rates for salaried
employees rose to an all-time high of 65%, from 57% in the previous year. An extended
working week was introduced, with 58% of salaried staff opting to extend their working
hours.

Tata Motors has always endeavoured to offer some of the best HR practices, and the recruitment
process is no exception. The recruitment process is unique as it entails identifying talent from the
pool through various practices. Some of them can be enlisted as follows:

 Opportunities for employee wards - domain wise written test, assessment centre, personal
interview.

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 We also select talent through Lateral Recruitment process which involves interview by HR,
subject matter expert and personal interviews.
 Group Migration Policy for our employees, which enables the group employees to explore
opportunities to work at Tata Steel from other group companies.
 We provide career opportunities for down the line people and internal job postings ensuring
that the best talent pool deserves the right opportunity in bringing the best practices in the
company.
 Campus Selection - B schools, T Schools - written test, psychometric test, personal
interview.
 Shadow recruitment for niche senior talent
Employee relations
Tata motors is of the opinion that people are its greatest asset and has therefore adopted the best
practices for its employees.

Trade Unions: The Company believes that a healthy union is an asset for it. Trade unions are
therefore present and encouraged at all locations. All the non-officers (86% of the total
workforce) are represented by 26 independent trade unions across all locations.

Joint Consultations: Tata Motors is a pioneer of joint consultation in India. A unique system of
joint consultation has been in place in Tata Motors for more than 55 years in which both
management and employee representatives consult each other at all levels on matters relating to
the progress and prosperity of the organisation, including production, productivity, quality,
safety, welfare, training, etc. A minimum of 56 Joint Departmental Council meetings are held in
a year.
Employee development and growth
The company believes in providing continuous skill and competence upgrading of all employees
by providing access to necessary learning opportunities, on an equal and non-discriminatory
basis. As a management approach Tata Steel has identified the following strategies to meet this
challenge: (i) maximise utilisation of available employees through right skilling and (ii)
recruitment of technically qualified persons.

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70:20:10 Learning and Development Programme
The 70:20:10 concept of Learning and Development of officers has been launched with an
objective of creating a culture where every manager takes ownership for the development of
his/her subordinates. This also helps in instituting systems so that employees are trained, coached
and mentored in a systematic manner such that they acquire appropriate knowledge, skill and
attitude required by the organisation and are prepared in advance to take up higher
responsibilities.

 70% of Learning and Development takes place from real life and on-the job experiences,
tasks and problem solving.
 20% of Learning and Development takes place through coaching, mentoring, discussions,
guidance by superiors/experts.
 10% of the learning comes from formal Class Room Training.
Job Rotation and Career Planning
In order to eliminate drudgery and maximise the learning opportunities for our employees, robust
processes have been put in place pertaining to job rotation and career planning. These processes
also help raise and retain the technical capabilities within the organisation by ensuring
development of officers through planned rotation to keep meaningful longevity in each position
so that the executive develops deeper functional capability.

Employee Contact Programme
In addition to the various Employee Satisfaction and Engagement surveys, a formal method for
collecting and resolving officers’ inputs, named “Employee Contact Programme”, has been
launched in 2009. The key objectives of this programme are to:

 Capture employee concerns on an on-going basis
 Analyse concerns to identify need for policy changes
 Create a repository of the above data
 Create one to one connect with officers
Ensuring Development and Growth of Employees (EDGE)
The Performance Management System called ‘Ensuring Development & Growth of Employees’
(EDGE) is one of the most important people process for executives in the organisation which
cuts across all levels and sections.

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Objectives of EDGE

 Align the activities and behaviours of individuals with company's corporate objectives
and values
 Develop the capabilities of employees to enhance performance of individuals or
organisation

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OPERATION PROFILE
SERVICE DESIGN OR DELIVERY MECHANISM
Eliminate wastages of resources by maximising “NO INVESTMENT” projects & emphasize on
improved productivity of all operations & processes. Adopt the faster pace for deployment of all
ideas in all areas of business thro’ maximizing involvement of people Focus on accomplishing
investment projects with payback less than 2 years at faster pace & deploy across all TATA
Motors plants Jamshedpur, Lucknow & Pantanagar. At saturated performance level introduce
break thro’ improvement by adopting suitable modern technology through adequate investment
. Share the best practices & performances with vendors , suppliers , partners & other industries
& assist them to reduce their ENERGY INTENSITY …..=> ENERGY KAIZEN
Roadmap to achieve Benchmark / Global best :- Based on above results of National &
International companies, TATA Motors CVBU plant is “Highly Energy Efficient Automobile
company”. As part of continual improvement we would further reinvestigate all our processes to
achieve further cost reduction by reducing Energy consumptions at all levels. To sustain the best
achieved level. We are following robust process of assessment of performance vis a vis
comparative information / benchmark from different organisation & standards. Our emphasis
would be:- 1. To optimise the use of Resources while using appropriate and innovative method to
reduce the energy consumption in all the areas of operation on the continuous basis through
evaluation and improvement. 2. Use of Latest technologies wherever possible. 3. Maximize the
use of non-conventional Energy resources wherever possible. 4. Under climate change
initiatives, assessment & abatement measures are being taken to reduce carbon foot print through
resource conservation

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MAJOR RAW MATERIALS
The principal raw materials and components required by us for use in our vehicles are steel
sheets and plates, castings, forgings and items such as tires, batteries, electrical items and rubber
and plastic parts. We have long term purchase agreement for some critical components such as
powertrains and engines. The raw materials, components and consumables that are sourced,
include steel (sheet-metal, forgings and castings), tires and tubes, batteries, fuel injection
systems, air-oil filters, consumables (paints, oils, thinner, welding consumables, chemicals,
adhesives and sealants) and fuels. We also require aggregates like axles, engines, gear boxes and
cabs for our vehicles, which are manufactured either by ourselves or by our subsidiaries and
affiliates. Most commodities have had huge price volatility during fiscal 2009. We established
contracts with the commodity suppliers to cover our own as also our suppliers’ requirements to
moderate the effect of such high volatility. Special initiatives were also undertaken to reduce
material consumption through value engineering and value analysis techniques.

MAJOR SUPPLIERS&VENDORS
We have an extensive supply chain for procuring various components. We also outsource
many of the manufacturing processes and activities to various suppliers. In such cases, we
provide training to outside suppliers who design and manufacture the required tooling and
fixtures.
Tata AutoComp Systems Ltd., or TACO, in which now we have 30.56% ownership stake,
manufactures auto components and encourages the entry of internationally acclaimed auto
component manufacturers into India by setting up joint ventures with them. Some of these joint
ventures include: Tata Johnson Controls Limited for seats, Knorr Bremse CV Systems for
commercial vehicle air brakes, Tata Yazaki Autocomp Limited for wiring harnesses, JBM
Sangwoo Limited for pressed components and Tata Toyo Radiators Limited for radiator
assemblies. These joint ventures supply components for our products.
We have embarked upon a vendor management program that includes vendor base
rationalization, vendor quality improvement and vendor satisfaction surveys. As part of driving

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continuous improvement in procurement, we have integrated our system for electronic
interchange of data with our suppliers with the ERP. This has facilitated real time information
exchange and processing to manage our supply chain more effectively.

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STRATEGIC ANALYSIS
STATARGIES ADOPTED BY TATA MOTORS LTD

From peak sales of over 27,000 units in the January-March 2012 quarter to under 4,000 in the
three months to December 2013, Tata Motors' Nano hasn't quite lived up to the hype and
expectations built up since its launch in mid-2009. Former Tata group chairman Ratan Tata now
chairman emeritus recently said the "cheap car" image had hampered the Nano's progress, and
earlier this weekTata Motors took one of its first steps to erase that "stigma".

The attempt over the past year has been to attract youngsters. In 2012, only a fifth of the buyers
fell in the age bracket of 18-34; that share more than doubled to 55% in 2013, although it hasn't
translated into increased sales. "The Nano needs to be aspirational rather than spartanly
utilitarian," says Ankush Arora, senior vice-president and head commercial, passenger vehicle
business unit, Tata Motors. Here are the five prongs of the strategy to reverse the sales
downtrend:
Focus on youth: To build a youthful and aspirational value around the brand, Tata Motors
through its 'awesomeness' branding and marketing campaign worked with fashion
designer Masaba Gupta on the launch of the Twist. The makeover campaign is an attempt to get
youngsters to look at the Nano as a fashion accessory. "Young consumers want complete
accessorisation in the car like alloy wheels, different interiors, spoilers and graphic designs,"
explains Arora. The company promises more on-ground activities and showcases at colleges to
woo the youth.
Fresh positioning: From a people's car and the world's cheapest, the Nano is now positioned as
the smart city car for young achievers. Arora says while the perception of a cheap car has still
not gone away, the profile of the consumer has tremendously improved — along with the
features in the car. Based on market research, Tata Motors has segmented potential customers
into first-time buyers, those looking for a replacement or an additional car and others who want

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more features and performance. Near-term plans include a variant with automated transmission
to strengthen the smart city car positioning.
Communication for a consumer connect: The idea is to give the brand a far more emotive
personality and the new advertisement campaign of 'awesomeness' is in that direction. The
campaign has electronic dance music DJ Akshay Sarin, celebrity dancer Lauren Gottleib, and
professional golfer Neha Tripathi to celebrate how these young achievers 'live life on their own
terms'. These young achievers will help create an emotional connect with the target buyer.
Consumers will get opportunities to interact online or on-ground with the young achievers,
leading to attachment to the brand, reckons Arora.
Revamping distribution and reach: The new dealer identity will make the consumer experience
more exciting. The dealerships will have better displays, video walls, trained workforce to
reinforce the smart city car image and all content will be centrally controlled. There are 95
standalone Nano dealerships and the company has no plans to increase the number this year.
Changed pricing: At its launch, much was made of the Rs 1 lakh price tag. The price points
have been redefined and the new variants of Nano are expected to priced in the range of Rs 1.75
lakh to Rs 3.25 lakh. "A consumer is looking for the right value equation, a full package, and not
a cheap car," explains Arora. He adds that from the three trim levels, 60% of the Nano sales were
from the power steering and AC variant. Now, armed with five trim levels, the company plans to
offer four engine options.
An electric car and a hybrid are being worked on at the company's UK R&D base, the Tata
Motors European Technical Centre. The higher price tag allows for the Nano to be packed with a
host of features: twin glove boxes, keyless entry, a dashboard-integrated music system with
Bluetooth connectivity, a bigger steering wheel and remote central locking. By 2015, Tata
Motors hopes to be ready with a more powerful engine.
Will the repositioning transform the Nano's fortunes? Says VG Ramakrishnan, managing
director, Frost & Sullivan, a consultancy: "Repositioning the brand will work in conjunction with
a revamped product. While Tata Motors has done some cosmetic changes, there is a need for a
substantial upgradation of the interiors for larger volumes." He adds that the Nano should be
Tata Motors' answer to the Suzuki Alto, which is far more refined in terms of power and
technology..

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SWOT ANALYSIS OF TATA MOTORS

The company began in 1945 and has produced more than 4 million vehicles. Tata Motors
Limited is the largest car producer in India. It manufactures commercial and passenger vehicles,
and employs in excess of 23,000 people. This SWOT analysis is about Tata Motors.,

STRENTH:
 The internationalisation strategy so far has been to keep local managers in new acquisitions, and
to only transplant a couple of senior managers from India into the new market. The benefit is that
Tata has been able to exchange expertise. For example after the Daewoo acquisition the Indian
company leaned work discipline and how to get the final product ‘right first time.’
 The company has a strategy in place for the next stage of its expansion. Not only is it focusing
upon new products and acquisitions, but it also has a programme of intensive management
development in place in order to establish its leaders for tomorrow.
 The company has had a successful alliance with Italian mass producer Fiat since 2006. This has
enhanced the product portfolio for Tata and Fiat in terms of production and knowledge
exchange. For example, the Fiat Palio Style was launched by Tata in 2007, and the companies
have an agreement to build a pick-up targeted at Central and South America.


WEAKNESS:
 The company’s passenger car products are based upon 3rd and 4th generation platforms, which
put Tata Motors Limited at a disadvantage with competing car manufacturers.
 Despite buying the Jaguar and Land Rover brands (see opportunities below); Tata has not got a
foothold in the luxury car segment in its domestic, Indian market. Is the brand associated with
commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from
lucrative segments in a more aspiring India?
 One weakness which is often not recognised is that in English the word ‘tat’ means rubbish.
Would the brand sensitive British consumer ever buy into such a brand? Maybe not, but they
would buy into Fiat, Jaguar and Land Rover (see opportunities and strengths).

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Opportunities:
 In the summer of 2008 Tata Motor’s announced that it had successfully purchased the Land
Rover and Jaguar brands from Ford Motors for UK £2.3 million. Two of the World’s luxury car
brand have been added to its portfolio of brands, and will undoubtedly off the company the
chance to market vehicles in the luxury segments.
 Tata Motors Limited acquired Daewoo Motor’s Commercial vehicle business in 2004 for around
USD $16 million.
 Nano is the cheapest car in the World – retailing at little more than a motorbike. Whilst the
World is getting ready for greener alternatives to gas-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 standard Nano!
 The new global track platform is about to be launched from its Korean (previously Daewoo)
plant. Again, at a time when the World is looking for environmentally friendly transport
alternatives, is now the right time to move into 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 thirst for low-cost passenger and commercial vehicles. These are the opportunities.
However the company has put in place a very proactive Corporate Social Responsibility (CSR)
committee to address potential strategies that will make is operations more sustainable.
 The range of Super Milo fuel efficient buses are powered by super-efficient, eco-friendly
engines. The bus has optional organic clutch with booster assist and better air intakes that will
reduce fuel consumption by up to 10%...
Threats:
 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.
 Sustainability and environmentalism could mean extra costs for this low-cost producer. This
could impact its underpinning competitive advantage. Obviously, as Tata globalises and buys
into other brands this problem could be alleviated.
 Since the company has focused upon the commercial and small vehicle segments, it has left itself
open to competition from overseas companies for the emerging Indian luxury segments. For

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example ICICI bank and 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 the
Indian market include Ford, Honda and Toyota. In fact the entire Indian market has become a
target for other global competitors including Maruti Udyog, General Motors, Ford and others.
 Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of
fronts. The price of steel and aluminium 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 its
traditional home market.

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MCKINSEY’S 7S FRAMEWORK :

The McKinsey 7S Framework is a management model developed by well-known business
consultants Robert H. Waterman, Jr. and Tom Peters (who also developed the MBWA--
"Management by Walking Around" motif, and authored In Search of Excellence) in the 1980s.
This was a strategic vision for groups, to include businesses, business units, and teams. The 7 Ss
are structure, strategy, systems, skills, style, staff and shared values.

 Strategy: the plan devised to maintain and build competitive advantage over the
competition.
i. Make customers successful
ii. Excel through innovation and teamwork
iii. Respect the individual
iv. Deliver on commitments
 Structure: the way the organization is structured and who reports to whom. In wipro
Employees may also get help or advice from:
i. Supervisor
ii. Supervisor’s supervisor

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 Systems: the daily activities and procedures that staff members engage in to get the job
done. In Wipro Employees are unsure about the proper course of action and need advice.
 Shared Values: called "super ordinate goals" when the model was first developed, these
are the core values of the company that are evidenced in the corporate culture and the
general work ethic.
 Style: the style of leadership adopted.
i. Focus on Global Game Changes and Players
ii. Focus on Virtual Teams that work asynchronously across date and time zones.
 Staff: the employees and their general capabilities. Wipro has continually sought to
implement practices to enhance the engagement, capability and competitiveness of our
talented, global workforce. These practices are aligned to different phases of hiring,
assimilation, learning, growth and retention and shaped by the Spirit of Wipro values.
The Spirit of Wipro values weave the thread that ties all Wiproites together and also
shapes leadership behaviour. Employees’ feedback on the Spirit of Wipro values is a key
component in our Employee Perception Survey as well as in our Wipro Leaders’
Qualities 360-degree feedback process.
 Skills: the actual skills and competencies of the employees working for the company. In
Wipro Over the years, our focus on participative engagement has increased and their
programs have been more closely aligned to cater to their diverse and multi-generational
workforce. Employee feedback has led to the review of and changes in legacy initiatives
like the Unified Competency Framework (UCF) to make it more relevant to the needs of
the current and future workforce. The erstwhile UCF certification is currently being
revamped. Through mailers, awareness sessions and announcements on the intranet and
forums such as Yammer, these changes are being communicated to employees.

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