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Strategic Management short Project for Tata Motors

Strategic Management short Project for Tata Motors

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Published by: Sujit on Jun 05, 2010
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06/09/2013

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Strategic Management
Group Assignment – 1
TATA MOTORS
Submitted To:
Prof. Amar KJR Nayak
Submitted By – (Group 5)
Sourabh Kumar Choudhury – U108 109Subhransu Sekhar Mandal – U108 110Sujit Kumar Sahoo – U108 111Swarup Kumar Kar – U108 112Sweta Sah – U108 113 Tanya Gupta U108 114 Thendral I. – U108 115Udaya Bhanu Satapathy – U108 116Vibhav Kumar – U108 117Vikrant Krishan Mahajan – U108 118Vineet Agrawal – U108 119Zubair – U108 120
 
Contents
INTRODUCTION ....................................................................................................... 3CORPORATE STRATEGY .......................................................................................... 3Corporate Governance ........................................................................................ 3Enterprise Process Model (EPM) - Process Management at Tata Motors ................5Operations & Production Management ................................................................... 6Inbound Logistics ................................................................................................ 6............................................................................................................................... 6Vendor Management .......................................................................................... 6Manufacturing ..................................................................................................... 7Product development .......................................................................................... 7Cost Cutting Techniques ..................................................................................... 7Quality Management ........................................................................................... 8Operations ........................................................................................................... 8Sales & Marketing at Tata Motors .......................................................................... 8Product and Brand Strategy ................................................................................ 8Pricing ............................................................................................................... 10Promotion .......................................................................................................... 10Distribution ........................................................................................................ 10Financial Strategy of TATA MOTORS ..................................................................... 11Cost cutting and recovery strategies: ............................................................... 11 Tata Motors Finance Ltd (TMFL) ........................................................................ 12Human Resource at Tata motors .......................................................................... 14Information Technology Strategy ......................................................................... 17Enterprise Resource Planning ............................................................................ 17Customer Relationship Management ................................................................ 172
 
INTRODUCTION
 Tata Motors, leader in commercial vehicles, is India's largest automobilecompany with revenue of USD 14 billion in 2008-09. Tata Motors, the firstcompany from India's engineering sector to be listed in the New York StockExchange and has operations in the UK, South Korea, Thailand and Spain. Tata Motors started operations in 1945 and entered commercial vehicle sector in1954 after forming a joint venture with Daimler-Benz that lasted till 1969. Inmore than six decades of its operations, it has grown both organically andinorganically. In 2004, Tata Motors bought Daewoo’s truck manufacturing unit inSouth Korea followed by the acquisition of the Hispano Carrocera in South Africa.In 2008, it acquired prestigious brands Jaguar and Land Rover from Ford MotorCompany. This acquisition was important since before that Tata Motors wasconsidered as a formidable global player at lower market segment only.
CORPORATE STRATEGY 
 The current strategy of the Tata Motors can best be summarized as ‘DisruptiveInnovation’, wherein it has offered lower priced products and surpassed themarket expectations. Its two latest offerings have further strengthened the TataMotors position as a leading player. While Ace has been a rage in the market, Tata Nano has taken the world with awe.Much of the practices of Tata Motors, including its customer focus, attributes tothe learning and experience of over six decades. Tata Motors that started with ahuge success and market demand faced its first product failure in the launch of 1516. With the foreign players entering India, Tata motors that was primarilyfocusing on High weight commercial vehicles, included LCV in its offering andcame up with Tata 407. Tata Motors in the meanwhile was also vying to developend to end in-house technical competence and thus ventured into engine designby partnering with Cummins. Tata motors continuously faced the problem of overloading by the users and responded by introducing stronger machines.However, a major change came after a heavy loss of Rs 550 cr in 1999 where init re-aligned its marketing team and became more sensitized to customer needs. The revival strategy of Tata motors had three phased business plan. Firstly, itfocused on the cost reduction initiatives for immediate turnaround. Secondly, itfocused ondomestic and international growth through new products andimproved sales and service. Finally, it linked long term growth with increasedbusiness in LCVs, new product segments and new geographies. The strategy andlearnings have gone a long way with Tata Motors earning net profit of more thanRs 1000 cr even in a lean FY 2008-09.
Corporate Governance
 Tata Motors being part of the Tata conglomerate has its philosophy deeply linkedto the core philosophy of the Tata group. It has fair, ethical and transparentgovernance practices along with highest standards of professionalism, honesty,integrity and ethical behaviour. The company gives maximum importance to the3

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