PROJECT ON STRATEGIES OF TATA GROUP

-Janhavi Mahadik 08 -Sampada Purohit 24 -Bhavini Parmar 32

TATA GROUP
Indias Largest business group

Diverse businesses in 7 sectors

International income 61% of Group Revenue

Operations in over 80 countries

Products and services exported to 85countries

Largest employer in private sector: over300000 employees

PURPOSE
Tata group is committed to improving the quality

of life of the communities we serve. They do this by striving for leadership and global competitiveness in the business sectors in which they operate. practice of returning to society what they earn evokes trust among consumers, employees, shareholders and the community. Committed to protecting this heritage of leadership with trust through the manner in which they conduct our business

Core values
Integrity: To conduct business fairly, with honesty and transparency.

Everything must stand the test of public scrutiny.

Understanding: caring, show respect, compassion and humanity for

colleagues and customers around the world, and always work for the benefit of the communities.
Excellence: constantly strive to achieve the highest possible

standards in day-to-day work and in the quality of the goods and services.
Unity: work cohesively with colleagues across the group and with

customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation.
Responsibility: continue to be responsible, sensitive to the

countries, communities and environments, always ensuring that what

Vision
To be a world class corporate constantly furthering

the interest of all its stakeholders.

Mission
Shareholders: To consistently create shareholder value

by generating returns in excess of Weighted Average Cost of Capital (WACC) during the upturn and at least equal to Weighted Average Cost of Capital (WACC) during the downturn of the business cycle.
Customers: To strengthen the Tata brand and create

lasting relationships with the customers by working closely with business partners to provide superior value for money over the life cycle.
Employees: To create a seamless organization that

incubates and promotes innovation, excellence and the Tata core values.

Vendor and Channel Partners: To foster a

long-term relationship so as to introduce a broad range of innovative products and services, that would benefit our customers and other stakeholders.
Community: To proactively participate in

reshaping the countrys economic growth. To take a holistic approach towards environmental protection

Business sectors

Tata steel Tata motors TCS Tata power Tata communications Tata chemical Tata teleservices Tata global beverages Titan Voltas Tata autocomp systems Indian hotels

Division
Materials Engineering Information Tech. & comm. Service Energy

Consumer products
Chemicals

CURRENT BUSINESS STRATEGIES

Diversification Inorganic Growth Backward Integration Market exploration Blue Ocean Strategy Globalization Strategy

Defining Corporate Strategy

Corporate strategy is the way a company creates

value through the configuration and co-ordination of its multi-market activities. Definition has three main aspects: Value creation Configuration Co-ordination

Tata motors

Corporate team

PCBU

CVBU

ASSESSMENT FOR OVERALL DIRECTION

Commercial Vehicle Business Unit (CVBU) is Cash Cow for TATA Motors Ltd TATA Motors is the only company in the Indian

Commercial Vehicle (CV) Industry which has the products presence in each segment from Small Commercial Vehicles to Medium & Heavy Commercial vehicle which includes. Competitors are having products only in specific segments like Mahindra & Mahindra in Indian CV Industry is known for School Buses &Ashok Leyland is having expertise in Medium & Heavy commercial Trucks & Buses. So as the product segment changes, company changes in Industry & every company has its own marketing strategy.

Porters Five Force Analysis for TATA Motors

Marketing Channel: TATA Motors being a big company the process of appointment a

dealership at the remote places is a very difficult process, as investment on the dealership is very high. As in case of Mahindra & Force Motors investment cost is less &they have dealerships in every district place, which help then to get the rural marke tcoverage. M&M has got a market share of 31% in 4 ton Bus market.2.
Large Product Range: TATA Motors is having a large product range of vehicles, due to

the same supply chain of the products become tedious & time consuming. Products are made on order with the delivery commitment of at least 3 months. Whether in case of Swaraj Mazda, they can do customisation within 10 days as the range of products is very less. Most of the mobile homes are set up in Swaraj mazda Buses only.

 Price Competition: TATA Motors have to face a price competition with

products of other companies which have low qualities. First time user / captive customer who areunknown to the products & industry will get into the trap of these low cost options.
Changing Scenario of Industry: From Oligopoly market CV industry in India willbecome a

prefect competition market. As many of Indian companies are now entering into the market place with JV with foreign experts in CV. Mahindra & Mahindra is comingup with Navistar (Mahindra Navistar in India) for Heavy CV. Ashok Leylend is coming upwith Nissan for Light Commercial Vehicles (LCV). Similarly other player niche players of world CV markets are coming up in Indian market like Volvo, Mercedes Benz & Scania.

 Upgrading Products: As in the changing scenario the needs of people are

changing atvery fast pace. Now the time Indian market place is very demanding, there is extremedemand for AC Buses & construction equipments for building better infrastructure forIndia. The company which come up with the customer satisfaction will be the marketleader. For that TATA Motors need to understand the market dynamics.

Suggestions for adopting the Strategy according to the Segmentation

TATA Motors should increase the dealerships /

channel partners for the rural marketing. In case of non viability should force the old dealerships to open a branch & increase the market share in that market.
Large range of products is increasing the gap

b/w supply & demand: TATA Motors should standardize the products. Product should be available at the time of demand, sales & marketing should be pro active & should plan before the demand by estimations.

 Territory infringement : division of the territories of the

dealership is not properly done and also the company does not take any action against the practice of territory infringement. Hence it becomes difficult for some dealers to manage thecustomers in their territory and also it demotivates them. This affects the sales of the product in a major way. The Territory Infringement should imposed ondealership strongly.
Lack of spare parts: certain bus fleet operators

complained of paucity of spareparts with the sales office. The spare parts how so ever small they may be werenot available at certain times which led to the loss of revenue being generated bythe bus on daily basis.

 Non- availability of product: Bus fleet operators are

not getting delivery of theproduct asked by them because of the non-availability of the products with the dealer. In that case after waiting for some time customers moved to competitors product. This comes as a cause of major concern because the actual sales of thatparticular product suffered leading to loss of revenue for the organization.
Product Improvements: Till now only few models are

coming with radial tyres asstandard fitments. Need to work on automatic transmissions, Common railEngines & many more technology advancements

 After sales service not satisfactory: Almost

every customer complained of theunsatisfactory after sales service being provided by the service stations of thecompany. Either these people do not deliver the vehicle on time or they hesitateto provide on-route service. This type of behaviour causes a feeling of beingignored inside the customers mind. On the other hand, Customers are verysatisfied with the after sales service being offered by Ashok Leyland. TATA Motors should make 24X7 service

PROPOSED TEN YEAR STRATEGY

Creation of Tata Sustainability Solutions(TSS) Tata currently has four pillars of sustainability within the organization Tata Trusts, Tata Relief Committee (TRC), Tata Council for Community Initiatives (TCCI), & Tata Quality Management Services (TQMS).

ADVANTAGES
Centralized Consulting Support for All Business

Increased Transparency Units

Financial Independence Management Development Fundraising Ease and Scalability Strategic Continuity Consistency of Business Practices Local Sensitivity with Global Reach

STRATEGIC PLAN IMPLEMENTATION & TIMELINE

Specific EVA and Net Present Value (NPV)

supported initiatives for consideration include: Leveraging Tatas CSR core competency into a sustainability software consulting practice, Increase Tata Teas competitiveness by formalizing sustainability efforts through Rainforest Alliance Certification, Efforts to reduce energy usage through conservation efforts in the hotel chain and through supply chain management, and ELV initiatives for Tata Motors.

STATEGIC PLAN TIMELINE