LEVELS OF STRATEGY

LEVELS OF STRATEGY

Corporate level strategy (directional strategy)

Growth

Stability

Retrenchment

Business level strategy (competitive strategy)

Cost leadership

Differentiation (product)

Functional level strategy

Marketing strategy (4 ps)

Financial strategy (sources of finance)
R&D strategy (technological leader, innovation)
Operation strategy (production strategy)

BCG MATRIX OF TATA

GROUP

SUCCESSION PLANNING STRATEGY

GROWTH STRATEGY

Tata Group's strategic

alliance with
Japanese telecom
major NTT DOCOMO
in November 2008.
Tata Teleservices has
received a license to
operate GSM telecom
services in 19 of
India's 22 telecom
Circles-and has also
been allotted
spectrum in 18
telecom circles.

ACQUISITIONS

Tatacompany Acquiredcompany

Country

Stakeacquired

January
2011

Tata
Communications

BTGroup's(BT)Mosaic
business

UK

100percent

August
2011

TataChemicals

EPMMiningVentures

Canada

30.6percent

December
2010

TataChemicals

BritishSalt

UK

100percent(wholly-owned)

January
2009

Tata
Communications

Neotel

SouthAfrica

30percent

March
2009

TataGlobal
Beverages

Grand

Russia

33.2percent

June
2008

Tata
Communications

ChinaEnterprise
CommunicationsLimited(CEC)

China

50percentequityinterest

August
2008

Voltas

RohiniIndustrialElectricals

India

51percent

January
2007

TataSteel

Corus

UK

100percent

JOINT VENTURE
Tata & Fait since 2006
Tata & Starbucks 50/50 JV
Starbucks Coffee A Tata
Alliance.
Tata Motors (SA)
Tata Motors' joint venture
with Tata Africa Holdings, has
an assembly plant in the
Gauteng province of SA.
Tata Automobile
Corporation SA
Tata Africa Holdings through
a joint venture between
Accordian Investments and

TURNAROUND STRATEGY

Tata Power Delhi Distribution by winning hearts and changing

mindsets, and through technology and commercial savvy
transformed a loss-making government entity into an efficient
and profitable operation that has become a benchmark for
public-private partnerships

DIVESTMENT STRATEGY

Tata Oil Mill (TOMCO) was divested and sold to

Hindustan Levers as soaps and a detergent was
not considered a core business for the Tatas.
The pharmaceuticals companies of the TatasMerind and Tata Parma were divested to
Wockhardt.
The cosmetics company Lakme was divested
and sold to Hindustan Levers, as besides being
a non core business, it was found to be a noncompetitive and would have required
substantial investment to be sustained.

BUSINESS LEVEL STRATEGY

Tata nano, the cheapest car in the world

Swach, the cheapest water filter from
Tata Chemicals. less than Rs 1000.
Tata Motors launched the Ace truck in
May 2005 for just above Rs 200,000.

PRODUCT DIFFERENTIATION STRATEGY

Tata Motorsnew
launches like Aria
and the new 2011
Safari to regain its
lost market share.
Tata is looking at
doubling SUV annual
volumes to over
70,000 units in the
next 12-18 months,
including exports.
Tata Motorsis set to
offer utility vehicles
at everypricepoint
right from Rs. 6.5
lakh to Rs. 15 lakh.

BLUE OCEAN STRATEGY

Red Ocean

Blue Ocean

Compete in the existing market

place

Create unconsolidated market space

Beat the competition

Make the competition irrelevant

Exploit existing demand

Create and capture new demand

Make the value cost trade of

Break the value-cost trade of

Strategic choice of diferentiation or

low cost

Strategic choice of Diferentiation

and Low Cost

VALUE INNOVATION

Value Innovation is the

cornerstone of blue ocean
strategy.
Value innovation is the
simultaneous pursuit of
differentiation and low
cost.
Value innovation focuses
on making the competition
irrelevant by creating a
leap of value for buyers
and for the company,
thereby opening up new
and uncontested market
space.

R&D STRATEGY

Tata Group companies cumulatively spend Rs.12,500 crore on

research & development.
knowledge-based engineering application software from Tata
Technologies that speeds up results.
An engine start-stop technology developed by Jaguar Land Rover
that stops an engine when the vehicle isn't moving, thus saving on
fuel;
High performance rail steel that saved 150,000 over five years
was developed by Tata Steel Europe
High standard steel for safer and fuel efficient vehicles from Tata
Steel Europe
The world's cheapest car, Nano, an innovation from Group company
Tata Motors, launched in April 2009, has 37 patents,
Swach, the cheapest water filter from Tata Chemicals, has 14.
Tata Steel, which acquired British company Corus in 2007,
meanwhile, files around 50 patents each year.

OPERATIONS STRATEGY

Jaguar Land Rover has re-hauled its

supply chain to secure cost savings as
well as a sustainability equation that
gives the company a green edge
A re-designing of process equipment at
Tata Chemicals' Haldia plant that cut
process downtime by 40%.

SUSTAINABILITY STRATEGY
Corporate Sustainability
(CS) is integral to valuecreation in our businesses
through the enhancement of
human, natural and social
capital complementing their
economic and financial
growth in order to give the
enterprise an enduring
future and also help create
and serve a larger purpose,
at all times.
It facilitates
accountability to all
stakeholders as a
systemic practice.

SUSTAINABILITY IN MOTION

The two main sustainablestrategies

at Tata Motors:
Pollution Prevention (P2)
Resource Recovery (R2)

P2 STRATEGIES

P2 or pollution prevention is a proactive strategy

that uses fewer or smarter resources to
beginrequiring lesser cleanup at the final disposal.
It is done by reducing or eliminating waste at the
source by modifying production processes,
promoting the use of non-toxic or less-toxic
substances, implementing conservation
techniques, and re-using materials rather than
putting them into the waste stream.
It assumes no waste will occur. It is an effective
getting more from less strategy.

Reducing packaging material by either using

sustainable packaging (replacing wood with metal)
or reusing existing packaging (recycling wood).
The company recycles close to 69 percent of the
wood packaging thus eliminating use of fresh
wood.
Development of Vendor Park
The company aims to source 60% of its
components from the park thereby increasing its
resource efficiency and reducing its emissions due
to reduction in logistics and transportation.

R2 STRATEGIES

This is a getting more from the same strategy

where otherwise wasted resources are recovered by
way of proper disposal recycling or reconditioning.
Increasing life of aggregates Recon
business
In 2010-11 a total of 13,788 engines and 8,690
other parts were reconditioned.
Other resource conservation techniques like reusing
engine oil for multiple testing cycles has been
employed.
A 200 litre engine oil barrel can now be used to test
170 engines instead of 85.

Reusing paint sludge and thinner

Last year, approximately 390 tonnes of hazardous paint sludgewas

converted to a low quality paint suitable for floor painting.
Tata Motors has also developed a process to convert the
incinerator ash to pavement bricks that can be used in walkways
within the plant.
This model has been very successful and has significantly reduced
the amount of hazardous incinerated ash sent to landfills.

FreeTake-back network for Tata Motors ELVs (end-oflife vehicles)

Under the End-of-Life Vehicle (ELV) regulations in the UK, Tata

Motors has contracted with a national ELV service provider called
Cartakeback.com Ltd. to provide owners of qualifying Tata vehicles,
who wish to dispose of their vehicle at the end of its life, with
access to a network of Authorised Treatment Facilities (ATFs).

Akshay Aggarwal
Deepanshu Chaudhary
Preeti Madan
Gaurav Anand
Abhigyan Bakshi