Strategic Management Presentation

TATA Consultancy Services (TCS)

Presentation Structure

Company Direction & Growth Strategy (Cost / Price Strategy) Implementation of strategy and Operations 6Ss Key Growth Factors Key Cost Drivers Stakeholders and their Alignment Stakeholder focus Revenue Strategy imperatives on Marketing Mix Competition Porters Model Ansoffs Model Understanding & Conclusion Appendix

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Company Direction & Growth

Tata Consultancy Services has been the pioneer in the IT industry. The company is aggressively pursuing its expansion plans. Some key aspects are as follows, Opportunities US sub prime crisis, Emergence of Latin American markets Threats Emergence of Philippines / Singapore as an offshore market, continual growth of china Investments Strategic Acquisitions, Technology, Near Shore locations Activities Talent acquisition building global teams, company acquisitions, etc Asset creation in-house development and acquisitions External communication positioning as a global company and demonstrate certainty Internal communication to be global top 10 by 2010 Year on Year Growth for the past 2 years (NPAT) is 42%
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Strategy
The company is growing through differentiated services which involves the following, Full Services Play Innovation Global Network Delivery Model Strategic Acquisitions

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Implementation of Strategy & Operations

The company is considering the changing market dynamics. Realignment in the Sales Structure Realignment of Industry Service Units The Go-To-Market Strategy has been changed Centers of Excellence Increase in the number of R&D labs Extended capability / infrastructure to deliver large projects off the near shore development centers

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6 Ss

Skill : Technology adoption, end to end services and Acquisitions Structure : Industry alignment Staff : Multilingual and High Skill HR

System / Processes : CMM level 5 Style : Business advisor (Complete solution Consultant) Share Values : Integrity and respect for individual

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Key Growth Factors

Strategic Acquisitions such as Airline Financial Services, Financial Network Services, etc Suite of Products in Banking & Financial Services Space Increased growth of some Industry units such as Travel & Hospitality, BPO, etc Innovation Focus

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Key Cost Drivers

Acquisitions R & D expenses Recruitment, Training and Development

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TCS : Other Communities

Customers Co Innovation Long Term Relationship Certifications Employees Learning & Development focus Centers of Excellence Certification Programmes Community /Society TCS Maitree, internal community of employees and their families has conducted awareness sessions on,
HIV/AIDS Right to Information Act Environment Awareness

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TCS : Other Communities

Geography UK : Helping the underprivileged through sponsorship and teaching US : Construction of Habitat through Humanity houses India : Govt of AP for Adult Literacy Programmes Industry Associations and initiatives, NASSCOM : to cover more than 600,000 Indian villages for education UN : To create awareness and funds to fight against child hunger Government Close association with AP Government for online initiatives

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Strategy Imperatives in Marketing Mix

The revenue target for the company is to grow to USD 10 bil by 2010 This implicates the following, Global brand building Positioning as an end to end service provider Positioning as Business Advisors and not functional experts

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Competition
Key Competitors
Accenture Cognizant IBM Infosys

Key Strategies for IBM

Increased expansion in India and more development centers Focus on Large outsourcing deals

Accenture
Large deals Leverage cost advantage in developing countries

Cognizant
Focus on new industry segments such as Media & Entertainment New Geographies
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Porters Model

Easy New Entrant Entry (5) 3I, Mastek ,Syntel

Moderate Suppliers (3) Very Strong Competition (2) Hardware, Strong Buyers (2) Accenture (stronger) Technology and Corporate CTS,IBM (Equal) Human Resource)

No substitutes in market (5)

Overall an attractive market

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Ansoff Grid

New Market

Market Diversification

Market Development (TCS)

Old Market (Existing)

Product Development

Market Penetration

New Product

Old Product (Existing)

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Cont.

1. Existing services to new market 2. Market development strategy 3. Tapping bigger accounts 4. Larger Distribution 5. Looking for new markets

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Understanding & Conclusion

TCS is growing at a fast pace in India and global markets; its key strategies for growth are
Strategic Acquisitions Global Network & Full Service Play Innovation Incessant improvement & development Comprehending clients requirement

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Thank You

Appendix

Growth

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Back

TCS Revenue by Geo

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Back

R&D Initiatives
Tata Research Development And Design Centre, Pune Advanced Technology Centre, Hyderabad Business Systems & Cybernetics Centre, Hyderababd Embedded Systems R&D TCS Technology Innovation Lab

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