You are on page 1of 8

Strategic Management and Control of Singur project of TATA MOTORS

Submitted by: -Alok kumar singh (11bsp0069), -B. Shashank Shekhar, -Gaushiyakhanam (11bsp0335) -Jagdeeshwar Reddy Kally, -Kengua Ashutosh, -Payel Dutta (11bsp0685) -Pranita Singh (11bsp0707)

Table of contents Contents       Envisioning the Strategy and strategy mapping Identifying the elements of control process in strategy Decision making process of Singur project Tata Motors Management process of Singur project of Tata Motors Preparation of budget Performing the environmental analysis Page no. 03 04 05 06 07 08 2|Page .

Of course. This crucial announcement was made to the media at a rather hurriedly-convened conference by Tata Motors managing director Ravi Kant on Saturday afternoon. We will do it here. Envisioning the Strategy and strategy mapping Envisioning the Strategy The Tata Motors project of Singur (W. therefore. came as music to pro-industry campaigners in West Bengal.1. "Anybody can agitate in a democratic society. The Tata Motors chief. As a company. however. refused to comment on the political agitation. we do not have anything to do with it. Strategy mapping Financial Maximize shareholder value Customer Exceed customer expectations Inspire loyalty Business Processes Create quality partnerships Maximize operational effectiveness Create quality products Learning & Growth Recruit staff from singur village. Ratan Tata has a soft corner for West Bengal and we are therefore here”. not only for West Bengal but for the entire eastern region" ." he said. Tata Motors' car project at Singur was on track from Nov 26. 2006. who has described it as an eco-friendly "peoples car". Kant's declaration.B) was envisioned by renowned industrialist. Chairman of the Tata Group and Tata Motors. Train employees 3|Page . But we are always open to talks with all stakeholders involved in the Singur project. We can explain to them the importance of the project. "We are satisfied with the progress of the project. "However. Ratan Tata. he made it clear that the company had been looking at other states also and some of the proposals that had come were actually better. Mr.

Some of these are given below: Farmers (who had handed over their land) are supposed to be hired to work in the Singur project of Tata Motors.  Tata Motors had supported the community in the Singur area to acquire means of self-employment.  Tata Motors used to conduct health camps in the Singur area.  Tata Motors had supported adjacent schools in Singur with necessary infrastructure.2. Identifying the elements of control process in strategy. Tata motors had identified the elements of control process in strategy to set up their plant at Singur. Health camp Computer training Self employment community 4|Page .  A computer training facility was set up at Beraberi Suryanarayan Memorial High School.

They had been offered by different states. fertile land is to be handed over to the Tata Motors for this project. a joint platform of local farmers.e. Nano (people car) with very low range. For this project they need to set up a plant. Decision making process of Singur project of Tata Motors Tata Motors SINGUR KRISHI JAMI RAKSHA COMMITTEE (SKJRC) GOVERNMENT OF WEST BENGAL GOVERNMENT OF INDIA  Tata Motors had decided to launch a Small car project i.West Bengal was also one among those.  Singur Krishi Jami Raksha Committee (SKJRC).3. sharecroppers and agricultural workers. has been leading the movement in Singur against the coercive. 5|Page . undemocratic and non-transparent acquisition of land by force by the West Bengal Government for the Tata Motors Small Car Project. 997 acres of multi-cropped. West Bengal offered Tata Motors to set up plant in Singur (area near Howrah).

While disagreements were bound to occur. government officials.  Government of India:  Devise a rehabilitation policy that is participatory and scrap the century-old Land Acquisition Act. 3) Participatory Project Planning: 6|Page . 4. Government of West Bengal:  Stop coercive acquisition of land for private purpose  Provide all information about the Tata Motors Project and be transparent about decision making processes  Remove fencing of the project area and allow all local people access to their land for livelihood. Rather than “decide” the issue. it became difficult to have a productive discussion. This is how the management process took place between them: 1) Mediation and Dispute Management Systems: Mediation provided a safe and structured environment for corporate representatives. and community members to resolve disputes. Mediation can be one part of an overall Dispute Management System that proactively resolved disagreements without involvement of the courts and media.  Stop use of police against people movement and enable democratic dissent. The group is then better prepared to move forward with collaborative decision-making and problem solving. the Mediator helped everyone analyze the problem and identified solutions to meet their collective interests. Management process of Singur project of Tata Motors During the process of project relationships were very complex and contentious. In Facilitated Dialogue and Consensus Building. 2) Facilitated Dialogue and Consensus Building When an issue involved many people with different interests.  Begin dialogue and negotiation with project affected people’s organization. there are tools that helped the deal with differences in a more positive and less costly way. Facilitators worked with the parties to plan and conduct a meeting that helped everyone understand the issues involved and the different perspectives of the participants. Professional “third party” Mediators had expertise in helping parties understand each other’s concerns.

corporations that truly wanted to enlist the support of host communities and governments engaged them in project planning.5 lakh cars at Singur. When community members had an active role in project planning and decision-making. health camps for sick etc .000 people directly and 10. When their fear turned into frustration and anger. the exit lead West Bengal a loss of more than 80. 4) Community Outreach. It was estimated that the proposed plant will generate employment for 2.. 7|Page . they were more likely to oppose the plans. Preparation of budget Tata motors had prepared budget considering four principal purpose. After the opposition by against party the project came to an end.000 people indirectly. The first people's car will roll out in 2008. learn community members’ interests.  To obtain a commitment Tata Motors' Singur plant with an investment of Rs 55 crores and for ramping up power train components manufacturing and setting up gear manufacturing facilities entailing an investment of close to Rs 50 crores. because of which construction was delayed by nearly a quarter. But the Singur plant has been running behind schedule due to climate and other problems. camps for illiterate people. and address misunderstandings.Beyond outreach and consultation. This works out to 350. However Tata has to suffer in terms of delay and settlement cost. 5.000 orders per month. at least initially. This project came to an end just because it was assumed that the government had collected the land at gun point.000 units annually. On the other hand this project was opposed by against party. which isn't an immediate production target.  To authorize the amounts they are permitted ti spend  To inform them of the performance that is expected of them. they are more likely to be invested in project outcomes and behaved as collaborators rather than adversaries. education programs and consultations gave communities the opportunity to ask questions while allowing companies to listen. Community outreached. Financiers expect the Nano to bring in anywhere from 25. Over all investment made by the company was over 1500 crores in Singur including plant establishment.000 crore.000 to 30. Tata motors chairman said that they will initially manufacture 2.e. Education and Consultation: Many disputes arisen because local communities and government officials lacked understanding about the project and how it will impact their livelihood.. More than 550 persons at Singur have not given consent to the government's land acquisition. These are given below: To fine tune the strategy plan  To help coordinate the activities of the several parts of the organization  To assign responsibility to managers i. People fear what they do not know. It was estimated that existence of Tata Nano could lead to high industrial growth .

They were ready for talks and accept valid arguments. While looking to this condition Chairman of Tata Motors decided not to be part of this political war. Tata Motors accepted the offer made by the West Bengal government to set up their plant at Singur. Performing the environmental analysis After doing proper environment analysis which includes: The extent and nature of both on-site and off-site environmental consequences  The short and long-term environmental effects of the proposed initiative  Opportunities to deliver environmental benefits from the proposed initiative Which Tata Motors had done from their perspective and forget to take the perspective of singur area. 8|Page . When this news came to the public. too much argument happened for the establishment of the Singur project of Tata Motors. Some environmental analyst from perspective of Singur area said that this project will help in proper growth of Singur from agricultural to industrial while on the other hand many of them said that this industrial project will ruin the fertility of the soil to produce multiple crops as well as lead to growth of unemployment there. Industrialization was taken as interest of the ruling party by against party while the ruling party clearly stated that Industrialization is not in the interest of a party. Though they stated that this is for the beneficiary of the government employees and the workers of the public and private sector units public of singur went against them which ultimately lead Tata Motors to pulled out of Singur in October 2008 and moved their Nano project to Gujarat. It was also augmented that this project could lead to lowering the growth of Singur area.6. It is in the interest of the state as a whole and to solve the problem of growing unemployment.