CHAPTER 1

INTRODUCTION
Business Environment is the key factor which determines the success and failure of a
business. If an organisation has a prior knowledge about its business environment and take
strategic decisions from the signs from the environment around the business then the
organisation is bound to become a success. The key factor in the business environment is
divided into two broad categories namely Micro and Macro Environments. The factors which
are can be controlled are the factors of micro environment namely the organisations raw
material provider, distributors, sellers, transportation channels, retailers to name a few. But the
macro environmental factor are factors which the organisation doesn't have any control over it
but the company is bound to follow are adhere to it in order to be successful like the rules and
regulations of government, taxations, environmental factors, laws, etc. with the help of these
macro and micro environmental factors the company can position itself in such a way that it is
sync with the business environment and as well as satisfying the customers and reaching the
organisations goals. This research deals about Tata Motor Company which is the largest car
manufacturing company in India. With the help of sufficient business models and supporting
literatures the resultant research outcome gives an insight about the organisations position in
the local as well as the international markets and its progress in the past five years.

Tata motors were established in 1945 when Tata engineering and locomotive company
started manufacturing locomotives and engineering products. Tata was India’s leading
automobile manufacturer by revenue and was placed at the third position in the passenger
vehicle category brand in India in 2012.
Unfortunately, the company’s major brand started to decline both domestically and
globally and the third position was also lost to Honda in India in terms of sales. Similarly the
company’s sales were decreasing in the commercial vehicle segment in 2013 and 2014. As a
result the company’s position dropped from the fourth largest seller of commercial vehicles to
fifth.
There were some macro-economic factors associated in the industry in India as well
such as increasing competition in the automobile industry and various other factors such as the
possible elimination of diesel subsidies by the Indian government. Usually these factors had
substantial effect on all the businesses involved in automobile manufacturing, but Tata motors
was being affected the most because there was lack of strategic planning and the strategy which
it was using was ineffective as compared to the rest of the players prevailing in the market.

. Tata Motors Cars is a division of Tata Motors which produces passenger cars under the Tata
Motors marque. Tata Motors is among the top four passenger vehicle brands in India with
products in the compact, midsize car, and utility vehicle segments. The company's
manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra),
Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Dharwad (Karnataka) and Sanand
(Gujarat). Tata's dealership, sales, service, and spare parts network comprises over 3,500 touch
points. Tata Motors has more than 250 dealerships in more than 195 cities across 27 states and
four Union Territories of India. It has the third-largest sales and service network after Maruti
Suzuki and Hyundai.

Tata also has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine,
Russia, and Senegal. Tata has dealerships in 26 countries across 4 continents. Tata is present
in many countries, it has managed to create a large consumer base in the Indian Subcontinent,
namely India, Bangladesh, Bhutan, Sri Lanka and Nepal. Tata is also present in
Italy, Spain, Poland, Romania, Turkey, Chile, South Africa, Oman, Kuwait, Qatar, Saudi
Arabia, United Arab Emirates, Bahrain, Iraq, Syria and Australia.
 CHAPTER 2

ABOUT THE ORGANISATION

The Tata Motors group is a passenger and commercial vehicle manufacturer based in
India. The group was established as part of the Tata Group in 1945. They have been well known
for their commercial vehicles and in the past decade they entered into the passenger vehicle
segments. Currently, Tata Motors has an ample line of passenger vehicles and a large line of
commercial vehicles such as pickups, trucks, tractors, trailers, tippers, and buses. Both product
lines of the Tata Motors group have seen success, but much of this has been built upon the
more deeply established commercial vehicle product line.
Tata Motors commercial line has been established for several years in many market
segments such as Europe, Africa, The Middle East, Australia, Southeast Asia, and South Asia.
They expanded their business and market share around the world through a series of
acquisitions. They acquired Daewoo commercial vehicle Company in South Korea in 2004.
This acquisition gave Tata Motors a significant presence in the Korean market. They also had
collaborations with companies such as Thonburi Automotive in 2006, which allowed them to
manufacture and market pickup trucks in Thailand. The commercial vehicle area of the
business has certainly been how Tata Motors have built their reputation, with commercial
vehicles accounting for 80-85% of company profits. They are beginning to employ a similar
technique as they now expand into the passenger car business.
Tata Motors have been making global headlines in the auto industry recently. The
hottest news is their acquisition of Jaguar and Land Rover from Ford. Tata paid 2.3 billion
dollars to Ford for the two brands that cost Ford 5.3 billion dollars. This is a major step for the
company because it triggers them into the luxury car business which they are not popular for
at this situation. As they acquire many businesses they will be managing the luxury car
automobile business with their previous management. This is yet another large acquisition for
the Tata Motors group and could create great success for the company in the near future.
Tata Motors have increased its earnings over the years through their various
acquisitions and joint ventures with truck manufacturers in Southeast Asia. Gross profit in the
year 2006 was 1,160.9 million and increased to 1,510.1 million in the year 2007. After a large
drop in revenues from 2004 to 2005 when the company first went public on the NYSE, it has
been increasing revenues greatly annually, from 4,422.0 million in 2005 to 7,354.0 in 2007.
Their net Revenue in 2008-09 was 256.79 billion, and net profit was 100.26 billion, due to
market disruption.
Tata Motors Limited (formerly TELCO, short for Tata Engineering and Locomotive
Company) headquartered in Mumbai, is an Indian multinational automotive manufacturing
company and a member of the Tata Group.
 Its products include passenger cars, trucks, vans, coaches, buses, sports cars,
construction equipment and military vehicles. Tata Motors has been ranked 5th in 2015
Responsible Business Rankings developed by IIM Udaipur.

Tata Motors has auto manufacturing and assembly plants

in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad, and Pune in India, as well as in
Argentina, South Africa, Great Britain and Thailand. It has research and development centres
in Pune, Jamshedpur, Lucknow, and Dharwad, India and in South Korea, Great Britain and
Spain. Tata Motors' principal subsidiaries purchased the English premium car maker Jaguar
Land Rover (the maker of Jaguar and Land Rover cars) and the South Korean commercial
vehicle manufacturer Tata Daewoo. Tata Motors has a bus-manufacturing joint venture
with Marcopolo S.A. (Tata Marcopolo), a construction-equipment manufacturing joint venture
with Hitachi (Tata Hitachi Construction Machinery), and a joint venture with Fiat
Chrysler which manufactures automotive components and Fiat Chrysler and Tata branded
vehicles.
Founded in 1945 as a manufacturer of locomotives, the company manufactured its first
commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended in 1969.
Tata Motors entered the passenger vehicle market in 1991 with the launch of the Tata Sierra,
becoming the first Indian manufacturer to achieve the capability of developing a competitive
indigenous automobile. In 1998, Tata launched the first fully indigenous Indian passenger car,
the Indica, and in 2008 launched the Tata Nano, the world's cheapest car. Tata Motors acquired
the South Korean truck manufacturer Daewoo Commercial Vehicles Company in 2004 and
purchased Jaguar Land Rover from Ford in 2008.
Tata Motors is listed on the (BSE) Bombay Stock Exchange, where it is a constituent
of the BSE SENSEX index, the National Stock Exchange of India, and the New York Stock
Exchange. The company is ranked 226th on the Fortune Global 500 list of the world's biggest
corporations as of 2016.
On 17 January 2017, Natarajan Chandrasekaran was appointed chairman of the
company.
 CHAPTER 3

VISION AND MISSION

Commercial Vehicle Business Unit (CVBU)

VISION STATEMENT:

To be a world class corporate constantly furthering the interest of all its stakeholders.

MISSION STATEMENT:

A. 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.

B. 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.

C. 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 country’s economic growth. To take a holistic approach
towards environmental protection
 CHAPTER 4

PESTLE ANALYSIS
PESTEL analysis helps to position any organisation with its business environment. It
enables to assess the organiations improvement and success with the factors that are
uncontrolable by the oragnisation thses factors are also known as micro environmental factors
for example factors such as competitiors, econpomy, sellers, buyers, distributors and general
consumers. Pestel analysis gives an clear insight about the organisation and its values and
position. PESTAL is the acronym for Political, Economical, socialable, technology,
environment and legal. This research implement the PESTEL analysis for the TATA motor
company.

Political:
Company needs to give attention on these factors-
1. Government laws and regulations-
2. Tax
3. Political motivation for globalisation
Tata motors are doing their business in different countries across the world such as Africa,
Europe, Middle East and Australia. The countries where Tata motors are going to operate
should concentrate on political climate as well as the regional leading bodies. The business
trade, expansion and investment are reliant on laws and regulations on business imposed by
the local government. How much they will be flourishing in markets and economies for the
effect of home and national influences.
Tata Motors made a deal with Ford for purchasing Jaguar and Land Rover on 26th
March'2008. For fulfilling this achievement, Tata Motors need to understand the laws and
regulations of the home country related to commerce, the United Kingdom, but also in
countries Jaguar and Land Rover operate in. UK political environment analysis: Government
offers impressive tax benefits to attract the investors from other countries, Strong political
inspiration regarding globalization, Strong reputation and trust, and political stability and
goodwill, adaptive governmental support.
In India Tata Motors strictly maintain government laws and regulations and also keep in
eye on labour laws in different countries where they are going to establish their manufacturing
plant. Political changes always need to consider by the organisations this will facilitate them to
spread out in new market. These all things maintained by the headquarters of Tata Motors
which situated in Mumbai that all branches are maintaining and obeying local laws or not.
During Mistrys Reign

1. India’s economy recovered from the global recession quickly because of high domestic
demand of goods and services with economic growth over 8%.

2. In 2011 this growth decreased due to lack of progress on economic reforms, high
interest rates and a consistent increase in inflation and the figure of economic growth
decreased to 5% in 2012 and 2013.

3. Auto sales in India broke the record in 2012 and due to that consumers increased their
purchases specifically of diesel vehicles as they that they knew the government would
raise taxes on diesel vehicles in the next fiscal year, similarly increase in loan rates and
fuel prices decreased the demand for cars in 2011.

4. Tata motors’ strategy for its passenger car division was keyed to leveraging its broad
product line and focusing severely on value including fuel efficiency because the Indian
market is very sensitive when it comes to fuel efficiency and people demand for those
cars.

After Mistry Exit

1. Governments wants to increase the Electrical vehicle sale and hence they have put GST
as 11% whereas the GST for other vehicles is more than 18%.

2. They have increased the price of all cars upto Rs.25000.

Economical:
Tata Motors is operating through different countries across the world; they are
functioning by focusing on individual market with considering global economical standpoint.
They are spreading out by forming joint ventures over the five different countries in the world.
Tata Motors have the experiences about the changes in market that occurs and can easily
acclimatize by using resources they have around the globe. For example Tata Motors need raw
materials for production of engine blocks but the price of raw materials is high in South Africa.
They have suppliers for raw materials in Europe, so they can easily get it from Russia because
they are operating globally. One important things need to consider that is the currency rate of
that country. Suppose they are investing at a higher rates but when they get return rate is lower
because it will impact on profit or loss. The demand of product also can vary with the
fluctuations of currency. The rate of currency and its variations also influence the company to
invest. Another important thing needs to consider labour cost is that cheap or high and available
or not with related to business. In case of Tata Motors deals with Ford in UK economic
advantages-huge movable workforce, reasonable labour cost, good in export, supportive
authority to invest in technology.
During Mistrys Reign
1. Fuel efficiency and people demand for Tata cars deceased and price parity and
more disposable income in the price sensitive market resulted in poor acceptance
of Tata motor cars.
2. Nano project didn’t go well under Mistry’s Reign and resulted in a huge loss.
3. Share prices fell 1.1% when Mistry announced his exit.
4. Share prices touched a high time of 548.15 and at the day of exit it touched
422points.

After Mistry Exit:

1. Ban on diesel cars in Delhi, to reduce pollution.

2. Deomonitisation also resulted in less car purchase by the humans.

3. Ban on sale of BSIII cars also resulted in over inventory of diesel indica cars.

4. Share price raised to 433.45 and it is in recovery phase.

Social:
The organisations are largely affected by shareholders idea, opinions and attitude. This
includes every aspects of the organisational stake holder as of chief executive officer to
president, investor to customers, down to line workers. The future of an organisation relies on
stake holder's mores and attitudes whether it will be beneficial or not. For this reason, Tata
Motors tends to use assimilation and rarely partition technique with foreign companies they
get hold of. In other aspect, there are some financial issues Tata motors have to consider on the
basis of localize point of view. Firstly, India's car market is different from car market in Italy
or in UK depending on the size of population. Secondly, it has to consider the affect on
demographics and the standard income of every market. Indians have a lower average income
per capita than Italians and citizens of Italian likes to drive larger and fancier cars. In that case,
the Tata Nano may not perfect for Italian market. Above all Tata Motors are operating their
business globally by local market understanding and gaining knowledge through different
markets. In 2004, the largest Korea's truck manufacturing company Daewoo Commercial
Vehicle was owned by Tata Motors. Tata used an incorporated approach, and nonstop building
and marketing Daewoo's current models as well as introducing some new models
internationally and it had been completed under supervision of Korean management, rather
than assimilating Daewoo. When Tata purchase the Jaguar and Land Rover then they need to
careful about how they hold it. Industry analyst of Tata thought that what could be the best
value that can be added with Ford. They found separation approach for nearly future and they
kept the name of Jaguar and Land Rover apparent. After that they coupled it with luxury
automobile market. They found that separation was important from the name Tata may be
precious in social areas.

During Mistrys Reign

1. Supports more than 600 plus NGO’s.
2. Inspite of having losses than more than 67 crore in the fiscal year
3. Funds for charitable work were drying up”.
4. The Trusts were also unhappy about the fact that the performance of Tata Sons was
increasingly dependent on just two companies—Jaguar Land Rover (JLR) and Tata
Consultancy Services (TCS).

After Mistry Exit:

1. Tata companies continued to do their best in CSR activities by providing computer and
books at free of cost.
2. Inspite of having loss equal to 2421 crore, TATA motors spent around 25.9 crore to
CSR activites.
3. The independent directors of Indian Hotels publicly supported Mistry’s leadership
ahead of the company’s board meeting.
4. The independent directors, including Deepak Parekh, Keki Dadiseth, Ireena Vittal,
Gautam Banerjee and Vibha Paul Rishi said, taking into account board assessments and
performance evaluation carried out over the years, the independent directors were
unanimously expressing their full confidence in the chairman, Cyrus Mistry.
5. This could bolster Mistry’s confidence and he may find support from independent
directors of other group companies too.

6. If Tatas aim to seek shareholder support for the management change, the matter will
have to be taken up in a separate general meeting, for which a special notice will need
to be issued giving reasons for the move. It will also give the director concerned a
chance to respond. Such a meeting may also bring management decisions taken in the
past under more scrutiny and so legal experts say this could be last option for Tatas.

With a long drawn legal battle, the Tatas have already consulted senior advocates like
Harish Salve and Abhishek Manu Singhvi. Mistry too has reportedly appointed top lawyers
like Janak Dwarkadas to fight his case.
General:
1. The organisations are largely affected by shareholders idea, opinions and attitude.
2. This includes every aspects of the organisational stake holder as of chief executive
officer to president, investor to customers, down to line workers.
3. The future of an organisation relies on stake holder's mores and attitudes whether it will
be beneficial or not
4. India's car market is different from car market in Italy or in UK depending on the size
of population.
5. It has to consider the affect on demographics and the standard income of every market
6. Indians have a lower average income per capita than Italians and citizens of Italian likes
to drive larger and fancier cars.
7. In that case, the Tata Nano may not perfect for Italian market.
8. Above all Tata Motors are operating their business globally by local market
understanding and gaining knowledge through different markets.

Technological:
Tata Motors and its parent company, the Tata Group, are developed in the technology
field. Tata Group has great publicity over 20 listed enterprises and operates in more than 80
countries world-wide. From this Tata motors gain lots of experience and resources that actually
helps them to get success in research and development.
"The growth of this company based on deep understanding of economic stimuli and
needs for customer, and the skill to interpret them into customer-desired offerings through most
important edge R&D" (Tata). Tata Motors' Research and Development team is in advance in
India's market and accurate with all other field internationally. In 1998, Tata Motors first
developed fully indigenous passenger car 'Tata Indica' and after that 'Tata Nano' the cheapest
car which was cheap in production.
Nowadays, it has become critical for manufacturers to hold their grown in business. It
is now going to become very hard to maintain the technology curve because of problems
arising. These problems are gas prices increasing and pollution problems. Tata spent lots of
resources and time on research and development purposes to stay in top of rivals, global trends,
and with economies changes. Tata is doing the right thing for maintaining rapid growth, and
extensive research and development to adapt with technological changes.

During Mistrys Reign

1. Same old engine was used for the Jaguar and land rover engine which was acquired
from Ford.
2. Turbo charged petrol engine was used in most of the high end cars of Tata motors.
After Mistry Exit:
1. Had a joint venture with the Chery automobiles to improve the turbo charged diesel
engine.
2. Realesed the latest InGenium Engine 2.0L, powered by 4-cyclinder petrol engine
for better fuel efficiency.
3. Efficiency increased by 6%

Legal:

Determinants of national advantages using Porter's Diamond Techniques:

It is very important for organisations to achieve competitive advantages over
competitors. When an organisation is going to start business in new countries primarily they
have some disadvantages over existing home competitors such as better market knowledge,
reputable local customer relationship and supply chain. A new company must need competitive
advantages to rise above such things. Porter Diamond explains the positive needs of
competitive advantages to sustain in company. He suggests four national determinants of
interacting. These are as follows:-

Factor conditions:
It refers to factors of production that needs in manufacturing of product or services for example:
labour, raw material and land. These advantages in national level are considered as general
competitive advantages of national firm in international markets. In compared to Tata Motors
they have cheap labour, raw material and land.
Home demand conditions:
The customers in home country can produce competitive advantages. Sophisticated and high
demanding customer and successful deal with them helps to train a company to be useful
overseas. Tata motors have use population has high demand of cheapest car.
Related and supporting industries:
It will create competitive advantages if there are some mutually supporting industries.
The characteristics of strategies, structures of industry and rivalry from different countries can
be good competitive advantages. In considering with Tata motors is the best on the basis of
good strategies making, experienced because it is operating globally.

During Mistrys Reign

 1. Many ITI employees protested and striked for a salary hike, as they felt their salary is
equivalent to daily wage worker.
2. Mistry had 14 levels of White collar jobs, and this resulted in over processing of ant
task.
After Mistry Exit
1. 1500 employees were laid off in the name if cost cutting
2. Reduced the 14 levels to 5levels and this reduced the over processing work which is
considered as a waste in the process of Lean manufacturing.
Enivronment
External environment has many influences on business to run that effectively. It involves
many factors outside the organisations that can give opportunities or pressure to the
business. The overall success of any business organisations depends on its consciousness
about its surroundings, environment and flexibility to cope up with the changing
environment. Business environment may be defined as combination of some factors that
cannot be controlled in nature and it affects on organisational decisions; these are
economical, demographical, legal and governmental, social and cultural and so on. Tata
motors have a good standard of manufacturing vehicles adhering to the euro and Indian
standards of emission and it also invested into creating greener cars by researching in
alternate fuel methods and low consumption of fuel which creates a balance between the
eco systems. All the vehicles come with low emission a filter which convert and reduces
the carbon monoxide content emitted by the vehicles.

Key points:
1. Started a compaign as Green earth, Clearn Earth and promoted the use of CNG
vehicles.

2. Tata is planning to launch BSVI vehicles by the end if 2020.

 CHAPTER 5
CONCLUSION & RECOMMENDATIONS

CONCLUSION
Tata motor company has been a fore runner in car manufacturing in India. With the
market share of 70% it has a potential to capture more and since the company had serious issues
with its rivals it has proved to be winning the tests. Apart from its financial part the Tata motors
have given back to the community by manufacturing cars which are far cheaper than any other
car manufacturing company could produce. It has also helped the community by providing
funds for less able people and created more job opportunities and supported many community
development programs and public organisation. With such high profile the organisation serves
the community well and honouring this the United Nations Organisation has acquainted with
the company in order to maintain the ecological system of the planet by manufacturing low
emission vehicles. In recent years Tata motors has been venturing in to new international
grounds by acquiring and jointly venturing with similar manufacturing companies.

RECOMMENDATIONS
This research recommends that tata motors must implement innovative and technological
advancements in manufacturing its vehicles which produce lesser emission and in order to
sustain itself in the future the Tata motors must initiate more of its concentration in developing
the community by providing awarness about the eco system. Apart from these factors there are
limited amount of modification required of the company. In conclusion, Tata motors have
proved itself to be a innovative leader with high degree of corporate social responsibility. With
its strategic planning and management skills Tata motors will become the leader in automobile
manufacturing company in India as well as globally.