Financial Accounting

Term 1

Group Project – Step 2

Due – TBA

Please research and answer the following questions in 3-5 sentences.

A. Market Overview

a. What are the drivers of sales in the Industry?

b. What is the size of the market/industry?

b. At what rate is your market expected to grow in the next year, five years?

d. What do you think are the key expected growth areas?

B. Competition

a. Are there imminent substitutes that can reduce sales of your industry / company?

b. Who are the closest competitors for your company?

c. Measure competition: 4-firm concentration ratio

d. How would you rate the degree of competition in your industry (high, medium, low)
based on threat of new entrants and existing players

C. Strategy

How would you describe your company's corporate strategy? That is, what strategies are
your company employing to increase its ROE? Specifically, what are some recent initiatives
that your company is employing or plans to employ to increase market share and ROE?

Strategy to increase Market Share and ROE ( 2018-2019)

#1 Focus on new Product Development
 Launch of CUV – Nexon
 Tigor EV in Electric Vehicle Segment
 Unveiled a number of newgen during
the Auto Expo 2018 – H5X,45X,Infra
Compact Truck, Ultra Light Truck.
 India’s first Six-Axle rigid truck.
 Launched E-Pace Jaguar first compact
SUV
 Introduce I-PACE. First Fully Electric
Premium SUV
 Continued investment in new models

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  New factory in Slovakia is slated to
commence production by the end of
2018
 Focus on PHEV ( Plug-in Hybrid
Electric vehicle) by 2020.
#2 Expanding International Business  Plans to enhance volumes from non-
SAARC markets driven by growth in
ASEAN, Africa and the Middle East
 Plan to increase the investments of JLR
( Jaguar Land Rover) to 9B GBR by
FY23.
 Expansion of JLR Manufacturing
footprint in China
#3 Mitigating Cyclicality  Plans to establish Wide range of
products in diverse Geographic’s
 Sale of certified pre-owned CV – Tata
OK refurbished vehicles
#4 Customer Focus  Sampoorna Seva – Complete protection
for Tata Vehicles
 Increase in number of Customer Touch
Points
 For JLR, Increase the number of
retailers to 1800 by FY23.
#5 Organization Efficient and Cost  Resource Optimization and reducing
Management Input costs.
 Establishing Slovakia as low cost
manufacturing location.
 Maximize the Returns: Deliver best-in-
class products at competitive prices
#6  Noise & Vibration
Performance Improvement  Fuel Economy
 Passive Safety
 Drivability

D. Risks

Identify three of the most important risks that your company faces that might cause it to not
achieve its goals and / or implement its strategies.

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 Three Important Risk – Impacts Tata Motors Capitals
# Risk Impact
1. Rapid Technology Change: This impacts the strategy of their focus on new
Many Countries announced to eliminate Product Development in CV and PV as lack in
the sale of Conventionally fuelled indigenous qualitative R&D.
vehicles

2. Volatile global economic and geo- This impacts the strategy of Expanding
political environment International Business, also Brexit might impact

Global Economic Slowdown affects the

manufacturing sector.
3. Competitive business efficiency This impacts the strategy of Organization
Efficient and Cost Management.
Risk in implementing Operating
efficiency program might have adverse
results to the business results.

References:

https://investors.tatamotors.com/financials/73-ar-html/strategic-priorities.html

https://investors.tatamotors.com/financials/73-ar-html/risks-opportunities.html

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