1.

VISION AND MISSION OF TATA NANO

VISION OF TATA NANO

1. Safe and Comfortable means of transport for the masses

2. Low cost products can be effectively designed and developed in India
3. Replace the bike by Tata Nano

MISSION OF TATA NANO

1. 80% 1st time purchase

2. Create shareholder value by generating returns
3. To strengthen the tata brand and create lasting relationship
4. To be the most admired multi-national Indian car company producing vehicles that
people love to buy

2.EXTERNAL ASSESSMENT OF MACRO-ENVIRONMENT

This analysis helps us to describe and understand different factors that are used in the
scanning component of strategic management:

1. Economic Factors
Key major economic factors which existed during the Tata Nano crisis are:

 7.1% of India’s GDP comes from automotive Sector and contributes to about 49% of
India’s Manufacturing GDP.
  JLR says “Hard Brexit” forced the company to shut the UK Operations which costs 1.52
Billion to the company.
 All the sectors were affected with the GST
 The Economic changes in India was uncertain. Yet, a developing country like India has
understood the importance of what manufacturing sector can bring to the table. India
want to prove its worth in manufacturing sector and any economic changes brought out
by the government will help in boosting the sector .

2. Social, Cultural, Demographic & Natural Environmental Factors

For any production related company, cheap labor was easily available in India. The Tata Motors
believed in employing the local population and creating job opportunities, goodwill among the
society.

Certain social factors which influenced TATA Motors are:

 Perception of TATA automobiles, especially in the Passenger segment is that of a cheap

car and the marketing of TATA Nano added to the same.
 Tata Motors have supported more than 300 NGOs

From environmental aspect, the Company strives to become an Eco-Friendly company and
backs many campaigns like Clean Earth and Clear Earth. Climatic conditions and favorable
resources for business is an advantage to Automotive Industries. Large sea coast also helps in
exports. Gujarat, Chennai, Nellore etc.; which are coastal areas prove to be a hub for the
Automobile production in India.

Social factors for Tata Motors in India are favorable for the company specially in a
manufacturing sector. Philanthropic activities of company have added to its goodwill. For
competitive advantages, companies have set up its plant at strategic locations

3. Political, Government and Legal Factors

 Tata Motors have faced political confrontation and intervention of regional political
parties. Shifting of Tata Nano plant out of Singur in WB is an example of that.
 Laws pertaining to Patents of technology and operations are inadequate. Lobbying is
predominant in Indian economy
 Government aims to scrape Diesel and Petrol cars by 2030 and such environmental
measures pose a threat to the company.
 Government policies have a cascading effect on the Automotive sectors in India. Budget
allocated by the government and the taxation rules are volatile. GST and the Maximum
Axle Load Regulations Law are an example of the same
4.Technological Forces
 In terms of technology Tata owns Tata Technologies Ltd which helps in upgradation of
Design and Technology
 Tata Motors is ready to adopt Super Milo Fuel Efficient Engines
 R&D of Automotive industry in India accounted for 6300 crores by Tata Motors
 Tata Motors collaborated with Amazon AWS for cloud-based business so as to meet the
needs at a faster pace
 Tata Motors has always been a foot ahead in developing the technological innovations
In India

3.SWOT ANALYSIS OF TATA NANO CRISIS

1.Strength

 Affordable Prices
 Easy to Drive
 Lower Maintenance and handling costs
 Good fuel efficiency
 Excellent advertising of Tata Nano car
 Huge Buzz in the global automobile industry
 Innovative engineering
2. Weakness

 Cheap product which repelled aspirational customers

 WB Production Plant Controversy
 Limited International Presence
 Not suitable for hilly areas, highways
 Fiber body, low suspension power, low engine capacity
3.Opportunity

 Can capitalize on being the most affordable car and acquire new customers
 Promoting CNG Model and attracting public passenger car segment
 Increase international presence especially in Europe
 Augmenting the distribution and service network in various countries
4.Threats

 Increasing fuel costs

 Competition from other big automobile giants
 Second Hand Market
 Customer perception of Tata Nano as a cheap car lead to loss of sales
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