Report on

ORGANIZATION STUDY
At
TATA MOTORS LTD.
By
SADANAND. M. SHIRGUR
USN: 1RX19MBA22
Submitted to

In partial fulfillment of the requirements of the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

Internal guide
MR RAKESH N
Assistant Professor/Designation
Department of MBA & Research Centre.
RNSIT, Bengaluru

RNS Institute of Technology

Department of MBA & Research Center
Dr Vishnuvardhan Road, Channasandra,Rajarajeshwarinagar Post
Bengaluru, Karnataka- 560098
August 2020
 RNS INSTITUTE OF TECHNOLOGY
(AICTE Approved, VTU Affiliated and NAAC ‘A’ Accredited)
Channasandra, Uttarahalli – Kengeri Main Road, Rajarajeshwari Nagar Post,
Bengaluru – 560098
Department of MBA & Research Centre

CERTIFICATE
This is to certify the SADANAND. M. SHIRGUR bearing USN 1RX19MBA22, is
a bonafide student of Master of Business Administration course of R N S Institute of
Technology, affiliated to Visvesvaraya Technological University, Belagavi.
Organization study (18MBAOS307) report at TATA MOTORS LTD. is prepared
by him under the guidance of Mr Rakesh N, in partial fulfillment of the
requirements for the award of the degree of Master of Business Administration of
Visvesvaraya Technological University, Belagavi Karnataka.

Signature of Internal Guide Signature of Department Head

Signature of Principal

Viva-Voce Examination Date:06-08-2020

Signature of Internal Examiner Signature of External Examiner

Name and Affiliation Name and Affiliation

RNS INSTITUTE OF TECHNOLOGY II

Tata Motors.

Declaration

I, hereby declare that this Organization Study conducted at Tata Motors Ltd. is
record of independent work carried out by me under the guidance of Mr. Rakesh N,
faculty of MBA Department, RNS Institute of Technology.

I also declare that this study is towards the partial fulfillment of the university
regulations for the award of degree of Master of Business Administration by
Visvesvaraya Technological University, Belagavi.

I have undergone an organization study for a period of four weeks. I further declare
that this report is based on the original study undertaken by me and has not been
submitted for the award of any degree/ diploma from any other University/
Institution.

Disclaimer
The enclosed document is the outcome of a student academic assignment and does
not represent the opinion/views of the University or the Institution or the Department
or any other individual referenced or acknowledged within the document. The data
and information studied and presented in this report have been accessed in good
faith from secondary sources/ web source public domain, including the
organization’s website, solely and exclusively for academic purpose, without any
consent permission, express or implied from the organization concerned. The author
makes no representation of any kind regarding the accuracy, adequacy, validity
reliability, availability or completeness of any data information here in contained.

Place: Bengaluru Signature of Student

Date: 06-08-2020 SADANAND. M. SHIRGUR
USN: 1RX19MBA22
Tata Motors.

Acknowledgement
It was my privilege to do an organization study at Tata Motors ltd. There are many
people who have helped me to complete this study successfully. It is with the
guidance that I acknowledge the help, which guided my efforts with success.

I wish to express my profound gratitude to the management and administrative team

of RNSIT for their constant encouragement.

I express my sincere thanks to Dr. U Bhojanna, Head of the Department, MBA

Department and Research Centre for being the backbone of support throughout the
study.

It is my foremost duty to express my wholehearted thanks to my guide Mr. Rakesh

N for the valuable guidance, support and motivation during the course of this study.
The inspiration provided by my guide at every stage of my work has helped me
immensely in completion of this organizational study and preparation of this report.

Last, but not the least, I am indebted to my family members and friends for their
blessings and encouragement.

Place: Bengaluru SADANAND. M. SHIRGUR

Date: 06-08-2020
USN: 1RX19MBA22
Tata Motors.

Table of contents

Sl. No. Particulars Page No.

1 Executive Summary 1
  Chapter I  
2 Introduction to Company 2
3 Industry Profile 3
  Chapter II  
4 Organization Profile 4
5 Background 4-6
6 Nature of Business 6
7 Vision, Mission and Values 7
8 Workflow Model 7
9 Products 8 – 16
10 Ownership Pattern 17
11 Awards and Achievements 18
12 Competitors Analysis 19 – 20
13 Market Share 20 – 21
14 Future Growth and Prospects 21 – 22
  Chapter III  
15 Mckinsey 7s Model 23 – 26
16 Porters Five Force Model 27 – 28
  Chapter IV  
17 SWOT analysis 29 – 31
  Chapter V  
18 Financial Statement analysis 32 – 39
  Chapter Vi  
19 Learning Experience 40
 20 Bibliography 41
     
     
Tata Motors.

Executive Summary
Tata Motors.

Chapter I

INTRODUCTION TO THE ORGANIZATION

MRF Limited (MRF) is an Indian multinational and the largest manufacturer

of tires in India and the fourteenth largest manufacturer in the world. It is
headquartered in Chennai, India. The company manufactures rubber products
including tyres, treads, tubes and conveyor belts, paints and toys. It is also
involved in a range of other activities via subsidiaries. Funskool India, a joint
venture between Hasbro and MRF LTD. is a major toy manufacturing
company in the country. MRF also runs the MRF Pace Foundation, Chennai
and MRF Challenge in motorsport. The company's manufacturing facilities are
located at Trichy Tiruvottiyur and Arakonam in Tamil Nadu Kottayam in
Kerala Ponda in Goa Medak in Andhra Pradesh and Union Territory of
Pondicherry. MRF Ltd was established in the year 1946 by K M Mammen
Mappillai as a small toy balloon unit. It has a distribution network of more
than 2500 outlets in the country, overseas offices in United Arab Emirates,
Bangladesh and Vietnam and export tyres in over 75 countries globally. MRF
LTD. enjoys of manufacturing the largest range of tyres in India and it has the
highest brand preference for superior quality, appearance and variability. It
manufactures the largest range of tyres in the country and is the market leader
with the largest market share in almost every segment of the tyre industry. The
company collaborated with Hasbro International USA the world's largest toy
maker and launched Funskool India. The company gets a place in The Forbes
India's Super 50 list of Indian Companies. In 2017 MRF jumps 5 rankings to
garner a spot in the coveted list of Super 30 Companies in India, climbs higher
in the global rankings, to make it to the list of Top 15 Tire Companies. In the
same year MRF featured in the esteemed Brands list of Top 50 Valuable
Indian brands.
Tata Motors.

RUBBER INDUSTRY IN INDIA

Rubber industry in India
The Indian goods industry is now more than 80 years old. The 1
st
factory has been set up in
1920 at Calcutta. Today the industry consists of 3500 manufacturing units.
The rubber goods industry plays a very important role in the development of road
transport
sector. The industry can be broadly classified in to tyre and non-tyre section. The
rubber
goods unit consumes three types of rubber; natural rubber, synthetic rubber and
reclaimed
rubber. The rubber industry’s performance in physical term was not up to the mark
of some
years, but its financial performance was good. The industry is the third largest
contributor to
the nation exchequers by way of duties and taxes.
Tyre is a covering for the outer rim of a wheel. The main feature of rubber tyre
ability to
absorb the shock and strain created by bumps in the road; provide a comfortable
ride and
protect many kinds of cargos, the rubber in a rubber tyre supports the weight of a
vehicle.
Another important feature of their ability to grip the road
The Indian goods industry is now more than 80 years old. The 1
st
factory has been set up in
1920 at Calcutta. Today the industry consists of 3500 manufacturing units.
The rubber goods industry plays a very important role in the development of road
transport
sector. The industry can be broadly classified in to tyre and non-tyre section. The
rubber
goods unit consumes three types of rubber; natural rubber, synthetic rubber and
reclaimed
rubber. The rubber industry’s performance in physical term was not up to the mark
of some
years, but its financial performance was good. The industry is the third largest
contributor to
the nation exchequers by way of duties and taxes.
Tyre is a covering for the outer rim of a wheel. The main feature of rubber tyre
ability to
absorb the shock and strain created by bumps in the road; provide a comfortable
ride and
protect many kinds of cargos, the rubber in a rubber tyre supports the weight of a
vehicle.
Tata Motors.

Another important feature of their ability to grip the road.

The pneumatic tyre was invented in 1845 by Robert.W.Thomson, a Scottish
engineer. In
1970 the 1
st
solid rubber tyre appeared in English. John and Dunlop, a Scottish Veterinary
The Indian goods industry is now more than 80 years old. The 1st factory
has been set up in1920 at Calcutta. Today the industry consists of 3500
manufacturing units. The rubber goods industry plays a very important role
in the development of road transport sector. The industry can be broadly
classified in to tyre and non-tyre section. The rubber goods unit consumes
three types of rubber; natural rubber, synthetic rubber and reclaimed
rubber. The rubber industry’s performance in physical term was not up to
the mark of some years, but its financial performance was good. The
industry is the third largest contributor to the nation exchequers by way of
duties and taxes. Tyre is a covering for the outer rim of a wheel. The main
feature of rubber tyre ability to absorb the shock and strain created by
bumps in the road; provide a comfortable ride and protect many kinds of
cargos, the rubber in a rubber tyre supports the weight of a vehicle.
Another important feature of their ability to grip the road. The pneumatic
tyre was invented in 1845 by Robert.W. Thomson, a Scottish engineer.
In1970 the 1st solid rubber tyre appeared in English. John and Dunlop, a
Scottish Veterinary surgeon improved on Thomson’s invention in 1988.
Indian rubber industry has been growing in along with the strength and
importance, as a part of India’s burgeoning role in the global economy. India is
the world’s largest producer and the third largest consumer of natural rubber
and is also one of the fastest growing economies globally. With a stable annual
growth rate of 8-9%, rising foreign exchange reserves, rapid expansion in the
capital markets and FDI inflow, India proudly stakes its claim as the second
fastest growing major economy in the world. Such factors combined with high
concentration of automobile production and the presence of large and medium
industries in South India.
There are about 6000 unit comprising 30 large scale, 300 medium scale and
around 5600 small scale and tiny sector units. These units are manufacturing
more than 35000 rubber products, employing 400 hundred thousand people,
which also includes 22000 technically qualified support personnel,
Tata Motors.

contributing Rs. 40 billion to the National Exchequer through taxes, duties and
other levies. The Indian Rubber Industry plays a vital role in the Indian
national economy. The rubber plantation sector in India produces over 630
hundred thousand tonnes of natural rubber and there is a projected production
of more than one million tonnes in near future. This has helped in the radical
and rapid growth of the Indian rubber industry. This prospect of growth is
further enhanced by a boom in the vehicle industry, improved living standards
of the people and rapid over-all industrialization. The per capita consumption
of rubber in India is only 800 grams compared to 12 to 14 kilos in Japan, USA
and Europe. So far as consumption of rubber products is concerned, India is
far from attaining any saturation level. This is another factor leading to
tremendous growth prospects of the industry in the years to come.

Rubber Producing Areas in India

Rubber producing regions in India are divided into two zones traditional and
non-traditional.

Non-
Traditional
traditional
zone
zone
Kanyakumar Coastal
i in Tamil regions of
Nadu Karnataka
Districts of
Goa
Kerala
Andhra
 
Pradesh
  Orissa
Some areas
of
 
Maharashtr
a
North
eastern
  states
(mainly
Tripura)
  Andaman
and
Tata Motors.

Nicobar
Islands

Kerala rubber industry is a leading producer contributing almost 90% of total

natural rubber production of India. Kerala and Tamil Nadu together cover total
86% of growing area of natural rubber.

Rubber Production in India

Here are some facts regarding rubber industry in India.

 India is the third largest producer of rubber in the world.

 It is the fourth largest consumer of natural rubber.
 It is the fifth largest consumer of natural rubber and synthetic rubber together in
the world.
 India is the world's largest manufacturer of reclaim rubber.
 India and China are the only two countries in the world which have the capacity
to consume the entire indigenous production of natural rubber.
Tata Motors.

Chapter II

Organization Profile

Type Public

Industry Automotive

Founded 1945; 75 years

Founder Tata Family

Headquarter Mumbai, Maharashtra, India

Area Served Worldwide

Key People Natarajan Chandrasekaran (Chairman)

Guenter Butschek (CEO)

Number of Employees 82797 (2019)

Parent Tata Group

Divisions Tata Motors Car

Website www.tatamotors.com

Background

Tata Motors was founded in 1945, as of locomotive manufacturer. It has been

a long and accelerated journey of Tata motors. India’s leading automobile
manufacturer. Some significant milestones in the company’s journey towards
excellence and leadership.

1945: Manufacturing of locomotives and other engineering products.

1948: Steam road roller introduced in collaboration with marshal sons (UK)

1954: Out Rolled the first commercial vehicle, The TMB 312 truck.

1964: The 1210 series of vehicles set out from Jamshedpur

Tata Motors.

1969: Telco began to run under Tata Brand

1975: Indian Road discover the Tata 1210 Semi forward model

1983: Manufacture of Heavy commercial vehicles commence

1986: Tata LCV 407 from Telco

1989: The Multi utility tata model

1991: Launch of the 1st indigenous passenger vehicle Tata Sierra

1992: Launch of the Tata Estate

1994: Launch of Tata Sumo the multi utility vehicle

1995: Telco brings three-pointed star to India

1998: Tata Safari- India’s first sports utility vehicle launched

1998: Tata Indica- India’s first fully indigenous passenger car launched

2002: India’s first fully indigenous Sedan debuts with class leading features.
The Tata Indigo is positioned as a comfortable, spacious, premium features
sedan with class leading ride and handling characteristics in the midsize
segment.

2004: Launch of Tata NOVUS by Tata Daewoo.

2004: Launch of Tata Indigo Marina

2005: Launch of wide range of fully built buses and coaches called
‘GLOBUS’ and ‘STARBUS’ brands.

Launch of India’s first mini truck Tata ACE

Launch of Tata TL 4X4, India’s first sports utility truck (SUT)

2007: Launch of Tata Magic, a comfortable, safe, four-wheeler public

transportation mode, developed on the ACE platform

2009: Launch of Tata Nano

Launch of Jaguar and Land Rover in India

2010: Launch of Tata Aria, the first Indian four-wheel drive crossover.
Tata Motors.

2011: Launch of Tata Venture

2012: Launch of Tata Safari Strome.

2015: Launch of India’s first multidrive and sporty Hatchback Tata Bolt, with
Revotron 1.2T Petrol engine.

2016: Launch of Tata Tiago.

2017: Launch of Tata Star bus hybrid

Launch of Tata Hexa

Launch of Tata Tigor

Launch of Tata AMT bus

Launch of Tata Nexon

Launch of Tata Tigor EV

2018: Launch of Tata ACE gold

Launch of Tata Nexon AMT

Launch of NEX-GEN ULTRA range of trucks.

Launch of Tata Harrier.

Nature of Business

It is a leading global automobile manufacturing company headquartered in

Mumbai, Maharashtra. Its diverse portfolio includes an extensive range of
cars, sports utility vehicles, trucks, buses and defence vehicles. Tata Motors is
one of India's largest OEMs offering an extensive range of integrated, smart
and e-mobility solutions.
Tata Motors.

Vision

By FY 2024, we will become the most aspirational Indian auto brand,

consistently winning, by

 Delivering superior financial returns

 Driving sustainable mobility solutions
 Exceeding customer expectations, and
 Creating a highly engaged work force.

Mission

We innovate mobility solutions with passion to enhance the quality of life

Values

 Integrity
 Accountability
 Excellence
 Teamwork
 Customer focus
 Speed.

Workflow Model
Tata Motors.

Products

Passenger Vehicles
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Commercial Vehicles
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Defense
vehicle
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Sports vehicles
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Ownership

Tata Motors Ltd is an Indian Multinational automotive manufacturing

company headquartered in Mumbai, Maharashtra. It is a part of Tata Group, an
Indian conglomerate.

Shareholding Pattern of Tata Motors.

Holders Name No. of shares % share holding

Tata Motors.

No. of Shares 3088973894 100

Promoters 1309551138 42.39

Foreign Institutions 482438007 15.62

N Banks Mutual Funds 191680853 6.21

Central Govt 4944144 0.16

Others 428532242 13.87

General Public 455057739 14.73

Financial Institutions 216769771 7.02

Awards

Tata Motors has consistently been recognised for yielding excellent results and
creating significant value for all.

Corporate and HR

 Felicitated for initiating the drive of Clean Energy in India at the EV Tech
India 2019 – ‘CEO Leadership Meet and Felicitation Event’ in Bangalore
Tata Motors.

 Acknowledged as the “Emerging Industry Leader” at the 25th JRD QV award

function honouring JRD Tata’s 115th Birth Anniversary
 Awarded with Best Design, Facebook People’s Choice Best Pavilion and Best
CV Pavilion by CNB Auto Expo Excellence Awards at Auto Expo 2020
 Tata Motors won the Business Today ‘Best Companies to Work For’ Award
2017

Products and Marketing

 Tata Ace has received an award for BW Pure: Purpose-Led Brand 2019 for its
contribution towards the development of the nation
 Tata Harrier has won the best Design and Styling award at the Autocar India
Awards
 Design of the Year” award for Tata Harrier at the Car and Bike India Awards
2020
 CV Maker of the Year – Apollo CV Awards 2020
 TML Nexon received the prestigious Best Design Award of this Year by Auto
portal
 Tata Hexa won ‘Family Car of the Year’ award at 10th Top Gear India
Magazine Awards

CSR & Sustainability

 Awarded the prestigious Golden Peacock award in Occupational Health &

Safety for 2019
 TML conferred with the prestigious National Energy Conservation Award for
its Jamshedpur plant, by the Government of India.
 Tata Motors, Jamshedpur received the ‘Industry Champion for Sustainable
Development Goals Award’

Competitors analysis

 Maruti Suzuki
Maruti Suzuki is the biggest rival of Tata Motors. Maruti Suzuki is
headquartered in New Delhi and was founded in 1981. Maruti Suzuki is the
top leader in the Market which has a large market share. This company has
Tata Motors.

about 15 vehicles supporting its portfolio. They have good product lines and

their vehicles focus on good fuel efficiency like Alto, Maruti Swift etc. Due to
their great market share and the highest number of domestic sales, Maruti is
considered one of the top Tata Motors competitors.
 Hyundai

Hyundai is Tata Motors 2 competitor. Hyundai is a public company that was

founded in Seocho-Gu, seoul Teugbyeosli in 1967. Hyundai has 198031 more
employees than Tata Motors. They focus on three main features in their
design, simple, creative and caring. It is the world’s 35 th valuable brand and
has an annual manufacturing capacity of about 1.6 million units. Their vehicles
are sold in almost 193 countries through their 5,000 showrooms and dealers. It
is the largest exporter of cars from the Asian market. It is popular for their
quality products which have better performance. They have almost eight
products for small and big car segments. Due to their rich experiences in the
automobile industry, Hyundai motor company is regarded as one of the top
Tata Motors competitors.

 Volkswagen
Volkswagen is an automotive manufacturing company recognized globally
headquartered in Germany. They have about 120 production across 20
countries in Europe and 11 countries in the US, Asia and Africa. One of the
main strengths of the company is a well-structured brand. It has a strong
presence in all the places. Their product line 12 brands such as Seat, Skoda,
Audi and Lamborghini.

 Toyota
Toyota is a Japanese multinational automotive manufacturing company
headquartered in Japan. It develops vehicles in an innovative way to meet the
requirements of the market. Toyota emphasis on research on vehicles that
gives more focus on vehicles and can be motor-powered by a variety of other
fuels and vehicles for automated driving.
They have a strong brand image which people look at it while making their
choice of purchase. Their cars make use of great technology to meet the
Tata Motors.

rising demands of technology.  Due to their design and popularity across the

globe

 Ford
Ford, an American multinational automobile manufacturing company is
headquartered in Michigan, United States
Ford is committed to manufacturing new vehicles using the latest technologies.
Their new technologies targets on increasing fuel efficiency, direct injection of
gasoline, and six-speed transmissions. Due to their great market share value
and a huge portfolio of products, Ford is considered as one of the top Tata
Motors competitors.

Market Share

Passenger Vehicles

India’s passenger vehicles segment top gainers are Maruti Suzuki India, Tata
Motors, Honda and Toyota Kirloskar Motors. In passenger vehicles segment
Maruti Suzuki has gained highest market share. Tata Motors has gained 3rd
position in passenger vehicles market.

Commercial Vehicles

In commercial vehicle segment Tata motors has gained highest market share
compared that of competitors.

Future Growth and Prospects

Tata Motors, one of India’s leading automobile manufacturer, is all set to roll
out
a
Tata Motors.

product offensive in 2020. The company announced that it will commence the
introduction of its all-new BSVI range of products with passenger vehicles,
starting from January 2020. This will be demonstrated by a grand showcase
with 4 global unveils, 14 commercial and 12 passenger vehicles display at the
upcoming Auto Expo 2020, at Greater Noida.

Tata Motors has entered its 75th year in 2020 with a rich legacy in
contributing to the nation. It is building a sustainable future by providing
aspirational, innovative mobility solutions for a Connected India. This intent
will be represented as the theme at the Tata Motors’ pavilion.

Ready for the new portfolio transition

BSVI transition has been the single largest focus area for Tata Motors. It
established a state-of-the-art ‘Advance Power Systems Engineering Tech
Centre’ at its Engineering Research Centre (ERC) Pune, which has played a
key role in engineering, testing and developing cutting-edge powertrain
solutions for its product portfolio, including comprehensive electrification.

The deployment of modular product architecture across its vehicle platforms

has ensured a higher commonization of parts, quicker time to market and
lower costs for its vast range of offerings. The company is ready with its entire
range of drivetrain combinations, including gasoline, diesel & CNG engines
with manual, automatic and automated-manual transmissions for BSVI
emission norms.

Will launch at least four more products in the next 18-24 months with focus on
sustainability and electric vehicles. The company is focusing on - CESS:
connected, electric, shared and safe - as the future of mobility.

The company will allow test drive of its Nexon EV, besides showcasing the
new Winger and Prima. Tata Motors also unveiled the HBX Show car based
on ALFA ARC architecture, and the Sierra EV concept as well as the Hexa
Safari edition.

The company also plans to roll out an electric low-floor bus and an electric
truck. Tata Motors is showcasing a lineup of 26 new products, including 14
Tata Motors.

commercial and 12 passenger vehicles. Tata Motors plans to add Altroz EV,
based on its premium hatchback and H2X, small SUV EV, to complement
Tiago and Tigor EV. All these will address the different price points and buyer
profiles in the sub-Rs 15-lakh bracket. The company is committed to electric
vehicles.

Chapter III

Mckinsey 7s model

The McKinsey 7S Model is a framework for organizational effectiveness that

postulates that there are seven internal factors of an organization that need to
be aligned and reinforced for it to be successful.

The McKinsey 7S Model is an organizational tool that assesses the wellbeing

of seven internal factors of an organization as a means of determining whether
a company has the structural support to be successful. The Model comprises a
mix of hard elements, which are clear-cut and influenced by management, and
soft elements, which are fuzzier and influenced by corporate culture.
Tata Motors.

With respect to organization under study

Tata Motors.
Tata Motors.

 Strategy: The plan devised to maintain and build competitive advantage over
the competition.
I. Make customers successful
II. Excel through innovation and teamwork
III. Respect the individuals
IV. Deliver on commitments
V. Low cost strategy by providing unmatched value to its customer’s money.

 Structure: The way organization is structured and who reports to whom. A

structure which is highly flexible and ready to adopt to changes.
Governance structure

Organizational structure

 S y s t e m : T h e d a

activities and procedures that staff members engage in to get the work done.
Tata Motors.

At Tata Motors they have detailed schedule of plans for their employees.
Every employee is well aware of their roles and responsibilities.
 Shared Values: Tata motors has always been a values-driven organisation.
These values continue to direct the growth and business of Tata companies.
I. Integrity
II. Responsibility
III. Excellence
IV. Pioneering
V. Unity.
 Staff: Staff element is concerned with what type and how many employees an
organization will need and how they will be recruited, trained, motivated and
rewarded.
Benefits to employees
I. Medical benefits
II. Flexi working schedule
III. Perk car and interest subsidy on car loan
IV. Sabbatical, Maternity and Adoption leave and Holiday Hub.
 Style: The culture of the organization in terms of leadership and interactions
between staff and other stakeholders. At TML, engagement with stakeholders
has always been of utmost priority, driving business to a level where it is
today. Stakeholders’ views and suggestions are incorporated into Tata Motors
business strategies while the concerns raised by them are worked upon to
strengthen our internal systems. On a regular basis, teams engage with
multitude of people, who impact or are impacted by our business decisions, to
discuss matters most important to them.
In Tata Motors they have adopted a democratic style of leadership style.
Leaders encourages groups to be creating good communication and
participation.
 Skills: Capabilities to complete different activities. The most common skills
required to perform the given activities are complex problem solving, critical
thinking, people management.

Porters Five Force Model

Tata Motors.

Michael Porter observed five forces that have significant impact on a firm's
profitability in its industry. These five forces analysis today in business world
is also known as -Porter Five Forces Analysis

Bargaining power of the buyer

Due to the rising competition in the Indian market, the bargaining power of the
buyer is high because the switching costs are very low. Tata Motors has been
facing intense competition from Maruti Suzuki and other new entrants like
Volvo. Due to its differentiation and innovativeness Tata Motors has managed
to compete in the industry and maintain its margins

Buyers are often a demanding lot. They want to buy the best offerings
available by paying the minimum price as possible. This put pressure on Tata
Motors Limited profitability in the long run. The smaller and more powerful
the customer base is of Tata Motors Limited the higher the bargaining power
of the customers and higher their ability to seek increasing discounts and
offers.

Bargaining power of the Supplier

All most all the companies in the Auto Manufacturers - Major industry buy
their raw material from numerous suppliers. Suppliers in dominant position
can decrease the margins Tata Motors Limited can earn in the market.
Powerful suppliers in Consumer Goods sector use their negotiating power to
extract higher prices from the firms in Auto Manufacturers - Major field. The
overall impact of higher supplier bargaining power is that it lowers the overall
profitability of Auto Manufacturers
Tata Motors.

Threats of substitutes products or services

 There are very few substitutes available for the products that are produced in
the industry in which Tata Motors Limited operates. The very few substitutes
that are available are also produced by low profit earning industries. This
means that there is no ceiling on the maximum profit that firms can earn in the
industry in which Tata Motors Limited operates. All these factors make the
threat of substitute products a weaker force within the industry.
 The very few substitutes available are of high quality but are way more
expensive. Comparatively, firms producing within the industry in which Tata
Motors Limited operates sell at a lower price than substitutes, with adequate
quality. This means that buyers are less likely to switch to substitute products.
This means that the threat of substitute products is weak within the industry.

Rivalry among the Existing Competitors

Tata Motors if faced with fierce competition in the domestic market dominated
by Maruti Suzuki and Hyundai Motors. The company is also facing
competition in its commercial vehicle segment from Volvo and Daimler who
have also started manufacturing trucks. This has resulted into a loss of market
shares and a decline in its turnover.

Threats of New Entrants

New entrants in Auto Manufacturers - Major brings innovation, new ways of

doing things and put pressure on Tata Motors Limited through lower pricing
strategy, reducing costs, and providing new value propositions to the
customers. Tata Motors Limited must manage all these challenges and build
effective barriers to safeguard its competitive edge.

In the automobile industry, barriers to entry are very high because incumbents
like Tata Motors have already reached high scales of production which will be
very expensive for new entrants to match. Barriers to entry into this industry
are high due to the very high investment required for entry. Not forgetting that
incumbents have gained experience with time and know how to operate
efficiently which gives them an added advantage
Tata Motors.

Chapter IV

SWOT analysis.

SWOT analysis is a process of which identifies an organizations strength,

weakness, opportunities and threats. Specifically, SWOT is a basic analytical
framework that assesses what an entity can and cannot do, for factors both
internal (Strength and Weakness) as well as external (Opportunity and
Threats). Using environmental data to evaluate the position of a company, a
SWOT analysis determines what assists the firm in accomplishing its
objectives and what obstacles must be overcome or minimized to achieve
desired results. Where the organization is today and where it may be
positioned in the future.

Strength:

 Highly skilled workforce through successful training and learning programs.

Tata Motors Limited is investing huge resources in training and development of
its employees resulting in a workforce that is not only highly skilled but also
motivated to achieve more.
 High level of customer satisfaction – the company with its dedicated customer
relationship management department has able to achieve a high level of
customer satisfaction among present customers and good brand equity among
the potential customers.
Tata Motors.

 Reliable suppliers – It has a strong base of reliable supplier of raw material thus
enabling the company to overcome any supply chain bottlenecks.
 The company has a strategy in place for the next stage of its expansion. Not
only is it focusing upon new products and acquisitions, but it also has a
programme of intensive management development in place in order to establish
its leaders for tomorrow.
 The company has a strong R&D network in all its subsidiaries which has
supported it and kept it on top of the game when it comes to innovativeness.
This has helped it invest in new technologies and in development of new
products that have helped it meet both the challenges and opportunities in the
market.

Weakness:

 The company’s passenger car products are based upon 3rd and 4th generation
platforms, which put Tata Motors Limited at a disadvantage with competing car
manufacturers.
 Old Technology Use: The passenger car products of the company are based on
old platforms which are the major disadvantage for Tata Motors for competing
with its rivals in the automobile manufacturers.
 Indifferent to Changes: Automotive is a highly competitive market. Every
company remains competitive in this industry as most of the automotive
companies are very old and experienced in this business. They sell a modern
model, and cars that are tech-savvy. But in this case, the Tata Motors are
indifferent. Its large base model is old.
 Unable to establish Foothold: Tata has no foothold for luxury cars in the Indian
Market. Its brand is recognized for commercial vehicles and low-cost passenger
cars
 Tata Motors faces are its inability to meet safety standards. Although they have
made the most inexpensive car out on the market, it has yet to pass all the safety
standards which is a legal requirement. 
Tata Motors.

Opportunities:

 Tata Motors can grow further in its home market. As the economic
development is spreading across the country, a growing number of potential
buyers is out there in the rural areas. Tata Motors can easily tap into this
potential market segment. Likewise, further growth is also possible in many of
its overseas markets.
 Electric cars are the way forward where all the automobile giants are
concentrating on. Tata Motors has already announced its position in this
battle. It unveiled Nexon EV, its first electric car for personal buyers in
December 2019 (James, 2019). It is very optimistic about this nascent electric
car market.
 Expanding auto market: The world is becoming modernized. People are being
independent on transportation facilities heavily. It will increase the sales of
motor vehicles. As Tata still has the opportunity to enter a different foreign
market, it has a great expansion opportunity.

Threats:

 Rising prices in the global economy could pose a threat to Tata Motors
Limited on a couple of fronts. The price of steel and aluminium is increasing
putting pressure on the costs of production.
 Increasing production cost: In this modern era, competition has increased. As a
result, the production cost is more than before as the company has to be more
competitive for offering innovative products.
 Tata Motors faces a number of competitors in its domestic and overseas
markets. Its main competitors are Honda, Toyota, Maruti Suzuki, Hyundai,
Volkswagen, Ford, Mahindra, Nissan, Mitsubishi, Ashok Leyland, Volvo,
Skoda Auto, and Chevrolet.
Tata Motors.

Chapter V
Financial Statement analysis
Financial statement analysis is the process of reviewing and analyzing a company's
financial statements to make better economic decisions. These statements include
the income statement, balance sheet, statement of cash flows, and a statement of
changes in equity. Financial statement analysis is a method or process involving
specific techniques for evaluating risks, performance, financial health, and future
prospects of an organization.
It is used by a variety of stakeholders, such as credit and equity investors, the
government, the public, and decision-makers within the organization. These
stakeholders have different interests and apply a variety of different techniques to
meet their needs. For example, equity investors are interested in the long-term
earnings power of the organization and perhaps the sustainability and growth of
dividend payments. Creditors want to ensure the interest and principal is paid on the
organization’s debt securities (e.g., bonds) when due.

Tools for financial statement analysis

 Comparative Financial Statements
 Common Size Statements
 Trend Analysis
 Ratio Analysis

Ratio Analysis

Ratio analysis is used for analysing and interpreting financial statements. It also
helps in decision making process by providing useful inference.
The most popular way to analyse the financial statements is computing ratios. It is
an important and widely used tool of analysis of financial statements. While
developing a meaningful relationship between the individual items or group of items
of balance sheets and income statements, it highlights the key performance
indicators, such as, liquidity, solvency and profitability of a business entity. The tool
of ratio analysis performs in a way that it makes the process of comprehension of
financial statements simpler, at the same time, it reveals a lot about the changes in
the financial condition of a business entity.
Tata Motors.

Balance Sheet of Tata Motors Ltd.

Balance sheet of Tata Motors (in Rs. Cr.)

  Mar-20 Mar-19 Mar-18 Mar-17 Mar-16
EQUITIES AND
         
LIABILITIES
SHAREHOLDER'S FUNDS          

Equity Share Capital 719.54 679.22 679.22 679.22 679.18

TOTAL SHARE CAPITAL 719.54 679.22 679.22 679.22 679.18

Reserves and Surplus 61,491.49 59,500.34 94,748.69 57,382.67 78,273.23
TOTAL RESERVES AND
61,491.49 59,500.34 94,748.69 57,382.67 78,273.23
SURPLUS
TOTAL SHAREHOLDERS
63,078.53 60,179.56 95,427.91 58,061.89 78,952.41
FUNDS
Minority Interest 813.56 523.06 525.06 453.17 432.84
NON-CURRENT
         
LIABILITIES
Long Term Borrowings 83,315.62 70,817.50 61,199.50 60,629.18 50,510.39
Deferred Tax Liabilities
1,941.87 1,491.04 6,125.80 1,174.00 4,474.78
[Net]
Other Long-Term Liabilities 17,780.94 16,871.09 13,904.33 28,802.14 17,830.29

Long Term Provisions 14,736.69 11,854.85 10,948.44 9,004.46 7,891.01

TOTAL NON-CURRENT 1,17,775.1 1,01,034.4

92,178.07 99,609.78 80,706.47
LIABILITIES 2 8
CURRENT LIABILITIES          

Short Term Borrowings 16,362.53 20,150.26 16,794.85 13,859.94 11,450.78

Trade Payables 63,626.88 68,513.53 76,939.83 62,532.57 57,580.46
Other Current Liabilities 50,135.60 46,596.89 41,531.29 33,429.25 32,173.68

Short Term Provisions 10,329.04 10,196.75 7,953.50 5,807.76 5,844.51

TOTAL CURRENT 1,40,454.0 1,45,457.4 1,43,219.4 1,15,629.5 1,07,049.4
LIABILITIES 5 3 7 2 3
TOTAL CAPITAL AND 3,22,121.2 3,07,194.5 3,31,350.5 2,73,754.3 2,67,141.1
LIABILITIES 6 3 1 6 5
ASSETS          
NON-CURRENT ASSETS          

Tangible Assets 84,158.17 72,619.86 73,867.84 59,594.56 64,927.07

Tata Motors.

Intangible Assets 42,171.91 37,866.74 47,429.57 35,676.20 41,544.89

Capital Work-In-Progress 8,599.56 8,538.17 16,142.94 10,186.83 6,550.97
1,61,952.3 1,42,370.4 1,61,330.9 1,28,969.6 1,32,390.9
FIXED ASSETS
7 4 1 0 0
Non-Current Investments 5,446.94 6,240.89 5,651.65 5,296.77 4,533.98

Deferred Tax Assets [Net] 5,457.90 5,151.11 4,158.70 4,457.34 3,957.03

Long Term Loans And
782.78 407.42 495.41 753.66 503.88
Advances
Other Non-Current Assets 28,116.96 28,845.64 23,624.55 17,483.92 15,071.89
TOTAL NON-CURRENT 2,02,534.0 1,83,763.3 1,95,377.6 1,57,634.6 1,57,217.4
ASSETS 1 7 7 1 8
CURRENT ASSETS          
Current Investments 10,861.54 9,529.83 15,161.10 15,041.15 19,233.04
Inventories 37,456.88 39,013.73 42,137.63 35,085.31 32,655.73
Trade Receivables 11,172.69 18,996.17 19,893.30 14,075.55 13,570.91
Cash and Cash Equivalents 33,726.97 32,648.82 34,613.91 36,077.88 30,460.40

Short Term Loans and

935.25 1,268.70 2,279.66 710.45 1,117.10
Advances
Other Current Assets 25,433.92 21,973.91 21,887.24 15,129.41 12,886.49
TOTAL CURRENT 1,19,587.2 1,23,431.1 1,35,972.8 1,16,119.7 1,09,923.6
ASSETS 5 6 4 5 7
3,22,121.2 3,07,194.5 3,31,350.5 2,73,754.3 2,67,141.1
TOTAL ASSETS
6 3 1 6 5

Profit and Loss account

Profit and Loss account

  Mar-20 Mar-19 Mar-18 Mar-17
INCOME        
REVENUE FROM 2,58,594.36 2,99,190.59 2,89,386.25 2,70,298.08
OPERATIONS [GROSS]
Less: Excise/Sevice Tax/Other 0 0 790.16 4,799.61
Levies
REVENUE FROM 2,58,594.36 2,99,190.59 2,88,596.09 2,65,498.47
OPERATIONS [NET]
TOTAL OPERATING 2,61,067.97 3,01,938.40 2,94,619.18 2,69,692.51
REVENUES
Other Income 2,973.15 2,965.31 888.89 754.54
Tata Motors.

TOTAL REVENUE 2,64,041.12 3,04,903.71 2,95,508.07 2,70,447.05

EXPENSES        
Cost Of Materials Consumed 1,52,671.47 1,81,009.08 1,71,992.59 1,59,369.55
Operating And Direct Expenses 4,188.49 4,224.57 3,531.87 3,413.57
Employee Benefit Expenses 30,438.60 33,243.87 30,300.09 28,332.89
Finance Costs 7,243.33 5,758.60 4,681.79 4,238.01
Depreciation And Amortisation 21,425.43 23,590.63 21,553.59 17,904.99
Expenses
Other Expenses 58,826.20 63,144.03 58,998.93 59,340.16
TOTAL EXPENSES 2,71,749.66 3,06,623.30 2,86,328.18 2,62,246.82
PROFIT/LOSS BEFORE -7,708.54 -1,719.59 9,179.89 8,200.23
EXCEPTIONAL,
EXTRAORDINARY ITEMS
AND TAX
Exceptional Items -2,871.44 -29,651.56 1,975.14 1,114.56
PROFIT/LOSS BEFORE TAX -10,579.98 -31,371.15 11,155.03 9,314.79
TAX EXPENSES-        
CONTINUED OPERATIONS
Current Tax 1,893.05 2,225.23 3,303.46 3,137.66
Less: MAT Credit Entitlement 0 0 0 0
Deferred Tax -1,497.80 -4,662.68 1,038.47 113.57
Other Direct Taxes 0 0 0 0
TOTAL TAX EXPENSES 395.25 -2,437.45 4,341.93 3,251.23
PROFIT/LOSS AFTER TAX -10,975.23 -28,933.70 6,813.10 6,063.56
AND BEFORE
EXTRAORDINARY ITEMS
PROFIT/LOSS FROM -10,975.23 -28,933.70 6,813.10 6,063.56
CONTINUING
OPERATIONS
PROFIT/LOSS FOR THE -10,975.23 -28,933.70 6,813.10 6,063.56
PERIOD
Minority Interest -95.62 -102.03 -102.45 -102.2
CONSOLIDATED -12,070.85 -28,826.23 8,988.91 7,454.36
PROFIT/LOSS AFTER MI
AND ASSOCIATES

Ratios Analysis

 Current Ratio
Tata Motors.

Current Ratio is a comparison of current assets to current liabilities, calculated by

dividing the current assets by current liabilities. Potential creditors use this ratio to
measure a company’s liquidity or ability to pay off short-term debts.
Formula
Current ratio = Current Assets
Current Liabilities

Particulars 2020 2019 2018

Current Asset 119587.25 123431.16 135973

Current
140454.05 145457.43 143220
Liability

Current Ratio 0.85 0.84 0.95

Current Ratio
0.95
0.95

0.9
Axis Title

0.85 0.84
0.85

0.8

0.75
2020 2019 2018
Axis Title

Interpretation :

According to the above graph, we know that the current ratio for the
Year 2020 is 0.85 and is decreased to 0.84 in the year 2019. 2018 has the
highest current ratio of 0.95. The ideal ratio is 2:1

 Quick Ratio
Tata Motors.

This quick ratio is the same as the current ratio except that it excludes
inventories form the current assets, inventories are usual the least liquid
portion of the current assets and may be difficult to dispose of especially if
they are slow moving and become absolute
Quick Ratio= Quick Assets
Current Liabilities

Particulars 2020 2019 2018

82130. 84417. 93835.
Quick Assets
4 4 2
Current
140454 145457 143219
Liabilities
Quick Ratio 0.58 0.58 0.66

Quick Ratio
0.66
0.66
0.64
0.62
0.6 0.58 0.58
0.58
0.56
0.54
0.52
2020 2019 2018

Interpretation:

From the above graph, we can notice that quick ratio of Tata Motors
for the year 2020 and 2019 is 0.58 and in 2018 it was 0.66. In the last
two years quick ratio has decreased.

 Current Assets Ratio

Tata Motors.

It establishes relationship between the Net Sales & Current assets. This ratio
indicates how many net sales are made for every rupee of investment in
current assets. It may be expressed as
Current Asset Ratio= Net Sales
Current Asset

Particulars 2020 2019 2018

Net Sales 258594.4 299190.6 288596.1
Current Assets 119587.25 123431.16 135972.84
Current Asset
2.16 2.42 2.12
Ratio

Current Asset Ratio

2.42
2.5
2.4
2.3 2.16
2.12
2.2
2.1
2
1.9
2020 2019 2018

Interpretation:

From the above graph, we can notice that current asset ration of Tata
Motors for the year 2020 is 2.16 and in 2019 it was 2.42. Current asset
ratio has decreased from 2.42 to 2.16 in the year 2020.

 Cash Ratio
Tata Motors.

The cash ratio is ratio of a company’s total cash and cash equivalents to its
current liabilities. This information is useful to creditors when deciding how
much debt, if any, they would be willing to extend to the asking party. The
cash ratio is generally a more conservative look at a company’s ability to cover
its liabilities than many other liquidity ratios because other assets, including
accounts receivable, are left out of the equation

Cash Ratio= Cash + Cash Equivalents

Current Liabilities

Particulars 2020 2019 2018

Cash and its
equivalent 33726.97 32648.82 34613.91
140454.0 145457.4 143219.4
Current liabilities 5 3 7
Cash Ratio 0.24 0.22 0.24

Cash Ratio
0.24 0.24
0.24
0.24
0.23
0.23 0.22
0.22
0.22
0.21
2020 2019 2018

Interpretation:
Ideal for cash ratio is above 1 and from the above calculation we can see
that the cash ratio in the year 2020 is 0.24 and in 2019 it was 0.22, which
is less than 1 so if current liabilities are minimized then the cash ratio
would be in good condition.

Chapter VI
Tata Motors.

Learning experience.
An organization study is an opportunity to test drive a career without making
any serious commitments. It's your chance to see what it would really be like
to work in a particular industry, and whether you're a great fit. And, perhaps
most importantly, a good organization study provides you with experiences,
lessons, and tools you'll need to get a full-time gig in the future
The study at Tata Motors Ltd. Has given a complete framework about the
Organization. I have learnt the structure and working of the organization.
I have also gained the knowledge about history of Automobile industry, and
the companies operating in the industry. By analysing company profile and its
different product portfolio, I got know about how Tata Motors managed
themselves to meet the customers’ expectations by offering different products
to each segment at a low cost.
By analysing SWOT of the company, I got to know about the both internal and
external factors which influences the overall functioning of the company.

Bibliography
Tata Motors.

 https://www.tatamotors.com/
 https://en.wikipedia.org/wiki/Automotive_industry
 https://economictimes.indiatimes.com/tata-motors-
ltd/shareholding/companyid-12934.cms
 https://www.moneycontrol.com/financials/tatamotors/consolidated-
balance-sheetVI/tm03#tm03
 https://www.marketing91.com/swot-tata-motors/
 https://www.statista.com/statistics/610484/commercial-vehicle-
market-share-by-manufacturer-india/