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Q1. Apply PESTLE, FIVE FORCES & SWOT Analysis on following Tata Business.


PESTLE ANALYSISPOLITICAL 1. The government of INDIA plays different roles for TATA steels.It is a resource allocator(mining policies of Governmnet),a competitor (public sector steel companies) and even a regulator. The regulatory risk rises during the volatile times .There will be levying of export duties and reduction of prices.But the company counters all such risk by being a role model corporate citizen. 2. Increased infrastructure spending by the Government of INDIA and development of roads could generate significant savings in freight and transportation cost making INDIAN steel companies and other industries globally competitive.

ECONOMIC1. Steel production process are energy dependent and price movements in energy market will definitely affect TATA steel. 2. The steel industry is cyclical and it is very receptive to general economic conditions.It will definitely be affected if construction, energy and automobile industries experience a downturn. 3. Inflation has increased around the world .

SOCIAL 1. TATA has been awarded GOLDEN PEACOCK GLOBAL AWARD for CSR for the 2009. And hence we cann see that the company is highly committed to ethical behavior improving the quality of life employees and their families and most importantly serving the nation. 2. Hundreds of people born with cleft lips have been operated through operationMUSKAAN, a project initiated by steel giant TATA STEEL.

TECHNOLOGICAL One of the biggest risks before the group is to ensure that its plants are equipped with up to date technologies that can give it cost competitiveness and R&D leadership. For this purpose, the group has not cut back the necessary capital investments in relation to the same and continues to enhance and deploy R& D capabilities. LEGAL TATA steel requires huge chunk of land. As new big corporate houses are coming up and the old ones are expanding hence the situation is becoming much competitive in this respect. This can be co related with the whole SINGUR drama. Though it was not the problem of TATA steel but the whole incident diluted TATA brand. ENVIRONMENTAL The company is required to maintain a standard of carbon dioxide emission. And hence this is one of the issues faced by the company.


During the past few years steel industry has registered growth over the past few years. In this case we have analyzed domestic steel sector through porters five forces model. The five forces are as follows1. Entry Barriers :High A. Capital requirement: It requires an intensive capital to start up with a steel plant. It is estimated that in order to set up a steel plant it requires an amount between 25 billion to 20billion depending upon the location of the plant and technology used. TATA steel has made up its position in this industry now. It has expanded its horizon not only domestically but even across the borders too. As per the records it has expanded its existing capacity of plant at Jamshedpur. So it will be very difficult for a new entrant to come up with such a huge investment. B.Government Policy : Government policies are very liberal and favourable for the steel manufacturers. For a new entrant it will be very difficult to have regulatory clearances and other issues. Tata steel being a century old company that is known for its Corporate Social Responsibility has got a respectable position in the eyes of Government. C. Product differentiation: Steel does not fall into luxury goods and hence it doesnt have any product differentiation. But still it enjoys a premium for its products as it has created a brand name for itself in such a long span. 2. Competition :High A. The steel industry is truly global in terms of competition with large producing countries like China and it is significantly influencing the global prices through aggressive exports. B .Steel being such a commodity its branding is not common and hence there is a little difference between competing products.

3 Bargaining Power of suppliers :High The Company depends on imports of its raw material that is iron ore etc.This is so because domestic raw material sources are insufficient to meet the requirements of all the steel industries and hence these suppliers dictate high prices for these raw material requirement. 4 In order to protect itself from suppliers charging high prices it has entered into many joint ventures with foreign companies. One such project is with Larsen & Turbo (L&T) to construct a port on the eastern coast of INDIA. It is known by the name of DHARMA PORT PROJECT. It aims at benefiting the steel industries due to its close proximity to such a land which is rich in minerals.

5. Threat of substitutes: LOW In automotive industry plastics and composites pose a threat to Indian steel. For the automobile industry the other material competing with steel is aluminium. Though steel has been replaced with its substitutes as we find in railway sleepers, domestic water tanks etc. but it requires a high cost of electricity for extraction and purification of aluminium. Hence substitution effect is low for steel. 6. Bargaining Power of consumers :Mixed Some of the major steel consumption sectors like automobiles, oil & gas ,shipping ,consumer durables and power generation enjoy bargaining power and get favourable deals. However, small and retail consumers who are scattered and consume a significant part do not enjoy these benefits.

Swot analysis is an examination of the strength ,weaknesses, opportunities and threats faced by the company during its phase of its operation.SWOT analysis of tata steel is as follows:STRENGTHS1. Abundance for iron ore and other minerals for steel-Tata steel are being situated in Jamshedpur and it has its two collieries in West Bokaro and Jharia.Its manganese mines are being situated in Orissa which is at an approximate distance of 150kms from Jamshedpur. The company produces 9 million tons per annum of various grades of quality. 2. Skilled manpower and low unit labor cost-The Company has highly skilled employees and management team which has resulted in expanding the company. The entire operation of the company is guarded against accident. All its mine is ISO -14001 certified .The company has low operating cost for manufacturing steel. It has opted eco friendly approach towards manufacture of steel. 3. Brand value: Sir Jamsetji Tata, founder of TATA groups main objective was to serve the nation keeping in mind the welfare of the citizens and hence the same was carried since ages. Due to its high sense in ethics and its socialistic approach the company has created a trust within people. After the acquisition of CORUS, another powerful brand, the brand value of the company has enhanced manifolds. WEAKNESS1. Increasing debt equity ratio-The biggest weakness of TATA steel is its increasing debt- equity ratio. Most of its assets are financed by debt, which can turn out to be dangerous for the company in long run. 2. Dependence on domestic and little international market-For generating its business the company depends on its domestic and international market .This overdependence may create a problem for the company in times of economic crisis. 3.INDIA is deficient in raw materials required by the steel industry. Iron ore deposits are finite and there are problems in mining sufficient amounts of it. INDIAs hard coal deposits are of low quality 4. Raw materials for steel production are rapidly depleting and non renewable and hence the company has to come up with sustainable methods in steel production.

OPPORTUNITIES1.Untapped markets-Tata steel is branching out to overseas market. The company has signed a deal with CORUS group and hence it will be in a position to utilize R&D facility owned by the CORUS groups. Exposure to the new technologies and markets will be advantageous for the company. 2. Booming Infrastructure has opened high demands for steel worldwide.

THREATS1. Usage of plastic and composites-In automobile sector usage of plastic and its composites is threat to the environment and hence a threat for the company. For the automobile industry the other material that can be used as substitute is aluminium.However the high cost of electricity for extraction and purification of aluminum in INDIA weighs against viable use of aluminium for the automobile industry. 2. Mainitaing CO2 emission- Maintain the carbon dioxide emission standards is the biggest threat for the company.

SWOT Analysis This comprehensive SWOT profile of Tata Power Trading Co. Ltd. provides you with an in-depth strategic analysis of the companys businesses and operations. The profile will give you a clear and an unbiased view of the companys key strengths and weaknesses and the potential opportunities and threats.

Strengths: Cost advantage Backward integration Superior technology Weakness: Low market share Capacity creation time is very high

Oppurtunities: Emerging markets and expansion abroad Product and services expansion Increasing demand Alternative sources of power generation Threats: External changes(government, policies, taxes etc) Price wars Highly capital intensive

Five Forces
Michael Porter developed five forces model to analyse the economic and market forces that will ultimately influence an industrys profit potencial . Those five forces are: Threat of new entrant: This sectar is highly capital intensive industry and hence demands huge investment. Moreover obtaining regulatory approvals in this sectar is difficult task. Hence threat of new entrant appears to be low. Bargaining power of supplier: Coal is majorly used as a feed for generating power. The supply of coal in India is limited and hence coal players are in a dominant position. Power companies are required to import coal if the domestic supply is not sufficient which proves to be expensive affair. Hence the power of suppliers are high. Bargaining power of buyer: Although industrial consumers have huge demand for power, their bargaining power is low in India as the number of power companies to buy from is limited in number. Hence the power companies are in a better position. Goverment regulates the power sectar to ensure supply of power at reasonable prices but this regulation is limited. Overall power of supplier is medium. Threat of subsititute products or services: Power doesnot have any substitute but it can be generated from different sources. Currently thermal power is dominant in India, coal being the major raw material. Coal availability is limited and therefore power from nuclear sources, hydro sources and renewable sources could be used as substitutes for thermal power in future. Although demand for power outstrips its supply, going forward, thermal power companies have threat from non thermal power generators. Hence the threat of substitution is medium in the power sectar. Degree of rivalry among existing competitors: since demand for power is way above its supply, there are almost no competitive rivalry in the power sectar as all the power generated can be used up. However with the government encouragement, private participation (especially because of higher efficiency) is expected to increase in the coming years to take advantage of the huge demand for power. Hence, the competitive rivalry is medium.

Political:Government is encouraging private players to produce power and also carry out its transmission and distribution activities. There has been significant Increase in private participation. Indistinctness involved in complicated tariff rates has been done away with by the government. Regulatory authorities like Central Electricity Regulatory Commission (CERC) & State Electricity Regulatory Commission (SERC) are appointed, to regulate the power industry at centre and state level. The Indian government has set large scale goals in the 11th plan for power sector due to which the power sector is poised for significant expansion. Unbundling of the State Electricity Boards into separate Generation, Transmission and Distribution units and privatization of power distribution has been initiated either through the direct privatization or the franchisee route. While there has been a slow and gradual improvement in metering, billing and collection efficiency, the current loss levels still pose a significant challenge for distribution companies. ECONOMICAL: In order to provide availability of over 1000 units of per capita electricity by year 2012, it has been estimated that need-based capacity addition of more than 100,000 MW would be required. This has resulted in massive investment plans being proposed in the subsectors of Generation Transmission and Distribution The Ministry of Power plans to establish an integrated National Power Grid in the country by 2012 with close to 200,000 MW generation capacities and 37,700 MW of inter-regional power transfer capacity. Considering that the current inter-regional power transfer capacity of 20,750 MW, this is indeed an ambitious objective for the country. For increasing the generation capacity over the next 8-10 years, the corresponding investments in the transmission sector is also expected to expand. Social: As Indias largest Integrated Private Power Company, Tata Power has undertaken various community development programs for more than 9 decades in its endeavour to improve quality of life of the communities in and around its area of operation in Maharashtra. The Company enhanced its focus on vocational training schemes for unemployed youth, selfhelp groups for women, and income and employment generation for the people. In addition to this, infrastructure development schemes such as roads, schools and basic facilities for the villages were provided.

Technology: Tata BP Solar has unmatched experience and an incredible track record in providing grid-based solar power solutions in India and abroad. Tata BP Solar is a fully vertically integrated solar solution provider. Tata BP Solar provides the utmost in quality, assurance, and reliability, both today and over the long-term. It is these characteristics that have allowed us to enjoy over 20 years of success in this industry. Tata BP Solar has set the highest standard with respect to module warranties. Our customers have been able to rely upon our 25 year module warranty, which still remains the longest in the industry. Environmental: Tata Power has constantly given high priority to social concerns. They continually strive towards sustainable development by trying to find a balance between the needs of our customers and responsible care for the environment. They are committed to protect and promote the environment and have a well-defined Environment Policy and all plants have environmental management system in place. Tata Power has established a Corporate Safety, Health & Environment Department (C-SHE) which is responsible for all environmental and safety activities in the company. Driven by their commitment to power generation harmonious with nature, Tata Power has taken concrete steps to sustain the ecological balance such as

Replacement of Indian coal by imported coal with lower sulphur and lower ash content. Improvement to the channel carrying the condenser cooling water discharge. Anhydrous Ammonia injection method to control SPM level. Maximizing the utilization of gas over other fossil fuels


STRENGTH Tata tea blooms on its own plantations 56 tea garden in Assam Kerala n Tamil Nadu the crop at each of these plantations imbibes the characteristics of the region where it grows in that respect tea is much like wine having plantations in varied agro climatic zones enables Tata tea to cultivate distinct tea leaves.

Market Leader Brand Loyalty Distribution Channels Innovative flavors for Indian taste buds

Weakness Technological effectiveness Cost control Health related issues

OPPORTINITY: Unexploited rural markets Increasing number of youth who prefer tea Needs for tea Threats While Tata tea is the no. 1 branded tea there has been significant value erosion in the tea market with regional player offering mediocre products at low prices are with attractive promotions. Despite the fact that tea is the most traditional and affordable beverage in India and probably because of as well it is perceived as being old fashioned and less functional than some substitute product. Unexploited rural markets Increasing number of youth who prefer tea Needs for tea

POLITICAL factors: not any political factor is affecting Tata tea. ECONOMICAL FACTORS: Budget, reduction in custom duty, exchange rate. SOCIAL FACTORS: Not able to be sold at all the regions because of taste and preferences and low income of people

TECHNOLOGICAL FACTOR: crop decline by 10 % due to adverse weather conditions and old farming technology. Legal factors: In case of Tata tea legal factors do not affecting the business of the Tata tea. Environmental Factors: The environmental factors somewhat effecting Tata tea business. Due to green house effect the weather is not good and it effect the production of tea leafs in tat tea gardens.

Five forces
Threats of new entrants to the industry: The threat of new firm enters an industry is always an important issue for businesses. In the tea industries there are large number of new entrants are coming so Tata tea has threat of new entrants. If businesses fail to analyse it properly it may lose its market share. Threats of substitute products: Increasing availability of substitutes for an industrys product and services can harms organisations control over prices and terms of business. Beverage, natural products and the bigger challenge to tat tea is loose packing tea. Now people are mare liking coffee and soop instead of tea. these are the substitute which affects the Tata tea.

Power of buyers or customers: Buying power is the capability of the buyers, purchasing agents, and the customers of the industry to influence the price and the terms of purchase. Due to presence of many manufacturers the customer bargain power is more and the cost of production continuously are going rise due to inflation and high expensive labor. Power of suppliers (to businesses in the industry): Supplier power is the capability of suppliers and vendors to decide the prices and the terms of supply. Tata tea has their own Tea garden so it has marginally threat from the supplier. Because it mostly raw materials has been came from its sources. Competitive Rivalry: Competitive rivalry among firms means the extent to which the firms respond to the competitive moves of the other firms in the same industry. In the tea Industries there are a large number of competitors as HUL, Every Indian, Harrisons Mlayalam, Assam Company (Assam Gold), Good Ricke Group Limited etc. which affect more Tata tea. Due to Presence of many competitors Tata tea is facing tuff completion.

SWOT Analysis As compared to the post 1990s the Indian aviation has made progress in leaps and bounds. Here is some SWOT analysis that has been done by us that will give an insight into the factors that are responsible for the growth. STRENGTH: -Liberal Environment -Modern Fleet -Better Quality -Growing Tourist WEAKNESSES: -High Prices -Skilled Staff and Labour -Resources -Infrastructure -Deep Pockets OPPORTUNITIES: -Increasing involvement of Asian countries like China and India in world issues and politics -Market Growth -Lowering Costs -Improving Quality THREATS: -Terrorism -Higher Prices -Availability of Aviation Fuel -Higher Investments -Significant Failure Rates


Threat of New Entrants. At first glance, one might think that the airline industries pretty tough to break into, there is a need to look at whether there are substantial costs to access bank loans and credit. If borrowing is cheap, then the likelihood of more airliners entering the industry is higher. The more new airlines that enter the market, the more saturated it becomes for everyone. Brand name recognition and frequent fliers point also play a role in the airline industry. An airline with a strong brand name and incentives can often lure a customer even if its prices are higher.

Power of Suppliers. The airline supply business is mainly dominated by Boeing and Airbus. For this reason, there isn't a lot of cutthroat competition among suppliers. Also, the likelihood of a supplier integrating vertically isn't very likely. Probability of seeing suppliers starting to offer flight service on top of building airlines is very unlikely.

Power of Buyers. The bargaining power of buyers in the airline industry is quite low. Obviously, there are high costs involved with switching airplanes, but also take a look at the ability to compete on service. Is the seat in one airline more comfortable than another? Probably not unless you are analyzing a luxury liner like the Concord Jet.

Availability of Substitutes. What is the likelihood that someone will drive or take a train to his or her destination? For regional airlines, the threat might be a little higher than international carriers. When determining this you should consider time, money, personal preference and convenience in the air travel industry. In short passengers can just switch airlines; there is no close substitute for air travel.

Competitive Rivalry Highly competitive industries generally earn low return because the cost of competition is high. This can spell disaster when times get tough in the economy

Taj Hotels
SWOT ANALYSIS STRENGTHS The group has enormous power and strengths, which makes it the best, some of them are: It consist of 57 properties in 40 locations across India and 18 International hotels. Its stylish variety of hotels like; Taj Exotica, Taj Safari, Taj gateway hotels, Jiva Spa etc. Its effective and efficient Management techniques and staff. Its Brand Name. The presence of Taj Hotels, resorts and palaces in various countries like UK, France, Germany, Italy, Dubai, Singapore, Australia, Japan, Russia and the USA. The various initiatives taken like; rollout of customer Feedback system, Tata Business Excellence Model, IT initiatives, Ginger Hotels etc. WEAKNESSES Taj hotels being such a big brand, has lot of advantages but every big company faces some odds and so does Taj. Some of the Weakness are; Its hard to maintain such a huge chain of subsidiaries and there are more chances of mishaps in management. Its huge competitors like Oberoi, Leela, Oriental, ITC etc are also providing same facilities and thus it becomes a weakness for Taj hotels.

Its very costly for Indians to afford the tariffs and service charges set by Taj hotels. Thus, they loose a major part of their market share. They need a lot of investment. As Taj is a popular group, it is always in the eyes of terrorists, as they have already faced such an incident. OPPORTUNITIES The group is poised strategically to take advantage of the following situatios; In the backdrop of healthy economy having its positive fallouts on the Tourism Sector leading to rapid growth in markets in India, South Asia, Rapid expansion in both Domestic and International destinations, with Top of the Line Luxury, Leisure. Meeting growing demand in the budget and mid market segments. Extending the product portfolio into related offerings. THREATS The Threats identified are mainly related to the market in which the group operates. Such weakness are; Cheaper International airfares, increasing affordability of travel to international destinations,especially South East Asia, Europe and Australia. Growing presence of international hospitality chains competing in the Luxury and Business segments, to meet excess demand situation. Slowdown of interational demand resulting in reduction of revenues.

Political Government policy affects the business very deeply. The arrival of low cost airlines have given domestic tourist a host of option. Govt. focuses on tourist industry for eg atithi devo bhav opening an opportunity for hotel industry. For the past few years the boom in india,s hospitality industry has been fuelled by favourable political situation.

Economic In economical effect the tatas has to check out that what the gdp of the industry is.the gdp of hotel industry contributed to 13.21% in 2007. The hotel industry in India is going through an intresting phase one of the major reasons for the increase in demand for hotel rooms in the country . A flowish economy helped boost demand for the industry to encourage the tourism sector . Now slowdown fear is hovering on the sector.

Social Changes in social trends can impact on the demand for a firm's products and the availability and willingness of individuals to work.Vits being situated near the airport sees the maximum amount of guests who are in for the business meetings and conferences. There are very few FIT guests seen in the hotel as compared to the BTC guests [Bill to Company Guests] and the business travellers. This explains the reason why the hotel could be seen having single room guests or a twin bedroom guests more than the double bedroom guests. Being the Business hotel it has maximum males arrivals compared to female arrivals. The Vits could also be seen having layover guests many a times which becomes the revenue generator for the hotel in the slack period of time. Seeing the ratio of the various classes of guests of VITS it could be easily said that the Hotel must strive for the FIT and the group checking by linking the VITS to the travel agencies in and outside India. This could probably balance the demographic ratio of the arriving guests.

Technological As said before the technology used in VITS is way below the standards when it comes to Hotel management software and the Mini Bar system. Some Technologies used are quite old and need to be replaced with the new ones in the technological market. For example: If a hotel used the printed KOT and BOT and the stewards had to give it themselves to each of the departments. It could be substituted with the direct computerized sending of KOT and BOT to the kitchen or the Bar. Technology always has been seen to have reduced the manpower and the energy required by the people. It would always be a boon to mankind and the technological upgrades would also help to show the advances and the progress of the property. VITS does not have the wifi installed instead they provide internet connection to every room personally which should be made wifi which would reduce the guest complaints about the in room facilities complaints and thus

VITS could find many guests happy and satisfied with a thought of you get what you pay for. ENVIRONMENTAL The growing desire to protect the environment is having an impact on many industries such as the travel and transportation industries (for example, more taxes being placed on air travel and the success of hybrid cars) and the general move towards more environmentally friendly products and processes is affecting demand patterns and creating business opportunities.{Online: 2010]Being an environmental friendly hotel this factor becomes the most important to the property. Basically when we talk about the environmental factors affecting the business of the hotel the only thing that comes into our minds is the floods which Mumbai saw in 2005 and the heavy rains and showers across Mumbai. The period from June September is the only period of time when such factors play a role and there are very few things which could be done by the hotel about it. Generally what is done in such factors is to let the guests know the situation outside and making them aware would help them from the troubles they may face when they would be in those heavy rains .Another environmental factor could be an earthquake or any other natural factor which directly affects the occupancy of the hotel and the sales. The solution or the rules of the hotels in India are that they do the drills for the emergency situations frequently to help employees understand what is supposed to be done in hard and emergency conditions.

Legal Factors These are related to the legal environment in which firms operate. In recent years in the UK there have been many significant legal changes that have affected firms' behaviour. [ Online:2010 ] This also includes the health and safety laws, the recent outbreak of the Swine Flu [ H1N1 virus] would have been the upcoming serious factors for the Volts and the service they could have provided is the free check-up of the incoming guests for the swine flu. As of now India does not have age discrimination law but does have the disability discrimination law and every star hotel is supposed to provide a room for the disabled guests and having special facilities for the blind deaf and the leg or hand impaired people. This room is generally located on the first floor near the lift entrance and is always taken care of in a special way.

Five forces
Threats to new entry Hotel industry is a growing industry so it faces the threats of new entry. Many new hotels are coming in the near future so there are very tough competitions in this industry. Taj is ha ving good brand i mage i n th e mind of custo me r & also Tata have now introduced a ginger hotel so the ginger hotel not f ace so muc h proble m to enter in the ma rket but when some other new brand hotel want to enter then they have to spend lots of cost to attract customer in to this competitive world. To open the hotel lots of capital is required & in hotel there are hig h risk & law return s ituatio n so that is wh y t o a new hotel is very difficult task. Rivalry among existing firms There are man y co mp etitors in t he market so to know the strategy of the hotels is ver y dif f icult because ever y hotel h ave dif f erent-diff erent strateg y to attract the custo m er. For e xa mple: - taj hote ls parent company is TATA and it has a good brand image in the mind of customer so it is very difficult to fight against taj for other hotel. In some cases a barrier to new entry is created by switching cost. It means customer is not loyal towards only one hotel. And also taste and preferences of customer will change now and then Threats of substitutes Threats of substitute means there are also some other small hotel than the star rated hotel like Resorts Low price dharamshalas Short term paying guest house

Bargaining power of buyers In star rated hotel customer cannot bargain for price. Now days customers are so literate and more aware about the prices and the quality of the services. It means that the customer sees both standard service and fewer prices, so it means the high bargaining power of the customers. But in case of taj hotels the bargaining power of customers is low.

Bargaining power of suppliers It means that i n hotel ind ustr y if t here is o nl y o ne supplier t hen th e bargaining po wer of supplier is high. For Taj hotel have more ice-cream company is very important because at one time when Bill Clinton came to the taj ,he de mand the have more ice-crea m .It means that this ice crea m co. Is ver y important for the taj hotel so here bargaining power of supplier is high.

SWOT Analysis of TCS Strength: It's highly professionally managed IT consulting and services company under the belt of TATA. Company has performed consistent year on year with weak economy conditions of world. Company has capabilities to deliver new as well as legacy application. It is in space of services as well as products and high value chain consulting. It has fragmented IT services and SDLC cycle into minute grains such as S/w testing and grown that business to more than 250million USD. This is the testimonial of efficient management. It is the only company initiating Earned value based profit center for evaluating their performance. HLL is the first company to do so. IT is the only company that has survived and surprised investors with its fixed cost Project delivery model and still making phenomenal profit despite overloading the project with 10 t o15 % in terms of resources. Part of the Tata group, which helps it gets more international business. Cases in point: the $1.2-billion Nielsen deal, Ferrari, and now Jaguar-Land Rover (bought over by the Tata group) Weakness: Lack of scale compared to global competitors like IBM, HP (which bought EDS), and Accenture.

Needs to establish a track record when it comes to large deals Consulting accounts for less than 4 per cent of global revenues; IBM, Accenture score on this count. Needs to strengthen other service lines besides application, development and maintenance (ADM) that accounts for nearly 48 per cent of its revenues. Man power strength is more than 10,000 employees and thus, it is challenging to get personalized career development. Bad real estate Limited Product Line Opportunities: Change in consumer lifestyles Acquisitions Available Governmental support Available technological innovations Growth of the industry of operations Decrease in taxation Entering niche markets Merger or takeover Strategic alliances & joint ventures Threats: Financial slowdown, slowing US economy. Labor challenges, globally. Competition from foreign markets Innovative products/services of competitors Changing technology New competitors entering the market

External Environment - Pestle Analysis TATA CONSULTANCY SERVICES is Indias largest IT services company in terms of revenue, profit and number of employees and Asias largest software standalone company. Part of Indias TATA venerable group, it is the second-largest India-based provider of business process outsourcing services. TCS has been ranked #20 in the list of top companies of India, by Fortune India 500 magazine. It is the largest technology service company in India by revenue and market capitalization.

Political: Political stability: Indian political structure is considered Stable enough expect the fact that there is a fear of hung Parliament (no clear majority). (+ve) U.S. government has declared that U.S companies that Political outsource IT work to other locations other than U.S. will not get tax benefit. (-ve) Government owned companies and PSUs have decided to Give more IT projects to Indian IT companies. (+ve) Terrorist attack or war. (-ve) Economical: Global IT spending (demand). (-ve) Domestic IT Spending (Demand): Domestic Market grow by 20% & reach approx USD 20 billion in 2008-09 Nasscom (+ve). Currency Fluctuation (-ve) Real Estate Prices: Decline in real estate prices has resulted reducing the rental expenditure (+ve). Attrition: Due to recession, the layoffs and job-cuts have resulted in low attrition rate (+ve). Economic attractiveness: Due to cost advantage and other factors (+ve) Social: Language Spoken: English is widely spoken language in India. English medium is the most accepted medium of education.(+ve) Education: Large number of technical institutes and universities over the countries provide IT education. (+ve) Working age population. (+ve) Technological: Telephony (+ve) India has the world lowest call rates Expected to have total subscribers base of about 500 million by 2010. India has the second largest telephone network after china. Enterprise telephone services, 3G, Wi-max, VPN, poised to grow. Internet Backbone: Due to IT revolution in 90s India is well connected with undersea optical cables. (+ve) New IT Technologies: Technologies like SOA, web 2.0, High definition content, grid computing, and innovation in low cost technologies is presenting new challenges & opportunities for Indian IT industry.(+ve

Five Forces
Today's business environment is extremely competitive and in economics parlance where perfect competition exists, the profits of the firms operating in that industry will become zero. However, this is not possible because, firstly no company is a price taker (i.e. no company will operate where profits are zero). Secondly, they strive to create a competitive advantage to thrive in the competitive scenario. Michael Porter, considered to be one of the foremost gurus' of management, developed the famous five-force model, which influences an industry. SUBSTITUTES: Other offshore countries like phillipines and china are posing a threat to IT idustry in india because of low cost advantage Price for projects are mainly differenial but the products are similar Supplier: Because of global financial crisis there are job cuts and layoffs Demand and supply of IT professionals are no longer favourable for employees Availability of vast talent pool Barriers to entry: Low capital requirements Large value chain Customers: There are a large number of IT companies as a result of which there is a huge competition. IT industry mainly depends on USA and BFSI sector which is going through a turmoil that has lead to a decrease in spending. Rival firms Low cost,little differentiation,positioning High industry growth


PESTLE ANALYSIS PESTLE analysis is an analysis of the company at a broad macro level and examines the company under the heading of: Political Economical Social Technological Legal Environmental Political: Government and legal issues affecting how the companies operate. As there are licensing issues imposed by Indian government. But perhaps the biggest and, until recently, most intractable regulatory problem has been the drawn-out battle over limited mobility telephony. This imbroglio began in 1999, when MTNL sought permission from TRAIt o p r o v i d e C D M A b a s e d W L L s e r v i c e s w i t h l i m i t e d m o b i l i t y. G S M cellular operators were soon up in arms, arguing that limited mobility was simply a backdoor entry into their business. Moreover, fixed operators had paid lower license and spectrum fees than cellular ones; were not required to pay access charges for cell-to-fixed calls (unlike their cellular counterparts);and, amidst accusations of crosssubsidization, were charging consider a blylower rates than the cellular operators. Government of India implemented the unified access licensing regime, which enables basic and cellular mobile service to use any modern technology. In 1997, Telecom Regulatory Authority of India (TRAI) was formed to facilitate the growth of the telecom sector in India. Economical: Factors influencing the purchasing power of customers and company are cost of capital. Telecom industry in India has a major role in Indian economy. The Indian government is also enforcing some effective telecom policies and regulations for the infrastructural growth of this industry. Indian telecom market provides a tele-density of 8.5 percent as registered in the year 2004. A number of leading multinational telecommunication companies are approaching and showing their interest to invest for the telecom industry in India. Telecommunication

industry of India ranked sixth among all the telecommunication sectors in the world. In the year 2004, the total number of telephone subscriptions was 4660. Social: demographic and cultural aspects of the environment that influences customer needs and market size.

Technological: technological means changing the product according to new and good technology available in market. Tata is using new technologies Tata Docomo Smart Picks Offer Extension on Nokia X3-02 we saw a super cool handset under the Tata Docomo smart pick getting a good response. Again Tata Docomo has extended is smart pick Wings to Nokia with Nokia N8, Nokia 700 & Nokia 701. Nokia N8 is a 3G ready HSPA which supports Video calling & Nokia services Store, Music, Maps. Its 3.5 AMOLED display makes its more attractive & its 12 MP high performance camera makes the picture more beautiful. Nokia 701/Nokia 700 is NFC enabled 3G ready HSPA handset with 1 GHz processor which supports video calling and its 3.5 clear black display looks stunning.

Five Forces analysis on Tata Telecom Rivalry among existing competitors: Tata Teleservices is a part of 12 billion Tata groups, which has 93 companies, over 200000 employees and more than 2.3 million shareholders Tata teleservices provides basic(fixed line services), using CDMA technologies in six circles : Maharashtra(including Mumbai),New Delhi, Andhra Pradesh, Tamil Nadu, Gujarat and Karnataka. It has over 800000subscribers. It has now migrated to unified access license by paying a Rs.5.45 billion fee, which enables it to provide fully mobile services as well. The company is also expanding its footprint and has paidRs.4.17 billion to Dot for new licenses under the IUC(interconnect usage charges) regime. The new licenses, coupled with six circles in which they already operates, virtually gives the CDMA mobile operator a national footprint that is almost on par with BSNL and Reliance Infocomm. The circle includes Bihar, Haryana, Himachal Pradesh, Kerala, Kolkata, Orissa, Punjab, Rajasthan, Uttar Pradesh, and West Bengal Bargaining power in hands of consumer: Indian telecom is one of the fastest growing telemarkets in the world. In telecom industry, service providers are main drivers whereas equipment manufacturer are witnessing growth and decline in successive quarters as sales is dependent on order Undertaken by the companies. High bargaining power because of high competition.

Bargaining power in hands of suppliers: As far as telecom industry is concerned, it is service based industry which is intangible, so in this case there are less suppliers or we can say the role of suppliers are almost negligible in the case of telecom industry. We are trying to analyze that minor role. 1. Mobile hand set suppliers: - There can be many suppliers for handset, some of them are Nokia, Sony Ericsson, Motorola, and Siemens etc. Many big telecom giants have their own handset manufacturing(back ward integration) like Reliance Classic, Tata Indicom or they have collaboration with some known companies like Reliance communication have tie ups with Samsung and LG for their CDMA services. Low bargaining power.

Threat of New Entrant: The Indian telecom sector offers unprecedented opportunities for foreign companies in various areas, such as 3G, virtual private net work, international long distance calls, value added services etc. The Indian telecom industry has always allured foreign investors. In fact the inflow of cumulative FDI is from August 1991. In telecommunication sectors amounted to Rs. 3892.19 million. This makes telecommunication the third largest sector to attract FDI in India in post liberalization era. In India large numbers of players are emerging in the market on the national level from its state level existence such as: Aircel Idea Reliance So there is less restriction of new entrant so, because of that risk is very high. SUBSTITUTE TO PRODUCT: Telecom sectors offers a wide range of services in India, such as wireline,CDMA mobile, GSM mobile, internet, broadband, carrier, MPLS-VPN, VSAT , VOIP, IN, etc.It is emerging as a best option in place of because it is cheaper and video as an added advantage. As there are many tools which can be accessed through internet like videoc o n f e r e n c i n g o t h e r i m p o r t a n t t o o l i s t a l k i n g t h r o u g h i n t e r n e t f o r e g . G o o g l e talk, rediff, yahoo messenger. Important thing is that internet is cheaper medium of communication and one can have many facilities if he/she is connected to the world through the internet. As we have seen government has several plans to increase the speed of internet so that one can exploit the resources which are available.

Swot analysis Strengths a. Highest market share as of February 2012. Domestic commercial market share is 65.3%. It is the best performer among all the players in India selling upto 22885 units per year. b. It is having a huge employee base, which is considered as one of the biggest strengths of Tata Motors. c. It is having a brand name, which makes the consumer believe in it. d. Its growth in revenue in 2010-2011 is a. global sales grew up by 24.2% b. Net revenue grew up by 33.1%, i.e. to Rs. 123133 cr. c. PBT grew by 196.3% i.e. to Rs. 10437 cr. e. It produces vehicles which are not too costly and are fuel efficient. E. g. Nano, Indica. f. The R&D dept. of the firm is very strong and is in continuous development. Weaknesses a. It is having low ROI on shares and because of this the shareholders are not getting much of their investment. b. Weak safety standards. E. g. catching up of fire in the vehicles. c. In domestic market, the sales decreased by 6% in 2011. d. It does not produce luxury cars. It is missing the luxury car segment. e. Better in diesel vehicles but not in petrol. Tata motors is famous for its Diesel versions, so its hard for the consumer to trust on the petrol ones. Opportunities a. It is having a big opportunity to get into the luxury car segment range. b. It can introduce better safety features which can enable the consumers to rely on tata more. c. It can go for more joint ventures. Past joint ventures are MarcoPolo, Fiat etc. Threats a. Increasing competition. b. Rising prices of raw materials. c. Rising prices of fuel, this is the basic of all the processes.

Five forces
Competition in the industry (high) a. Biggest competition from Maruti Suzuki, Hyundai who are working at the small car markets. b. Tata came up with Nano and now Mahindra & other companies are trying to come up with the same kind of product. c. Tata Ace VS. Mahindra Maximo. Within 2 months of the launch of Maximo, it covered up 24% of market share, i.e. reducing the share of Tata. Potential of new entrants (low to medium) a. Industry requires huge investment and trust. b. It is not easy for the new entrants to enter the market because a brand name is required. Customers trust only the established name because of safety reasons and huge investment they make while purchasing. c. 100% FDI is allowed, therefore, it is easy for the foreign players to enter the Indian automobile industry. Power of suppliers (low) a. It is having a good number of suppliers or rather a huge supplier base. b. Tata motors MD Mr. Ravi Kant said we are looking at shrinking our supplier base by filtering out low quality suppliers. This shows that the company is having power over its suppliers. c. Is pat has agreed to supply steel for Tata Nano. Power of buyers (high) a. Brand loyalty is moderate. b. If Maruti or Hyundai comes up with a better product at a lower cost, customers might shift from Tata. c. Since there are a lot of options in the market, the customers power over the industry is strong. Threat of substitute product (high) a. Since the fuel price is rising at a high rate, people have started looking out for alternatives. b. People prefer public transport which is cheaper and safer. c. Metros, mono rails, busses, bikes are few substitutes which can decrease the sale of Tata. d. Riva which is an electric car can be a substitute for Tata cars.

Political a. Political factors plays important role in the growth of the company. E.g. Nano case establishment of Nano manufacturing unit was not allowed in Bengal due to certain issues. This delayed the production of the car. It was then established in Gujarat. b. The hike in petroleum prices by OPEC is more of a political issue than economical.


a. Inflation i.e. the rise in commodity prices of steel, metals, rubber and plastics which play a major role in the manufacturing of the product. This will bring difficulties in the manufacturing of the product. b. The disposable income of the consumers:- If the level increases, consumers will buy, which is good for the company. Social a. Lifestyle of the consumers plays important role in buying products. It the life style changes then the consumption pattern also changes. So the firm needs to update itself with the social factors. Technological a. Technology is one of the biggest driving forces of the industry. It changes every second. Continuous researches have to be done to stay in the game. If the firm delays in adapting or developing technology, it will have a bad effect on the firm. b. Mercedeces is producing cars which can give a mileage of 130 km per liter of petrol. Legal a. Effect of import duties: - reduction in import duties would affect the local players in the Indian market. b. The industry lobby has made a strong pitch to the commerce department against the lowering of duty (something sought by the EU), saying it could see a flight of

manufacturing investments from India and will negatively affect the domestic players and hurt employment.(TOI) Environmental a. The raw materials required for the production of the product are scarce. b. The company has to improve its technology at intervals to make its vehicles more environmental friendly.


Early Mover - Pioneer in India on one second Signal Strength billing concept. Innovative pricing models for almost Customer Service everything be it voice calls, VAS services, and IVR interactions. Global leader in value added services.USP : Value L o w P r i c e L o w Q u a l i t y t r a p ( d u e t o Added Services like- Timed SMS- Diet SMS- e x c e s s i v e f o c u s o n o n l y p r i c e b a s e d Commix-on-the-go- Interactive GPRS application,- selling) TATA I-Channel Strong Alliance: Trusted TATA brand combined with proven technological e d g e o f NTT DOCOMO. Plans affordable by common people Active in social media sites like Twitter, Facebook, Stumble Upon, Technocratic etc, one of their strategies for marketing their products and creating an online presence OPPORTUNITIES TREATS Scope to expand the coverage across the growing Cut-throat competition from other major service Indian market :VAS services market to grow providers to 450 billion rupees by 2010

Introduce new plans targeted to internet users No strong POD other than price Introduce 3G compliant services since Late entrant in Indian market DOCOMO has the expertise in 3G Introduce new combined plans like SMS, Internet, calling integrated offers

Ques.2 Discuss the leadership style & major developments in Tata Growth during the tenure of each of the following leaders: Jamshed Tata JRD Tata Ratan Tata THE LEGACY THEN AND NOW: 1. JAMSHED TATA Tata is a 139 year old entity. It showcased an odyssey of all these years. It witnessed many leaders of which all left an indelible mark on the glorious history of 139 years. It started solely as a textile firm under the guidelines of Jamshed Tata. He envisaged a business idea that grew with the years and lead Tata to an immortal position. He alone didnt restrict his noble deeds to the arena of making profits alone but also extended his presence in the field of social welfare. He was a true philanthropist. He founded the J.N.Tata Endowment Trust in 1892 to provide loan scholarships for Indian nationals with outstanding academic records to pursue higher studies abroad. He was just not a mean businessman; he kept in mind the welfare and wellbeing of his employees and ensured they had world class amenities like accident insurance at work, provident funds and effective working conditions to ensure efficient results. He propounded the concept of Men could work as men should. His Empress Mills (founded 1877) was an ideal setup in the primitive India. He in his leadership style was a true visionary and ensured that all that India had not experienced ever should be brought here. Whatever he saw and experienced abroad he wanted to bring all that in India. He wanted not just his company to grow but the whole nation to grow. He also started Tata Line a shipping company and Taj Mahal Hotel (1902) which was much better than Waltons hotel. For the people of India it was a reality that they never could dream

about. He believed that freedom without economic independence is an illusion. He yet again dreamed and dreamed big this time. This dream was an illuminated one and this was to generate enough hydroelectricity to lighten the city of Bombay. He ascertained that steel, electricity and scientific research were the 3 pillars of nations growth and prosperity. He bridged the lacuna amid the primitive India and the modern world. He idealized the idea of India producing its own steel, not for any personal gains but for nations good. Despite of his falling health he still travelled to major steel towns in the world to gain all knowledge that he could acquire about setting up this dream proposition in India. He made tremendous efforts to expand the name and brand Tata to the extent he could. He gave Tata a title of a multi segmented company. By now they had ventured into cotton textiles, shipping and the early efforts to set up a steel plant.

2. J.R.D TATA Born in Paris on July 29, 1904, Jehangir Ratanji Dadabhoy Tata was the second child of Ratanji Dadabhoy Tata and his French wife Sooni. J.R.D Tata succeeded Jamshed Tata in the year 1904. He took the legacy ahead and made it an immortal one. J.R.D Tata went ahead with the efforts of Jamshed Ji. He said To lead men you must lead them with affection. He nurtured the Tata Empire into a multinational conglomerate. He renamed the firm as Tata Sons in 1917 and included: Empress Textiles Mills Taj Mahal Hotel Tata Iron and Steel Company Tata Hydro Electric Power Supply Company. By now Tata had extended its operations and also with the help of the company funds it had build the Indian Institute of Science in Bangalore in the year 1911. Tata was ensuring that all his employees were benefitted from its operations. He was just not the chairman of Tata group, TISCO but also the Airman of the country. This visionary brought out the Tata Airlines to India. He did this also because J.R.D had a flair for flying. Tata Airlines started in the reign of J.R.D Tata in the year 1932. J.R.D also laid stress on the defense related issues of the country. He led this great entity to distinction for a span of 52 years. He said that 'One of the qualities of leadership is to assess what is needed to get the best results for an enterprise. If that demands being a very active executive chairman, as I was in Air-

India, I did that. On the other hand, in one of our other companies where I know that the managing director likes to be alone and will get the results that way, I argue with myself and decide that it will be stupid for me to come in the way when the other person has a capacity for focusing his genius and producing the results. Often a chairman's main responsibility is to inspire respect.' And then he added, 'Don't forget, I like people.' He believed that one should aim for perfection and not excellence alone because if you do so you will go lower. Perfection is followed by excellence. For two generations or more J.R.D epitomized a way of life and a culture for the country and its people. He said whatever you earn from people should go back to them only then the cycle is complete. As an industrialist J.R.D Tata is credited with placing the Tata Group on the international map. He was also a vital bridge between the scientific establishment and the government through his founding of the Tata Institute of Fundamental Research, and as the longest serving member of the Atomic Energy Commission. For him quality mattered the most much above the profits alone. Tata headed India's largest industrial conglomerate with uncommon success. But this was only one aspect of his life. He was also a man of great sensitivity and was pained by the poverty he saw around him and sought vigorously to alleviate it. He also was a philanthropist who wanted India to be a happy country and did all he could to make it so; a patron of the sciences and the arts; and a man with a passion for literature, fast cars, skiing, and flying. He founded various entities of Tata like: 1. TCS 2. Tata Motors 3. Titan Industries 4. Tata Communications 5. Tata Tea 6. Voltas J.R.D Tata made his mark on India during his lifetime, and his legend lives on after him. 3. RATAN N TATA Ratan N Tata has been the Chairman of Tata Sons, the promoter holding company of the Tata group, since 1991. He is also the Chairman of the major Tata companies, including Tata Motors, Tata Steel, Tata Consultancy Services, Tata Power, Tata Global Beverages, Tata Chemicals, Indian Hotels and Tata Teleservices. Mr. Tata also serves on the board of directors of Fiat Spa and Alcoa. He is also on the international advisory boards of Mitsubishi Corporation, the American International Group, JP Morgan Chase, Rolls Royce, Temasek Holdings and the Monetary Authority of Singapore. In 1981, he became the Chairman of Tata Industries and was instrumental in ushering in a wide array of reforms. It was under his stewardship that Tata Consultancy Services went public and Tata Motors was listed in the New York Stock Exchange. He was awarded the

Padma Bhushan by the Government of India in January 2000. He serves on the boards of several leading organizations, both in the public as well as the private sector in India. He is a member of the International Investment Council set up by the President of South Africa and serves on the programme board of the Bill & Melinda Gates Foundation's India AIDS initiative. Ratan N Tata has taken the name of Tata ahead. With his grit and determination he made this empire grow and grow big. Ratan Tatas leadership has helped Tata to flourish. It went on to a metamorphosis stage of being a floundering firm in few areas to a flourished one in all areas. He made all possible efforts to restore the image and name of Tatas. He took growth to villages too. He lived up to the dream of his predecessors, contributed nobly to all the myriad causes of human welfare. He was very humble in his words and modest in his approach. But knew it very well when to proceed and with what. All these traits of his are the benchmarks for many entrepreneurs. He is a true visionary and equally efficient missionary. He planned to do what he wanted to do. His deeds were in proper planning to what he envisaged. He took Tata to a global platform that too with a magnificent image. He worked efficiently in the shoes of his predecessors. He was a true leader, worked for masses and not classes. He was a peoples man, the torch bearer of the great Tata Empire. Q3. How Tata haves built on their Resource & Capabilities over years? List all the Resources & Capabilities possessed by Tata Group (parent & subsidiaries) and explain how they have been leveraging it.

The team of Tata Sons to undertake the crucial part of raising Capital, resources and capabilities for the holding company and the group Companies. There were three ways of generating capital and assets, viz., internal Sources , the capital market or from the public and purchase of valuable public assets and capabilities from the Government of India at throw away prices with several institutional deficiencies. Now the Tata sons subscribe to the rights issues and preference shares of Tata Sons Ltd. On September 1995, Tata Sons Ltd invited Subscriptions to INR 300 crores (3000 million) rights issue from the group Companies at a premium. The various charitable trusts of the Tata Sons Ltd were to sell their rights to the group companies. Internal analysisResources and capabilities are identified as competencies for Tata are as follows1) SKILLED WORKFORCE: The retention of human capital translates into experience management well versed in the operations of several of Tata group. This retention rate of 67% compare to the standard of 10 to 25 % of other Indian organization had increased.

2) BRAND EQUITY: the brand equity is help the company to maintain the long term dignity this will help the company to sustain the competitive advantage and expansion the new industries and modifications in the exiting industries. 3) Entrepreneurial spirit: this entrepreneurial corporate culture is valuable and essential for the growth and success of Tata group. Management of the different units will need to retain some level of entrepreneurial freedom. 4) SYNERGIES BETWEEN UNITS: it can leverage its worth class capabilities in hightech industries to R&D while also gaining capital advantage. Capital can easily be raised from participating group companies. 5) HEALTHY RELATIONSHIP: there is a strong relationship with Indian companies. It was successfully exploited by the organizations as they were able to get license for several projects. This relationship creates a temporary competitive advantage and provides above normal economic performance. Subsidiaries Jaguar land rover Tata macropolo motors Tata motors( thialand) Tata technologies Tata Cummins Hv transmissions and Hv axles TAL manufacturing solutions Tata motors finance Tata autocomp systems TML distribution company Concorde motors Tata ficosa Taco composities Telco construction equipment Companies Tata projects Voltas Tata consulting engineers Trf The Indian steel and wire products Tata blue scope steel Dharma port company

Lanka special steel Sila eastern company Tata sleel KZN Tata NYK S& T MINING COMPANY

Q4. Discuss the purpose of the parent firm Tata Sons and its role in the Tata Group.

The case of Tata Sons is about the management processes and methods that Tata Sons adopted to grow in a fast changing socio-economic-political cultural environment of a developing country. Tata Sons controls about 114 companies according to 2008 data about 66 % of its equity capital are held for shareholders of Tata Sons Limited by the various trusts of Tata Sons like Sir Dorabji Tata, Sir Ratan Tata and the members of the Tata family.Tata Sons have been in the business for about 140 years and being the pioneers in several industries in India, the companies of Tata Sons have introduced several notable management practices in their respective companies which later became standard in the Indian industry. For example eight hour working per day policy introduced in 1912 was enforced as a law in 1938 as per the Indian Factories Act. Similarly, the policies on free medical aid, employee welfare, maternity benefits, retiring gratuity, etc subsequently became norms in the Indian industry. Tata Trusts of the first two generation of the Tatas and the leading role played by the holding companies of Tata Sons has been very well knit to build and potray Tata Group. Nationalization of strategic industries like the Airlines and Insurance hurt the Tata the most.JRD Tata took great interest to invest and develop the Tata Airways since 1932.Thus it was a major setback for him. But the biggest setback was yet to arrive it was the termination of the Managing Agency System in 1970. With this change, Tata Sons Limited and Tata Industries, both Managing Agents of the Tata companies had to shed their management control to individual companies. Traditionally, the key function of Tata Sons Limited has been to retain the trade name and build the Tata brand that could be used by all the companies in the group. After Ratan Tata took over as the Chairman of Tata Sons he did a massive brand building exercise of the Tata Group of Companies. The cost of this exercise was born by the different companies of the group. Contributions varied from 0.10% to 0.25% of net income of each of the group companies of Tata Sons. Being a leading industrial house of the country, the Tatas played their role in the struggle for independence and in the planning and development of the Indian economy. The management practices and the employee welfare practices that Tata Sons introduced in

their group companies over the years further increased the visibility of the Tatas and created a strong goodwill among its employees and the public at large. Ratan Tata the ex chairman of Tata Sons under the pressure of competition and fear of losing control of individual companies in the group undertook a massive advertisement of the group and restructured the management and ownership of group companies to give a new lease of life to the Tata Brand. The way Ratan Tata dealt with Krishnan Pushparajan Nair, general secretary of the Telco Kamgar Sanghatana (TKS) showed the hard hitting nature behind the soft exterior.It also showed the power of the Tatas to silence erring labour leaders and solve major labour problems. In 1991 the board of Tata Sons Limited appointed Ratan Tata as the Chairman of Tata Sons Limited. Ratan systematically brought in the changes that he had planned out. With change in the leadership many other changes were accompanied to execute Ratans growth plans. Ratan Tata came up with policy for Tata Steel that top management had to retire. Thus Russy Modi had to retire from his post of Managing Director. Thus the parent firm Tata Sons maintained a control of sacking of the big bosses in the Tata Group. Not only Modi but also Ajit Kerkar of Taj Mahal Hotel was removed from office After being appointed as the Chairman of Tata Industries Limited (TIL) he felt himself helpless to even propose a group plan and group strategy as as many of the larger companies of the group seemed to be independent of the Tata Sons and Tata Industries, the two holding companies in the group. The shareholdings of the parent company was very less in the group companies and so the individual companies like Tisco and Telco could have disagreed the norms proposed by the Tata Sons. Therefore Ratan Tata took opportunity with the winds of liberalization to begin the financial restructuring process. He began by seeking royalty commission to the tune of INR 300 million from the group companies that used the Tata name. He subsequently raised INR 3000 million for Tata Sons by asking the group companies to subscribe to the rights issue of Tata Sons. In effect, this move increased the shareholding of Tata Sons in the group companies. Tata Sons then used this capital to invest in some group companies for expansion or acquisition or to invest in some high technology industries, like TCS, Tata Communication, Tata Teleservices. Tata Sons sold some shares of TCS that is largely held by the Tatas to raise capital for Tata Steel and in the process further raised its shareholding in Tata Steel.Tatas tried to hold most of their group companies through TSL. Ratan Tata led the team of Tata Sons to undertake the crucial part of raising capital, resources and capabilities for the holding company and the group companies. There were three ways of generating capital and assets, viz., internal sources that is from the group companies, the capital market or from the public and purchase of valuable public assets and capabilities from the Government of India at throw away price. Tata Sons adopted all the three methods to acquire capital, resources, and capabilities in the fast changing developing economy with several institutional deficiencies. From seeking contributions from the group companies for a massive advertisement

campaign for the group companies of Tata Sons Ratan Tata asked the group companies to subscribe to the rights issues and preference shares of Tata Sons Ltd. Tata Sons Ltd invited subscriptions to INR 300 crores (3000 million) rights issue from the group companies at a premium. The various charitable trusts of the Tata Sons Ltd were to sell their rights to the group companies. With the help of this process, the Tata Sons not only raised substantial amount of capital but also set in motion to raise its own shareholding in the group companies such that it could legally assert itself on the group companies. This policy of Tata Sons was strongly resented by many; as the individual companies had to divert their valuable cash to buy the rights issues of Tata Sons that was a small company with ordinary shares of the group companies. It was also argued that the shares were overvalued and that the shareholders of Tata Sons gained at the expense of the shareholders of the group companies. Tata Sons strengthened its own firm TCS by buying CMC. Tata Sons also acquired 25% of VSNL from Governmnent. Tata Sons acquired another 20% from the open market. VSNL was a rich organization. Its monopoly in international long distance (ILD) voice and internet was the biggest advantage to Tata Sons. This question has arise about Tatas that whether the growth has been at the cost of principles. Tatas to set up a 6 million ton per annum integrated steel plant in Orissa was allotted 2000 acres of land in Kalinganagar, Jajpur district. Due to some conflicts by the locals of that area police had to enter and it resulted in killing of twelve protestors from among the local inhabitants. As well as goes the case of fertile land of Singur that produced three crops a year and sustained the livelihood of 10,000 people. That also faced a protest .1997, the Tata Sons were suspected to be supporting the banned organization, United Liberation Front of Asom (ULFA) in order to protect its tea gardens in Assam and help the tea supplies to its group company, Tata Tea.From the above reports, it is rather difficult to assume that Ratan Tata and the Tata Sons were not party to any unethical practices. Tata Sons has been the owner of the Tata name and the Tata trademark, which are registered in India and several other countries. Apart from lending its brand name to group companies as per the Brand Equity and Business Promotion Agreement, Tata Sons activities has been to; to maintain shareholding in main operating companies, to invest in operating companies to facilitate growth, and to promote the group's entry into new businesses. Tata Sons Limited, along with Tata Industries, has financial holdings in 114 companies whose operation spans across the world. Tata Sons Limited has not only intensified its growth machine in India but has also expanded deeply to countries and markets outside India, both in the industrially advanced countries and the developing countries.

Q5. Identify major strategies and inflection points in all the above mentioned Tata Businesses (Refer to Q1.)

TATA STEEL CURRENT STRATEGY STAKEHOLDERS ENGAGEMENT STRATEGY: The identification of stakeholders, whom to engage with, is primarily determined if they belong to the following: Those who are affected by our activities Those who have influence or control over our activities Those who have an interest in the Companys success or failure and help in defining .its value proposition Two fold strategy In order to increase the quality of earnings of its existing assets, the Group will pursue the optimization of its European assets, restructure low profitability assets and continue to derive benefits through continuous improvement and synergies across the Group. In order to generate selective growth, the Group will pursue capacity expansions and securing access to raw materials. The Group is increasing its capacity in India, through expansion of its current operations in Jamshedpur and through the construction of a greenfield site in Orissa, and assessment of raw material investment opportunities as and when they arise

GROWTH STRATEGY: Making the European operations competitive by hastening the speed of the Weathering the Storm and Fit for the Future program.Quick completion of the expansion plans in India. The 3 mtpa project will be commissioned by 2011 and will add significant value to the Group. Further expansion in India through the Greenfield project in Orissa and Chhattisgarh are ongoing and their commencing will depend on ground realities and iron ore allocation.

Investment in raw material assets to provide better raw material security especially to our European operations. Vigorous pursuit of continuous improvement across all our operations.

INFLECTION POINT : Tata steel went through its first inflection point when it started modernizing in the mid 1980s. till then, it was fast becoming an antiquated plant and sensing that the indian economy is going to be liberalized we took a bold decision in the 1980s to go in for a new plant. today, i am very proud to say that tata steel in jamshedpur is probably one of the most modern plants in the world. the old plant is gone the capacity at one time was limited to three million tonnes. we have slowly built it up to five million tonnes and then faster to seven million tonnes and now they are about to unleash the latest expansion which will take it to 10 million tonnes.

CURRENT STRATEGIES: Tata Power has a presence in all aspects of Power- Thermal, Hydro, Solar, Wind, Transmission & Distribution. From its niche Power generation and distribution business in Mumbai, Tata Power is making a confident movetowards a national presence in the power sector as well ascommunication and energy businesses. Tata Power is extending itstransmission and distribution operations nationally. Tata Power is implementing continuous modernisation and cost reductionstrategies to emerge as a low cost power producer.

INFLECTION POINT solar-based power and distribution systems can be an effective solution," Mittal said. "Solar will become a game-changer," Mittal declared. What Welspun and other players in the renewable energy space are betting on is that coal-based power tariffs are bound to increase while solar-based power tariffs will keep declining. Industry observers think the inflection point could be when cost of solar-based power becomes equal or close enough to that of coal-based power. USE OF THERMAL AND SOLAR POWER TO PRODUCE ELECTRICITY.


CURRENT STRATEGY: Tata Motors has said that the Nano's marketing strategy in particular is to use conventional media outlets, but use them in unconventional ways. The Nano will have no television campaigns, instead relying on innovative use of printed media, radio spots and other media such as the Internet. Marketing strategies of Tata Motors include the usual boring stuff like incorporating Tata Nano news into newspapers and creating Nano newsbreaks on the radio. Some of the more interesting marketing strategies of Tata Motors includes Tata Nano news crawling across as ticker messages at the bottom of your TV (I thought they said no television ads?) as well as new online Tata Nano games, Tata Nano Internet chatrooms, irritating Tata Nano pop-ups on major websites and even some in-depth Tata Nano conversations for users to join in on Facebook, Orkut and other blogspaces. Ad industry know-it-alls say the marketing strategies of Tata Motors will be "costeffective and innovative so that the Tata Nano becomes synonymous with anything small, cute and brief.

The idea is to make the Nano part of our everyday lingo like, 'see you after a nano.' Its a totally word-of-mouth campaign, said some guy who claims he is very familiar with the marketing strategies of Tata Motors.

INFLECTION POINT 2010 MARKS AN INFLECTION POINT FOR GLOBAL CV INDUSTRY WITH MARKET POISED FOR RECOVERY AFTER RECESSION: Global CV industry emerging from recession and expected to grow at 8% Developed markets like NA and Europe, which saw a 30% decline in past one year, are expected to recover their volumes only in the next 4-5 years Emerging markets like Brazil, Russia, India and China, which are expected to show high growth momentum, are becoming the focus of global players for entry and expansion; there is increasing trend of JVs/cooperation between local and global players Chinese players are scaling up to become global players in all categories of the CV

CURRENT STRATEGIES THE Indian Hotels Company owned by Tata Sons, recently launched a new brand, Vivanta by Taj, in the upper segment. The brand covers three new hotels in Bangalore, Goa and Maldives and 16 old properties in India and Sri Lanka .With this, the company now has put in place its brand architecture. Thus Taj is slotted in the luxury space, Vivanta by Taj in the upper upscale segment, Gateway in upscale and Ginger in economy. FOUR BRAND STRATEGY

The four-brand strategy begins to fall into place: A customer sticks to The Indian Hotels Company as he progresses in life. "We are now poised to run to every primary, secondary and tertiary city in the country," says The Indian Hotels Company Senior Vice-president (sales & marketing) Ajoy K Misra. That's perhaps the reason why most hotel companies like East India Hotels, ITC, IHHR Hospitality and Bharat Hotels want to have more than one brand in their portfolio. The only one focused on the luxury segment is Hotel Leelaventures. The Indian Hotels Company has taken the lead with four brands. But there is still a missing link. There is a fifth segment between economy and upscale called midscale - the one that exists between Ginger and Gateway.

INFLECTION POINT Commitment is to make the Taj a byword for luxury and the Taj Mahal a synonym for splendour. We understand the priorities of premium marketing and we intend to serve them in India and abroad. As part of the strategy set during the last three years, we will be looking at the Tajs brand architecture. We need to take advantage of the significant value of the Taj brand. While we have a diverse portfolio, which includes many types of products, the Taj name represents the high end of our products. We will have the Taj brand and, then, segments of various types within this brand. It may be, for instance, Gateway by Taj or Residency by Taj. We wont necessarily carry the Taj name up front. Locally, our expansion for growth will be through our extension of the brand. We have the Taj Wellington Mews as our first foray into luxury residences. Thats being opened here in Mumbai in March 2004. This is a completely new brand extension that we are undertaking.

CURRENT STRATEGIES: Low cost Global delivery 24X7 model. Focus on customer relationship management, customer retention (for repeat business revenue which is 95.6%). Timely delivery with the help of proven delivery & quality framework iQMS. Differentiation in low end services in terms of cost, resources. Differentiation in high end services such as consulting in term of niche offerings, expertise. Protection from currency fluctuations with the help of currency hedging. Due to its strong knowledge management system and resource strength, TCS has been successful in getting the cost leadership in the industry. Since last decade, TCS has been following a more focused strategy where they are going as per local needs of customer and their nature of business. E.g. Middle East, Australia. They are being more focused region wise and customer wise rather than being generic.


In the past few days, Tata Consultancy Services (TCS), Infosys and Wipro, India's top three information technology service companies, have produced decent quarterly profit numbers. And this is a good time to try and guess what is ahead in the industry that helped put India's economy on the world up after reforms. First, the US economy seems to be well on the path to recovery, while Europe-though it led to a sluggish forecast by Infosys -should also be out of the uncertainty zone by mid-year. However, as Wipro chairman Azim Premji said, the days of "hyper-growth" are over for the industry. What, in the current context, could happen over the next year or so? Let me make three guesses this week, based on the signals and whispers one is getting from the industry.

CURRENT STRATEGIES The company initiated a globalization drive, fuelled by acquisitions and diversification away from voice. In 2003, it opened offices in the US, the UK and Sri Lanka, with the international division based out of Singapore. A year later, it acquired Tyco International Ltds global network with its undersea optic fibre cable network that spanned 60,000km for $130 million and began providing data services to global customers. In 2006, it acquired Teleglobe International Holdings Ltda provider of wholesale voice, data, Internet Protocol and mobile signalling servicesfor $239 million, making it one of the worlds top five voice and data providers. The acquisition added at least $1 billion in revenue, tripling traffic carried to 18 billion minutes a year. Also, partnering with Tata Consultancy Services Ltd (TCS), the company got into managing hardware, software, networks and applications for companies. It drew upon the resources of TCS for IT and Tata Teleservices Ltd (TTSL) for domestic wireless networks.

INFLECTION POINTS Over 5000 Enterprise and Retail customers already up in ten cities; Aggressive plans to capture 200,000 customers in retail segment alone in FY 2009 -- Bangalore unwired for Retail customers; over 600 base station sector deployed and radiating -- Plans to roll out WiMAX in 110 cities for Enterprise and 15 Cities for Retail Segment by 2008 -- Telsima WiMAX solutions selected for the largest deployment; 3000 base station sectors being deployed. -- Telsima WiMAX solutions selected based on advanced wireless technologies; Largest WiMAX STC/MRC network ever deployed In the initial phase, Tata Communications' WiMAX network will offer Broadband Internet access and

content services to enterprise and residential customers in Delhi, Mumbai, Pune, Bangalore, Chennai, Hyderabad, Cochin, Chandigarh, and Kolkata. By the end of 2008 Tata Communications plans to have enabled WiMAX retail broadband service in about 15 cities. "Tata Communications' seeks to enrich life by enabling reliable and affordable communication anytime, anywhere", said Shankar Prasad, President, Tata Communications' Retail Business Unit. "To that end Tata Communications has selected Telsima to provide WiMAX infrastructure and subscriber equipment solutions to deploy our commercial WiMAX network, with 3000 base station sectors already getting deployed.

Tata tea

Tata Tea may be relatively small, but it's always been at the vanguard of the Tata globalisation saga. Tata Steel made the its Corus acquisition only in 2007, seven years after Tata Tea's acquisition of Tetley, which was the first major international acquisition for the Tata Group as a whole. Tata Tea is now the second largest player in the branded tea segment globally and has a presence in 40 countries. The international expansion has all been through Tetley, which is a Tata Tea subsidiary. Tata Aviation The worlds premier aerospace companies trust Tata Technologies to help them build better products quickly and cost-effectively. For two decades Tata Technologies has been providing the worlds foremost aerospace organizations with complete design-to-build aerospace solutions. Our partnership with Hindustan Aeronautics Limited (HAL), Asias premier aerospace manufacturer, extends tremendous cost and time savings for clients and enables us to render world-class design-through-build solutions. As global delivery and outsourcing become key strategies for the aerospace industry, our approach allows companies to achieve cost savings, accelerate time to market, and gain competitive advantage by benefiting from our onshore and offshore resources and stateof-the-art design center facilities.

Q6. Explain how Tatas Growth and major challenges faced during the following three phases of their existence: British Raj (Before 1947) Post-Independence era (1947 1990) Post LPG reforms in 1991

British Raj (Before 1947) Growth The policy of the British Government was against encouraging industrial development in India. No incentives were offered to Indian industries for their growth. There were many desired and undesired hurdles placed in the way of the growth of Indian industry. Whatever industrial development took place in India was in spite of the negative and hostile attitude of the British Government. Credit must be given to pioneers like Jamshedji Tata, Walchand Hirachand, Lala Sriram, G.D. Birla and others, who laid the foundations of modern industry in India. The Tatas had a big role to play in laying the ground for an industrialised India. That changed, to a certain extent, after freedom arrived and the country started pursuing the Soviet model of development, with the emphasis on the public sector. Thats when many private enterprises, the Tata group among them, became targets for nationalisation. Challenges We went through a phase when we became an endangered species. For a long period of time we stood still because we were not allowed to expand, we were not allowed to enter any new businesses. Thats why the Tatas, bar a few exceptions, did not really grow between the 1950s and the 1970s.

Post-Independence era (1947 1990) Growth Jamsetji Tata was gripped by the idea of making India self-reliant. The businesses he seeded and those that came to be after his passing airlines, chemicals, etc were, in a way, the foundation industries of the Indian economy. Little was attempted in what could be termed a purely consumer area, the only early foray there being Tata Oil Mills. The groups contributions were not confined to entrepreneurship; Jamsetji was the moving force behind the setting up of the Indian Institute of Science and, after independence, there came the Tata Institute of Fundamental Research and the Tata Institute of Social Sciences. There was no ulterior motive in establishing these

institutions; the objective was to help further the skills and capabilities of India and Indians. We have never allowed our companies or the individuals in them, to become dealers or commission agents or profiteers. The Tatas were ready to take part in the Herculean task of nation building. The badly needed steel for the new Five-year Plans came from the Tata factory steel for the Howrah Bridge in Kolkata, the Bhakra Nangal project, the Damodar Valley Corporation and many more important projects. Tata Steel played a key role in the recreation of postindependence India. Initiatives such as Leave with Pay, the Workers Provident Fund Scheme, the Workmens Accident Compensation Scheme, Maternity Benefits, Eight-Hour Working Days, Free Medical Aid, Retirement Gratuity and Profit Sharing Bonus were introduced by Tata Steel long before they were enforced by law In 1968, Tata established Tata Consultancy Services (TCS), which became the first Indian provider of offshored IT services. TCS is now one of the largest IT service providers in the world and Indias largest company in this business. Challenges: The post-independence years leading up to liberalisation were a struggle for the Tatas and for private industry as a whole, says Ashok Ganguly*, but there would be light at the end of this tunnel too Because of the license raj which hampered the Indian private sector and nationalization, the growth of the car industry was slow in the 1950s and 1960s. Sustaining existing businesses in the face of all the red tape and restrictions was no easy task for a group such as the Tatas. JRD Tata, who headed the group during this difficult time, knew Jawaharlal Nehru and Indira Gandhi personally and he was hugely respected by everyone in the country. Despite these advantages, his ideas for a progressive India were mostly ignored, because they did not match the mindset of our political masters. JRD and GD Birla, his great contemporary, towered over the corporate world. Politicians frequently sought their counsel, but did not always accept what they had to say. JRD once told me a story: he would, every once in a while, be summoned by Mrs. Gandhi for advice; he would get excited and start talking about what all Indian industry could do. If his views were not in tune with what Mrs. Gandhi wanted to hear, she would start looking out of the window; this was the signal for him that the conversation was about to be concluded.

JRD may have been disappointed by the political and economic climate of those days, but he was never discouraged. This was a true-blue Tata; there were other well-known business leaders around, but he was after all, the Tata. JRD had, without a doubt, the country uppermost in his mind, even ahead of the group he headed. He wouldnt have hesitated for a moment while saying that without a progressive India, the rest is nothing, and that our industries and everything else will progress only when the nation does. Ratan Tata came along when Indian industry was opening up and he had to deal, in his initial years at the helm, with vested interests bent on maintaining the status quo. The parallel was striking: the Tata group, like India itself, spent a lot of energy transforming itself. Todays Tata group is, consequently, a completely different organisation, with new people and a new culture, a 21st century Indian corporate giant. Post LPG reforms in 1991 Growth Indian economy had experienced major policy changes in early 1990s. The new economic reform,popularlyknown as , L i b e r a l i z a t i o n , P r i v a t i z a t i o n a n d G l o b a l i z a t i o n ( L P G model) aimed at making the Indian economy as fastest growing economy and globally competitive. Traditionally a conservative business conglomerate, the Tatas have changed after the launch of economic reforms in 1991 acquiring global brands and performing better than peers, said Group chief Mr. Ratan Tata. We (Tata group) have spent millions to earn a brand name over the years and finally succeeded, he said, stressing that the Group bought the company with a brand name world over. In 1991, the economy was liberalized and the License Raj was gradually removed. This allowed various Indian and foreign car companies to start operations here. The growth in car manufacturing and automotive component has increased steadily to meet domestic and international demands due to competition and lesser restrictions.Exports of the Indian Car Market In the acquisition strategy that Rosling designed, Tata has sought two types of companies: prestigious consumer brands like Jaguar, Eight OClock Coffee, and Good Earth tea; and critical industrial enterprises. The latter include Corus; the soda ash mining companies Brunner Mond and General Chemicals; and Tyco Global Network, an undersea fiber-optics asset once held by the disgraced Tyco telecommunications company. The 1991-1992 government policy was a momentous change from the earlier trade controls and restrictions and brought with it a new era of growth for the country. The iron and steel industry became one of the foremost sectors to be opened under the New Economic Policy. Substantial private investment flowed in, with the consequent changes heralding a new beginning for the interplay of free market enterprise in this vital sector. Embracing these new liberalisation measures, Tata Steel, under the guidance and

leadership of its senior officers, embarked on a series of modernisation and restructuring initiatives which helped it grow from strength to strength. The full impact of economic liberalisation, which meant that steel could be easily imported, was felt in 1993-94. The Company set targets to reduce costs of production and raise the level of net realisation. This was a turning point for the Company, which was judged Number 1 in the league table of world-class steel companies by World Steel Dynamics in the year 2001.

Challenges Lack of central control was the fundamental problem facing Ratan Tata in 1993, when he took the helm following the death of JRD.6 Tata had then sales of approximately US $2 billion, although this number is misleading when it comes to appreciating the complexity of a conglomerate. It comprised 84 companies of which 39 were listed. Trucks (i.e. Tata Motors, previously Tata Engineering and Locomotive Company, Telco) made up for 30 percent of sales, steel (i.e., Tata Iron and Steel Company Tisco), 23 percent, and chemicals (i.e., Tata Chemicals) 16 percent (Piramal 1996, p. 368). Employees were 242,000 in 1993, a number quite comparable to that of the largest U.S. firm by 1993 assets (General Electric, US $252 billion) with 222,000 employees (Khanna and Palepu 2000, p. 871). In 1998, in consultation with McKinsey & Co., Tata trimmed the lines of businesses from 25 to 12 and reduced the number of group-affiliated firms from 80 to 30 (Naik 2001). To tackle the problem of the small stakes, Tata Sons made a rights issue, to which operating companies more or less had to subscribe. One way that Tata hopes to quickly turn around its overly leveraged units is through equity offerings, once global investors are willing to participate. In mid-2009, for example, Tata Motors used about $1 billion in financing from fresh stock and asset sales to whittle down its 10-to-one debt-to-equity ratio. It remains to be seen how the broadening of Tatas investment base will affect its magnanimous corporate culture. But global expansion increases the pressure on Tata to provide rapid returns, and it could diminish the familys ability to fund philanthropic projects in India or elsewhere Another type of challenge has arisen with the success of the Nano. Originally conceived only for emerging markets like India, Latin America, Southeast Asia, and Africa, this car was being called a trendsetter for the global automotive market even before it went on sale in July 2009. Suddenly, company leaders were compelled to plan, finance, and develop a Nano line that would be acceptable for the U.S. and European markets.