ORGANIZATIONAL STRUCTURE OF TATA MOTORS

Presented by Group II ² Section C

Journey of Tata Motors 2004 ‡ Acquired Daewoo CV ‡ Acquired 21% in Hispano 2008-09 1994 ‡ TATA sumo launched ‡ JV with Mercedes ‡ Acquired JLR ‡ New Nano plant ‡ JV with Fiat ‡ Acquired 100% in Hispano .

Heavy Trucks (Collaboration with DaimlerBenz) 1995.Tata Estate 2000.Tata TL 4X4.Tata Sumo (MUV) 1998.Tata Winger r-Strategy 1994.Survival Strategies Specialist Strategy Generalist Strategy TELCO 1948-Steam Road Rollers 1954.Tata Nano .Tata Safari (1st Indian SUV) K-Strategy 2009. India's first mini truck launched 1991-Tata Sierra 1992.Tata Indica 2007. India's first Sports Utility Truck (SUT) 2005-Tata Ace.

Greiner s Model Growth through Creativity 1954-Technical and Financial Collaboration with Daimler Benz 1959.TELCO dipped in profits due to its ambitious expansion plans which increased organization size 2001.Nano Project by coordination among Business Units 2007 Onwards Formation of New Product Development teams of Tata Manza.R&D setup in Jamshedpur 1966.Sumant Moolgaonkar led the company. Tata Aria.2007.Setting up of the Engineering Research Centre at Pune to provide impetus to automobile Research and Development. 1969. building the brand image and reputation 1987.Recovery of lost grounds led by Managing Director Ravi Kant 2005. Indica Vista Electronic Crisis of Leadership Growth through Direction Crisis of Autonomy Growth through Delegation Crisis of Control Growth through Coordination Crisis of Red-Tape Growth through Collaboration .End of collaboration with Daimler Benz 1972.

HCV Fiat Vehicles PCBU.Organizational Design Marketing CVBU.LCV Finance (Shared Services) Administration Engineering Research Center Customer Support Human Resource Quality Premium Cars City Buses Maintenance Manufacturing Sports Utility Vehicle Small Car Ultra Low City Buses Projects Vendor Development New Product Introduction Technical Support Logistics Commercial Divisions Functional Divisions .

GM Service n Spares VP NPI ERC: Engineering Research Center PCBU: Passenger Car Business Unit CVBU: Commercial Vehicle Business Unit .Organizational Chart VP Marketing GM (Country Head) GM Manufacturing GM Quality DGM North Zone DGM Shop Head AGMs Lower Management Lower Management Chairman President Strategic Sourcing Head ERC Plant Head CFO AGM Engines Vice Chairman GM Sourcing CEO MD India Operations Head CVBU Head Shared Services Head Premier Car Division Head PCBU GM Technical Support GM Dealer Development VP Customer Support Sr.

and an increasing threat from overseas competitors³caused Tata Motors to shock the markets with a 5 billion rupee ($110 million)loss for the fiscal year ending March 2001.Surviving the Crisis of 2001 Lost sales compounded by heavy investment for its entry into the passenger car business. 3 phase Recovery strategy was started in 2001 Phase 1: -Stem the bleeding by reducing the cost of operation † Phase2: Consolidation of Market position † Phase3: Going outside India and expanding operations internationally † . the cost of complying with new emissions standards.

Manager Manager Manager Manager Manager Welding Manager Manager Manager Manager Manager Trims Manager Manager Manager Manager Manager Veh. Manager Manager Manager Manager Manager Electronics Manager Manager Manager Manager Manager Different teams formed for different aggregates Engg Research Center Vendor Development Mat. ‡Pricing Comm. Heads) ‡Engg. Pricing Committee Quality Assurance Startegic Sourcing Manager Manager Manager Manager Manager . ‡Product. Research Center ‡Strategic Sourcing ‡Manufacturing ‡Finance ‡Vendor Dev.Cost Reduction Team Functional Sponsors (Div. Engg. ‡MPC Members ‡Expert Members Central Coordination Teams Projects Team Functional Lead AGM Divisions Rep(s) Manager Manager Engines Transm. Steering Committee (Top Level Management) Staffing ‡Cost Engineers ‡Plant Rep. Assy.

Culture Corporate Governence by following Tata Business Excellence Model Long term strategic objectives followed through Balance Score Card Methodology Maintaining highest standard of ethics by following Tata Code of Conduct and maintaining a well defined Whistle Blower Policy Focus on generating innovative ideas across the organization for growth and development: Idea Generation Sessions Maintaining a strong Management-Union relationship (Wages increased every third year) .Key Features of TML Org.

Key Features of TML Org. Talent Pool etc. CFT s formed across the organization Well defined CRM and SRM policy . Industry Cooperatives. Culture Focus on employee development (FTSS. TAS.) and Community Development (Tata Motors Grihini Udyog. Tata Motors' Mobile Medical Unit ) Long term strategic partnership with vendors (Early Vendor Identification Program) Focus on Teamwork and cross functional approachVarious SDT s.

Financials(2006-10) Turnover=37.447 Rs Crores YoY growth in sales=14.04 Increase in turnover per employee from Rs 68 lacs to Rs 81 lacs .84% Slight shift in priority--from production of passenger vehicles to commercial vehicles YoY increase in PAT=10.54 to 1.01% Increase in D/E ratio from .

to 59200 and revenue to 16060 Rs Crores Acquired 79% remaining share in Hispano Carrocera in 2009 .Effect of Acquisitions TMG s turnover=95.65 bn Doubled the number of wholesale volumes of JLR.567 Rs Crores Acquired Daewoo for 465 Rs Crores in 2004 TATA Daewoo s net revenue=2679 Rs Crores Acquired Ford Jaguar and Land Rover in 2008 for $2. since Apr 2009.

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