A Presentation on Tata Timken

8/13/2019 A Presentation on Tata Timken

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TATA TIMKEN COMPANYLTD


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About the company

US based company

Manufacturer of tapered roller bearings

Started its operations in India in 1992 in collaboration withTISCO

Second largest manufacturer of tapered roller bearings in India.

Capacity installed for production 3 million units(standard bearingsand bearings for trucks, utility vehicles and railways)


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Key events in the case

The US based company Timken purchased Tata's 40%holding in the joint venture and made It 80%

The company accumulated losses of Rs 50 crore by theend of 1995

Company Expanded by Rs 32 crore in March 1998

Timken group acquisition include MPB Group nowTimken aerospace and super precision bearings


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Change in the scenario

Tata group decides to withdraw from thejoint venture.

Company to be renamed Timken India ltd.

Timkens plans to expand after the takeover

Greater control encourages them to bring innew technology.

Strategy is to look at the past sales for thefuture


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Sales Sequence Charts (with SPSS)


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Initial Analysis

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

2000 12 27 87 53.58 19.360

2001 12 34 78 60.17 15.081

2002 12 39 98 67.33 18.980

2003 12 38 98 73.25 20.078

Valid N (listwise) 12 79


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Initial Analysis (Contd.)

Communalities

Initial Extraction

2000 1.000 .955

2001 1.000 .967

2002 1.000 .966

2003 1.000 .976

Extraction Method: Principal Component Analysis.


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Total Variance Explained

Component Initial Eigenvalues Extraction Sums of Squared Loadings

Total % of Variance Cumulative % Total % of Variance Cumulative %

1 3.864 96.597 96.597 3.864 96.597 96.597

2 .068 1.710 98.307

3 .046 1.162 99.468

4 .021 .532 100.000



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Component Matrixa

Component

1

2000 .977

2001 .983

2002 .983

2003 .988


a. 1 components extracted.


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The forecasting Process

Develop forecastingprocedure

Select forecastanalysis method

Comprehensive totalforecast procedure

Collect , collate,gather and analyze

the data

Forecast objectives

Evaluateperformance resultsagainst the forecasts

Make and finalizethe forecast

Determineindependent

and dependent

variables

Present all the

assumptions

about data


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Designing Sales Territories

1. Selecting a basic geographical control unit

2. Determining the sales potential present in each area

3. Combining control units into tentative territories

4. Adjusting for differences in coverage difficulty


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Q1. Factors that Sales Manager takes into account before

deciding on a Sales Territory

Coverage of the market

Sales Potential

Improving sales force morale

Matching seller effort to meet customer needs

Sales volume approximation


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The Approach

1) Market build up approach

2) Work load approach

Market build up approach

Method of estimating the revenue potential of an industrial market by identifying the

number of potential buyers in the market and the purchase requirements of each


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Geographical Control Unit is the unit of geography that is

combined to form a sales territory

Q2.Geographical Control Unit definition and its

importance

COUNTRIES CITIES

STATE OF PROVINCES ZIP CODES

COUNTIES CENSUS TRACTS

METROPOLITAN AREA CUSTOMERS


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Reasons for forming GCUs

Sales force

effectiveness

Major

Trading

Areas

Product Life

cycle change

Product line

change

Customer

Relocations


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Q3. Workload approach

An approach in setting sales force size in which the

company groups into different size classes and then

determines how many salespeople are needed to call

on them the desired number of times

Number of Customers X Call Frequency

Average weekly call rate X Number of working weeks per

year

=No. of salesmen


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Q4. Features of a good sales territory computer

program

Benefit: Customers will be contacted and serviced by onesalesperson, which prevents duplication of effort.

Product/Service profiling

Easy to useCompatibility

Flexible and adaptive

Scope of customization

Easy to share information

Mapping staff expertise

Customer/prospect profiling

Competitor Territory


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Q5. Importance of maps and spreadsheets

Territory alignment and optimization :Todays competitive marketplace, companies cannot afford to have inefficiently

designed territories

Efficient territory design:

1.Over 40% of all field sales reps have either too much work or too little work.

2.The average field sales rep spends approximately 20% of their time traveling. More

efficient territory design results in less travel time which translates into more selling

time

Managing most valuable asset:

Focus on most critical area within different territories can boost sales by 2-7 %

Sales advantage:

1.Unique sales advantage over the competitors by harnessing ability to find and react

to problems quickly.

2. Conduct "what if" analysis on any data or geography, realign territories to address

short and long term goals ,balance workload and more


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THANK YOU

Documents

A Presentation on Tata Timken