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INTRODUCTION :(Task 1.a)
TATA MOTORS LIMITED is Indias largest automobile manufacturing plant emerged
in 1945 by Ratan N Tata (Chairman). The company works with a total revenue of about 14
billion USD. Tata motors is the leader in the passenger vehicles in India and it is the fourth
largest truck producer and second largest bus manufacturer of the world. Tata motors existence
reaches the length and breadth of India. The companys manufacturing bases in India are at
Jharkhand, Maharashtra, Uttar Pradesh, Uttarakhad and Karnataka which comprises of around
23,000 employees. The motor company has around 3500 touch points for sales and services. It is
the first Indian engineering company to be listed in Newyork stock exchange with this it emerges
as an international automobile company. The strong foundation of the company from 1950 made
its R&D department to understand customer needs and stimuli. With this stimuli they response
with customer wanted vehicles. The company also had tie-up with jaguar and range rover to
produce luxury cars to Indian customers. The company plays an active role in developing rural
communities and they also stick to many social responsibilities.
REASONS FOR PREFERRING TATA :
Tata motors in India is doing their best for people and they work with ethical codes. The
reason why I am fond of Tata are discussed below.
ACHIEVEMENTS :
TATA motors has made the dream of every middle class people into real happening.
Every people have a dream of buying a car but Tata motors has given a life to their dream by
introducing TATA NANO at an affordable price. This made me more affectionate towards
them and still they have made many achievements like
y Tata ranked 5th for valuable company brand .y Tata most reputed company of Indian firms.
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y Tata ranked among one of the respected company in India.y Tata among one of the 50 best performing companies in Asia.
These are the few greatest achievements of the reputed company.
EFCS POLICY :
EFCS is policy of Employee First Customer Second . In this business world the
company realized the modern business mantra and serves their employees in best way. The
company is coming with many beneficial policies for employees like
y Performance pay.y Appraisals like gifts, donations and promotions.y Competitive training for their employees to face competitive business.y Medical claims and retirement wages.y Company also offers better interest for fixed deposits.y Safety facilities during work.
SOCIAL RESPONSIBILITIES :
The company have many social responsibilities ranging from health services to
agricultural.
HEALTH CARE :
y 104270 humans were benefited by preventive health services.y Constructed around 1900 toilets for villagers.y Organized health awareness programs around 700 villages.
EDUCATION :
y Upgraded 100 schools by offering donations.y 734 students received scholarship for their higher studies.
ENVIRONMENT :
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y 30,000 trees planted around the country to improve green cover.y 132 ponds created for improving agriculture.y 17 bio-gas plants constructed to create awareness on alternate resource for fuel and
reducing global warming.
STAKEHOLDERS :(Task 1.b)
The stakeholders are people related to the company both directly and indirectly. The
stakeholders are getting benefits and takes part in companys performance and actions.
STAKEHOLDERS
y Employeesy Shareholdersy Customersy Channel partnersy Communityy Impacted communityy Non-governmental organizationsy Governmental organizations
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BENEFITS TO STAKEHOLDERS :
The company offers the following benefits to stakeholders
y Health and safety benefits to employees.y Coherent returns to shareholders.y Safe, cost effective products to valuable customers.y Sustainable technology to channel partners.y Incorporated development for community members.y Supported livelihood actions for affected community people.y Confirmed contribution to both governmental and non-governmental organizations.
PARTICIPATION IN MANAGEMENT STRATEGY :
y Employees : They tend to be the important resources of the company. In Tata motorsthe employees participate directly by attending the meetings and conference while
developing strategy. They also given chances to give their decisions for strategy. The
best decisions are awarded with incentives. Employees participate in training and
development needed to develop and achieve the strategy effectively.
y Customers :They are valuable assets for company. Tatacompany delivers the valuableproducts for all kind of customers. The customers take part in developing strategy by
giving their demands for products and also up gradation of the existing product will be
considered. They indirectly participate by promoting the innovative products of the
company.
y Shareholders : They participate in developing strategy by giving willingness to thecompany. As Tata is an Indian firm all the shareholders will be given chance to know
about the companys strategy and in developing new strategy. They form the base and
their participation by temperament in developing strategy.
y Governmental organizations : The participation of the government organization isimportant because the government has to approve the site and location for new
manufacturing site. They also keen on whether the strategy will create employment and
participate by considering all the social and economical factors of the company.
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y Community people : This group of stakeholders participate in developing the marketwith developed technology. This people offers better before and after sale services for
the customers. They develop companys strategy by creating demand and facing the
demands for customers.
MANAGEMENT REVIEW : (Task 1.c)
Management review is an analysis and evaluation of business performance. This also
includes initiating corrective actions by making good decisions. The companys management
integrates the following factors for management review :
y Customer demands How much they are satisfied ?y
Customer range Which customers are satisfied ?y Luxury involved What value is delivered to customers ?
The company develop the products with these analysis. This strategy of review is done to
meet customer needs but the criteria considered while reviewing the whole management
process follows the steps proposed by the authors of management strategy.
CRITERIAS :
y Current position ( who are we ?): Every management while reviewing the businessmodel consider this as a first step. Tata motors crossed many decades and grown as a
giant. The R&D department prospered and gave better products for people. Tata
motors is the long standing automobile company in India accomplished by vital growth
opportunities and provides benefits for their stakeholders.
y Future step ( where we want to reach ?) : The second step analyses the future aaimof the company. Tata motors are looking ahead to reach the following
Rendering a best value for their stakeholders This involves paying better payfor the workers, better dividends for shareholders and benefiting the
governmental and non-governmental organizations.
Extending their leadership throughout the world This is to reach the worldand act as a leader in automobile industry.
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Offering innovative products to customer The customer demands areanalysed and innovative products are given for customers.
The company still wants to achieve more not only in motor business but also every
field of their networks. In Tata motors there are many opportunities existing to reachall their future position.
y Steps to reach (How to reach there ?) : In this step the corporate goals have to beengaged. Inspite of continuous improvement and profit the company has to set
objectives for its future growth. The company is expected to do the following activities
Benchmarking is done with competitors to highlight the range of products andservices offered by them to customers. By benchmarking the company can set
their own standards in facing the competitors.
Creating more demands in the targeted positions so as to reach objectives. Exceeding customer satisfaction by offering good quality products at an
affordable price.
Retending the intangible resources like brand name, advanced and professionalskills, team work and finally coping with technology will make them to reach
the management strategy.
Thus, these are the key criterias plays a vital role while reviewing the management
performance and strategic development.
STATE OF AFFAIRS :(Task 1.d)
Rattan N Tata, the chairman of Tata group had a long-term objective of meeting the need
of middle class people by giving passenger car at an affordable price. This seems to be the
dream of every human at mid-level. The R&D people of Tata undergone vigorous examination
of the situation for developing a car.
STRATEGY :
The Tatacompany revolutionize the automobile industry of the world with its innovative
and turbulent strategy. Its innovative strategy is to make feasible production of passenger car.
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The company named its innovative product as Peoples car . This strategy will make
automobile industry more competitive.
As a first step to resolve the strategy, the company made SWOT analysis.
STRENGTHS
Tatas brand name and developmentfrom past.
Efficient employees participation. Wider influence of the market. Health and safety facilities for
employees.
Improved technology at work.
WEAKNESS
Car products at 3rd and 4th platformgeneration.
Financial weakness.
OPPORTUNITIES
Road development around the nation. People attracted towards car. Individuals increased income . Increased two wheeler costs. Growth in customer demands.
THREATS
Unavailability of credit due torecession.
Increased interest rates on debts. Fuel price fluctuation. International business competition.
Awareness of mass transportationsystem.
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RESOURCES REQUIRED :
To accomplish the strategy of producing peoples car the following resources are required
y Complete design procedure for the car.y Establishing a new plant.y Purchasing raw materials.y Recruiting highly skilled employee.y Training the freshers regarding procedures.y Manufacturing and testing procedures.y Transporting the vehicle to dealers.y Marketing the peoples car to reach customers.y Providing after sale services effectively.
SOCIAL OBJECTIVES :(Task 2.a)
Tata motors concentrates on social and ethical responsibilities of nation. It forms the
community for achieving its objectives. The community achieve its responsibilities by
concentrating on following areas.
y Preventive and healing medical services.y Providing opportunities of quality education for student.y Taking care of green practices.y Employing youths by giving training and development.
HEALTH SERVICES :
The companys social issue is to offer good health services to people by following
initiatives
y Company doctors.y Medical clinic.y In-house doctors.y Free consulting.
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y Hiring private practicioners.ACTIVITIES :
The health service department of the company concentrates on the following activities for
peoples benefit :
y Regular health checks for employees and their family.y Medical care is provided for rural people through clinics.y Family planning importance and free consulting program is carried to stabilize
growing population.
y Construction of sanitary facilities for village people to promote sanitation and itsnecessities.
y Tata organizes a unique health programmee for treating lepers and also for theirrehabilitation. This is done to enhance their lives.
y Concentrates more on safety facilities at work sites for the benefits of employees.EDUCATION :
Tata motors enhances various approaches to improve education for rural students and
retaining a useful life for them. The company achieves the following
y Infrastructure development of many schools.y Upgrading many schools to higher secondary level.y Providing scholarship for higher studies.y Helping the students those are at a risk of discontinuing their studies because of family
affairs.
y Creating awareness of education among parents and giving their children a chance togrow.
y They concentrate on creating awareness and ill-effects of childlabour .
ENVIRONMENT :
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As a reputed automobile entity the company concentrates on environmental factors to
reduce global warming. The company start this green cover project from the company site by the
ways listed :
y Effluent treatment system in the site treats the used water from the company. This systemdeactivates the substances that will cause harm to potential environment.
y Industry wastes are also treated properly by Robust waste treatment system. Thecompany concentrates on recycling the overused machinery parts.
y The company concentrates on large scale plantation by planting more trees around thenation. The company join with non-governmental organizations for this activity. The
company has green house at one of its manufacturing site.
yIrrigational facilities for agricultural purposes are provided to rural people. The companyalso constructs ponds and wells for agriculture.
y Bio-gas plants are constructed to create awareness on alternate fuel source and reducingglobal warming.
ETHICAL OBJECTIVES :
The ethical objectives reflects the honorable activities of the company. Tata motors have
ethical objectives in every department of the company. It maintains the legality of the activities.
y Tata motors has ethical responsibility towards employees by giving training tounderperforming employees rather than firing them.
y The company overcomes the customer who are problematic towards their employees andproduct issues.
y The company ethically develops the community surrounded by the site and makes theemployees to operate in better manner.
yOn the whole, Tata motors behave ethically towards their stakeholders.
CULTURAL OBJECTIVES :
The cultural objectives of the company aims at maintain the culture of the nation. They
also concentrate on developing many old cultures of the nations pride.
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BUSINESS OBJECTIVES :
The main business objective of every organization will be profit oriented and continuous
improvement. The Tata motors concentrates on satisfying their employees and achieving better
social responsibilities. The company strives more to cover all the under developed parts of nation
to enhance their social responsibility.
VISION :(Task 2.b)
A vision statement of a company focuses on their business path in future and this
have certain factors like developing their product globally and enhancing their technologies and
product with better performance in future.
A vision statement of Tata motors is to grow the firm into a world class Indian
passenger vehicle brand for innovative and ranking value cars .(Tatamotors.com)
To achieve the companys future path the company is coming with variety of products to
enhance their market demands. The company also concentrates on satisfying every individual
providing all range of passenger car at an affordable price. The company is also coming with
innovative products to meet the luxury of the world.
The company inorder to meet the competitive business world focuses on producing
vehicles with 0% carbon emission. As an automobile entity R&D department focuses on
developing vehicles that run by natural source of energy more efficiently. The vehicles of Tata
are awarded for its safety precautions provided.
The company had a tie-up with British giants like Range Rover and Jaguar companies.
These two companies are launched their products through Tata manufacturing sites and brand
name. This paves the path to reach the Europe. The company also exports its vehicles to south-
east Asian and African countries. All these activities will definitely make Tata to reach their
future destination.
MISSION :
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A mission statement of a company is about the current activities i.e. current quality
of products and services offered by company. The mission statement also includes the
technology and innovative products they are giving.
The mission statement of Tata is to be the most looked-up multi-national Indian car
industry manufacturing vehicles that people admire to buy and to grow an organization that
make employee enjoy working for doing business and investing it. (Tatamotors.com)
The Tata motors stands to be the giant manufacturing company for all variety of vehicles
throughout the nation. Tata is the only standalone company of India. The company works with
Employee First concept and this makes them to withstand crossing over 10 decades of period.
Now the company reached the pride of producing the peoples car at 1lakh rupees. This
reached the length and breadth of India enhancing their brand name. The company have crossed
many milestones and achievement by working with their mission statement.
EVALUATION OF ACHIEVEMENTS :(Task 2.c)
The achievements of the companys objectives can be evaluated by its performance
through turn over, market place, range of products and services. Tata motors have crossed many
milestones starting from 1945. The following evaluations will lead to their achievements of
objectives.
y Tata company received the Role model excellence award for management. Thisawards speaks about their employee satisfaction objective.
y It reaches the Indias largest automobile company by selling 585,649 units during lastfinancial year.
y Launching Nano reaches every individual and it creates demand not only in India but alsoin other Asian countries.
y The company reached new heights among international automobile industries.y All sites of Tata has Iso :14001 certification which ensures the safety and environment
management standards of the site. Environmental objective is achieved by the iso
certificate.
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y Tatacompany returns the revenue to its stakeholders and society for the nationdevelopment.
y The company incorporates 2% from its total revenue for research and development toproduce more innovative products for the world.
y The company holds many awards for they being confident of social and ethicalresponsibilities of nation. The products of Tata has also been awarded for its excellence
in working and safety facilities.
By achieving all these objectives and facing many challenges the company is in line to
strengthen its departments and communities to offer quality life for the nation it serves. Thus by
these evaluation the company reached its objectives at all level.
STRATEGY IMPLEMENTATION : (Task 3.a)
The Tata company had a strategy to introduce the peoples car which is cheapest car
in the nation of around Rs 100,000 [ us $121] . This strategy remained as a very good challenge
for the Tata company because they a lot of problems from governments in establishing their
strategy. There are also great expectations among people around the nation. The product has
many cost cutting features and design specifications.
COST-CUTTING FEATURES :
y Single wiper in front.y No dickey.y No power steering.y Simplifier door lever.y Side mirror only at right.
DESIGN SPECIFICATION :
y 4-door city car.y 15l fuel capacity.y Diesel compressed air engine.y Weight about 635kg.
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All these specifications and analysis are made before manufacturing the car. The
company first started constructing the plant in Gujarat and the following table shows how the
strategy came to live.
ACTIONS TIME FRAME RESOURCES
Constructing the site for
production.
From Jan07 to Jan08 Labours, machinaries,funds.
Releasing to press in Annual
Expo
10th
Jan08 Press people, media to
advertise.
Car under manufacturing 10th Jan08 to 23rd Mar09 Employees at work, raw
materials for production.
Rolling out first vehicle to the
world
23rd Mar 09 Complete catalogue, details.
Booking period 9th Apr to 25th Apr09 Internet, dealers, State bank of
India.
Delivery of vehicles 17th Jul09 First 200,000 customers
through lot, dealers,
transportation.
Thus time table for implementing the strategy is given. The strategy is achieved by Tata
and it works well by their launch. It is estimated that company will have $8 billion in revenue by
three years and it will rise upto 3% at the end of fifth year. This paved a path to history of Tata
and it is awarded as a new-engender of 21st century passenger cars. The proper planning and
employee satisfaction caused Tata to reach its strategy and achieved greater level of satisfaction
from customers.
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DISSEMINATION PROCESS :(Task 3.b)
The dissemination process is carried out before any project development. The company
Proposed to produce low price cars for people. Dissemination process is an utilization process
carried to get acceptance from every department and people at all levels of management. The
launching of Nano is a dream and a lot of considerations have been made before its launch. The
company made dissemination process on cost cutting features and other safety features. A
dissemination policy of the company helps the company to know the following details before
development :
y Clarifies about funds to be spent on project.y
Provides many impact situations on product and decisions are made to overcomesituations.
y Establishes the cost and measure of time frame to roll out the product.y Makes clear about staff requirement and their training.y Provides opportunities to describe success of this process.y Provides various steps to promote the product.
The dissemination process carried out for this strategy is under three activities like
Research activities: This activity includes everything from setting new plant to giving wages to
employee. The raw material cost and cost of production of the product is also researched. The
other ways to reduce the cost by cheap raw materials are analysed. The final cost of product is
fixed after considering transportation, advertisement and other social factors for the company.
The research estimates the demand for the product and how many new dealers needed to
promote the product. The spare parts are analysed to manufacture or to buy from other
companies. Thus the research is done every nook and corner of product environment.
Technical assistance activities : This activity plays role in searching for technology to be
introduced thereby increasing efficiency and effectiveness. The technology also includes in
maintain customer relationship and dealer relationship.
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Demonstration activities : All the findings from research and technical activities are
demonstrated to top-level management. The top people will come to know every facts regarding
the product. They also analyse with the opportunities and threats of the company. The
demonstration ended with positive feedback and hence the development of nano was inaugurated
and finally delivered on roads.
Now, the dissemination process made the strategy gain commitment and implemented
successfully.
IMPORTANCE OF MONITORING : (Task 3.c)
Monitoring plays a vital role after implementing new strategy(product or policy). The
chairman and board of directors must be keen in monitoring the process. The new strategy works
with formulated procedures. If something goes wrong with the procedure proper plan should be
made to correct. The companys reputation will be affected when something goes wrong at
operational level. The PDCA cycle ( PLAN-DO-CHECK-ACT) is a tool for continuous
monitoring when something is not on track. For the product to be success for long-term
monitoring is important technique. Monitoring can be done by getting feedbacks from customer
regarding the products.
At operational level auditing acts with precaution regarding the quality procedure,services, products, proper testing and other essential areas to be monitored. This includes proper
delivery of products to dealers and finally to customers.
EVALUATION OF NEW STRATEGY ex ant and ex post basis :
The new strategy can be evaluated by monitoring. If the procedure works well the
strategy is doing good. With this new vehicle strategy the evaluation can be done by
y Level of customer satisfaction.y Number of units sold.y Market demand.y Feedback regarding efficiency of the product.y Feedback from dealers.
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y Maintaing after sale services effectively.y Promoting product to new targets.
By evaluating the strategy the company come to know whether the strategy works
according to dissemination process. The evaluation also motivates employees and management
for better innovative and productive products for the world.
CONCLUSION :
To conclude, Tata motors are growing to face the international giants. Tata created a new
revolution by launching its new vehicle. The objectives of Tata are well deserved and EFCS
policy raised their pride internationally.
RECOMMENDATIONS :
The company stands as a role model for other organization and deserves its pride. The
company faces many global challenges and if the company has the same management policies
the company will definitely reaches its vision within next few years. The other group of
companies will also deserve the motor company pride. They will reach the world with innovative
products through better inventions.
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