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7/30/2019 Tata Business
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-Janhavi Mahadik 08
-Sampada Purohit 24
-Bhavini Parmar 32
PROJECT ON STRATEGIESOF
TATA GROUP
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TATA GROUP Indias Largest business group
Diverse businesses in 7 sectors
International income 61% of Group Revenue
Operations in over 80 countries
Products and services exported to 85countries
Largest employer in private sector: over300000 employees
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PURPOSE
Tata group is committed to improving the qualityof life of the communities we serve. They do this
by striving for leadership and global
competitiveness in the business sectors in which
they operate.
practice of returning to society what they earn
evokes trust among consumers, employees,
shareholders and the community. Committed to
protecting this heritage of leadership with trust
through the manner in which they conduct our
business
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Core values
Integrity: To conduct business fairly, with honesty and transparency.Everything must stand the test of public scrutiny.
Understanding: caring, show respect, compassion and humanity forcolleagues and customers around the world, and always work for the
benefit of the communities.
Excellence: constantly strive to achieve the highest possiblestandards in day-to-day work and in the quality of the goods andservices.
Unity: work cohesively with colleagues across the group and withcustomers and partners around the world, building strongrelationships based on tolerance, understanding and mutualcooperation.
Responsibility: continue to be responsible, sensitive to thecountries, communities and environments, always ensuring that what
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Vision
To be a world class corporate constantly furthering
the interest of all its stakeholders.
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Mission
Shareholders: To consistently create shareholder valueby generating returns in excess of Weighted Average
Cost of Capital (WACC) during the upturn and at least
equal to Weighted Average Cost of Capital (WACC)
during the downturn of the business cycle.
Customers: To strengthen the Tata brand and create
lasting relationships with the customers by working
closely with business partners to provide superior valuefor money over the life cycle.
Employees: To create a seamless organization that
incubates and promotes innovation, excellence and theTata core values.
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Vendor and Channel Partners: To foster along-term relationship so as to introduce a
broad range of innovative products and
services, that would benefit our customers
and other stakeholders.
Community: To proactively participate in
reshaping the countrys economic growth. Totake a holistic approach towards
environmental protection
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Business sectors Tata steel Tata motors
TCS
Tata power
Tata communications Tata chemical
Tata teleservices
Tata global beverages
Titan
Voltas Tata autocomp systems
Indian hotels
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Division
Materials
Engineering
Information Tech. &
comm.Service
Energy
Consumer products
Chemicals
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CURRENT BUSINESS
STRATEGIES
Diversification
Inorganic Growth
Backward Integration
Market exploration
Blue Ocean Strategy
Globalization Strategy
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Defining Corporate Strategy
Corporate strategy is the way a company createsvalue through the configuration and co-ordination
of its multi-market activities.
Definition has three main aspects:-
Value creation
Configuration
Co-ordination
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Tata motors
Corporate team
PCBU CVBU
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ASSESSMENT FOR OVERALL
DIRECTION
Commercial Vehicle Business Unit
(CVBU) is Cash Cow for TATA Motors Ltd
TATA Motors is the only company in the IndianCommercial Vehicle (CV) Industry which has theproducts presence in each segment from SmallCommercial Vehicles to Medium & Heavy Commercialvehicle which includes. Competitors are havingproducts only in specific segments like Mahindra &
Mahindra in Indian CV Industry is known for SchoolBuses &Ashok Leyland is having expertise in Medium& Heavy commercial Trucks & Buses. So as theproduct segment changes, company changes inIndustry & every company has its own marketing
strategy.
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Porters Five Force Analysis
for TATA Motors
Marketing Channel:
TATA Motors being a big company the process of appointment adealership at the remote places is a very difficult process, asinvestment on the dealership is very high. As in case of Mahindra& Force Motors investment cost is less &they have dealerships
in every district place, which help then to get the rural marketcoverage. M&M has got a market share of 31% in 4 ton Busmarket.2.
Large Product Range:
TATA Motors is having a large product range of vehicles, due tothe same supply chain of the products become tedious & timeconsuming. Products are made on order with the deliverycommitment of at least 3 months. Whether in case of SwarajMazda, they can do customisation within 10 days as the range ofproducts is very less. Most of the mobile homes are set up inSwaraj mazda Buses only.
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Price Competition:
TATA Motors have to face a price competition withproducts of other companies which have lowqualities. First time user / captive customer whoareunknown to the products & industry will get intothe trap of these low cost options.
Changing Scenario of Industry:
From Oligopoly market CV industry in India willbecome aprefect competition market. As many of Indian companiesare now entering into the market place with JV with
foreign experts in CV. Mahindra & Mahindra is comingupwith Navistar (Mahindra Navistar in India) for Heavy CV.
Ashok Leylend is coming upwith Nissan for LightCommercial Vehicles (LCV). Similarly other player nicheplayers of world CV markets are coming up in Indianmarket like Volvo, Mercedes Benz & Scania.
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Upgrading Products:As in the changing scenario the needs of people are
changing atvery fast pace. Now the time Indian
market place is very demanding, there is
extremedemand for AC Buses & constructionequipments for building better infrastructure forIndia.
The company which come up with the customer
satisfaction will be the marketleader. For that TATA
Motors need to understand the market dynamics.
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Strategy according to the
Segmentation
TATA Motors should increase the dealerships /
channel partners for the rural marketing. In case of nonviability should force the old dealerships to open a branch
& increase the market share in that market.
Large range of products is increasing the gapb/w supply & demand: TATA Motors should standardize
the products. Product should be available at the time of
demand, sales & marketing should be pro active &
should plan before the demand by estimations.
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Territory infringement : division of the territories of the
dealership is not properly done and also the company
does not take any action against the practice of territory
infringement. Hence it becomes difficult for some dealersto manage thecustomers in their territory and also it de-
motivates them. This affects the sales of the product in a
major way. The Territory Infringement should imposed
ondealership strongly.
Lack of spare parts: certain bus fleet operators
complained of paucity of spareparts with the sales office.
The spare parts how so ever small they may be werenotavailable at certain times which led to the loss of revenue
being generated bythe bus on daily basis.
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Non- availability of product: Bus fleet operators arenot getting delivery of theproduct asked by thembecause of the non-availability of the products withthe dealer. In that case after waiting for some timecustomers moved to competitors product. This comes
as a cause of major concern because the actual salesof thatparticular product suffered leading to loss ofrevenue for the organization.
Product Improvements: Till now only few models arecoming with radial tyres asstandard fitments. Need towork on automatic transmissions, CommonrailEngines & many more technology advancements
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After sales service not satisfactory: Almostevery customer complained of
theunsatisfactory after sales service being
provided by the service stations of
thecompany. Either these people do not
deliver the vehicle on time or they hesitateto
provide on-route service. This type of
behaviour causes a feeling of beingignoredinside the customers mind. On the other hand,
Customers are verysatisfied with the after
sales service being offered by Ashok Leyland.
TATA Motors should make 24X7 service
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STRATEGY
Creation of Tata Sustainability Solutions(TSS)
Tata currently has four pillars of sustainability within
the organization
Tata Trusts,
Tata Relief Committee (TRC),
Tata Council for Community Initiatives (TCCI), &
Tata Quality Management Services (TQMS).
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ADVANTAGES
Centralized Consulting Support for All Business
Increased Transparency Units
Financial Independence
Management Development Fundraising Ease and Scalability
Strategic Continuity
Consistency of Business Practices
Local Sensitivity with Global Reach
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STRATEGIC PLAN
IMPLEMENTATION & TIMELINE
Specific EVA and Net Present Value (NPV)supported initiatives for consideration include:
Leveraging Tatas CSR core competency into a
sustainability software consulting practice, Increase Tata Teas competitiveness by
formalizing sustainability efforts throughRainforest Alliance Certification,
Efforts to reduce energy usage throughconservation efforts in the hotel chain andthrough supply chain management, and
ELV initiatives for Tata Motors.
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STATEGIC PLAN TIMELINE
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