A PROJECT REPORT ON

“STRATEGIC MANAGEMENT”

SUBMITTED BY

Name: -Sachin Khurana

Roll no: - 129
MBA(G)-‘c’

SUBMITTED TO
BHARATI VIDYAPEETH TO BE DEEMED UNIVERSITY
INSTITUTE OF MANAGEMENT AND ENTREPRENEURSHIP DEVELOPMENT
Erandwane, Pune – 411038
 INDEX

CHAPTER 1: INTRODUCTION

1.1 Overview of the company

1.2 Products of TATA Motors ltd.

CHAPTER 2: STRATEGIC INTENT

2.1 Vision Statement

2.2 Mission Statement

2.3 Values

2.4 Strategic Business Unit Based on Customer & Technology

CHAPTER 3: STRATEGIC FORMULATON

3.1 SWOT Analysis

3.2 Porter’s Five Force Model

CHAPTER 4: STRATEGIC IMPLEMENTATION

4.1 Different Strategies Used by Tata Motors Ltd.

CHAPTER 5: STRATEGIC CONTROL

5.1 Strategic Control of Tata Motors Ltd.

CHAPTER-1
Overview of the company as a whole

Tata Motors Limited, formerly Tata Engineering and Locomotive Company (TELCO), is an
Indian multinational automotive manufacturing company headquartered
in Mumbai, Maharashtra, India. It is a subsidiary of Tata Group, an Indian conglomerate. Its products
include passenger cars, trucks, vans, coaches, buses, sports cars, construction equipment and military
vehicles.
Tata Motors has auto manufacturing and assembly plants
in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad, and Pune in India, as well as in Argentina,
South Africa, Great Britain and Thailand. It has research and development centres in Pune,
Jamshedpur, Lucknow, and Dharwad, India and in South Korea, Great Britain and Spain. Tata Motors'
principal subsidiaries purchased the English premium car maker Jaguar Land Rover (the maker of
Jaguar and Land Rover cars) and the South Korean commercial vehicle manufacturer Tata Daewoo.
Tata Motors has a bus-manufacturing joint venture with Marcopolo S.A. (Tata Marcopolo), a
construction-equipment manufacturing joint venture with Hitachi (Tata Hitachi Construction
Machinery), and a joint venture with Fiat Chrysler which manufactures automotive components and
Fiat Chrysler and Tata branded vehicles.

Founded in 1945 as a manufacturer of locomotives, the company manufactured its first commercial
vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended in 1969. Tata Motors entered
the passenger vehicle market in 1988 with the launch of the TataaMobile followed by the Tata Sierra in
1991, becoming the first Indian manufacturer to achieve the capability of developing a competitive
indigenous automobile.[4] In 1998, Tata launched the first fully indigenous Indian passenger car,
the Indica, and in 2008 launched the Tata Nano, the world's cheapest car. Tata Motors acquired the
South Korean truck manufacturer Daewoo Commercial Vehicles Company in 2004 and
purchased Jaguar Land Rover from Ford in 2008.
Tata Motors is listed on the (BSE) Bombay Stock Exchange, where it is a constituent of the BSE
SENSEX index, the National Stock Exchange of India, and the New York Stock Exchange. The
company is ranked 226th on the Fortune Global 500 list of the world's biggest corporations as of 2016.
On 17 January 2017 Natarajan Chandrasekaran was appointed chairman of the company Tata Group.
Tata Motors increases its UV market share to over 8% in FY2019.
CHAPTER 2: STRATEGIC INTENT
Mission

‘To be passionate in anticipating and providing the best vehicles and experiences that
excite our customers globally

Vision
‘Most admired by our customers, employees, business partners and shareholders for the
value and experience they enjoy from being with us

Values

 Integrity
 Teamwork
 Accountability
 Customer focus
 Excellence
 Speed

Culture

 Accountability
 Customer and product focus
 Excellence
 Speed
STRATEGIC BUSINESS UNIT BASED ON CUSTOMER & TECHNOLOGY

Tata Motors Limited Porter Five (5) Forces Analysis for Consumer Goods
Industry
Threats of New Entrants

New entrants in Auto Manufacturers - Major brings innovation, new ways of doing things and put
pressure on Tata Motors Limited through lower pricing strategy, reducing costs, and providing new
value propositions to the customers. Tata Motors Limited has to manage all these challenges and
build effective barriers to safeguard its competitive edge.

How Tata Motors Limited can tackle the Threats of New Entrants

 By innovating new products and services. New products not only brings new customers to the
fold but also give old customer a reason to buy Tata Motors Limited ‘s products.
 By building economies of scale so that it can lower the fixed cost per unit.
 Building capacities and spending money on research and development. New entrants are less
likely to enter a dynamic industry where the established players such as Tata Motors Limited keep
defining the standards regularly. It significantly reduces the window of extraordinary profits for
the new firms thus discourage new players in the industry.

Bargaining Power of Suppliers

All most all the companies in the Auto Manufacturers - Major industry buy their raw material from
numerous suppliers. Suppliers in dominant position can decrease the margins Tata Motors Limited
can earn in the market. Powerful suppliers in Consumer Goods sector use their negotiating power to
extract higher prices from the firms in Auto Manufacturers - Major field. The overall impact of
higher supplier bargaining power is that it lowers the overall profitability of Auto Manufacturers -
Major.

How Tata Motors Limited can tackle Bargaining Power of the Suppliers

 By building efficient supply chain with multiple suppliers.

 By experimenting with product designs using different materials so that if the prices go up of one
raw material then company can shift to another.
 Developing dedicated suppliers whose business depends upon the firm. One of the lessons Tata
Motors Limited can learn from Wal-Mart and Nike is how these companies developed third party
manufacturers whose business solely depends on them thus creating a scenario where these third
party manufacturers have significantly less bargaining power compare to Wal-Mart and Nike.
Bargaining Power of Buyers
Buyers are often a demanding lot. They want to buy the best offerings available by paying the
minimum price as possible. This put pressure on Tata Motors Limited profitability in the long run.
The smaller and more powerful the customer base is of Tata Motors Limited the higher the
bargaining power of the customers and higher their ability to seek increasing discounts and offers.

How Tata Motors Limited can tackle the Bargaining Power of Buyers

 By building a large base of customers. This will be helpful in two ways. It will reduce the
bargaining power of the buyers plus it will provide an opportunity to the firm to streamline its
sales and production process.
 By rapidly innovating new products. Customers often seek discounts and offerings on established
products so if Tata Motors Limited keep on coming up with new products then it can limit the
bargaining power of buyers.
 New products will also reduce the defection of existing customers of Tata Motors Limited to its
competitors.
Threats of Substitute Products or Services

When a new product or service meets a similar customer needs in different ways, industry
profitability suffers. For example services like Dropbox and Google Drive are substitute to
storage hardware drives. The threat of a substitute product or service is high if it offers a value
proposition that is uniquely different from present offerings of the industry.

How Tata Motors Limited can tackle the Treat of Substitute Products / Services

 By being service oriented rather than just product oriented.

 By understanding the core need of the customer rather than what the customer is buying.
 By increasing the switching cost for the customers.
Rivalry among the Existing Competitors

If the rivalry among the existing players in an industry is intense then it will drive down prices
and decrease the overall profitability of the industry. Tata Motors Limited operates in a very
competitive Auto Manufacturers - Major industry. This competition does take toll on the overall
long-term profitability of the organization.

How Tata Motors Limited can tackle Intense Rivalry among the Existing Competitors in Auto
Manufacturers - Major industry

 By building a sustainable differentiation

 By building scale so that it can compete better
 Collaborating with competitors to increase the market size rather than just competing for small
market.
SWOT ANALYSIS OF TATA MOTORS

 STRENGTH

1) Strong domestic player: Strong presence in India and leading manufacturer of commercial
vehicles.
2) It is demand driven and consumer oriented, taking care of consumer preferences and taste.
3) Long list of portfolios such as cars, trucks, buses, vans and coaches.

 WEAKNESS

1) ROI on Tata motors shares is low.

2) The products are generally for economy class.
3) Smaller proportion of market share in passenger vehicles in India

 OPPORTUNITY

1) Jaguar & Landrover can the company stand out in Luxury car business.
2) Its acquired Daewoo Motor’s commercial vehicle business in 2004
3) Introduction of Super milo bus chassis range. (Clutch with booster assist and better air intake)

 THREAT

1) Product liability, warranties and recalls

2) Exchange rate fluctuations

 CHAPTER 3

STRATEGIC
FORMULATION

 FUNCTIONAL LEVEL STRATEGY

 1) MARKETING STRATEGY:

Tata Motors does not follow a single marketing approach or formula, but it believes that all members
of the community should be served. Brand targets crowd from the rural part to the metros with its
offerings varying from NANO to Jaguar Land Rover segment.

Tata motors is a leading automobile brand. It is most widely known for its commercial vehicles such
as buses and trucks. However, TATA motors have also started an excellent expansion in passenger
cars and it is rapidly gaining market share. The Marketing mix of Tata Motors talks about the 4P of
the brand which has helped the brand rise in the automobile empire.

 Product in the marketing mix of Tata Motors

Tata has a very wide range of products it has passenger cars, utility vehicles,
Trucks, Commercial passenger Carriers And Defence Vehicles

Passenger cars Utility Vehicles Trucks Commercial Passenger

Carriers

Indica vista Safari Dicor Tata Novas Buses

Indigo XL Sumo Grande TL 4×4 Winger

Nano Sumo Magic

Fiat cars Xenon XT

 2) FINANCIAL STRATEGY

Tata Motors have increased its earnings over the years through their various acquisitions and joint
ventures with truck manufacturers in Southeast Asia. Gross profit in the year 2006 was 1,160.9 million
and increased to 1,510.1 million in the year 2007. Earnings after taxes also increased significantly
between 2006 and 2007 increasing from 336.6 million to 405.5 million in 2007. After a large drop in
revenues from 2004 to 2005 when the company first went public on the NYSE it has been increasing
revenues greatly annually, from 4,422.0 million in 2005 to 7,354.0 in 2007.

3) OPERATIONS STRATEGY

Tata Motors can maintain, as well as increase, their market share by capitalizing on their core
competencies. Tata Motors is active, competitive, and dynamic in all aspects of the automotive
industry, which means that there must be many different activities going on in all areas of the company.
As a result of the ever-evolving automotive industry Tata Motors must always be changing and one
way to stay at the forefront of the industry is to make continuous improvements in technology through
research and development. One way that Tata Motors has done this is by producing one of the most
efficient and low-cost vehicles on the market. Acquisitions, mergers, and expansion is another core
competency that Tata Motors has is embedded in their company structure and philosophy. Another
core competency that Tata Motors holds is being located in the India. This location has allowed them
to understand not only the Indian market but also the dynamics of emerging and developing markets.
This market understanding and knowledge allows Tata Motors to manufacture their products at lower
costs, sell them to emerging markets while making profits as well as take advantage of the strong
labour base in India

4) HR STRATEGY

Tata’s HR strategy: Think far, wide and smart

 Induction, at many companies, often involves throwing new hires into the deep end of the pool
– a 'swim or sink' approach that people like to term 'on-the-job training'. At Tata, induction
happens before new employees are put to work. Freshly minted engineers, for example, attend
programmes that last between 6-12 weeks, so as to "enhance their quality", including
“acculturation”, before they get deployed worldwide
At the crux of successful talent management is a fine balancing act that hinges on the meeting of minds
between employers and employees. To create sustainable growth and to be valued as an attractive
employer, Pradhanproposed that employers:

 Ride the tiger or be chased by it: Adapt to new work ethics and environments

 Adopt best practices that are “tailored to fit” the needs of employer and employee

 Customise the “common” purpose: So that employees feel that the company's goals are aligned
with their own aspirations

 Give employees choices to do work that they love, so that they are engaged at various levels

 Identify properly, the kind of talent required, e.g. a local person with local knowledge for a
local operation ("local-local"), a foreign talent with local knowledge ("global-local"), etc.
 CHAPTER- 4

ORGANIZATION STRUCTURE

 CEO
Guenter Butschek

 Chairman of the Board

Natarajan Chandrasekaran

 Director
Om Prakash Bhatt
(Tata Consultancy )

Director
Vinesh Jairath

Director
Nasser Munjee
Director -Tata Chemicals
Director -Jaguar Land Rover
 CHAPTER 5

STRATEGIC CONTROL SYSYEMS

  AUDIT COMMITTEE CHARTER OF TATA MOTORS LIMITED

Primary Objectives

The Audit Committee’s role shall flow directly from the Board of Directors’ overview function
on corporate governance; which holds the Management accountable to the Board and the Board,
in turn, accountable to the shareholders. Acting as a catalyst in helping the organization achieve
its objectives, the primary role of the Audit Committee is that of assisting the Board of Directors
in overseeing the:- - integrity of the Company’s financial statements; - compliance with legal and
regulatory requirements and the Tata Code of Conduct; - qualification and independence of the
external auditors; - performance of the Company’s external auditors and the Internal Audit
function; and - adequacy and reliability of the internal control system.

ENVIRONMENT POLICY

 Expanding awareness of Tata Motors “Environmental Policy” and “Code of Conduct”

amongst vendors.

 Evaluating environmental performance of vendors and contractors.

 Encouraging the vendors and contractors to reduce the use of packaging materials and
maximise the reuse and recycling of packaging materials.
MANAGEMENT CONTROL SYSTEM

To maintain the invention in products and enlargement in markets TTM had to expose changes
in their MCS to check their strategic steps. TTM has two main divisions predicated on the type
of vehicles - traveler autos and commercial vehicles (CVBU). With increasing functions TTM
In the year 2000, TTMs CVBU suffered its first loss of $2. 5 million that led the business to look
at the Tata Business Quality Model (TBEM). TBEM, based on Malcolm Baldridge Honor for
business brilliance and Balanced Scorecards as its performance way of measuring, which will be
discussed comprehensive later (Tata Group| Corporate Governance| Busniess Brilliance, 2010).
TTM saw shift from a far more hierarchical composition to a flatter organisational structure,
facilitating easy communication between employees. The change running a business model
complimented the change in the information technology system too.

TM uses an integration of outsourced facilities a few of that happen to be Ariba for dealer
discussions; product lifecycle management and advanced computer aided designs for the
engineering and designs of their products; SAP - venture software application and programmes
for enterprise learning resource planning and increasing transaction success. Through this, the
actions of all departments - creation, manufacturing, purchase, money functions etc, were
interlinked facilitating better control and coordination by means of a competent supply-chain
management system. Furthermore, TTM changed their product development process and created
a more collaborative process using the features of different project companions, suppliers, design
homes, subsidiaries and associate companies specialising in different verticals. With all the
change of the in-house production process TTM realised the value of expanding into the
international market and therefore implemented the internationalisation school of thought
mentioned previously, to keep in line with their goals and targets at the same time as gaining
access to different marketplaces (BMA, 2010).