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Role Of Organizational Development At Tata Motors

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Organizational Development At Tata Motors

Tata Motors marks the biggest turnarounds in the history of Indian automobile manufacturing industry which happened in 2001. This success story of Tata Motors can be entirely attributed to the timely change adopted by the Tatas and the then MD Ravi Kant who led the change.

Today Tata Motors ranks as the world’s fifth-largest manufacturer of medium and heavy trucks—it has a 61 percent domestic market share in this segment—and has taken the number-two position for sales of passenger vehicles in the Indian market. It has also built a significant global presence, both through sales efforts in overseas markets (such as the former Soviet republics, the Middle East, South Africa, South Asia, and Turkey) and through acquisitions such as the takeover of Daewoo’s commercial-vehicle business in South Korea and the purchase of a 21 percent stake in the Spanish bus …show more content…

They used many approaches to cost reduction, including bench-marking our rivals. For example, they took apart vehicles to see what they could do to modify the products and to lower costs. They went in for e-sourcing, and today they are the largest company doing e-sourcing in India and one of the leading ones in the automobile industry worldwide. In two and a half years, they reduced the break-even from nearly two-thirds of capacity utilization to around one-third, which meant that even if the market shrank by close to 60 percent, they would still be in the black. The whole organization really got together to ensure that the bleeding stopped
One of the major drivers of success at Tata Motors Ltd. (TML) was its ability to fully exploit information technology to drive business goals and reduce cost. The company was an early adopter of CAD and CAM systems

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