Term Paper Proposal
Company: TATA Motors Group – India Business & Jaguar Land Rover
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 experience and value they enjoy from being with us.
Marketing Objectives
Tata motors is a leading automobile brand. It is most widely known for its commercial vehicles such as buses and trucks. However, TATA motors has 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.
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Net profit margin = net profit/total revenue
4. Current Ratio- This basically describes the ability to pay the bills.
Current ratio = current assets/current liabilities
5. Return on net assets (RONA) - It is also measure of financial performance.
RONA = Net Income / (Fixed Assets + current liabilities)
KPI of 2014-2015
Source: http://www.tatamotors.com/investors/financials/70-ar-html/tata-motors-glance.html
Situational Analysis
PEST Analysis
1. Political
The Singur Controversy
TML acquired a land of 997 acres for manufacturing Cars by state government support.
Nano
But this acquisition required the displacement of farmers.
It attracted heavy criticisms, “Save Farmland” movement was started by opposition leader Mamata Bannerjee.
On 3rd October, 2008, TML closed its plant from Singur.
It was later established in Sanand, Gujarat.
2. Economical
• TML’s economic scenario is quite promising with GDP growth rate around 7%.
• However, high interest rates and low freight availability impacted its financial infrastructure in first quarter of 2013.
• During the same time, price pressure from competitors also marred its financial position.
• The commercial vehicle segment of TML gave it an edge over others at this time and the big and mid-sized vehicles helped TML to regain its ground.
3. Social
• Where ever TML goes, may it be domestic or international markets, it hires mostly the local population generating
Tata Nano wanted to bring in a cheap car into the market which would be affordable for the middle income level consumers, due to which it started cutting cost of manufacturing the car.
TATA Motors is a part of the TATA group and the use of the TATA name and trademark (logo) is governed by manuals, codes and agreements
Warren (2008) asserts that strategic management is a systematic approach to identification of environment of the company, need for change and then initiating the necessary change in the organization. The discipline of strategic management goes beyond the development of strategic plan for the organization and it includes pre planning and strategic planning processes. This report has analyzed the strategic management strategies of Tata Motors which is a part of Tata Group. The company is the largest automobile company in the India and is regarded as market leader in commercial vehicle segment (Tata Motors 2014a). The company is functioning in compact, midsize and utility vehicle segment.
India is the 4th largest economy by ppp index and growth in urbanization is further increasing the sales of automobiles.
Tata companies include: Airlines, Automotive, Consumer goods, Chemicals, Defence & aerospace, Electrical distribution, Engineering services, Financial services, Healthcare, Information technology, Locomotives, Steel, Telecommunication and Real estate.
Tata Motors Limited is India's biggest vehicles organization, with combined incomes of INR 2,62,796 crores (USD 42.04 billion) in 2014-15. It is the pioneer in business vehicles in every section, and among the top in traveler vehicles with winning items in the reduced, average size auto and utility vehicle fragments. The Tata Motors Group's more than 60,000 representatives are guided by the mission "to be energetic in reckoning and giving the best vehicles and encounters that energize our clients comprehensively." Set up in 1945, Tata Motors' vicinity cuts over the length and broadness of India. More than 8 million Tata vehicles employ on Indian streets, since the initially took off in 1954. The organization's assembling base in India is spread
Tata Motors was formerly known as TELCO (Tata Engineering and Locomotive Company) is a leading global automobile manufacturer. Originally it was manufacturer of locomotives named as TELCO, the company then manufactured its first commercial vehicle in 1954 having a tie-up with Daimler-Benz. Tata motors have a wide range of variety from heavy commercial vehicles to carriers, buses, SUVs and passenger cars that covers a wide range of cars, sports vehicles, buses, trucks and defense vehicles.
Ans: Tata Motors was a leading player in the segment of commercial vehicle market. In 1954 Tata Motors in collaboration with Daimler Benz started manufacturing heavy commercial vehicles like excavators and earth moving equipment’s. When Japanese firms Toyota, Mitsubishi and Nissan entered the Indian market through joint ventures for manufacturing light motor vehicles, Tata Motors took this opportunity and developed light motor vehicles (TATA 407, TATA 608, and TATA 709) that went ahead of the Japanese firms due to low cost, adaptable to Indian road conditions and good after sales service.
Tata Motors was formerly known as TELCO (Tata Engineering and Locomotive Company) is a leading global automobile manufacturer. Originally it was manufacturer of locomotives named as TELCO, the company then manufactured its first commercial vehicle in 1954 having a tie-up with Daimler-Benz. Tata motors have a wide range of variety from heavy commercial vehicles to carriers, buses, SUVs and passenger cars that covers a wide range of cars, sports vehicles, buses, trucks and defense vehicles.
The Tata Motors Group’s over 60,000 employees are guided by the mission “to be passionate in anticipating and providing the best vehicles and experiences that excite our customers globally.''
GM’s vision is to be the world leader in transportation products and related services. It will earn its customers’ enthusiasm through continuous improvement driven by the integrity, teamwork and innovation of GM people. Becoming the best is an unending journey, a constantly changing destination. But that’s where we’re determined to drive – one car, one truck, one customer at a time.
TATA Motors is the flagship company of the TATA group & is India's largest automobile player with consolidated revenues of USD 14 billion in 2008-09. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. TATA Motors was listed on the New York Stock Exchange in 2004.
Economic With business practices all over the world , Tata Motors concentrates on global economies while focusing on individual markets within countries. In recent years Tata Motors has experienced high growth since 2004. They have created joint ventures with 5 countries across the
Besides, quality, innovation and technology are the vital parts of its organisational culture. Whereas, it’s new models reveal clearly that how Nissan brand is influencing customers to consume its products. Nissan brand promises to provide qualitative, innovative and economic vehicles and more beneficial return on spending (Aaker, 2009).
Before taking a leap into TATA motors, lets separate TATA first, and a small introduction to India 's most trusted company. TATA is one of India 's largest conglomerates, and is also the most respected company to emerge in India till date. They have their main businesses and companies in almost seven sectors. it aggregates about 2.8% of India 's GDP. Now coming to TATA motors, it is the automobile manufacturer of the TATA group. And they manufacture vehicles for all types of people ranging from villagers to high-class businessmen. They have set the class apart. They have tie-ups with Jaguar Land Rover, Fiat etc. They are leading in the commercial as well as passenger vehicle sector. And to add more fame to their reputation they stand in the fourth place for tractor manufacturing in the world. They provide all sorts of help to the farmers and villagers as they are the leaders in providing machines for agriculture. In this project we will study and learn up close about this company and making of their features and strategies which make them unique to the world .