BUSINESS STRETEGIC MANAGEMENT ANALYSIS OFTATA MOTORS

PRESENTED BYRISHABH SHUKLA

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TATA MOTORS an introduction TATA MOTORS is a subsidiary of the TATA GROUP, was founded in

1945 by J. R. D. TATA Initially TATA MOTORS was named as TELCO (TATA ENGINEERING

AND LOCOMOTIVE COMPANY) TATA MOTORS entered the commercial vehicle sector in 1954 after

forming a joint venture with DAIMLER-BENZ GmbH, in 1991, TATA MOTORS independently launched TATA Sierra, a multi utility vehicle

In later years TATA MOTORS became India’s largest automobile company with many names, TATA SUMO(1994; LCV), TATA SAFARI (1998, India’s first sports utility vehicle), TATA INDICA (1998) and the most popular, state of art, the world most affordable car made for Indian middle class and lower middle class section yet underrated by Indians i.e. TATA NANO in 2009

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Mr. CYRUS P MISTRYNon-executive Director And

Chairman

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JAGUAR LAND ROVER PLC is its luxury category which was acquired by TATA MOTORS in 2008

TATA MOTORS is responsible for around 94% of its sales in the MHCV segment & around 84% in the light commercial vehicle segment

Current chairman is Mr. CYRUS PALLONJI MISTRY who is the successor of SIR RATAN NAVAL TATA present chairman of TATA SONS LTD & TATA TRUST

Headquarters in MUMBAI, MAHARASTRA

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SUBSIDARIES

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MISSIONTo be passionate in anticipating and

providing the best vehicles and experiences that excite our customers

globally.

VISIONMost admired by our customers, employees, business partners and

shareholders for experience and value they enjoy from being with us.

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CHARTS

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CHARTS

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ANALYSIS

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SWOT ANALYSISSTRENGTH

CONSOLIDATED net profits of Rs 21,703 crores for the quarter ended in FY15 on the back of strong sales in the domestic market and a good show of J&LR

Market capitalisation of 1,66,458.64 crores EBITDA margin has increases by 16% from past year No. 1 in heavy commercial vehicles in India Tata motors products were of different range and their variety in

producing different models was amazing. They have a wide range of products which gives the customer an option to choose best among the list

Owner of JAGUAR & LAND ROVER They have intensive R & D practice which continuously enhances their

product developments CV sales is 377,193 vehicles and PV sales was 620,357 vehicles in

2014-2015 makes it as No. 1 automobile company in IndiaTata Motors annual report 2014-2015

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WEAKNESSTata motors huge market share is

concentrated domestically, and for a company to expand with acquisitions and alliance, they should try to be a global player in the automobile market

Huge competitions in the passenger vehicle production in India may be a considerable threat and still it remains a major weakness since Tata motors innovative projects were delayed due to lot of local political problems.

Image of Taxi for Tata Indica.Less no of service station as comparison to

Maruti Suzuki.source : www.ukessays.com

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OPPORTUNITY There is huge need for passenger vehicles in India due to roadways

new development projects. People may wish to have a passenger vehicle for convenience

Nowadays customers expect cars to be more preferable to avoid any accidental problems since the population in India is increasing a lot every year and it is a must now to be safe and quick accessed vehicles to be owned

The need for environment friendly vehicles is a must and Tata motors can concentrate on producing more green products that can emit less gas fuels and Company's CSR should avail this opportunity to produce more fuel efficient vehicles with less gas emissions

Fastest growing market for small cars in India. Positive business outlook for both commercials and passengers

vehicles in the Indian market would give a boost to Tata Motors ‘Indian operation.

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THREATSEntries of foreign players in Indian automobile

sector.Tata motors need an extra attention on processing

raw materials too. The parts required in making desirable products for Tata motors must be processed as quickly as possible since they are manufactured locally and shipped worldwide

due to global warming Tata motors need to be very careful in producing green products to ensure the maintain the environmental regulations properly

Stiff competition from Maruti Suzuki and Hyundai

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COMPETITIVE PROFILE MATRIX

NOTE: 4=major strength ; 3=minor strength ; 2=minor weakness ; 1=major weakness (source : www.tatamotors.com)

CRITICAL SUCCESS FACTOR WEIGHT RATING SCOREMarket Share 0.15 4 0.6

Product Quality 0.15 4 0.6Management 0.08 3 0.24

Financial Position 0.09 3 0.27Global Expansion 0.07 4 0.28

Advertising 0.08 3 0.24Customer Service 0.07 2 0.14

Price Competitiveness 0.07 4 0.28Customer Loyalty 0.07 2 0.14Sales Distribution 0.08 3 0.24

Production Capacity 0.09 3 0.27Total 1   3.3

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BCG MATRIX Tata motors heavy and light commercial vehicle products

were placed under Cash cows, where these products have high market share but low growth due to increased competition. To avoid these problems, the company should concentrate on customer retention

Tata motors new innovative and interesting product is Tata Nano and it is placed under question mark in BCG matrix along with Jaguar and Land Rover products. It is because they have low market share but still expected to perform well in market and reach high market growth

Tata motors don't have a mentionable product that is doing really bad for them

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