Tata'S Dream Car Plant Location-Case Study

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TATAS DREAM CAR PLANT LOCATION- CASE STUDY 1) West Bengal is the state which is currently undergoing the

industrialization drive. The state offered the Tatas many subsidies and sops unlike the Karnataka state government did. The main reason behind selecting Singur as the plant rather than Dharwad and Uttranchal because Nano being targeted as the cheapest car which Tatas wanted to introduce in the market to the targeted middle class customers with a target price of one lakh rupees, cost of plant and logistics play a very vital decision in these context. Even though the West Bengal government offered six different places but the company found Singur the most suitable because it had the advantage of geographic location. Singur is about 50 km north-west of Kolkata. The company was also taking into consideration about the social infrastructure such as proximity to educational institutions for the children of its employees and Singur land was very closely located to the National Highway 2, connecting Kolkata with Delhi. Thus Tatas preferred to locate their dream car plant at Singur, West Bengal over other locations such as Dharwad and Uttaranchal. 2) Ratan Tata being a great visionary wanted to roll out its dream car- TATA NANO worlds cheapest car with a price tag of just Rs. 1,00,000. Since cost was a major constrain driver, so company wanted to minimize all its extra expenses and wanted to revolutionize the market with respect to social- economic dimensions of manufacturing. The company is presently encouraging local entrepreneurs to invest in the small satellite units which has low break- even points where the manufacturing and service is provided by these entrepreneurs only thus in this way they can eliminate the traditional dealer and manufacturer concept. The Tata have also taken the initiative of Corporate Social Responsibility with the launch of this car. They wanted to serve the society. Instead of considering the earlier plants like Pune and Jamshedpur the company wanted to

develop the standard of living of Singur people by providing them with weekly forum meeting where farmers can meet company executives from these places. They also plan to replicate some of the programs initiated in Pune and Jamshedpur. 3) The company's Lucknow plant is one of the its youngest production facilities among all the Tata Motors locations. The plant rolls out commercial vehicles and is specialized in the designing and manufacturing of a range of buses which includes low-floor, CNG, RE buses and also specializes in manufacturing high capacity bus system (HCBS) buses. Tata Motors Lucknow is one of the youngest production facilities among all the Tata Motors locations and was established in 1992 to meet the demand for Commercial Vehicles in the Indian market. The state-of-the-art plant is strongly backed by an Engineering Research Centre and Service set-up to support with latest technology and cater to the complexities of automobile manufacturing. Fully Built Vehicle business, which is one of the fast growing areas of our business, is also established in Lucknow. Our plant, rolls out commercial vehicles and is specialised in the designing and manufacturing of a range of modern buses which includes Low-floor, Ultra Low-floor, CNG & RE Buses. The Lucknow facility also specialises in manufacturing HCBS (High capacity Bus System) buses. In light of Companys aggressive growth plans, we are currently in expansion phase and production at Lucknow would grow many-fold in near future. The expansion shall be in the areas of painting, welding, vehicle assembly & testing and utility services, driven by latest technology. To achieve these plans we invite people who have good Technical Knowledge, seek Challenging Opportunities and have a Drive for Engineering Excellence to come and partner us in our journey.

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Often times, corporate-community relationships are complex and contentious. While

disagreements are bound to occur, there are tools available that can help deal with differences in a more positive and less costly way. Dispute Management Systems. Mediation provides a safe and structured environment for corporate representatives, government officials, and community members to resolve disputes. Professional third party Mediators have expertise in helping parties understand each others concerns. Rather than decide the issue, the Mediator helps everyone analyze the problem and identify solutions to meet their collective interests. Mediation can be one part of an overall Dispute Management System that proactively resolves disagreements without involving the courts and media. Facilitated Dialogue Building. When an issue involves many people with different interests, it can be difficult to have a productive discussion. In Facilitated Dialogue and Consensus Building, Facilitators work with the parties to plan and conduct a meeting that helps everyone understand the issues involved and the different perspectives of the participants. The group is then better prepared to move forward with collaborative decision-making and problem solving. Participatory Project Planning. Beyond outreach and consultation, corporations that truly want to enlist the support of host communities and governments engage them in project planning. When community members have an active role in project planning and decision-making, they are more likely to be invested in project outcomes and behave as collaborators rather than adversaries. Community Outreach, Education and Consultation. Many disputes arise because local communities and government officials lack understanding about the project and how it will impact their lives. People fear what they do not know. When their fear turns into frustration and anger, they are more likely to oppose your plans. Community outreach, education programs and consultations give communities the opportunity to ask

Questions while allowing companies to listen, learn community members interests, and address misunderstandings SUMMARY OF THE CASE STUDY: Vision of the great entrepreneur RATAN TATAs dreams of inventing the worlds cheapest car has come true with the NANO car. TATA MOTORS LIMITED is Indias largest automobile company, with revenues of US $21.9 billion in 2005-06 which is equivalent to 2.8 % of the countrys GDP and market capitalization of US $46.9 billion. Tata dreams to create a car to be sold in the Indian market with a price tag of one lakh rupees. The company was targeting the burgeoning middle- class customers by using the low cost assembly operations. As India has a 70% middle class family who aims having a car have now come true with the NANO. Due to the high inflation and the Singur problem they are unable to meet the dream cost of one lakh rupees. NANO now have been an successful car with 6 different versions and is trying to cater to the higher mid segment by launching TATA NANO HYBRID which is to be launched soon.

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