STRATRGIC MANAGEMENT ASSIGNMENT

Submitted to
Lt Col Prasad SN
By
VINAY KUMAR.VADDI
15183-SEC C

About the company: The Tata Elxsi company was incorporated in may 30th in 1969 The chairman is
N G Subramaniam and the ceo of the company is Madhukar Dev. It is a design company that blends
technology, creativity and engineering to help customers transform ideas into world-class products
and solutions. A part of the $100 billion Tata group, Tata Elxsi addresses the communications,
consumer products, defence, healthcare, media & entertainment, semiconductor and transportation
sectors. As technologies, industries and markets converge, each intersection presents both challenges
and opportunities for companies to innovate and deliver new and enhanced products and services.
It was incorporated in 1969.
Key Services:
Technology Services & Product Engineering
Tata Elxsi provides technology consulting, new product design, development, and testing services for
the broadcast, consumer electronics, healthcare, telecom and transportation industries.They offer
electronics, software development and system design services for the automotive and aerospace
industry.
Design
Tata Elxsi helps customers develop endearing brands and products by using design and technology as
a strategic tool for business success. They service a broad spectrum, of industries including
automotive, consumer electronics, retail & consumer goods and healthcare.
Visualization & Content Development
Tata Elxsi provides high-end Visual Effects and 3D Animation services for the media and
entertainment industry, addressing content development for feature films, episodic television serials,
advertising commercials and gaming.
Systems Integration Services
Tata Elxsi implements and integrates complete systems and solutions for High-Performance
Computing, CAD/ CAM/ CAE/ PLM, Broadcast, Virtual Reality, Storage, and Disaster Recovery.
They also provide Professional Services for maintenance and support of IT infrastructure in India and
overseas.
Promoter Group : The company which gets its major chunk of investment from the tata group. It is
a part of Tata group and the investments come from Tata Sons Limited.
Tata Sons Limited holds 13,147,632 shares in the company.
Tata Investment Corporation Limited holds 750,000 shares in the company
March16 March15 March 14 March 13 March 12

Per share ratios

Adjusted EPS (Rs)

49.72

33.05

24.12

11.85

10.90

Adjusted cash EPS (Rs)

56.98

41.25

35.36

19.46

17.49

Reported EPS (Rs)

49.72

33.05

24.12

6.74

10.90

Reported cash EPS (Rs)

56.98

41.25

35.36

14.36

17.49

Dividend per share

14.00

11.00

9.00

5.00

7.00

Operating profit per share (Rs)

79.35

56.96

43.71

22.18

21.54

Operating margin (%)

22.98

20.88

17.62

11.42

13.03

Gross profit margin (%)

20.87

17.87

13.09

7.49

9.04

Net profit margin (%)

14.39

12.11

9.72

3.47

6.59

Profitability ratios

Threat of new entrants:The new

Bargaining
Power of
Liquidity ratios

Competitve

Suppliers:The bargaining power

Rivaly:The

of suppliers is not relatively high,

competition among the

Current ratio

entrant have been emerged in the

2.29

because of the company relations

markets is in the form

with its suppliers and also due to

of the other IT players

(inc. st loans)of the

theCurrent
timelyratio
management

who are providing

demand.

maintenance support

Quick ratioPower of
Bargainig

service. And also 2.29

the

Customers:The customer had

design product

very
high power,
Inventory
turnoverand
ratio they would

development offerings

be indirectly involoved in the

which it is facing

product development. The

competition. The

company manages its key clients

startup in visual

and try to have along term

designing field are also

relationship with them.

termed unorganized

2.29

market with the form of startups

2.00

1.82
2.25
where
they are
offering2.06
a plethora

of services at a lower cost and also

are
2.00 they
1.82

providing
services
1.06 all the
1.25

as a bundle of services.
2.00

1.82

2.24

2.06

2,939.10

1,936.86

24,152.98

players are giving a

tough completion.

Payout ratios

Dividend payout ratio (net profit)

28.15

33.28

37.31

74.17

64.21

Dividend payout ratio (cash profit)

24.57

26.66

25.45

34.81

40.01

Porters five force Model:

Threat of Substitutes:The
threat of services is very low as
compared to the company
offerings because each has an
unique characteristics, but with
the development of the
technology, new variant
offerings are coming in
virtualization and content

Competitive Advantage: The competitive advantage of the company is its design capabilities and the inhouse expertise of their employees which is making a prime competitive advantage from it is competitors.
The experienced business unit have a brand image of TATA which is bringing a unique selling
proposition in front of its clients
Value Chain: Tata Elxsi leverages cutting-edge technology and innovative design concepts to create
immensely successful products for its clients.It had partnered with various Bollywood film association to
create value in their business.
Its embedded product design services have a wide international customer base, VCL and ID have created
a niche for themselves in the Indian creative and design space, and have managed to find a firm foothold
in the international market. With its impeccable track record, and extensive technology and creative
expertise
Distinctive Competency: The use of smart technology which is a major competency and also continuous
innovation in their process is making a par difference from that of competitors. The internal synergies
within the company is helping them to come with an innovative products.
Conclusion: Tata Elxsi is focusing on accelerating the pace of growth. The company will steer clear of
conventional computing and look at excelling in areas that involve either high-end creativity or highend
engineering or both. Tata Elxsi has plans of growing its international operations. Tata Elxsi is uniquely
positioned with its proven capabilities in technology and user experience, insight-led design and product
engineering across multiple industries. They leverage on unique intersections to help customers create
exceptional products, services and experiences and drive their strategic growth.
The company can enter into the development of latest technology innovations and come with disruptive
innovation along with the consulting services. As, India been the future growth market for the technology
space it helps to be a market leader for the company if it can invest its capabilities in artificial
intelligence, design of automated robots.
In, systems integration the company can position itself in providing consulting services and position itself
as an high end service consultation provider instead of positioning itself as an maintenance support firm
for integration services in the industry.