A PROJECT REPORT

ON
ANALYSIS OF
TCS MARKETING STRATEGY AND
SEGMENTATION
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIRMENTS
FOR THE

BACHELOR OF BUSINESS ADMINISTRATION (BBA)

OF

CHANDIGARH UNIVERSITY, GHARUAN, MOHALI

SUBMITTED TO: SUBMITTED BY:

Name: PROF. SHIKHA AGNIHOTRI NAME: PUSHPANGI

Designation: Assistant Professor UID:19BBA1375

Chandigarh University Batch: 2019-22

Location: Gharuan, Mohali

CHANDIGARH UNIVERSITY

GHARUAN, MOHALI (PUNJAB)

TABLE OF CONTENTS:

S. NO. TOPIC PG NO.

1. INTRODUCTION 3 - 13

 MARKETING STRATEGY

 MARKETING SEGMENTATION

 TCS

2. LITERATURE REVIEW 14 - 15

TCS

3. RESEARCH METHODOLOGY 16 - 36

 RESEARCH DEGIGN

 DATA COLLECTION METHOD

 TCS STRATEGY

 TCS SEGMENTATION

4. FINDINGS 37

5. CONCLUSION 38 - 39

6. BIBLIOGRAPHY 40

ABSTRACT:
Corporate Valuation and Value Creation are of interest to managers in general

and senior managers in particular - they are also of interest to ‘value investors’.

The Primary objective of a business is to promote wealth creation or value

creation. There are 8 drivers or pillars of creating wealth. Companies can use

these value creation drivers to devise strategies that are legal ethical to

increase shareholders wealth and create value. No company can create value

without protecting stakeholders’ interest. Economic viability implies earning a

return more than its cost of capital. This study has been done to analyse the

Innovative value creation strategies of Tata Consultancy Services (TCS).

DECLARATION

I “PUSHPANGI” the undersigned solemnly declare that the report of the project work
entitled MARKETING STRATEGY AND SEGMENTATION OF TCS. is based my own
work carried out during the course of my study under the supervision of Prof. SHIKHA
AGNIHOTRI.

I assert that the statements made and conclusions drawn are an outcome of the project work. I
further declare that to the best of my knowledge and belief that the project report does not
contain any part of any work which has been submitted for the award of any other
degree/diploma/certificate in this University or any other University.

Name: PUSHPANGI
UID: 19BBA1375

ACKNOWLEDGEMENT
With immense pleasure I, PUSHPANGI presenting Internship Report
of ‘’MARKETING STRATEGY AND SEGMENTATION OF TCS’’ as a part of
curriculum of Bachelor of Business Administration of Chandigarh
University. I wish to thank all the people who gave me unending
support.

I express my profound thanks to Project guide Prof. SHIKHA

AGNIHOTRI MAM and all those who have indirectly guided and
helped me in preparation of this report.

Name: PUSHPANGI

UID: 19BBA1375

Semester: 5th

Bachelors of Business Administration (BBA)

INTRODUCTION:
  MARKETING STRATEGY:

The marketing strategy is the comprehensive plan specifically designed

to meet the organization's marketing goals. It provides a blueprint for
achieving these marketing goals. It's the fundamental part of a
marketing plan. It was developed after in-depth market research to find
the best ways to increase sales.

A marketing strategy is being developed by:

1.Selecting the target market: By target market, we mean who the
company wants to sell its products to. Not all market segments are
fruitful for a company. There are certain segments of the market that
guarantee quick profits, there are certain segments that can make big
profits. Potential, but there may be high barriers to entry. The
organization must make a careful decision. In-depth market research
should be conducted on the characteristics of buyers and the specific
needs of buyers in the target market.

2. Composition of the marketing mix: By marketing mix we mean how

the organization proposes to sell its products. The organization needs to
bring the four Ps of marketing together in the right combination. Bringing
together the marketing mix is a crucial part. The Marketing Task There
are several decisions to be made as in

Which combination of the four Ps is best suited in a given situation?

 Which sales channels are available and which should be used.

 Which development strategy should be pursued in the target market.
 How the price structure should be designed.

Importance of Marketing Strategy

 The marketing strategy gives a company an advantage over its

competitors.
 The strategy helps to develop goods and services with the best
profit potential.
 The marketing strategy helps to discover the areas affected by
the company's growth and thus helps to create an
organizational plan that corresponds to the needs of the
customer.
 Helps set the correct price for the organization's goods and
services based on information gathered through market
research.
 The strategy ensures effective departmental coordination.
 Helps a company make the most of its resources to get a sales
message across to the target market.
 A marketing strategy helps to set the advertising budget in
advance, and also develops a method that determines the
scope of the plan, that is, determines the revenue generated by
the advertising plan.
In summary, a marketing strategy clearly explains how an
organization achieves its specified goals.
 MARKETING SEGMENTATION:
Market segmentation is the study that determines how your company
divides its customers or cohorts into smaller groups based on
characteristics such as age, income, personality traits, or behavior.
These segments can then be used to optimize products and advertising
to different customers.

Types of Market Segmentation

With segmentation and targeting, you want to understand how your

market reacts in a given situation, such as when you buy your products.
In many cases, a predictive model can be built into the study so that
people can be grouped into identified segments based on specific
responses to survey questions.

Geographic Targeting
Although this is usually a subset of demographics, geographic targeting
is often the easiest. With geographic targeting, different target customer
groups are created based on geographic boundaries. Because potential
customers have needs, preferences and interests that vary depending on
their geographic location, their understanding of the climate and
geographic regions of the customer group can help determine where to
sell and advertise and where to grow your business.

Demographic Segmentation
Demographic Segmentation classifies a market based on demographic
characteristics such as age, education, income, family size, race, gender,
occupation, nationality, and more Demographic segmentation is one of
the simplest and most widely used forms of segmentation as the
products and services we buy, how we use these products and how
much we are willing to spend on them depends in most cases on
demographic factors.

Firmographic segmentation
Firmographic segmentation is similar to demographic segmentation.
The difference is that demographics are aimed at individuals while
companies are aimed at organizations. The firmographic segmentation
would take into account things like company size and number of
employees, and illustrate how approaching a small business would be
different from running a business.

Behavioral segmentation
Behavioral segmentation divides markets according to behaviors and
decision-making patterns such as purchasing, consumption, lifestyle and
usage. For example, younger shoppers tend to buy body wash products,
while older consumer groups tend to buy soap bars. Segmenting
markets based on buying behavior allows marketers to develop a more
specific approach.

Psychographic Segmentation
Psychographic Segmentation takes into account the psychological
aspects of consumer behavior by dividing markets according to lifestyle,
personality traits, values, opinions and interests of the consumers
concerned with healthy living and exercise.

Getting Started with Segmentation

Market segmentation doesn't have to be complicated to be effective.

There are five main steps to segmentation.

1. Do your research in advance: Get to know your customers better by

asking a few open-ended questions.
2. Determine how you segment your market - Decide according to which
criteria (e.g. demographic / firmographic, psychographic or behavioral)
you want to segment your market.
3.Design your study - Ask a combination of demographic / firmographic,
psychographic and behavioral questions. Make sure your questions are
quantifiable.
4. Create your customer segments: Analyse your answers either
manually or with statistical software to create your segments.
5. Test and repeat: Score your segments to make sure they are usable
and useful. If this is not the case, try segmenting according to other
criteria.

TCS (TATA CONSULTANCY SERVICES)

 Tata Group is an Indian multinational conglomerate manufacturer

of automobiles, aircraft and other products based in Mumbai,
Maharashtra, India. Founded in 1868 by Jamshedji Tata, the
company gained international recognition through the acquisition
of several global companies. It is one of the largest and oldest.
Industrial groups in India. Each Tata company operates
independently under the direction and supervision of its own board
of directors and shareholders.

The IT industry in India provides 3.7 million jobs worldwide and

contributes 9.3% to India's GDP. Providing innovative services, job
creation and skills development. The big giants in this industry are
TCS. Tata Consultancy Services is an IT services, consulting, and
business solutions organization that has worked with many of the
world's largest companies on their transformation journeys for
more than 50 years.
Tata Consultancy Services Ltd is a major player in IT solutions,
outsourcing and business. A variety of IT infrastructure,
outsourcing and business solutions are provided. They also offer
services in the areas of IT management, business process
consulting, production and production facilities, services for
environmental sustainability, corporate security, regional
 consulting and services for the use of resources. and
telecommunications.

 The company is part of the Tata Group, a company that is one of

the best-known brands and corporations in the world and is based
in Mumbai, India. It has 142, branches in 42 countries and 105
logistics centres in 20 nations. The company operates through
subsidiaries in the Americas, Europe, Asia Pacific, the Middle East
and Africa. The Group's holdings are listed on the National Stock
Exchange and in Bombay Exchange. The company was founded as
the Electronic Data Processing (EDV) division in and was provided
by Tata Sons Ltd. in 1968.
 Management consulting services TCS was named one of the top 3
IT service companies worldwide in the 50th year of its existence.
and one of the top 60 companies in the USA in all industries. It was
also the fastest growing company in the world, increasing by
14.4% over the previous year TCS also introduced the Business 4.0
Thought Leadership Framework, which helps customers keep
track of their innovation and development plan by leveraging the
four most important
elements of digital technology: knowledge, connectivity,
automation and cloud.
 The system also describes four organizational practices that have
been adopted from Business 4.0. This adapts environments,
integrates threats and generates additional profit has proven itself
proficient in the marketplace and TCS has won many key industry-
specific
contracts that focus on its comprehensive approach to
stakeholder management, investment in research and innovation a
strong strategic understanding of the consumer sector and its
unparalleled product portfolio focus and.
 The company's performance has been excellent over the past few
years and is expected to grow rapidly in the years to come.
Consolidated sales for fiscal year 2019 were Rs.
146,463, 19.0 percent more than last year's sales of Rs 123,104
 billion. Rs 31,562 million and Rs 25,880 respectively. For the 2019
fiscal year, the PAT attributable to shareholders was valued at
31,472 rupees, an increase of 21.9 percent compared to the PAT
for the 2018 fiscal year of 25,826 million.
TCS is constructive on climate change and works with companies
around the world to secure a place in leading sustainability indices
such as the World Index, the MSCI.

TCS LOGO:

MISSION, VISION AND VALUES:

 The company defines its mission as follows: “Our mission reflects

Tata Group's commitment to excellence - helping customers
achieve their business goals by providing world-class and
innovative IT advice, solutions and services, and everyone
interested employees to make working with us a pleasure.
 In order to keep up with the company's mission, several aspects
were addressed. As a result, TCS was named the Most Outstanding
Global Company in India by investors from around the world. Asia
moneys 2019 Asia. Outstanding Companies Survey Also, TCS has been
listed as the most successful company in India in the past decade, with
Asia money's top investor surveys having the highest number of times in
the last 10 years.

 in terms of the company's vision TCS 'mission is to decouple the

company's growth from the environmental impact of its activities
to reflect the results of the business. The green approach is one
aspect of its processes and internal resources. The mission is
sustainable from green buildings to green IT and a green supply
chain to develop and customers to grow sustainably through
solutions to help. green business processes and procedures
According to TCS, "Our vision is to decouple business growth and the
environmental footprint of its operations in order to improve the bottom
line for the environment. The green approach is integrated into our
internal processes and service offerings ... From green buildings to
green IT to a green supply chain, our motto is to grow sustainably and to
help our customers achieve sustainable growth through our green
solutions and service offerings. "

 " Business, as I have seen it, makes great demands on you: you
have to impose a framework of ethics, values, justice and
objectivity on yourself at all times. "Ratan Tata, 2006. Tata was
promoted as a company by evaluating values such as integrity,
responsibility, excellence, leadership and unity drive the
development and business of Tata companies. Tata is fair,
honest, open and moral. Everything they do is subject to the
criticism and control of customers who, according to the
company values, have to reconcile ecological and social values in
their company so that what comes from people only comes back
 to them. . Learning and building supportive and collaborative
relationships based on trust and mutual respect is one of the
company's key values.

LITERATURE REVIEW:

 Ally, Z (2013), In their research study "Comparative Analysis of the

Financial Performance of Commercial Banks in Tanzania", the bank's
overall financial performance increases. The banking sector remained
stable. Study found that there was no significant difference in
profitability between banks in terms of ROA. For this study three
hypotheses were developed. The methods used for this study are
quantitative and the data refer to the years 2006 to 2012.

 Singh. O, (2018) in her research study entitled "A Comparative Analysis

of the Financial Performance of Public and Private Sector Companies in
India's Capital Goods Industry". Selected the top 10 companies for its
study, five from the public sector and five from the private sector. It was
based on secondary data and it used data from 2006 to 2015, liquidity
metrics, solvency metrics, activity metrics and profitability metrics were
used, and the panel data model was used to measure the impact of
financial health in the short and long term, and it came to the
conclusion that public sector companies can increase their profitability
by reducing excess liquidity as idle assets are not generating anything.

 K.P. Veena and K.M. Pragati (2018), his study had three objectives: his
study was based entirely on secondary data, the data was taken from
the annual report, the website, the journal, the journals, the study took
into account the adequacy coefficient of equity, gross NPA, net NPA,
 return on equity, earnings per share, return on equity. The arithmetic
mean, covariance, standard deviations was used for this study.

 Dharmaraj and Kathirvel (2019) In India there is a huge margin for auto
companies. They are financially strong in and have grown at a rate of 17
percent for years and are making a reasonable contribution to the
Indian economy. Finally, the study provides companies with insights
into the activities that would improve their financial results.

 W. Glenn Rowe states in his article "Wealth Creation in Organizations:

The Role of Strategic Leadership" that creating wealth in
entrepreneurial and established organizations is a complex and
challenging task in the global and technologically advanced business
environment of the wealth creation process in established companies
and organizations and leads to above-average returns. leadership, on
the flip side, is likely to produce average returns at best, but more likely
to produce subpar returns and destroy wealth companies that are not
adequately supported by a strong leader can destroy wealth even faster
than organizations that are led by leaders. This article defines strategic
leadership, distinguishes between the concepts of strategic, visionary,
and business leadership, and examines the different links between the
three types of leadership and wealth creation. When organizations
restore strategic control and allow a critical mass of strategic executives
to develop, those executives will be a source of above-average returns.
The result will be wealth creation for employees, customers, suppliers,
and shareholders of established organizations.
RESEARCH METHODOLGY

Methodology for the project can be understood the following heads :

RESEARCH DESIGN

A research design is the basic plan that guides the collection,

measurement, and analysis of data; to decide what, when, where, how
much and by what means a research study constitutes a research
design; In other words, the research design is the framework in which
the research design resides. specifies the type of information to be
collected, the data source and the data collection method.
.

TYPE OF RESEARCH

Research type used; Exploratory Research

SAMPLE DESIGN:

A sample design is a defined plan for drawing a sample from a given

population. It refers to the technique or process that the research would use in
selecting the items for the sample. The investigator must select / prepare a
sample design that is reliable and appropriate for this research study.

TYPE OF UNIVERSE:
The first step in developing the sample design is to clearly define the set of
objectives i.e the universe. The universe in this project is all the population
dealing with apple product users.

DATA COLLECTION METHOD

In a real life problem it is often found that the data at hand is inadequate,
hence it become necessary to collect data that is appropriate. There are
several ways of collection data.

1.PRIMARY DATA:

The primary data are those that are freshly collected for the first time in
and thus, turn out to be original.
Primary data are collected through a questionnaire. It is considered to be the
heart of the survey. It consists of a series of questions that are printed on
and typed in a defined order on a form or set of forms.

2.Secondary Data:
The secondary data is those who have already been collected by someone who
has closed and has already passed through the Statistics Process

For this report Secondary data was used for analysis.

TCS SERVICES:
TCS STRATEGY:
Corporate Overview

TCS is an IT services, consulting and business solutions organization partnering

many of the world’s largest businesses in their transformational journeys for
the last 50 years. It has a global presence, deep domain expertise in multiple
industry verticals and a complete portfolio of offerings – grouped under
consulting and service integration, digital transformation services, cloud
services, cognitive business operations, and products and platforms – targeting
every C-suite stakeholder.

The Company leverages all these and its deep contextual knowledge of its
customers’ businesses to craft unique, high quality, high impact solutions
designed to deliver differentiated business outcomes.
These solutions are delivered using its Secure Borderless Workspace (SBWS)
operating model which enables a highly distributed, Location Independent
Agile delivery.
TCS geographic footprint covers North America, Latin America, the United
Kingdom, Continental Europe, Asia-Pacific, India, and Middle-East and Africa.
TCS considers industry verticals as its go-to-market business segments. The five
key vertical clusters are: Banking, Financial Services and Insurance (BFSI), Retail
and Consumer Business, Communications, Media and Technology (CMT),
Manufacturing and Others.
The last category includes Life Sciences and Healthcare, Energy, Resources and
Utilities, Public Services and others.

Integrated Business Model for Value Creation

  

Value Creation Model

Talent and creativity, that is represented by human capital, is at the core of

TCS’ value creation engine.
TCS continually enhances its human capital by acquiring the best talent
available in each of the markets it operates in, providing a supportive and
vibrant workplace to engage that talent, investing in upskilling individuals with
the latest technology skills, and giving them career paths matching their
aspirations.
A firm belief in organic talent development, and of investing in people, has
helped TCS successfully navigate through multiple technology cycles over the
last five decades, pivoting and adapting each time to build relevant new
capabilities through reskilling of the workforce at scale and helping customers
realize the benefits of emerging technologies.
The company’s industry-aligned, customer-centric organization structure has
resulted in each business unit acquiring tremendous domain depth, and the
account teams within those units building up immense customer-specific
contextual knowledge. This domain expertise, contextual knowledge, project
management experience and technology expertise gained on the job
represents a conversion of human capital into intellectual capital.
TCS applies some of its intellectual capital towards investments in research and
innovation (R&I), exploring the creative use of newer technologies to solve
business problems across different industry verticals. In addition to its own
intellectual capital, TCS also partners with leading technology providers, start-
ups and academic researchers to leverage their intellectual capital and build
solutions.
Some of the innovative software solutions piloted by R&I, that are assessed to
have a material market potential are productized, adding to TCS’ large
portfolio of products and platforms. These expand the
organization’s intellectual capital; create new revenue streams, adding to
the financial capital; and enhance its brand positioning i.e relationship capital.

Customer Engagement

TCS uses its intellectual capital and human capital to build impactful,

customized technology and business solutions that address the customer’s
business problems. Further, its ability to stitch together complex, holistic
solutions that address the needs of all stakeholders in the enterprise, along
with the high levels of trust engendered in customer relationships, helps it win
large transformation deals. These deals bring in high quality revenues,
powering industry-leading organic growth and margins, boosting the
company’s financial capital.
These solutions create immense value for our customers by helping them
embrace new business models, pursue new revenue streams, deliver superior
customer experiences or build resilience and efficiency into their operations,
and gain competitive differentiation.
The company’s strong service orientation, willingness to invest in the
relationship, commitment to deliver impactful outcomes and track record of
execution excellence have resulted in consistently high customer satisfaction
levels and long, enduring customer relationships. The resultant expansion in
relationship capital translates into a very high level of repeat business that
lends greater visibility and predictability to the business model.
TCS constantly invests in building newer capabilities and expanding its
offerings. By cross-selling and up-selling these new offerings, customer
engagements continually expand over the years, covering newer and newer
areas of the enterprise’s operations. This further broadens and deepens the
contextual knowledge of customers’ business and IT landscapes, further
enhancing TCS’ intellectual capital.
Over time, this combination of business knowledge, contextual knowledge,
technology depth, and intellectual property has become a steadily deepening
moat around the company’s business model and sharpened its differentiated
positioning.

Value Sharing

Best in class profitability, reduced cost of capital due to a more predictable and
resilient business, and high cash conversion on account of superior execution
have resulted in a high return on equity. All this and a shareholder-friendly
capital allocation policy have boosted the company’s relationship capital with
shareholders.
The investments in people, research and innovation, and intellectual property
creation are all charged off and not capitalized. The company’s capital
expenditure to support its growth – manufacturing capital – towards building
campuses, Agile workspaces, innovation centres, and Pace Ports is modest
relative to its size.
TCS’ physical operations consume social capital in the form of license to
operate in each of the communities, and natural capital in terms of its
environmental footprint. TCS enhances its social capital with local communities
across the world by investing in areas such as education, skill development,
employability, health and wellness, and the environment, mapped to UN
Development Goals. On the environmental front, TCS has a systematic
program to reduce its carbon and resource consumption footprint – including
the use of green IT, green buildings, intelligent energy management using its
own IoT-based solution and water and waste recycling.
TCS’ business model and strategy have resulted in deep and enduring
customer relationships, a vibrant and engaged workforce, a steady expansion
of its addressable market, a strong reputation as a responsible corporate
citizen and a proven track record in delivering longer term stakeholder value.
All of this has significantly enhanced the company’s brand value, which is a
quantifiable measure of its social and relationship capital with stakeholders.

Strategy for Sustainable Growth

Customer-centricity is at the heart of TCS’ strategy, organization structure and
investment decisions. TCS’ customer-centric worldview helps spot trends early,
embrace business opportunities by making the right investments and
mitigating risks while discharging its social and environmental responsibilities.
TCS invests in broadening and deepening customer relationships by continually
looking for new areas in their value chain where it can add value, proactively
investing in building newer capabilities, reskilling its workforce and launching
newer services, solutions, products and platforms. In addition to the IT
budgets, TCS is now benefiting from the departmental budgets of other
stakeholders within the customers’ organizations – business heads, CMOs,
CROs, COOs, CFOs and even CEOs. This has not only embedded TCS deeper into
their businesses but has also resulted in higher quality revenues, stronger
revenue growth and enhanced share of wallet, as evidenced by the client
metrics reported every quarter and every year.
The products and platforms, coupled with business model innovations,
represent new, high quality revenue streams that are growing very fast. At an
aggregate level, this strategy has resulted in deep and enduring customer
relationships, and a steady expansion of the addressable market.

Business Level Strategies:

TCS has developed its business level strategy by assuming as world financial
institutions are in a tremendous shock of crisis and think of scaling up revenue from
other industries. (Tata Consultancy Services Limited, 2010). TCS names its business
divisions as Industry Service Practice which will help them to collect maximum
revenue from Banking Financial Services and Insurance Sectors. (Please refer to
appendix no. 3)

Generic Business Strategies of TCS:

TCS provides low cost Global delivery with the help global strategy.

TCS mainly focus on customer relationship management & customer retention in

order increase the business revenue.

TCS provides timely delivery of IT services with the help of proven delivery & quality
framework called as (IQMS)

TCS uses differentiation strategy by providing low end services in terms of cost,
resources.

TCS also diffrenciate its high end services such as consulting in term of niche
offerings.

TCS has strong knowledge management system & resource

Strength by which they has successful in reaching the overall cost leadership in the
(IT) industry.

TCS has develop a resolute strategy where they are providing (IT) services according
to the requirements of customer and the nature of business & targeting new markets
like Middle East, Europe, and Asia-pacific.
Currently TCS Focus on Centres of Excellence (COE) to hold ability so as to construct
technologies such as service-oriented architecture, testing, and virtualization which
will help TCS to attempt outsized projects so as to alter customer's (IT) applications.

Business level strategy model:

Business level Strategies are listed below:

Global Strategies

Strategic Alliance strategy

Acquisition strategy

TCS: Co innovation network (coin) strategy

Global strategy:
TCS global strategy structure tend towards its global operations to implement a
Customer centric and integrated approach which will help them to control external
factors arising from the Economic Meltdown in western countries. TCS's global
operation units is divided into five main divisions includes the established markets
like North America K & Western Europe as well as the new markets includes mainly
Latin America, Middle east, India and Eastern Europe. TCS was the first one to set the
global delivery centre in China which distinguished TCS from other corporate
companies (Mitra, 2005).

This global strategy of TCS will Increase Company's market growth rate at the rate of
40% every year. TCS is establishing global delivery centres outside India which
demonstrate TCS as a Global company. In recent years TCS was frequently changing
its approach towards global market.

Strategic Alliances strategy:

Tata consultancy services have been holding a strategic relationship with various
International technology (IT) vendors such as Intel, Hewlett-Packard (HP), IBM this
distinguished as service provider, customer, supplier, and alliance partner. (Mitra,
2005). The relationships with the international technology vendors have made TCS to
maintain a holistic approach to create a joint venture opportunities with these
international vendors on joint research by which each other's strengths will provide a
strategic advantage by following ways (For details please refer to appendix no.4)

It creates joint engagements with (IT) vendors.

It provids new or improved solutions on problems

It helps to adopt a Joint go-to-market strategy for the specific (IT) solutions.

Acquisition strategy:
TCS divides its acquisition strategy into two components. Organic means and
inorganic means (Mitra, 2005). The Inorganic way of acquisitions of companies this
has business sense to TCS as part of its strategy to look at expansion options has set
up an internal team which will focus only on acquisition strategies.

Co- innovation network (coin) strategies:

TCS have implemented a Co-innovation strategy in order to face the competition in
today's globalization world. Where competition among the IT companies is
increasing day by day. TCS has developed & implement an innovative technology
which will result in collaborating a "Globally Distributed Network (GDN)" (Mitra,
2005). (Please refer to appendix no.6)

Bowman's strategic clock:

Business level strategy of TCS can also be explained with the help of Bowman
Strategic clock (work of Cliff Bowman) (For details please refer to appendix no.7)

Fig 4. Bowman's strategic clock

Source: Adopted from (Faulkner & Bowman, 1995)

Based on the competition faced by TCS they are using two parallel strategies so as to
sustain in the (IT) sector.

Diffrentiation:- TCS use differentiation strategy by offering its low &high end services
such as consulting in term of niche offerings & terms of cost resources. Expertise that
is different from those of the competitors in (IT) industry & which are valued by the
customers.

Low price:- TCS has achieved cost (price) leadership in the (IT) industry with the help
of its strong knowledge management system as compare to competitors.

According to Bowman's strategic clock differentiation & Low price strategy comes
under 'hybrid strategy'. So, it is evident that TCS use these strategies in order to keep
up with the emerging (IT) trends and working out towards its goal of being the most
chosen brand in the (IT) industry.

TCS Business level Strategies can also be identified and explained with the help of
Ansoff matrix which divides the strategy of a company into four different categories
namely,
(i) Market Penetration Strategy

(ii) Market Development Strategy

(iii) Product Development Strategy

(iv) Diversification Strategy

Market penetration strategy:

As per the growth matrix TCS is currently penetrates its range of services into USA
and Europe where they provide ADM, BPO, KPO, consultancy services (in BFSI,
manufacturing and retail firms) as well as they provide software products (financial
products) to the firms as most large clients in US and Europe are concentrating on
cutting costs of (IT) related services (Tata Consultancy Services Limited, 2010). TCS
needs to be more aggressive on cost cutting strategy with good quality.

Market development strategy:

As per the growth matrix TCS is concentrating on new markets like India, Middle-east
and Australia where they provide products like ADM, BPO, KPO consultancy services
(in BFSI, manufacturing and retail) and software products (financial products) (Tata
Consultancy Services Limited, 2010). Since these are the most fast developing IT
market where TCS needs to keep a paradigm as a shift in focus from US & EU
markets to these new markets.

Product Development Strategy:

As per the growth matrix TCS is selling its new products such as Consultancy and
package implementation services in relatively growing sectors especially in life
sciences & healthcare, aviation sector, and KPO services into existing markets like
USA and Europe (Tata Consultancy Services Limited, 2010). This strategy will
definitely help on building expertise in these domains by strategic acquisitions.

Diversification strategy:
As per the growth matrix TCS has diversified their new products like vertical- Specific
services packages, TCS Financial Solutions, and Platform-based BPO into new
markets like Europe & and other emerging markets where the market growth of the
company has increased by 40 % (Tata Consultancy Services Limited, 2010).TCS
diversified its function to new markets like Latin America and Middle East for
considerable expansion. In order to penetrate a new market TCS has established
delivery and offshore centres in countries like Brazil, Uruguay and Mexico.
Strengths & weaknesses based on business Level
Strategies:
Strengths:
(1) Extensive Universal reach: TCS has widespread a global reach by its product and
services throughout its branches all over the world includes in UK, U.S, Middle east,
Australia, Europe etc. (Tata Consultancy Services Limited, 2010). This provides a
diverse revenue base for the company to have an active control on its business
operations universally.

(2) Strong economic performance: TCS has made apparent and strong economic
presentations around the globe which makes its clients to be financially confident
about the company and hence it will increase company's reputation.

(3) Strong brand name and awareness: As the popularity of the brand TCS (Tata
consultancy services) has been reach all over the world which made TCS a reputed
brand image in the Global information technology (IT) and software industries.

(4) Unique service Offerings: TCS provides a unique range of services including
business consulting; information technology, business process outsourcing (BPO),
infrastructure, and engineering which distinguished them from competitors belong
to IT industry (Tata Consultancy Services Limited, 2010).

(5) Employee Management Skills (HR Management Skills): The domestic base of TCS
i.e 'India' is well -known for its skilled employees in IT field which naturally made TCS
a very strong in HR management. TCS is also recruited its board of Directors are from
overseas countries in order to adopt the strategies from all the parts of the world.

(6) Innovation in lab system: TCS have most effective infrastructures and innovative
labs all over the world with most modern technologies which help its employees to
have an access to update the most up-to-date information to make research in
various IT related fields (Tata Consultancy Services Limited, 2010). This provides TCS
an competitive edge.

(7) Fame of founder: Tata is recognised as the most renowned brand in Asia as well
as the fame of the founder Mr. Ratan J Tata also added value to TCS (Tata
Consultancy Services Limited)

Weaknesses:
Momentous publicity to financial markets:
The Excess exposure on the financial service markets at a global level (Data monitor,
1998). Which generally necessitate to be keep confidential as they it displays
company's private policies and legal terms which is considered as the primary & key
weakness of Tata consultancy services (TCS)

Lack of focus on the domestic markets:

As per the strength of TCS it has an Extensive Universal reach by its product and
services throughout it are all over the world branch which provides a diverse revenue
base for the company. (Data monitor, 1998). But at the same time domestic markets
are also affected due to lack of focus by the company. This is the key weakness of
Tata consultancy services (TCS).

Deficient in level of consulting operations:

Lack in Effective consulting team which show a strong reflection of decline in the
growth Cycle of the TCS, Being a company which mainly works on Outsourcing on
scale large projects and assignment which generally needs a very good effective
consulting team which acts as the link between the Clients and company (Tata
Consultancy Services Limited, 2010). TCS company is lacking behind in its level of
consulting operations.
TCS SEGMENTATION REPORT:

Corporate financial reporting entails communication of accounting information

through financial statements of a corporate enterprise to various groups
concerned with the performance of the enterprise. The requirements and
practices of financial disclosures change from time to time, and keep pace with
the dynamic business environment. In India, the economic reforms of 1991
gave rise to a volatile business environment. In response, the corporate sector
initiated strategic business diversification to combat volatility.

The corporate enterprises expanded their scope by including a variety of

industries, diverse customer groups, and widely scattered markets. As a result,
the practice of financial reporting through consolidated financial statements
was found inadequate in providing a detailed picture of their performance.
Segmental disclosures were not only peculiar to diversified companies but also
to companies operating in specialized line(s) of activity(s).

The increasing public interest in corporate affairs, the growing awareness

among shareholders to know the details of performance of various sub-units,
etc., necessitated formulating principles for reporting financial information
about different types of products an enterprise produces and different
geographical areas in which it operates. As a result, a separate accounting
standard on segment reporting came into effect in India since 2001.

This standard has been made mandatory for the companies whose shares or
debts are listed or going to be listed, on any recognized stock exchange in
India. Moreover, this standard is also mandatory for companies with an annual
turnover of `500 million or more. Consequently, the corporate enterprises
began to comply with this standard in their corporate reporting. Against this
background, the researcher is interested to make an empirical study on
segmental disclosures in corporate financial reporting of TCS.
A brief review of the segment reporting of TCS can be summed up as follows.
TCS in its published reports has furnished the segment reporting annually and
regularly; mainly they have divided their segments into two:

(a) business segment and

(b) geographic segment.

The data for TCS have been taken and collected for 3 years from 2014–2015 to
2016–2017 from the published annual reports of TCS. According to the
published financial reports of TCS and as it is mentioned in the reports ‘The
group principal’s business activities involve Banking, Financial services and
Insurance, Manufacturing, Retail and Consumer business, Communication,
media and Technology and Others’. The selected variables have been
presented graphically and thereafter analysed. The segment revenue earned
by TCS has been compared over the period 2014–2015, the total segment
revenue earned by TCS was `94,648.37, while the total segment revenue
earned during the period 2016–2017 was `117,966.

From Table 1 it can be concluded that the segment revenue is increasing in the
subsequent years. From Figure 1 it can be observed that the segment revenue
in banking, financial services, and insurance is highest, that is, 41 percent,
followed by others (24 percent), such as retail and consumer packaged goods
(14 percent); telecom, media and entertainment (11 percent); manufacturing
(10 percent); and others. The segment expenses incurred by the TCS have been
compared over the period 2014–2015, the total segment expenses incurred by
TCS was `70,325.56, while the aggregate segment expenses incurred during the
period 2016–2017 was `85,731.

Table 1…
Highlights of the Segment Revenue Information of TCS for the Year 2014–2015 to 2016–2017
FIGURE 1….

From Table 2 it can be concluded that the segment expenses are increasing in
the subsequent years. From Figure 2 it can be observed that the segment
expenses in banking, financial services, and insurance is highest, that is, 40 per
cent followed by others (i.e., 25 percent), such as retail and consumer
packaged goods (14 percent); telecom, media and entertainment (11 percent);
manufacturing (10 percent); and others. During the period 2014–2015, the
aggregate segment result of TCS was `24,322.85, while the segment result
during the period 2016–2017 was `32,235.
TABLE 2….

FIGURE 2….

From Table 3 it can be concluded that the segment result is increasing in the
subsequent years. From Figure 3 it can be concluded that the segment result in
banking, financial services, and insurance is highest, that is, 44 per cent
followed by others, that is, 23 per cent in retail and consumer packaged goods,
13 per cent in telecom, media and entertainment, 11 per cent in
manufacturing, and 9 per cent in others.
TABLE 3….

FIGURE 3…

Table 4 shows segment assets of TCS for the period ranging from 2014–2015 to

2016–2017. During 2014–2015 the total segment assets of TCS were

`27,636.09. The aggregate segment assets during the period 2015–2016 were

`30,699.11. In 2016–2017 segment assets were `30,167. From Figure 4 it can be

observed that the segment assets in banking, financial services and insurance

are highest, that is, 35 percent, in comparison to other segments.

TABLE 4….

FIGURE 4….

Table 5 highlights the geographical segment reporting of TCS from the year

2014–2015 to 2016– 2017, there was an upward trend in revenue for all the
geographical areas, but unfortunately domestic markets (India) achieved the

lowest revenue although investment in non-current asset is highest.

TABLE 5…
FINDINGS:

 The present case study is focused on the segment revenue, segment

expenses, segment result, and the investment in non-current assets of
each segment of TCS, mainly classified on the basis of business segment
and geographical segment.

 It is clearly indicated that segments which have high sales and high net
income encourage the company to invest more in such profit-making
segments in comparison to low sales with low net income segments.
From the present study, it clearly indicated that in case of business
segment banking, financial services, and insurance have highest
investment in comparison to other segments.

 During 2014–2015 the total segment expenses incurred by TCS was

`70,325.56, while the aggregate segment expenses incurred during the
period 2016–2017 was `85,731. The segment result for the year 2016–
2017 is the highest for banking, financial services, and insurance on the
other hand there is negative trend in the manufacturing activities.

 The company should also have the same segment accounting policies as
those used in the consolidated financial statements. In case, if the assets
used jointly by two or more segments are allocated to one segment, the
related revenue and expenses must also be allocated accordingly.
CONCLUSION:

 TCS is the largest software and services company not just in India but in

Asia as well. It has pioneered the global network delivering model and

several other initiatives which had become industry standards.

 Not only that TCS has a world wide presence which has no other

company in India could match. In fact, TCS had a presence in more

countries than most airlines.

 This has led to the core creative idea of TCS ‘truly global’
 TCS is improving from year to year in their segment reporting.

The company has satisfactorily accomplished segment

reporting by classifying their business and geographical

segments.

 TCS is following the accounting standard for the purpose of

segment reporting in its financial statement reporting, and the

company has significantly used the segment reporting

information for taking their various investment judgments .

BIBLIOGRAPHY:

 https://journals.sagepub.com/doi/pdf/10.1177/2394901519825938

 https://www.slideshare.net/sarmadrao/tcs-marketing

 https://www.slideshare.net/shekharporwal007/tcs-strategy

 https://www.slideshare.net/mathananto/business-model-of-tata-consultancy-services

 https://www.ukessays.com/essays/marketing/complete-breakdown-of-the-tata-company-

https://www.ukessays.com/essays/business/analysis-of-the-tata-consultancy-service-

business-essay.phpmarketing-essay.php

 https://www.tcs.com/
THANK YOU….