STRATEGIC MANAGEMENT CONCURRENT ASSIGNMENT

Name PRN
Sannay Bhowmick 19020341040

Shahzeb Akhtar 19020341042

Rohan Waghela 19020341055

Utkarsh Gupta 19020341116

Arun Prakash 19020341176

Durant D’souza 19020341181

Akshay Jain 19020341225

TATA MOTORS Private Limited
Tanay Banerjee 19020341235
 External Analysis: Tata Motors
OT Analysis Competitor Analysis
Opportunities Threat Maruti Suzuki Hyundai Toyota Mahindra Honda
 Multiple agreements under  Intense competition driven by Market leader Largest exporter Great portfolio Innovative IT 14M ICE/year
Electric mobility solutions, product design, pricing, after-
battery tech to improve its market, and marketing Great design & Superior Strong Brand Focus on New Technology-
business Technology performance image products oriented
 Extensive Government
 Positive outlook for the regulations regarding
global automotive industry Fuel-efficient Simple & Emphasis on Strong R&D Excellent R&D
emission levels and safety cars creative design Research
 Launch of new products
 Increase in input prices and
may attract more volatility in commodity prices
customers Strong product Wide dealership Innovative Robust Diverse
such as steel and copper line network design material portfolio

Porter’s Five Forces Analysis

Threat of New Bargaining Bargaining Threat of Rivalry among

Entrants: 01 Power of 02 Power of Buyers: 03 Substitutes: 04 existing firms: 05
Weak Suppliers: Weak Moderate Moderate
Weak
 High fixed cost of design  Large number of suppliers  Limited number of OEMs  Used or pre-owned cars  Industry prone to
and manufacture requires means that they have less are present in this industry are the main substitute to disruptions in the supply-
economies of scale in control over prices which indicates buyers the automotive demand balance, often
order to compensate have less control over manufacturing industry leading to overproduction.
against high capital  The threat of forward prices Thus, OEMs have to cut
investment. Thus, makes integration from suppliers  Surging demand for shared down prices to ensure that
production costlier for is very unlikely due to  Product differentiation is mobility its products sell
new entrants extremely high entry extremely high which
barriers results into high switching  New business models like  Small number of large,
 Strict licensing and legal costs for buyers. Tata lease/rental/subscription multinational companies
requirements to be  Suppliers provide fairly Motors has been model resulting into high degree
fulfilled before a standardized, less successful due to of concentration
company can start selling differentiated products. differentiated products  Environmental threats and
This makes it easier for Government policies are  Tata Motors have reduced
 Tata Motors has strong buyers like Tata Motors to  Industry is highly price influencing consumers to rivalry threats by serving
Brand Reputation which switch suppliers with no sensitive and buyers may shift towards Electric Budget and Premium
is vital in this industry extra cost switch to rival brands Vehicles markets
 PESTLE ANALYSIS
Political Economical Social Technological Legal Environmental

 Push for Indian  Economical slow down NCAP policy – Increased Rising

Shift in attitude towards  Electric vehicle concerns on the
companies and growing Pre- Covid slump in auto sustainability and for the infrastructure development standards for meeting air quality effects of
nationalism in nations sector environment safety standards automotive emissions
 Intellectual property theft
 Examine infrastructure  Lockdown adversely
 Changing attitudes and in some countries Compliance of new  Rising interest in
projects in pipeline affected sale of commercial demands for SUVs environmental laws and business sustainability
vehicles  Rise in aggregators an meet emission standards
 Dependence on other
 Increased demand for ride sharing applications Changes in climate
countries for crude oil  Rise in petrol and diesel
Electric vehicles Compliance of new patterns like Delhi in
prices  Investments in R&D labour laws winters - smog
 Policies regarding
emissions  Rising trend of car-poll to enhance technological
 Fluctuations in currency
And ride sharing Capabilities
 Policy towards public and weaking of the rupee
transport Imported parts

Priority Matrix
High

Electric vehicle infrastructure development & Investments in R&D

Probability of Occurrence

1
1 to enhance technological Capabilities
Medium

3
2 2 Push for Indian companies and growing nationalism in nations
4
3 Changing attitudes and demands for SUVs
Low

4 Lockdown adversely affected sale of commercial vehicles

Low Medium High
 Internal Analysis: Tata Motors
Value Chain Analysis
Human Resources : Vast
Vast pool
pool of
of technically
technically competent
competent engineers
engineers and
and managers
managers with
with focus
focus on
on development
development of
of technical
technical capabilities.
capabilities. Focus
Focus on
on development
development of
Support Activities

of
managerial
managerial skills
skills incentivized
incentivized by
by career
career improvement
improvement schemes
schemes

Infrastructure : Multi – Location facilities backed by Strong leadership under the support of Tata Sons. Best in class prototype building facilities and Technology
infrastructure support through SAP.

Technology : Approximately 2% of the annual profits of the company invested in R&D. Knowledge portal helps employees keep up-to-date with the latest
technologies. Extensive prototype building and testing facilities and a Formal benchmarking process.

Inbound Outbound Marketing

Operations Services
Logistics Logistics & Sales

MARGIN
• Long term contract with • Capital Equipment • Stockyards, all across the • Structured approach to • Easy availability of spare
service provider’s – Manufacturing division – country. understanding the parts.
Primary Activities

transporters and agents. Tooling development • Long term contracts with requirements of individual • Efficient collection of data
• Personnel at regional offices capabilities of global transporter’s – higher customers from field and
for over seeing the smooth standard. volume of business to • Pan India presence and communication to the
transit of goods. • Apprentice Trainee Course – transporter ensures global footprint. respective plants.
• Transparency and monitoring ensuring stable source of competitive price. • Various teams for • Pan India presence, as well
through deployment of IT – all skilled manpower. • Regional Sales Office and addressing the as global presence.
transactions through SAP. • TPM (total productive Vehicle Dispatch Section requirements of • Large network of
• DTL (daily transport logistics) management) team – linked through SAP. institutional customers workshops – Dealer
supplies for critical high value continuous drive to improve • Efficient security system for • Quick assessment of the workshops and TASS.
items. efficiencies. prevention of any kind of changing market dynamics • Training facilities – for
• Efficient storage facilities – • Automated manufacturing pilferage. and consumer preferences dealer end and TASS
easy storage and retrieval. processes. • Large network of dealers personnel
• Maintenance – technical
capability.
 BCG Matrix
Tata Motors
• Jaguar Land Rover • Passenger
• Municipal Purpose Vehicles
Vehicles • Defence
Automotive Sales Purpose
Components and and Service Finance and
Automotive R&D Vehicles
Equipments Insurance
Star ?

Factory
Software and Insurance broking
Passenger Cars automation Concorde Retail
consultancy and Advisory
Equipments
Cash Cow Dog
Commercial Automotive Engineering and
Vehicle Finance • HCV/LCV • Nano
Vehicles Components design
• MHCV
• Trucks/Buses

Aerospace
JLR Aviation research VALUABLE IMITABLE
Components
 Financial resources × Weak cost structure × The Products  The financial resources
 Differentiated × The employees  The patents
products × Research and
Defence and  The distribution
Defence Municipal Defence due to local resources development costing
Artillery  Highly skilled workforce network
Vehicles Equipment's more than the benefits
Development  The patents it provides in the form
 distribution network of innovation.
VRIO FRAMEWORK
 Financial resources and distribution network provide a
sustained competitive advantage
 The patents are a source of unused competitive advantage RARE ORGANIZATION
 There exists a temporary competitive advantage for  financial resources × The products are easily
employees  The financial resources × The Patents
 The employees provided in the market
 There exists a competitive parity for local food products  The distribution network
 The patents by other competitors.
 Lastly, the cost structure of Tata Motors Ltd is a competitive  The distribution network
disadvantage. Research and Development is also a
competitive disadvantage
Core Competency
R&D
 1,400 scientists and development
officers
 Forums to develop and test
 Durability
 Engine performance
 Safety, design and style, noise
 Hydraulics & instrumentation
 Digital prototyping laboratories.
 Advances in materials and adhesives
technology.
 1st to develop a vehicle powered by
air and solar powers bus
Inorganic Growth
 Acquisition of Daewoo, Hispano and
JLR to expand into various markets
 Merger with Tata Finance
 Joint Venture with Fiat
Leveraging Existing Strength and Core competency
Tata
Steel
New institutions for trade promotion, technology up-gradation, quality enhancement
ACMA: Automotive Component Manufacturers Association
SIAM: Society of Indian Automobile Manufacturers )
Capabilities
Stable cash flows
Management Culture
• Cash rich corporate parent – Tata Sons
 Long-term orientation goals to cater
to sustainable business Strong reputation
 Developing programmes for intensive • Access to capital markets
management development.
Capital Equipment Manufacturing division
Emerging Markets • Tooling development capabilities of global standard.
 Very Strong presence in BRICS Apprentice Trainee Course
countries and other emerging • Ensuring stable source of skilled manpower.
markets
 55% exports to emerging markets Kaizen & TPM team
• Continuous drive to improve efficiencies.
How did TATA create Location
Automated manufacturing processes.
initial resource  Manufacturing labor cost is 8-9% of
complement to overcome Distributed manufacturing
the disadvantage of
sales compared to 30-35% of sales in
developed countries • Assembly units at South Africa, Thailand, Bangladesh,
being newcomers in
 Higher bargaining power with Brazil etc.
passenger car business
suppliers because it is a local Capacity Utilization
manufacturer • Mercedes Benz cars make use of Tata Motors paint
 Part of the larger Tata Group shop facilities
 Procurement of all steel requirements from Tata Steel
Tata Tata  Integrating the technological capabilities of TCS
TCS 
Motor Cummins Partnering with Cummins to build Diesel Engines
 Efficient production and inhouse capabilities due to
backword integration
 Adopting technology from acquisition of Jaguar Land Rover

SW Analysis
Strength
Diversified Portfolio - Tata’s product portfolio
is broad and well-diversified. The well-
diversified automobile portfolio helps them
bring revenue and income stabilization. This
stability develops confidence for the investors
in Tata Motors.
Stabilized Earning - Stabilized profit has been
earned. Tata has a strong method of governing.
Tata Motors acquire those companies which
are similar in the management structure. They
only follow this policy, as they have confidence
in their policy objectives of management.
Brand Recall - TATA is a well-known brand in
the country of origin and in neighboring
countries such as Bangladesh, Pakistan, etc.
Employees strength - It employs a large
number of people. More than 82,797 workers
work under Tata Motors.
Internal Analysis: Tata Motors
Priority Matrix
Weakness
2
High
Unable to establish Foothold - Tata has no
foothold for luxury cars in the Indian Market.
Its brand is recognized for commercial vehicles 1 4
and low-cost passenger cars.
3
Uniqueness to Company
Medium
Weak Marketing Policy - A firm’s power lies in
a solid marketing strategy. It’s the way a firm
can know their customer’s demands and 5
produce the products accordingly. This also
helps to connect with customers and educate
them about the value they expect to offer. The
TATA lacks a clear marketing strategy for
Low
promoting its company worldwide.
Narrow Domestic Market - Tata has no
foothold for luxury cars in the Indian Market.
Its brand is recognized for commercial vehicles Low Medium High
and low-cost passenger cars.
Importance to Customers
Limited its domestic market presence - Tata 1 Focus on New Product Development 4 Customer Focus
has not marked its presence in too many
countries. Tata Motors must try to tap
international markets. 2 Expanding International Business
5 Organisation Efficiency
3 Mitigating Cyclicity and Cost Management
 The company is aiming at maintaining and expanding their
TATA MOTOR: Strategic Goal market share in the electric vehicle space in India for
personal vehicle business
Top 3 areas contributing to E-
Journey So far
According to Transport Ministry, vehicle transition
nearly 6,00,000 registered electric
2019 Union Cabinet clears Rs 10,000 crores FAME II vehicles run in India Uttar Pradesh (1,39,000)
scheme
Delhi (76,000)
Maharashtra (34,630)
2017 NITI AAYOG Roadmap
Installed base of electric vehicles in
India
2015 Second Automotive Mission plan 2016-26
launched

FAME policy launched in April – Faster Adoption and

2015 Manufacturing of (Hybrid &) Electric vehicles

Number of EVs and Hybrids sold under FAME

2012 NEMMP 2020 launched – EV industry got a major
policy boost
0.9% 70.76 % 19.2 % 9.14%

2010 MNRE incentive scheme for EV

Buses 3 Wheelers 4 Wheelers 2 Wheelers
2300 3,84,000 1,03,685 52,622
2005 First Automotive Mission plan 2006-16 launched

Source: Indian EV Story – Innovation Norway, 2018

E-Vehicles opportunity landscape in India

Fame II Phase

10 lakh E-2W
Urban E-Vehicle India ranks #3
population to registration as an
touch 40% by growth: 16% 5 lakh E-3W
importer of
2031 (2009-17) crude oil
55,000 E-4W

7,000 E - Buses

Big Boost to India

E-Vehicles in expected to grow at a CAGR of over 37% by FY2023

Venture intelligence says, PE-VC investment in the EV space was $23 million in 2018
compared to $3 million in 2017
Niti Aayog predicts India’s vision of mass conversion to EVs will create a $300 billion
domestic market for EV batteries by 2030. This could account for 2/5 th of global battery
demand
A full switch to EVs could impact up to 5.6 million jobs by 2025 by creating a specialized
workforce
Market Opportunities by 2026
 Internal Analysis: Tata Motors
Maximize Shareholder’s value
Financial

Revenue Growth Improvised New product offering with Better manufacturing and
Strategy Productivity Strategy focus on Technology capacity utilization

Be the first mover in EV industry

(India) with max. market share
Customer

Better infrastructure Initial PR and Enhanced brand Improved After Partnerships with
Flexible Solutions in identity
for experience incentivization Sales service Gov. initiatives
EV space
Internal Business

Operations Management Processes Customer Management Processes Innovation Processes Regulatory & Social Processes
Improve operations from the • Anticipate customer needs • Innovate the product offerings • Ethically conduct business within
following aspects: • Improve experience • Undertake R&D Gov norms
• Supply • Improve after sales service and • Design & Develop a product based • Operational inputs & outputs do
• Production complaint registration on pain points of customers no harm to the environment
• Distribution • Reskilling of workforce • Launch the product • Employment & community

Develop Human Capital Develop Organization Capital

Learning &

Develop Information Capital

Growth

- Improve the quality of training - Improve technology infrastructure - Alignment of employees

- Attract & retain quality employees - Develop infrastructure considering - Maintain high level of motivation by
- Ensure employee career planning the proper leadership
- Reskilling of employees with new tech. new market and the current - Ensure a cultural balance
scenario
 Balanced Score-card
FINANCIAL
Objective Measure Targets Initiative
Increase sales by % Quarterly/ Yearly Revenue 6% Differentiated experience centers for better awareness
Increase market share % change in market share 8-10% Opening new sections for EV display

Increase Profitability Profit Margins, ROI 20% Increasing sales promotions and reducing payment hassles

CUSTOMER
Objective Measure Targets Initiative
Increase Customer Satisfaction Customer Satisfaction Index >97% Reskilling staff in accordance to EV knowledge and mandates
Increase Customer Loyalty % increase in number of customers 3-4% Reward Programme to retain customers and enjoy value added
registering for loyalty programme services, after sales

Objective
Data Driven Product Diversification
Increased focus on modular efficiency
Improve Experience of customer
INTERNAL PROCESSES
Measure Targets
New technologies updation Basis of R&D (updates)
Inventory turnover(days) Reduce by 5%
Easy payment and Premium in-store feel Luxury environment
Initiative
Add new updates to products to cater to developing needs
Optimization of inventory management
Lesser Waiting time, More delivery and payment options

PEOPLE
Objective Measure Targets Initiative
Increase Employee Satisfaction Employee attrition rate Reduce by 5-10% Addressing issues faced by employees
Employee Upskilling Number of training sessions 2 times a quarter Inclusion in the decision making process

Improve Employee Productivity and Productivity Increase by 30% Robust Benefits and unique services package
Engagement