2. INDUSTRYSIZE The industry accounts for 7.1 per cent of the country's Gross Domestic Product (GDP).
The Two Wheelers segment with 80 per cent market share is the leader of the Indian Automobile market
owing to a growing middle class and a young population.
The Passenger Vehicle (PV) segment has 14 per cent market share. India is also a prominent auto exporter
and has strong export growth expectations for the near future.
April-March 2017 exports of PV and Commercial Vehicles (CV) registered a growth of 16.20 per cent and
4.99 per cent respectively, over April-March 2016. In addition, several initiatives by the Government of
India and the major automobile players in the Indian market are expected to make India a leader in the 2W
and Four Wheeler (4W) market in the world by 2020.
AUTOMOBILE SECTOR
TWO-
WHEELERS
MOPEDS AND
ELECTRIC
SCOOTERS
SCOOTERS
MOTORCYCLES
PASSENGER
VEHICLES
PASSENGER
CARS
UTILITY
VEHICLES
MULTI-
PURPOSE
VEHICLES
COMMERCIAL
VEHICLES
LIGHT
COMMERCIAL
VEHICLES
MEDIUM &
HEAVY
COMMERCIAL
VEHICLES
THREE-
WHEELERS
PASSENGER
CARRIERS
GOODS
CARRIERS
Service Sector
53%Other Industry
18%
Agriculture
15%
Automobile
7%
Auto companies
7% GDP
Service Sector Other Industry Agriculture Automobile Auto companies
3. 0%
5%
10%
15%
20%
25%
2011 2012 2013 2014 2015 2016
17% 18% 18%
20% 20%
22%
Number of automobiles sold
Number of automobiles sold
Fuel economy and demand for greater fuel.
Sturdy legal and banking infrastructure
Increased affordability, heightened demand in the small car
segment and the surging income of the Indian population
India is the third largest investor base in the world
The Government technology modernization fund is
concentrating on establishing India as an auto-
manufacturing hub.
Availability of inexpensive skilled workers
Industry is perusing to elevate sales by knocking on doors
of women, youth, rural and luxury segments
Market segmentation and product innovation
Factors determining the
growth of the industry
4. PORTERS
FIVE
FORCE
MODEL
Bargaining power of buyers
* Increased awareness
among customer has
increased expectations.
* Product differentiation via
new features, improved
performance and after sales
support is critical.
Bargaining power of
suppliers
* Low power due to
intense competition.
* Low switching cost.
Competition Rivalry
* Competition is high.
* Low customer loyalty.
* High cost.
* New multinational
players entering the
market.
Threat of Substitute
* Low switching cost
* Product differentiation
* Threat of forward
manufacturing.
Threat of New entrants
* Low threat
* Requirement of high
upfront capital
* Brand equity
* Legislation and
government ploicy
PORTER’S FIVE FORCE MODEL
5. Industry: Automobile
House: TATA
Registered office: Bombay House,24, Homi Mody
Street, Mumbai 400001 ,Maharashtra
Chairman: N Chandrasekaran
Managing Director: Guenter Butschek
Secretary: H K Sethna
BSE Symbol: 500570
NSE Symbol: TATAMOTORS
Bloomberg: TTMT IN
ISIN Code: INE155A01022
Market Capital: 1214852
Company Snapshot
6. • * GEOGRAPHICAL
• Indian specification and adjust to the Indian roads.
• PSYCHOGRAPHIC
• A utility car for family purpose.
• DEMOGRAPHIC
• Middle income group.
• Ride quality is improved so any age or gender can use it
with ease.
Segmenting
•Tata Motors has full market coverage in
vehicle market as they cover market through
differentiated marketing.
•Middle income families.
Targeting
•Zest is positioned as affordable
family car.
•Fuel efficient car
Positioning
SEGMENTING TARGETING POSISTIONING
• Tata Motors is one of
the most established
company in automobile
sector in India
Strength
•Limited international presence
as compared to international
car manufacturers
•2. Controversies like Singur
plant for Nano etc hurt Tata
Motors
Weakness •Launched Zest sedan
before Bolt hatchback
•Tata’s image of
reliability and growing
service network.
•Increasing tech
savviness.
Opportunities
Threat
* Increasing fuel costs
* Competition
* Competitive products
offering same level
features at a lesser price
SWOT ANALYSIS OF
TATA MOTORS
8. News
10th November, 2017: Tata Motors Q2 profit seen up 66% despite potential Rs 400-cr loss.
8th November,2017: Tata Motors employees opting for the voluntary retirement.
4th October, 2017: Tata Motors launched Electronic Stability control(ESC)
3rd October: Tata Motors ramping up production across segments
14th August,2017: Tata Motors appoints HUL’s P.B. Balaji as CFO
7th March, 2017: Two-seater designed at Italian studio
ANALYSIS OF COMPETITORS
Maruti Suzuki 47%
Hyundai 17.30%
Mahindra & Mahindra 7.50%
Honda 5.40%
Toyota 4.60%
Renault 4.50%
Tata motors 3.50%
Ford 2.60%
Others 7.60%
COMPANIES MARKET SHARE
0%
50%
Market Share
Market Share
Presently, Maruti Suzuki is leading in the automobile sector with a market share of 47%.
The other Tata motors competitors are as follows: Maruti Suzuki (47), Hyundai (17.3),
Mahindra & Mahindra (7.5), Honda (5.4), Toyota (4.6), Renault (4.5), Tata motors (3.5),
Ford (2.6), & Others (7.6).
9. Strength
1. Powerful diesel
engine
2. Art technology like
touch panels and
Harman speakers.
3. Reliable TATA image
Threats
1. Strong Taxi image
has stopped itself to
portray as a youthful
brand
2. Unable to capture a
large share of the
market
Weakness
1. Launched Zest sedan
before Bolt hatchback to
give the impression of Zest
being a premium car.
2. Increasing tech savviness
of urban middle class with
higher disposable income.
Opportunities
Segment
Growing urban middle
class
Target
Young working
professionals in urban
areas
Positioning
Dependable, price-
efficient sedan with
high-tech features for
tech savvy young
people.
SEGMENTING TARGETING
POSITIONING
SWOTANALYSIS
OFZEST
10. MARKETING MIX
PROMOTION
P
R
I
C
E
PRODUCT
Name: ZEST
USP: Advanced safety and next-gen
technologies.
Features:
1. Interior
2. Exterior
3. Design
4. Performance
Tata Motors, the home-grown auto major, launched its sub-
compact sedan - the Zest in India at a starting price of Rs 4.64
lakh (ex-showroom).
Tata Motors has offered the car (ZEST) with two engine options:
1. 1.2-litre MPFi turbocharged Revotron petrol engine
2. 1.3-litre multijet diesel units.
PLACE
TATA Motors follows a four level distribution
channel. It sells its products mainly through its
outlets or direct booking from its respective
site.
The promotion mix adopted
by Zest comprises of the 5
elements, which includes
Advertising, personal selling
through its portals and
Sponsorship with IPL team,
Royal Challengers Bangalore.
11. • TATA MOTORS-ZEST, is a
compact sedan produced by the Indian car
company Tata Motors. The car was revealed at
Indian Auto Expo 2014 along with its
hatchback version, the Tata Bolt.
• The car was launched in Indian markets on 12
August, 2014. While the car was at its
introductory phase, it made a steady growth
by selling Avg. units/Months = 2297 Units (As
of Nov. 2016).
• In 2015, we could see there was a steady
increase in the growth, as the product
attracted a lot of customers because of its
product design, development and production.
• In 2016, the product had reached its maturity
stage. However, 2017 witnessed, a decline in
the growth of product with launching of new
products and more attractive features within
the same brand value and price range.
PRODUCT LIFE CYCLE
I
N
T
R
O
D
U
C
T
O
R
Y
G
R
O
W
T
H
M
A
T
U
R
I
T
Y
D
E
C
L
I
N
E
2014 2015 2016 2017
12. -12
-10
-8
-6
-4
-2
0
2017 2016 2015 2014 2013
Column1 -3.88 -0.32 -10.58 -8.69 -0.29
GROSS PROFIT MARGIN
Reasons:
1) Every TATA Car is making loss:
Tata Motors' recent increase in domestic sales and the
success of cars like Tata Tiago and Tata Tigor has indeed
helped Tata Motors to come back on positive growth
trajectory but is still away from being a profit making entity
for Tata Sons. The company is losing money on every
passenger vehicle that's being manufactured. Economic
Times quotes N Chandrasekaran saying "In passenger cars,
our cost structures are out of whack. Every single car and
model is losing money. It's important to pick up volumes
and try to become profitable.“
2)Technology Disruption:
Tata Motor’s performance in the domestic car business
continues to be bad. Karl Slym, the company’s managing
director said that Tata Motors is a ‘products’ company.
There are high growth segments in the market where the
company currently does not have a product. The company
will announce new launches and variants for the car
business (which includes a refreshed version of the Nano)
sometime by the end of June, 2013.
Interpretation:
After evaluating the profit and loss account we can
see that the Gross profit margin for 5 years is in
negative. A negative gross profit margin occurs
when costs exceed revenue. There are a few
possible reasons why a company might experience
a negative gross profit margin.
13. 2017 2016 2015 2015 2014
Series 1 -5.59% 0.55% -13.05% 4.50% 0.97%
-5.59%
0.55%
-13.05%
4.50%
0.97%
-15.00%
-10.00%
-5.00%
0.00%
5.00%
10.00%
Interpretation:
We can see that there has been a negative fall in the
year 2017(-5.59%) and 2015(13.05%) as it is reflecting
which indicates that the firm’s expenses had
increased than its revenue.
Reasons
1. In 2015: Tata Motors Ltd posted the lowest profit
in nine quarters in the three months ended 31
March as demand dropped for its luxury Jaguar
and Land Rover (JLR) marques in China, the
world’s biggest automobile market, and its
Indian operations posted a loss.
2. Net profit fell (13.05%) to Rs 4738.95 crore,
missing analyst estimates, on a 4% increase in
net sales from a year ago, the Mumbai-based
company, India’s biggest automobile maker by
revenue.
3. Tata Motors was hit by slowing demand in China,
where sales of its Jaguar-Landrover (JLR) unit
dropped 20% to 24,363 units in the three months to
March from a year ago. The China region’s
contribution to the company’s sales shrank to 23.5%
in the quarter from 29.6% a year ago.
NET PROFIT MARGIN
14. 0
10000
20000
30000
Property, land, Goodwill Non-Current
Investments
Deferred Tax Assets Other Non-Current
Assets
2017 27375.42 99.09 15307.24 724.58 2442.21
2016 26663.25 99.09 15217.48 799.63 2034.86
2015 25969.26 99.09 15208.16 647.24 2082.09
27375.42
99.09
15307.24
724.58
2442.21
26663.25
99.09
15217.48
799.63
2034.86
25969.26
99.09
15208.16
647.24
2082.09
2017 2016 2015
Interpretation:
• After evaluation of the balance sheet we can see that has been a growth of Rs.5229.65 crores; compared to
last year.
• Upon further evaluation we can see that there has been an increase in plants and land by Rs.712.17,
compared to last year; which indicates that the company has its capital therefore planning to increase its
production.
This increase in fixed assets indicate that the company is doing an effective job of generating sales with a
relatively small amount of fixed assets.
FIXED ASSETS
15. 0
0.1
0.2
0.3
0.4
0.5
0.6
2017 2016 2015 2014 2013
Column1 0.58 0.6 0.42 0.35 0.42
0.58 0.6
0.42
0.35
0.42
Working Capital
0.8
0.56
0.99
0.61 0.62
2017 2016 2015 2014 2013
Debt Equity Ratio
Interpretation:
1. We can see that the company always had a debt- equity ratio which
is less than 1, which means that that the portion of assets provided by
stockholders is greater than the portion of assets provided by
creditors.
2. Creditors usually like a low debt to equity ratio because a low ratio
(less than 1) is the indication of greater protection to their money.
However, in some cases stockholders like to get benefit from the
funds provided by the creditors therefore they would like a high debt
to equity ratio.
WORKING CAPITAL
Interpretation:
1. A ratio less than 1 is considered risky by creditors and investors
because it shows the company isn’t running efficiently and can’t
cover its current debt properly.
2. It is a strong indicator that there will be liquidity problems in the
future.
DEBT-EQUITY RATIO
16. Year Mar '17 Mar '16 Mar '15 Mar '14 Mar '13
Consumption of Raw
Materials
27,654.40 24,997.40 22,155.23 20,492.87 27,244.28
Purchase of Traded Goods 3,945.97 4,101.97 5,765.24 5,049.82 5,864.45
Increase/Decrease in
Stocks
-251.43 10.05 -878.82 371.72 -143.6
Power & Fuel -- -- -- -- --
Employees Cost 3,558.52 3,188.97 3,091.46 2,877.69 2,837.00
Direct cost 34,907.46 32,298.39 30,133.11 28,792.10 35,802.13
Depreciation 2,969.39 2,329.22 2,603.22 2,070.30 1,817.62
Exp. Capitalized -941.55 -1,034.40 -1,118.75 -1,009.11 -953.8
Other Expenses 8,899.05 8,857.83 8,517.86 7,416.27 8,199.41
Interest 1,590.15 1,592.00 1,611.68 1,337.52 1,387.76
Exceptional Items -338.71 -271.84 -403.75 -539.86 -425.87
Tax 59.22 -4.8 764.23 -1,360.32 -126.88
Indirect cost 12,237.55 11,468.01 11,974.49 7,914.80 9,898.24
12,237.55
11,468.01
11,974.…
7,914.80 9,898.24
34,907.46
32,298.39 30,133.11 28,792.10 35,802.13
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
40,000.00
Mar '17 Mar '16 Mar '15 Mar '14 Mar '13
Direct and Indirect Cost
Indirect cost Direct cost
Interpretation:
• When a company determining the price of a product, it’s obvious that they need to charge more than the total cost of
producing it. But production costs go beyond the materials and equipment.
• We also need to factor in workers’ salaries, marketing campaigns, overall company maintenance.
• After taken all costs together, these expenses make up the direct and indirect costs of running your
DIRECT AND INDIRECT COST
17. Recruitment can be defined as searching for
and obtaining a pool of potential candidates
with the desired knowledge, skills and
experience to allow an organization to select
the most appropriate people to fill job
vacancies against defined position descriptions
and specifications.
• Job Posting
• Skills database
• Referrals
• Job Enrichment
• Pipeline
Internal
• Advertisement
• Placement Agencies
• Internships
• Job portals
• Campus Hiring
• Head hunting
• Boomerang
External
There are mainly two recruitment strategies followed
by TATA MOTORS which are as follows:RECRUTIMENT &
SELECTION
Online Test
Selection
based on CV
Personal
Interview
Selection is the process of picking or choosing the right candidate, who is most
suitable for a vacant job position in an organization. In others words, selection
can also be explained as the process of interviewing the candidates and
evaluating their qualities, which are required for a specific job and then choosing
the suitable candidate for the position.
18. Induction
Informal
* This is an introduction in which a
new entrant is informed about the
job and organization.
* It is generally carried out by the
medium and small-scale units.
Supervisory
* Conducted by the immediate job
supervisor.
* Briefed about the department
and introduction to the colleagues.
Buddy
* Assigning of responsibilities.
* Meetings with colleagues and also
supplies him with relevant
documents/literature regarding rules,
regulations and other details of the
organization.
Formal
Formal induction is a planned program
carried out to integrate the new entrant
into the organization. This is usually
carried out by the large size organization.
Reporting
and
Breakfast
BEST(Busine
ss Excellence
Strategy)
C & B
Presentation
Payroll and
Tax Session ISMS)
Form filling
Lunch
Keepers of
Flame
Quality
Talent
Managemen
t
Talent
Acquisition
Safety
presentation
Documentati
on
Bank details
INDUCTION
PROGRAM
One such example of TATA
MOTORS induction program:
20. Pros:
* Healthy working
culture.
* Amiable environment.
* The extensive training
period along with
exciting.
* Campus programs like
Engineers training
programs, Management
programs, etc.
* Stable set of
responsibilities.
Cons:
* As TATA is itself a big
ship with more than ---
employees working as of
2017, which gives less
scope for growth.
* No Work-Life Balance
* Daily work targets are
not assigned.
Organization culture is a system of shared assumptions,
values, and beliefs, which governs how people behave in
organizations. These shared values have a strong
influence on the people in the organization and dictate
how they dress, act, and perform their jobs.
* It has huge volumes and vast product portfolio which
let the employee explore sea of knowledge within the
organization.
* It has open work culture and gives extensive training
period (on the job).
* People working are helpful which make the fresher’s
motivated to work.
* It gives good learning, vast exposure and good salary.
CAREER PLANNING
O
R
G
A
N
I
I
Z
A
T
I
O
N
A
L
CULTURE
