The document provides an analysis of Tata Motors, an Indian automotive company. It includes a SWOT analysis, Porter's Five Forces analysis, and data on Tata's market share and sales from 2010-2014. The document recommends that Tata Motors improve quality control across production processes according to international standards. It also suggests collaborating with Jaguar and Land Rover, which Tata owns, to develop new designs and technologies using their expertise in luxury vehicles.
1. Content page:
1. Source problems
……………………………………………………………….. 2
2. Secondary problems
…………………………………………………………... 2
3. Analysis
…………………………………………………………………………
.. 3
3.1 SWOT Analysis
…………………………………………………………….. 3
3.2 Porter 5 Forces Analysis
…………………………………………………. 4
3.3 Data Analysis
……………………………………………………………….. 5
4. Criteria of Evaluation
…………………………………………………………... 7
5. Alternative Strategies
………………………………………………………….. 8
6. Recommendations
……………………………………………………………… 10
7. Justification of Recommendations
………………………………………….. 11
8. Implementations
………………………………………………………………… 12
9. References
………………………………………………………………………..
13
1. Source Problem
Tata Group is a biggest company in India and the headquartered
office is set in Mumbai. Tata Motor is one of the subsidiaries
which is belong to Tata group, and Tata Motor is engaging the
2. automotive business. Furthermore, they possess numerous
different kinds of cars or vehicles which provide in local and
international market, such as commercial, passengers, trucks
and military. On the other hand, the major problems of Tata
Motor is about the management inside their organization.
2. Secondary Problems
According to the news, that Tata Motor faced the serious issue
that Tata Nano has burned and flamed on the road (Mishra,
2010). In this reason, that could directly lead to the company
income and sale decreased and also affect to the company fame.
Moreover, as this influence, Tata might create the public stigma
about that the company provide a poor man’s car, although, Tata
would like to introduce their products as an affordable, all-
weather, family car (IOL Motoring, 2012).
Tata only owns a traditional design of vehicles. Currently, Tata
Motors tries to retrieve the first position of car supplier in the
domestic market, and they are also looked for the international
market by applying the new programme 2020 which consist of
new technical vehicles. However, there could own a high risk
for Tata reaches a goal because of the global competition.
3. Analysis
SWOT Analysis
Strength
Weakness
· The biggest automobile industry in India. In the world, it is
17th of motor vehicle manufacturing, 4th of truck
manufacturing, and 2nd of bus manufacturing.
· The first company introduces the budget car - “Tata Nano” and
with low fuel consumption.
3. · Huge number of employees, and multiple line of products.
· Strong marketing, expand to other countries. Moreover, the
productions and assembly plants extent to South Africa,
Jamshedpur, Thailand, Argentina and United Kingdom.
· Corporate Social Responsibility – Tata Motors
· Strong team management with experience of CEO, CFO and
COO
· Lack design of vehicles – conventional fuel of vehicles.
· The raw materials are uncontrollable.
· Tata Motor does not own the luxury car segmentation in the
local market, even though, they purchase the Jaguar and Land
Rover.
· Weak market skills
· Invest on Tata Motor share which with a low returns.
Opportunity
Threat
· India government policy supporting
· Tata Motor can make the investment in luxury car.
· Expand the sell market to other country, such as China,
Vietnam.
· As the world cheapest car, Tata Motor can go to the countries
where people have low income.
· Come out with a green environment strategy.
· Tata Motor can learn the knowledge and experience from the
partners who are Jaguar and Lan Rover.
· Bad reputation, such as Tata Nano got flame.
· Cost of produce and products could be increase, as the
material cost rises also.
· Economic slowdown.
· Competitors market, as other companies also provide a similar
kind of budget car with a good quality.
· Strong luxury market competitor, such as Toyota, Mercedes-
Benz, Ferrari, etc.
4. Porter 5 Forces
Threat of new entrants
· High risks for the small car industry.
· Technology and knowledge of cars are also changing, based on
the new generation
· Customers’ income increase as the economy growth up.
· Several companies come to join the small car market, such as
Hyundai, Nissan, etc.
· Consumers are more likely pay attention on another segment,
such as electric car “Orevo” which come from Ajanta
Manufacturing Limited.
Threat of substitute products/services
· Another car manufacturers try to protect their market share in
this market segmentation.
· During buying the products, consumers would consider in
three kinds of costs, such as the cost of vehicles, maintenance
cost, and the resale cost.
· Another substitutes already existed, for example, Alto, Chevy
Spark, etc.
· Based on customers’ views, they could exchange another new
car with Tata Motor which could find in a small car segment.
Bargaining power of buyers
· Customers focus on the products prices.
· More different kinds of substitutes for customers choose.
· Currency values change in hours.
· All products should be based on the consumers demand.
Bargaining power of suppliers
· Numerous of car suppliers.
· The raw materials suppliers also take main role in this value
chain process.
· Especial steel suppliers own an important role as steel is the
main material to produce the car, and the price of steel are
constantly rising.
Intensity of competitive rivalry
· High competitor local market in India as the automobile trade
is increasing rapidly, and all manufacturers have their own base
5. and sale market.
· Another international car manufacturing also one of the
competitor with Tata Motor, such as Hyundai, Maruti, etc.
Data Analysis
As can be seen the figure 3.3, there illustrates the market share
of commercial vehicles (CV) and passenger vehicles (PV) from
2010 to and 2014 in the domestic market (Tata Motor, 2014). In
additional, the other graph shows about the sale income of Tata
Motor from 2013 to 2014. From the market share graph, the sale
of commercial vehicles increased from 530 thousand in 2012 to
536 thousand in 2013, but from 2013 to 2014, the commercial
dropped sharply from 536 to 378. Hence, there also might affect
to the CV local market share from 2013 to 2014 which were
declined from 59.6% to 54.1%. For the passenger vehicles, it
was decreased stable from 2012 to 2014, from 333 thousand to
142 thousand, based on the diagram. In this reason, that lead to
the PV market share reduced from 13% in 2012 to 5.8% in 2014.
According to the altering sale of both commercial and passenger
vehicles in 2013 and 2014, the volume growth of Tata Motor
also decreased of 29.5% and 38.1% of each categories.
Moreover, the vehicles export also were influenced about fall
2% from 2013 to 2014.
Generally, there was clearly demonstrated the volume growth of
Tata Motor which decreased 30.2% from 2013 to 2014.
6. 4. Criteria of Evaluation
Target and Time Frame
Possible Attributes
Possible Indices
Year One
Year Two
Year Three
Growth
Sales
Unit sales
₹290,000 crores
₹300,000 crores
₹310,000 crores
Efficiency
Profit
Profits/Sales
₹15,000 crores
₹15,500 crores
₹16,000 crores
Utilization of Resources
ROI
ROE
0.16
0.27
8. ₹35/hour
<4% turnover
Contribution to society
Taxes paid
Green Environment
5,601.000
10 crores
6,5002.000
12 crores
7,503.000
15 crores
Figure 4: Tata Motor goal in next three year
Refer to the figure 4, Tata Motor illustrates their aim which to
reach those goals in next three years. As can be seen the figure,
the organization regards to keep all features continuous growth
up. Furthermore, they pay attention on the corporation social
responsibility, such as make a green environment, stress on tax
payment, and look on employees. For the employees, try to
increase the wage rate when company can keep earn and more
money. Moreover, Tata Motor needs to supply a good quality
products and services for customers, then they might become a
Tata Motor loyalty customers.
5. Alternative Strategies
Tata Motor has to establish one particular department which is
focused on their employees’ quality about the knowledge and
skills. Therefore, this particular division could ask the
employees have a retraining during a mid-year, for the purpose
of guarantee all staffs ability in controllable. Moreover, Tata
Motor might provide a course for new employees, or any staffs
want to improve their self.
9. Currently, Tata Motor quality standard might accord to the local
and global market requirement. As the managements of one
firm, every steps of production process should be concerned on,
to ensure all raw materials are the best quality through the
specific examination. Besides that, all test should be assisted by
the advanced machine, and they must follow the Total Quality
Management guidelines in hardheartedly by the support from
director. Based on those test results, that illustrate the quality
of products in guaranty and safety for use by the customers.
According to the figure 4, there demonstrate the Tata Motor
goal in next three years. Within this goal, the company might
receive the good result in the safety way in both local and
global market. Moreover, they can retake their organization
image based on their plan which is going to do the corporation
social responsibility. Therefore, the management need to lead
the employees to achieve the company goal in the next three
years with a good management strategy.
Tata Motor has signed an agreement to purchase Jaguar and
Land Rover as a partnership company (Carty, n.d.). For both
Jaguar and Land Rover, there supply a luxury car on the world,
hence, they might own a good technical which is useful for Tata
Motor. If Tata Motor would like to invest to the luxury car
market, Tata Motor could learn those knowledge from the
partnership. Furthermore, this technical also help to ameliorate
the current products that is Tata Nano, in addition, Tata Motor
could come out with more new car design, when they apply the
new technical.
For the Tata Motor, there possess a lack of new and
innovational products. Hence, they need to make a move
forward in the products design in a next few years. There could
make a collaboration between the Tata Motor R&D plants and
Jaguar and Land Rover, to create a unique design and all
research might look on the new technical and technology.
Furthermore, the firm can collect information and ideas from
current staff through the suggestion basket or online source
also. This strategy also help the employees to feel more
10. confident and existed during the workplace.
6. Recommendation
Tata Motor quality standard might accord to the local and
global market requirement. As the managements of one firm,
every steps of production process should be concerned on, to
ensure all raw materials are the best quality through the specific
examination. Besides that, all test should be assisted by the
advanced machine, and they must follow the Total Quality
Management guidelines in hardheartedly by the support from
director. Based on those test results, that illustrate the quality
of products in guaranty and safety for use by the customers.
Tata Motor has signed an agreement to purchase Jaguar and
Land Rover as a partnership company. For both Jaguar and Land
Rover, there supply a luxury car on the world, hence, they
might own a good technical which is useful for Tata Motor. If
Tata Motor would like to invest to the luxury car market, Tata
Motor could learn those knowledge from the partnership.
11. Furthermore, this technical also help to ameliorate the current
products that is Tata Nano, in addition, Tata Motor could come
out with more new car design, when they apply the new
technical.
For the Tata Motor, there possess a lack of new and
innovational products. Hence, they need to make a move
forward in the products design in a next few years. There could
make a collaboration between the Tata Motor R&D plants and
Jaguar and Land Rover, to create a unique design and all
research might look on the new technical and technology.
Furthermore, the firm can collect information and ideas from
current staff through the suggestion basket or online source
also. This strategy also help the employees to feel more
confident and existed during the workplace.
7. Justification of Recommendations
Normally, to solve a products quality problems that will discuss
intact quality control scheme. The reason to choose this
management program as this consist of wider area about the
worldwide norm in control of quality, such as ISO 9001 quality
management system. Furthermore, this program could keep the
steps process in the safety way. Within this scheme, Tata Motor
might make the quality of products in sustainable approach.
Another potential when apply this strategy that Tata Motor
might advance in the new nations which not ask the high safety
requirement. In additional, the company can increase their sale
income with the products which are already enhanced.
Retraining could be not a good choice for the Tata Motor as
training just to provide an additional course and find out the
person who might take a management role in the company. The
main problems for the automobile manufacturing is the limited
12. and lack of raw materials from the suppliers. Besides that, the
other issue exists in the company that is the human failure
during the productions process. Therefore, the risk for the
retraining strategy is the staffs might unhappy when they work
overtime as the retraining class without extra payment.
Both exchanging the technical or technologies with partnership
and discover the new car design which would be a best
suggestion for Tata Motor. This opportunity is for two different
kinds of automobile manufacturing work together. The potential
when collaborative between Tata Motor employees and Jaguar
and Land Rover expertise that could lead to the satisfying
results as they could encourage innovativeness together.
Furthermore, Jaguar and Land Rover are as the high class car
manufacturing, they can give the technologies and technical to
support Tata Motor.
8. Implementation
First of all, Tata Motor has to establish the standard of quality
during the productions process which match to the global
requirement based on the intact quality management. The main
step of this program is checking clearly the raw material which
is the major material for produce the vehicles. In additional,
this process should be run under the basis of Total Quality
Management guidelines and the support from director. After
that, the products will be published local and global after the
goods already pass all test and satisfy the standard. Moreover,
Tata Motor might get the software support from the partnership
Jaguar and Land Rover. Besides the software support, Tata
Motor can get the high quality employees and training from the
partnership.
Nevertheless, there could have barriers when Tata Motor applies
the strategies, such as a new market preference and requirement.
13. If Tata Motor follows the technology development that could be
considered as barrier, as it affect to the automobile business
policy. Thus, the program management should be fitted to the
current change, in additional, the company needs to contend
with other competitors and make the innovative improvement.
Nowadays, as the R&D team, they need to do research on the
new generation customers on the global market. Furthermore,
this research should be done under the collaboration of Tata
Motor and partnership – Jaguar and Land Rover, to discover the
new products, based on the new market requirement.
9. References
BBC. (2013, August 22). Tata Nano: World's cheapest car gets
image makeover. Retrieved June 3, 2015, from
http://www.bbc.com/news/world-asia-23792196
Carty, S. S. (n.d.). Tata Motors to buy Jaguar, Land Rover for
$2.3B. Retrieved June 6, 2015, from
http://abcnews.go.com/Business/story?id=4528213
Chang, R. S. (2008, January 10). Tata Nano: The World's
Cheapest Car. Retrieved June 3, 2015, from
http://wheels.blogs.nytimes.com/2008/01/10/tata-nano-the-
worlds-cheapest-car/?_r=1
France-Presse, A. (2010, August 27). Tata Nano catches fire in
latest burning incident for ultra-cheap car. Retrieved January 3,
2015, from http://news.nationalpost.com/news/tata-nano-
catches-fire-in-latest-burning-incident-for-ultra-cheap-car
Global NCAP. (2014, January 31). Crash Tests Show India’s
Cars Are Unsafe. Retrieved June 3, 2015, from
14. http://www.globalncap.org/crash-tests-show-indias-cars-are-
unsafe/
IOL Motoring. (2012, January 5). Tata boss admits to Nano
mistakes. Retrieved June 3, 2015, from
http://www.iol.co.za/motoring/cars/tata/tata-boss-admits-to-
nano-mistakes-1.1208523#.VXfDoc-qqkp
Marketing 91. (n.d.). Porters five force analysis for Tata Nano.
Retrieved June 8, 2015, from
http://www.marketing91.com/porters-force-analysis-tata-nano/
Mishra, A. K. (2010, May 10). Wheels of Fire: The Burning
Issue in Tata Motors. Retrieved June 3, 2015, from
http://forbesindia.com/printcontent/12992
Priddle, A. (2008, Mar). Tata Buys Jaguar and Land Rover from
Ford. Retrieved January 5, 2015, from
http://www.caranddriver.com/news/tata-buys-jaguar-and-land-
rover-from-ford-car-news
Rodrigues, C. (2010, May). Green strategies. Retrieved June 7,
2015, from http://www.tata.com/article/inside/Green-strategies
SAI Global. (2005). Benefits of ISO 9001 Quality Management.
Retrieved June 6, 2015, from
http://www.saiglobal.com/Assurance/quality-business-
management/Benefits_of_ISO9001.htm
Tata Motors. (n.d.). CSR. Retrieved June 7, 2015, from
http://www.buses.tatamotors.com/about-us/csr.aspx
Page 13 of 13
OUTLINE FOR CASE ANALYSIS AND REPORTS FOR TATA
MOTOR
1.0 Source Problems: (MAJOR PROBLEM) can be taken from
newspaper or any case study
This is a general statement of the underlying, fundamental
problem or core issue. It is important to distinguish between
symptoms of the problem, and the problem itself. Frequently
15. the source problem precedes the current problems in the case.
(one short paragraph)
(medical example: tonsillitis)
2.0 Secondary Problems:
These are more specific, current and observable problems and
derive from the source problem. They frequently are the
problems immediately evident in the case. Do not write three
sections: all problems should be listed under short or long
term. (Three quarters of a page).
(medical example: fever, loss of appetite, cough)
etc. not generating enough profit
List 3 secondary problem which leads to 1 major problem and
explain
Short Term:
Current problems of recent origin, which can be solved within a
period of months without major commitments of capital,
technology, finance or managerial effort.
(business example: overstocking, high prices, labour shortage)
2.1
2.2
2.3
Long Term:
Problems which have existed for years, and which involve long-
term trends in the internal or external environment. They will
reuire solutions spread over a period longer than, say, a year,
and may demand major allocations of capital, technology,
finance and managerial effort.
16. (business example: obsolete products, out-pf-date production
process technology, lack of adequate plant capacity)
2.4
2.5
3.0 Analysis: (SWOT & PESTLE)
Case facts which are crucial to the problems as defined are
called “evidence”. They should not be mere repetition of case
facts, but should rather reflect the processes of evaluation,
synthesis, careful interpretation and insight. The analyst should
“read between the lines”. This might involve the calculation of
financial rations, trend lines, growth rates, etc. in order to
reorganise data to yield not-so-obvious facts. These “new”
facts can be used as case evidence in support of problem
definitions and proposed solutions. Economic, financial and
marketing data should be analysed. Theory, concepts, models
and research evidence should be used as key to open the case.
“Course language” should be integrated with “case language”.
High marks require skilful integrationof concepts and case
evidence. This section should comprise 50% of the report.
(three pages)
4.0 Criteria of Evaluation: Goals (Objectives/Performance
Targets/KPI’S/Decision Criteria), and Their Time Frames. (
Look for past financial reports)
Clear, concise statement of the goals, standards, targets or
objectives that the analyst will use to measure the effectiveness
of alternatives considered. Alternatives are tested against these
criteria to assess their effectiveness in solving the problem.
This is a statement of what you want to accomplish; alternatives
describe how you plan to accomplish it. These are decision
rules or decision criteria. Examples: a 10%return on
investment by 2012; a 25% share of the medium car market
segment by 2011; elimination of industrial strikes for at least a
two-year period. Criteria should look like table 2.3 Some
17. Typical Business Objectives in Hofer’s reference at ECMS.
(half page)
Set target for 3 years, 2016,2017,2018
5.0 Alternatives:
A comprehensive listing of all major feasible courses of action
open to the decision-maker. The analyst should avoid repetition
and duplication. Usually all available options can be reduced to
five or six alternatives. Usually all available options can be
reduced to five or six alternatives. These must be viable,
practical and realistic. They need not be mutually exclusive,
i.e. the analyst may opt for two or even three of these
alternatives in her final recommendations. It is essential to
decide who the decision –maker will be, and the likelihood that
she will take the action recommended by the analyst. These
alternatives must be fully developed into one paragraph strategy
statements as per Hofer and Schendel’s (p42-44) characteristics,
explained in table 2.8 Characteristics of Effective Strategy
Statement in Hofer’s reference at ECMS. (three quarters of a
page)
6 Strategies Statement
Short Term:
5.1
5.2
5.3
Long Term:
5.4
5.5
6.0 Recommended Strategy: Choose 3 strategies (Copy and
paste from 5.0)
This is the action you propose to solve the problem identified in
(1.0) and (2.0) and is selected from the range of alternatives
presented. It must be restated. It is acceptable to cut and paste
18. from section 5.0 (one or two paragraphs)
Short Term:
6.1
6.2
Long Term:
6.3
7.0 Justification of Recommendations:
In this section, the analyst demonstrates why the alternative
selected is the most effective in attacking the problem, and why
the other alternatives were rejected. Evidence (from section
3.0) is used to support the recommendations and to reject the
actions not accepted. It should be shown how and why
recommended action will meet the criteria of evaluation, and
thus solve the problem, and how and why the rejected strategies
will fail or be less effective. Short term solutions should be
related to short term problems and long term proposals to long
term problems.
In this discussion, the analyst should describe e the risks and
opportunities, costs and benefits, and strengths and weaknesses
of each alternative, and thus build a convincing case in favour
of the decision he is recommending. Furthermore, it is essential
to scrutinise all alternatives to ascertain whether the adoption of
a particular solution to solve the problem, will create a new
problem. To earn high marks it is essential to draw on research
evidence or theory to argue for the strategic choice. (one and a
quarter pages)
Compare the total 6 strategies and argue why choose the 3
strategies.
8.0 Implementation, Control and Follow-up:
In this concluding section, the analysis should list the clear,
specific steps to be taken to adopt the proposed solution. What
obstacles may be expected, and how should these be overcome?
What policy or organisation changes are indicated? What
controls are needed to avoid a recurrence of the problem in the
19. future? For example, if the action recommended is to retrench
50 assembly line workers, what union reaction can be expected
and what contingency plans are available to deal with obstacles
that could arise during implementation of decisions? (two
paragraphs)
