...Transitioning to Customer Value Management B Muthuraman, Anand Sen, Peeyush Gupta, DVR Seshadri, and James A Narus Executive Summary KEY WORDS Tata Steel Customer Value Management (CVM) Business Markets Commoditization Spiral Value Creation/Sharing Customer Retention Customer Value Management (CVM) has emerged as an important vehicle for customer retention in business markets. Supplier firms under increasing pressure from relentless competitive forces are seeking to retain and grow the share of business from profitable existing customers as a means of finding a way out of downward spiralling price pressures. While a lot has been written in academics about the importance of CVM, several gaps remain on understanding how a large company actually undertakes this journey. Crafting competitive value chains and focusing on streams of competition are also emerging as important agenda for supplier firms since, increasingly, the end customer is no longer willing to pay for inefficiencies in the value chains. In this context, the challenge for a supplier firm in business markets is no longer restricted to getting its own operations in order, but, additionally, it must ensure that multiple interfaces that exist across the entire value chain all the way until the end customer are streamlined so that the value chain is free of value drains and every meaningful opportunity to create value is exploited. In this paper, the authors present the experiences of the India-based Tata Steel in implementing...
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...OTPR PROJECT ON TATA MOTORS LIMITED Group 1: Raviteja Palanki (14S636) Niharika G (14S628) Souvik Sarkar (14S649) Mahalasa Kini (14S623) Sulagna Kakoti (14S650) Soumya Punyamurthula (14S648) 1|Page Brief Introduction: Tata Motors Limited is India’s largest automobile company, with consolidated revenues of INR 2,32,834 crores (USD 38.9 billion) in 2013-14. It is the leader in commercial vehicles in each segment, and among the top in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is also the world's fifth largest truck manufacturer and fourth largest bus manufacturer. The Tata Motors Group’s over 60,000 employees are guided by the mission “to be passionate in anticipating and providing the best vehicles and experiences that excite our customers globally.'' Established in 1945, Tata Motors’ presence cuts across the length and breadth of India. Over 8 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company’s manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The company’s dealership, sales, services and spare parts network comprises over 6,600 touch points...
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...ASSIGNMENT # 2 OF CUSTOMER RELATIONSHIP MANAGEMENT TOPIC- CRM STRATEGIES OF AND Submitted to :- Mr. Rajan Girdhar Submitted by: Ashutosh Kumar Singh Roll no.- RR1903A15 Regt.- 10902738 INTRODUCTION OF TOPIC The core theme of all CRM and relationship marketing perspectives is its focus on cooperative and collaborative relationships between the firm and its customers, and/or other marketing actors. CRM is based on the premise that, by having a better understanding of the customers’ needs and desires we can keep them longer and sell more to them. There are three parts of application architecture of CRM: Operational - automation to the basic business processes (marketing, sales, service) Analytical - support to analyze customer behavior, implements business intelligence Co operational - ensures the contact with customers (phone, email, fax, web...) To understand the real business scenario about the practice of CRM in Indian automobile industry & than compare it with MARUTI & TATA motors in passenger cars. The automobile industry in India is the tenth largest in the world with an annual production of approximately 2 million units is expected to become one of the major global automobile industries in the coming years. A number of domestic companies produce automobiles in India and the growing presence of multinational investment, too, has led...
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...Knowledge Management By S.Kanakaraj @ Tata Steel Importance of Knowledge – When arisen? Before 21st century the three major problems faced by the industry are Land, Labor and Capital. After 21st century, the fourth factor is increasingly and fast becoming a hurdle or bottleneck for companies to grow. That is "Knowledge", which is at the heart of much of today’s global economy and managing knowledge has become vital for companies success. Knowledge Knowledge can be defined as a fluid mix of experience, values, contextual information and expert insight that provides a framework for evaluating and incorporating new experiences and information. Knowledge is information in action. Knowledge is what people in an organization know about their customers, products, processes, mistakes, and successes. Knowledge - Types Explicit knowledge: It is the visible knowledge available in the form of letters, reports, memos, literatures, etc. Explicit knowledge can be embedded in objects, rules, systems, methods etc. Knowledge - Types Tacit knowledge: It is highly invisible and confined in the mind of a person. It is hard to formalize and therefore, difficult to communicate to others. Knowledge - Types Transformation of knowledge from tacit to explicit form increases its usability and visibility. Capturing the experts Tacit Knowledge that resides within him in the form of Know-how and insights is a very difficult and challenging task. While tacit and explicit...
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...In 2009, a car known as “Nano” was introduced by Tata Motors, the largest automobile company in India. It is cheapest and smallest car in the world. Its features have captured the sight from the whole world. Some people think the “people’s car” is good but some believe in the vice versa. Nano is expected to improve the Indian’s life, boost the economy, invent entrepreneurial opportunities bring prosperity for the urban. Every company nowadays will encounter external organizational environment no matter what industry it involves with. The external environment consists of general environment and task environment which influenced the company’s business directly and indirectly respectively. The dimensions of the general environment includes international, technological, sociocultural, economic, legal-political, and natural while the task environment includes customers, competitors, suppliers and labor market. At here, I will discuss about the success and failure of Nano based on the sociocultural, economics, natural and customers environment. Although Indian economy showed a healthy growth in the recent years, many people still cannot afford to own a car. Ratan Tata believes that, the Nano car, also known as “people’s car” is an idea to provide a safer but affordable car for the lower-middle class families in four members in the developing world. (For further information, see Appendix 1). In 2009, Nano is first launched in India with the promised and lowest cost in the world...
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...TATA Capital Ltd. - Company overview History Tata Capital Limited is a subsidiary of Tata Sons Limited. The Company is registered with the Reserve Bank of India as a Systemically Important Non Deposit Accepting Core Investment Company and offers through itself and its subsidiaries fund and fee-based financial services to its customers. Headquartered in Mumbai, it has registered offices of its subsidiaries in Singapore and London. It is a trusted and customer-centric, one-stop financial solutions partner. It caters to the diverse needs of retail, corporate and institutional customers directly or through its subsidiaries. Core Value: ‘We only do what’s right for you’ (“Karein Wahi Jo Aapke Liye Sahi”) The Tatas are amongst the most respected business houses in the world. Tata Capital aims to bring the trust and expertise of the Tatas to an economically and socially relevant sector like financial services. The essence of brand Tata Capital is encapsulated in our brand proposition – ‘We only do what’s right for you'. The proposition reflects our strong resolve to deliver financial solutions that are ‘right’ for our customers and the society at large. Tata Capital seeks to build strong relationships with its customers and deliver superior and consistent customer experience across all products and touch-points. Vision The most admired financial solutions partner. Mission We will only do what’s right for all our stakeholders, including our employees, customers...
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...Approach to Knowledge Management at Tata Steel Name Institution Table of Contents Introduction 3 Background to Tata Steel 4 Knowledge Management Initiative at Tata Steel 5 Knowledge Management Phases at Tata Steel 5 Tata Steel Knowledge Management Stakeholders 7 Knowledge Transfer Opportunities 7 Tata Steel Knowledge Transfer Strategies and Instruments 8 Tata Steel Knowledge Management Portal 11 Tata Steel’s Knowledge Management Approaches Achievements 11 Conclusion 12 References 13 Introduction Knowledge management has arisen as an essential aspect that business establishments must consider if they hope to enjoy unimpeded success. In fact, it could turn into a bottleneck if not well managed. Schwartz (2006, p. 3) defines knowledge as a malleable combination of expert interpretation, contextual information, values and experiences that offers an outline for appraising and integrating information with new experiences. Essentially, knowledge is the information that the business entity has collected on their successes, mistakes, business processes, and stakeholders such as customers, suppliers and investors (Schwartz 2006, pp. 3-4). Tata Steel is aware of the importance of knowledge management and has developed unique approaches towards the same. McInerney and Koenig (2011, p. 45) points out that knowledge can exist in either of two forms: explicit or tacit knowledge. Explicit knowledge is tangible knowledge that is embedded...
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...Contents Q1. Tata steel has taken various strategies in the SCM to improve the performance of the organization. With reference to the Internet based information, discuss various strategic actions taken by this organization with regards to SCM to improve the finance and non- finance performance. 3 Introduction 3 Basic component Supply Chain Management 3 Plan 4 Source 4 Make 4 Deliver 4 Return 4 Supply chain management for logistic 5 Supply chain management for downstream 6 Tata Steel Strategic 6 Tata Steel supply chain logistic strategy 7 Tata Steel Supply Chain downstream strategy 8 Tata Steel finance improvement 9 Tata Steel non-finance improvement 9 Conclusion 11 Q2. Discuss various Supply chain activities (in relation to Lean Management) in a Toyota company in Danish Industries can learn and use for improved performance. 12 Introduction 12 What is Lean 13 Lean supply chain 14 Lean supply chain for Toyota Production System in Denmark 14 Value stream mapping 16 The VSM process 17 Performance improvement with implementation of VSM 17 Conclusion 19 Q1. Tata steel has taken various strategies in the SCM to improve the performance of the organization. With reference to the Internet based information, discuss various strategic actions taken by this organization with regards to SCM to improve the finance and non- finance performance. Introduction The Tata Group of Companies...
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...Approach to Knowledge Management at Tata Steel Name Institution Table of Contents Introduction 3 Background to Tata Steel 4 Knowledge Management Initiative at Tata Steel 5 Knowledge Management Phases at Tata Steel 5 Tata Steel Knowledge Management Stakeholders 7 Knowledge Transfer Opportunities 7 Tata Steel Knowledge Transfer Strategies and Instruments 8 Tata Steel Knowledge Management Portal 11 Tata Steel’s Knowledge Management Approaches Achievements 11 Conclusion 12 References 13 Introduction Knowledge management has arisen as an essential aspect that business establishments must consider if they hope to enjoy unimpeded success. In fact, it could turn into a bottleneck if not well managed. Schwartz (2006, p. 3) defines knowledge as a malleable combination of expert interpretation, contextual information, values and experiences that offers an outline for appraising and integrating information with new experiences. Essentially, knowledge is the information that the business entity has collected on their successes, mistakes, business processes, and stakeholders such as customers, suppliers and investors (Schwartz 2006, pp. 3-4). Tata Steel is aware of the importance of knowledge management and has developed unique approaches towards the same. McInerney and Koenig (2011, p. 45) points out that knowledge can exist in either of two forms: explicit or tacit knowledge. Explicit knowledge is tangible knowledge that is embedded in data storage tools such...
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...Transitioning to Customer Value Management B Muthuraman, Anand Sen, Peeyush Gupta, DVR Seshadri, and James A Narus Executive Summary KEY WORDS Tata Steel Customer Value Management (CVM) Business Markets Commoditization Spiral Value Creation/Sharing Customer Retention Customer Value Management (CVM) has emerged as an important vehicle for customer retention in business markets. Supplier firms under increasing pressure from relentless competitive forces are seeking to retain and grow the share of business from profitable existing customers as a means of finding a way out of downward spiralling price pressures. While a lot has been written in academics about the importance of CVM, several gaps remain on understanding how a large company actually undertakes this journey. Crafting competitive value chains and focusing on streams of competition are also emerging as important agenda for supplier firms since, increasingly, the end customer is no longer willing to pay for inefficiencies in the value chains. In this context, the challenge for a supplier firm in business markets is no longer restricted to getting its own operations in order, but, additionally, it must ensure that multiple interfaces that exist across the entire value chain all the way until the end customer are streamlined so that the value chain is free of value drains and every meaningful opportunity to create value is exploited. In this paper, the authors present the experiences of the India-based Tata Steel in implementing...
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...MANAGEMENT CASE describes a real-life situation faced, a decision or action taken by an individual manager or by an organization at the strategic, functional or operational levels Reinventing a Giant Corporation: The Case of Tata Steel D V R Seshadri and Arabinda Tripathy A KEY WORDS Reinvention Change Management Turnaround Tata Steel Liberalization Response to Globalization t the meeting of the senior management of Tata Steel to celebrate the spectacular performance of the company, Mr. B Muthuraman, the Managing Director, recalled with satisfaction the remarkable strides that the company had made from the difficult days in the early nineties, when the company, used to a protected environment, was suddenly thrown open to global competition, consequent to the liberalization of the Indian economy. The company had closed the year with a record profit of Rs. 34.74 billion. A series of initiatives launched by the company over the last 15 years had culminated in these stellar results although there were many challenges at every step. At each stage in its journey, the company did what needed to be done. In retrospect, however, the various initiatives launched by the company over the years now appeared to fit into a coherent picture. The company had made steady progress over the years and had now achieved a pre-eminent status in the Indian steel industry. It had become one of the lowest cost steel producers in the world five years ago, a distinction that it had continued...
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...Transitioning to Customer Value Management B Muthuraman, Anand Sen, Peeyush Gupta, DVR Seshadri, and James A Narus Executive Summary KEY WORDS Tata Steel Customer Value Management (CVM) Business Markets Commoditization Spiral Value Creation/Sharing Customer Retention Customer Value Management (CVM) has emerged as an important vehicle for customer retention in business markets. Supplier firms under increasing pressure from relentless competitive forces are seeking to retain and grow the share of business from profitable existing customers as a means of finding a way out of downward spiralling price pressures. While a lot has been written in academics about the importance of CVM, several gaps remain on understanding how a large company actually undertakes this journey. Crafting competitive value chains and focusing on streams of competition are also emerging as important agenda for supplier firms since, increasingly, the end customer is no longer willing to pay for inefficiencies in the value chains. In this context, the challenge for a supplier firm in business markets is no longer restricted to getting its own operations in order, but, additionally, it must ensure that multiple interfaces that exist across the entire value chain all the way until the end customer are streamlined so that the value chain is free of value drains and every meaningful opportunity to create value is exploited. In this paper, the authors present the experiences of the India-based Tata Steel in implementing...
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...REPORT ON ACCOUNT RECEIVABLE MANAGEMENT TATA STEEL Prepared by www.AssignmentPoint.com Date: 21-05-202 EXECUTIVE SUMMARY The project deals in “account receivable management at Tata Steel”. Receivable management is one of the most important aspects of the organization, as it deals with the management of the outstanding. The profit of the company mainly depends on the accounts receivables. Therefore it needs a careful analysis and proper management. Debtors occupy an important position in the structure of current assets of a firm. They are the outcome of rapid growth of trade credit granted by the firms to their customers. Trade credit is the most prominent force of modern business. It is considered as a marketing tool acting as a bridge for the movement of goods through production and distribution stages to customers. Till few years back, Tata Steel had a very strict policy of selling against advance payments. That was an era of controlled economy. However, with an increasing domestic and international competition, Tata Steel could no longer afford this policy, in order to maintain its premium position. Further in order to capture a greater amount of market share, it was compelled to go by the industry norms and thus it ushered into the new era of credit sales. This resulted in credit sales going up significantly. A credit limit was sanctioned to every customer. The customers were required to pay the outstanding amount...
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...Management Accounting Delivers Long Term Focus - Indian Context 12/12/2011 Contents INTRODUCTION 2 The Balanced Scorecard 2 Balanced Scorecard in Indian Scenario 4 The Balanced Scorecard at Tata Motors 4 Customer Relationship Management 7 CRM implementation in Indian Scenario 7 CONCLUSION 9 INTRODUCTION A criticism of traditional accounting methods like focusing on profit and sales volumes is that they have a tendency to be historically biased as well as backward looking. Quite frequently, they could result in managers looking at results on a quarterly basis instead of promoting interest in concentrating on a longer term view of the business. The structural differences and ideas associated with the new open regime, have caused the traditional performance measures like ROI, Residual Income, Enterprise Value etc, which concentrate only on financial performance (ignoring the nonfinancial aspect), to be less effective. Since these traditional measures of performance have created problems, new innovative solutions have been developed such as the Balanced Scorecard and CRM tools. These incorporate a number of non- financial measures of performance such as customer satisfaction and allow a broader look at the strengths of the company by focusing on longer term performance. The Balanced Scorecard The Balanced Scorecard is a strategic management system that has been used widely by a number of organisations...
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...TABLE OF CONTENT a) Introduction b) Corporate diversification c) Reasons for Diversification d) Types of diversification strategies e) GOAL of diversification f) RISK of diversification g) Corporate diversification of TATA group h) List of diversification of TATA group i)CONCLUSION Introduction Diversification is a form of corporate strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets. Diversification can occur either at the business unit level or at the corporate level. At the business unit level, it is most likely to expand into a new segment of an industry that the business is already in. At the corporate level, it is generally via investing in a promising business outside of the scope of the existing business unit. Diversification is part of the four main growth strategies defined by the Product/Market Ansoff matrix:[1] [pic] Ansoff pointed out that a diversification strategy stands apart from the other three strategies. The first three strategies are usually pursued...
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