...The Tata Ace : Case Study Analysis One of the biggest conglomerates in India, the TATA Group are a name to reckon with . The revenue generated by the TATA group in 2006 was equal to 2.8% of India’s GDP . It has several sectors in IT, transportation , steel etc . One of the biggest revenue provider of the TATA group is the TATA motors which is an independent body and the TATA group holds 32% equity in it . Though TATA motors is such a big company, it showed a loss of Rs 5 billion in 2001 , biggest in TATA motors as well as in the history of INDIA’s motor sector . TATA motor Group MD, MR Ravi Kant decided some drastic measures were necessary to uplift the company once again . The idea of TATA Ace came to the manager of the TATA motor Group MD, MR Ravi Kant when he identified the market need for a commercial vehicle in the Medium Segment. Thus the idea of tata ace was born. India’s small and medium commercial vehicle sector was majorly controlled by the 3 wheeled autos and goods vehicles which were neither good to look at nor reliable and fell in the price range of 100000 – 200000 . Ace was targeted to be priced at 200000 but was subsequently launched at 225000. It was priced at 50% less than other 4 wheeled goods carriers . The project was given to the 30 year old engineer Wagha . There were quite a few reason for Ace’s success : 1. It offered a feel good factor for drivers as compared to 3 wheeled autos etc . 2.Though it has a higher initial cost, the maintenance cost was...
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...District, West Bengal, India. This place was practically unheard of and gained international media attention after Tata Motors proposed the idea of setting a factory to manufacture the world’s cheapest car- The Tata Nano. It was supposed to be priced at Rs 1, 00,000 and the car was scheduled to be rolled out by 2008. The Communist Party of India (Marxist) had just come to power at that time, (May 18, 2006). The State Government had allowed Tata to take over 997 acres of farmland in Singur to build its factory. Buddhadeb Bhattacharjee, the then Chief Minister of West Bengal, wanted Tata to go ahead with the Tata Nano project in his state citing reasons of industrialisation and State development. West Bengal was viewed as an anti- industrialised state and Buddhadeb Bhattacharjee wanted to reform that image. However, this act was received with much opposition from the activists, the displaced land owners and the opposition parties in Bengal. (Singur Tata Nano Controversy, 2012) The government had acquired 1200 acres of land which included 997 acres from 13000 'unwilling' farmers. These 997 acres of land was leased to the Tata Motors to set up the Nano plant. The government had offered a price which was better than that in Nandigram and also provided compensation which had included the sharecroppers also. There were six sites offered by the state government to Tata Motors. The company had selected Singur as the chosen site. Singur is the most fertile belt in that region. Almost whole...
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...Strategic development TATA MOTORS Introduction: Tata Motors Limited (formerly TELCO, short for Tata Engineering and Locomotive Company) is an Indian multinational automotive manufacturing company headquartered in Mumbai, Maharashtra, India and a subsidiary of the Tata Group. Its products include passenger cars, trucks, vans, coaches, buses, construction equipment and military vehicles. It is the world's seventeenth-largest motor vehicle manufacturing company, fourth-largest truck manufacturer and second-largest bus manufacturer by volume. Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad and Pune in India, as well as in Argentina, South Africa, Thailand and the United Kingdom. It has research and development centres in Pune, Jamshedpur, Lucknow and Dharwad, India, and in South Korea, Spain, and the United Kingdom. Tata Motors' principal subsidiaries include the British premium car maker Jaguar Land Rover (the maker of Jaguar, Land Rover and Range Rover cars) and the South Korean commercial vehicle manufacturer Tata Daewoo. Tata Motors has a bus manufacturing joint venture with Marcopolo S.A. (Tata Marcopolo), a construction equipment manufacturing joint venture with Hitachi (Tata Hitachi Construction Machinery), and a joint venture with Fiat which manufactures automotive components and Fiat and Tata branded vehicles. Founded in 1945 as a manufacturer of locomotives...
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...SHARMA-10BSPHH010936 * SUNIL Kr. YADAV-10BSPHH011074 * SAURABH TRIVEDI-10BSPHH011076 * NILABH-10BSPHH011081 * SHAUNAK GOSWAMI-10BSPHH010718 INDIAN AUTOMOBILE INDUSTRY (A MACRO AND MICRO ANALYSIS) With a Focus on TATA Motors | FINAL REPORT (Business Strategy) | IBS-2011 BS-SEC I (Group-3) SHINY ACHARYA-10BSPHH010733 SHWETABH SRIVASTAVA-10BSPHH010766 SUNIL Kr. YADAV-10BSPHH011074 SAURABH TRIVEDI-10BSPHH011076 NILABH-10BSPHH011081 RAGHINI SHARMA-10BSPHH010936 SHAUNAK GOSWAMI- | Table of Contents Indian Automobile Industry: An Overview 3 A. Macro analysis of Indian Automobile Sector 3 1. PESTEL Analysis 3 I. Political and Legal Factors 3 II. Economic Factors: 4 III. Social Factors: 5 IV. Technological Factors 6 V. Environmental Factors 6 2. Key Drivers of Growth and Change 6 3. Porter’s Diamond 7 I. Factor Conditions 7 II. Demand Conditions 7 III. Related and Supporting Industries 8 IV. Firm Strategy, structure and rivalry 8 B. Micro-analysis of Automobile Industry 9 1. Porter’s 5 Force Framework 9 2. Dynamics of Competition 9 C. Competitors & Markets 10 1. Strategic Groups 10 2. Market Segments 13 3. Identifying Strategic Customer 16 D. Strategic Gaps 17 E. Tata Motors 19 1. Introduction 19 Mission Statement 19 Vision Statement 19 Goal 19 Core Values 19 Market share 19 Revenue and profits 20 Domestic growth 20 2. SWOT Analysis 22 3. Strategies 24 4. Projection...
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...Tata Motors with their Ace Based on EMPI-Indian Express Indian Innovation Award Wining Entry by Tata Motors Registered Office: Bombay House, 24, Homi Modi Street, Mumbai Abstract: Tata Motors, India's largest integrated automobile manufacturer today, designed the country's first indigenously developed mini-truck for both rural and urban use. The versatile, high performance and efficient mini-truck, ACE. Key words: Indigaeanous Development, Innovative Organsiation, Mini Trck, Rural Transport 1. Introduction Development of road infrastructure has led to an increase in the distribution of goods across the country, based on the hub and spoke model. The ACE is powered by a unique twin cylinder 16bhp IDI 700cc diesel engine and with its launch the Company introduces a new category in the commercial vehicle segment. Tata Motors recognized the growing trend as well as the need for a last mile distribution vehicle. Keeping that in mind they developed a pick-up vehicle designed to carry larger and heavier payloads in the sub-2 ton category. Simultaneously, anticipated an opportunity in the sub-1 ton payload segment Tata Motors has indigenously developed a reliable and cost effective 4-wheeler for this segment with a water-cooled, twin cylinder diesel engine, making the ACE among the few mini-trucks in the world to be powered by a diesel engine. The Ace is ideal for short, narrow village roads as well as long highway hauls; for small bulky loads as well as large heavy ones. The small...
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...1 A Project Report Submitted on the Technology of “Tata Nano Car” As Part of the Course Managing Technology for Competitiveness PREPARED BY Choidup Dorji (113378) Wangmo Chador (113377) Pishenbay Adilbaevich Umirbekov (113417) Nipu Kumar Nath (112889) Christian Riisager (112846) 2 Executive Summary The study of Tata Nano car technology has demonstrated the fact that how a technological revolution has taken place in Automobile sector by the introduction of Tata Nano car in the market. It is 2 feet shorter than a Mini Cooper, has a comical appearance and weighs less than the four passengers it seats. But for the 350-millionplus middle class of India, Tata Nano, the world's cheapest car at $2,000, is a cause for exhilaration and for the first 100,000 lucky customers drawn via lottery, it's a dream come true. A century after Henry Ford put America on wheels with the Model T; the affordable Tata Nano is doing the same to the less privileged of the world. What is now dismissed by many as a "toy car" could soon reveal itself to be the mouse that roared, one of the most transformational consumer products of the century. Roughly 100,000 Indians lose their lives on the road every year, seven times the rate of the developed world. In a country where it is not uncommon to see entire families overflowing a rickshaw or women in saris sitting side-saddle on a bike with small children on their laps, moving one's family from an unsafe bike into a plastic capsule is a...
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...History Of Tata Motors Tata Motors Ltd. is one part of the business conglomerate, Tata Group, and was formerly known as TELCO (Tata Engineering and Locomotive Company). The other ventures of Tata Group include Tata Steel, Tata Consultancy Services, Tata Technologies, Tata Tea, Titan Industries, Tata Power, Taj Hotels, and so on. Headquartered in Mumbai, India, Tata Motors is a multinational corporation accounting for 70% cumulative market share in the domestic commercial vehicle segment. Today, the company is the world’s second largest manufacturer of commercial vehicles, world’s fourth largest truck manufacturer and world’s second largest bus manufacturer. It is a dual-listed company, which is traded on both the Bombay Stock exchange as well as the New York Stock Exchange.. Information On Origin & Background Of Tata Motors Tata Motors was first established in 1935 as a locomotive manufacturing unit. The first commercial vehicle was manufactured in 1954, in collaboration with Daimler-Benz AG of Germany. In 1960, the first truck, quite similar to a Daimler truck, rolled out from the Tata factory in Pune. Ever since its launch, the truck became highly successful. However, the success of the commercial vehicles was just the beginning of the flourishing and booming future of Tata Motors. The company went ahead diversifying itself and took up other products as well. Apart from exporting heavy-duty trucks, the company decided to come up with lighter versions for the local...
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...restrictions and tariffs Political stability Anti trust laws Pricing regulation Wage legislation Tata nano project faced the political issues The Tata motors Limited established in 1945.The Tata motors Limited is indias lagest automobile company, with consolidated revenues of $14 billion in 2008-2009.Tha Tata motors leaders in commercial,passenger, vehicle and truck manufacturer.(Source - www,tatamotors.com) The Tata motors made plan to make a car with a price of $2,500 for 4 passenger car.They started plan in the Singur,West Bengal in,India in 2008.The Tata motors had to face the political controversy in the state West Bengal. The company had to face the problem ceated by political party in land acquisition. The political party started movement against the Tata Nano car project. There was a problem for the company to the safety of employees. The Tata Motors site is the most fertile one in the whole of the Singur, Consequently, almost the entire local population depends on agriculture with approximately 15000 making their livelihood directly from it. With the number of direct jobs to be created no more than about 1,000, many of which are expected to go to outsiders, the local populace feel understandably threatened for their livelihood.Because of the big oppose of the plant,the chairman Of the the Tata Motors Limited has decied to shift the plan at another place.And than they shifted the plant in Sanand,Gujarat in India. Because of this...
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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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...Tata Motors: Can it become a global contender in the automotive industry? Executive Summary The objective of this report is to provide an analysis of Tata Motors’ current strategies and a detailed inspection of the financial situation, the company’s strengths, weaknesses, opportunities and threats and the competitive nature of the car market in order to make a recommendation as to whether or not it is in Tata Motors best interests, to propel itself into the global automotive industry at this point in time. On close inspection there were three key issues identified. Firstly the financial condition of the company is analysed to determine the viability of an expansion into the global automotive industry. Secondly the safety issues & standards of the vehicles produced, particularly related to the Tata Nano need to be addressed, and thirdly the detailed market research to be undertaken by Tata Motors in relation to the competitive needs and expectations of the motoring public in countries Tata Motors is trying to move into eg. United States and Europe when it comes to passenger cars as well as ability to continue to effectively capture the Jaguar and Land Rover markets globally, along with their bus and truck range which are strong in India but not as strong in other countries. Economic conditions not only in India but globally are a consideration for Tata Motors. As of 2012 India was the 7th largest nation in area, the second most populous country on earth with...
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...Research The actual goal of the research process is to evaluate the customer’s buying behavior of cars by taking Tata Nano as the primary example and analyzing car-marketing segments in the automobile industry in order to support the Indian automobile companies especially Tata Nano, for improving their market sales. Scope of the Research The main scope of this project is to analyze the information on the Indian automobile industry and the car marketing aspects of automobile industry by considering Tata Nano as an example. This research will provide the detailed overview on the automobile industry in India and the changes in the Indian automobile industry after the establishment of Tata Nano. It will cover the different aspects related to the car marketing like the marketing plans and marketing strategies required for success. Factors of the Research The main factors of this project are as follows: * The overview of the Indian automobile industry * The detailed information on the buying behavior of the customers when they buy cars Research and Study Within the process of completing this research, hasn’t faced any obstacles until now and in the process of gathering the information from the different types of data collection methods of secondary source of data, there are some limitations and restrictions for collecting the information. In the process of gathering the information from the articles and case studies of previous scholars the researcher was asked to...
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...Executive Summary In this project, we have tried to understand the HR development policies that are being followed at Tata Motors Ltd. We explore the various facets of the policies by studying the literature of the HR policies, by discussing about these policies with the HR of the company and also speaking to the employees of the company. First of all we look at the Organization as a whole, what it stands for, what are its core values, vision and mission and then delve into the HRM practices, mainly with respect to its Human Resource development. We zero in to four categories to which these policies can be broken down to: * Assessment & Feedback * Career Progression & Job Rotation * Training & Development * Performance Awards For the purpose of evaluation of these policies, we conduct our primary research in the RECON department of Lucknow Works of Tata Motors Ltd. The research consists of an online survey and a few in depth interviews. From the responses we have tried to objectively assess the perception of these policies and tried to indentify the areas where there is a mismatch between employee expectation and HR objective. Towards the end, we have come up with some recommendations that could be looked at as possible options to further improve the policy framework. Introduction Vision: To be a world class corporate furthering the interest of all its stakeholders Mission: * Shareholders * To consistently create shareholder...
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...THE TATA NANO MAKES HISTORY USING DIGITAL MANUFACTURING On January 10, 2008, India's Tata Motors unveiled its Nano car. It was an historic moment, because the Nano was the cheapest auto ever made at that time, with a price tag around US $2,500. The Nano joined Ford's Model T as a car within reach of millions of people who previously could not afford one. Tata Motors started its Nano project in 2003, when a team was charged with creating a car that would cost no more than about US $2,500 without compromising on safety, aesthetics, or value to the customer. It was a Herculean task. Tata met the challenge by using digital manufacturing systems to dramatically shorten the time required to design the new product and bring it to market. The ability to develop and produce new products with many different variations within a very short time span is a key competitive advantage in the automotive industry. Until a few years ago, it would have been impossible to design and produce the Nano at this price. Tata Motors had outdated manufacturing processes. Manual effort was required to create and maintain processes, plants, and product design, resulting in longer lead times to choose the appropriate tools for an operation. The company had to create programs manually for assembly line robots, a process that was error-prone and time-consuming. Such delays had a number of negative consequences: Data used to plan a vehicle became useless over time, and the company was unable to easily...
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...The case discusses the making of Tata Nano, the world's cheapest car, manufactured by India based Tata Motors. On March 30, 2009, Tata Nano was launched with an ex-factory price tag of INR 100,000 (about US$ 2000). The case explains the design and development process of Tata Nano. The car was the result of a five year research and development project carried out by Tata Nano development team. While developing the car, Tata Motors and its suppliers constantly made efforts to reduce the costs while ensuring quality of each and every component including engine, steering, wheels, tires, windshield washing system, gear shifter etc. | | Analysts opined that Tata Nano had created a new segment in the passenger car market. However, they were concerned about the company's lack of capacity to fulfill high demand. They also argued that considering the low margins the company would get, it would take a long time for the project to break even. The case ends with a discussion on the challenges Tata Nano might face in the future. ------------------------------------------------- Excerpts ------------------------------------------------- Background Note The history of Tata Motors dates back to the mid-1900s. In 1945, Tata Motors was incorporated as Tata Engineering and Locomotive Company Limited (TELCO). The company was engaged in manufacturing locomotives and engineering products. Three years later, it launched a steam road roller in association with the UK-based Marshall Sons.....
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...Tata Motor’s -Company Background Tata Motors was established in 1945 and is formerly known as Tata Engineering and Locomotive Company. It is India's largest automobile company, and a fortune 500 company. Tata Motors acquired Jaguar and Land Rover, a premium car brand in UK, in 2013. The company always worked in line the Tata Values to contribute to Indian society. Tata Nano - Origin Ratan Tata’s thought about a people’s car was a social concern. He wanted to give a car to middle class of the society. Accordingly Ratan Tata, former Chairman, Tata Motor’s, shared his vision of making Rs. 1 lakh car at the Geneva Motor Show, in 2003. A team was then constituted to build a car with a target price of Rs. 1 lakh. Subsequently, the car was launched with a tag line “A promise is a promise”. Executive Summary TATA Nano is the cheapest car in the world. It is manufactured by TATA Motor Limited, the largest automobile company in India. Its chairman, Mr. Ratan Tata envisions that Tata Nano to become a “People’s car” which is affordable by almost everybody. Tata Nano is scheduled to first be launched in India on 1st April 2009 and expected to be in Indian market by July 2009. From the first moment that Tata Nano project was published, a huge buzz has been created all over India. It has already received 3000 bookings. What makes Tata Nano so cheap? Basically, by making things smaller, lighter, do away with superficial parts and change the materials wherever possible without compromising...
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