BUSINESS GROWTH & STRATEGY

PRESENTED BY:BHAVISHYA

KHOLI(5001)

SANYASABARWAL

(5034)KUSHAL MAKHIJA

(5030)

REEMACHAURASIYA

(5022)

CAN YOU IDENTIFY THIS CAR??

WHICH COUNTRY DOES THIS CAR BELONG TO??

Jamsetji Nusserwanji Tata (1868)

Sir Dorab Tata (1904) JRD Tata (1938)

Cyrus Pallonji Mistry (2012)Ratan Tata (1993)

TYPE: PRIVATELY HELD COMPANY

INDUSTRY: CONGLOMERATE

TATA’s PROFILE Over 100 Operating

Companies.

In Seven Business Sectors.

31 publicly listed enterprises.

Market Capitalisation of about $89.02 Billion.

Shareholder Base of 3.6 Million.

OWNERS Tata Sons is a promoter of the key

companies of the Tata Group and holds the bulk of shareholding in these companies.

The chairman of Tata Sons has traditionally been the chairman of the Tata Group.

About 66 per cent of the equity capital of Tata Sons is held by philanthropic trusts endowed by members of the Tata family.

The biggest two of these trusts are:1. The Sir Dorabji Tata Trust 2. The Sir Ratan Tata Trust

HEADQUARTERS: Bombay House in Mumbai, Maharashtra, India a historic privately owned building

of the Tata Group

AREA SERVED: WorldwideTata Group has operations in more than 80 countries across six continents, and its companies export products and services to 85

countries.

PEOPLE Tata companies employ over 425,000 people worldwide.

Tata

Products

. Tata Motors Limited is an Indian multinational automotive

corporation .  Tata Motors is 'India's most valuable brand' in an annual survey

conducted by Brand Finance and The Economic Times. South Asia’s Largest Automobile Company. World's Fourth-largest Truck Manufacturer. World's Second-largest Bus Manufacturer.

INTRODUCTION

COMPANY’S PROFILE Formerly known as TELCO (TATA

Engineering and Locomotive Company) Renamed TATA MOTORS Ltd. in 2003 Part of the Tata Group. Type: Public company. Traded at: NSE, BSE, NYSE. Industry : Automobile. Founded: 1945. Founded By: JRD Tata. Headquarters: Mumbai, Maharashtra, India. Area served: Worldwide. Products: Automobiles

Automotive parts Services: Vehicle leasing

Vehicle service Key people: Mr. Carl-Peter Forster, (MD)

C. Ramakrishnan, (CFO)

ORGANISATINALSTRUCTURE

MILESTONES.

1945 - Tata Engineering and Locomotive Co. Ltd. was established to manufacture locomotives and other engineering products.

1954 - expanded its operations to commercial vehicle sector after forming a joint venture with Daimler-Benz AG of Germany.

1983 - Manufacture of Heavy Commercial Vehicle commences. 1986 - Production of First Light Commercial Vehicle, Tata 407,

followed by Tata 608. 1991 - Launch of the 1st indigenous Passenger Car Tata Sierra. 1993 - Joint venture agreement signed with Cummins Engine Co.

Inc. for the manufacture of high horsepower and emission friendly diesel engines.

1994 - Joint venture agreement signed with M/s Daimler - Benz / Mercedes - Benz for manufacture of Mercedes Benz passenger cars in India.

.

1998 - Tata Safari - India's first sports utility vehicle launched. 1998 - Indica, India's first fully indigenous passenger car launched. 2000 - Launch of CNG buses. 2002 - Tata Engineering signed a product agreement with MG Rover

of the UK. 2004 - Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign

investment agreement. 2004 - Tata Motors lists on the NYSE. 2005 - Tata Motors acquires 21% stake in Hipo Carrocera SA,

Spanish bus manufacturing Company. 2005 - Tata Ace, India's first mini truck launched 2006 - Tata Motors and Marcopolo, Brazil, announce joint venture to

manufacture fully built buses and coaches. 2008 -Tata Motors unveils its People's Car, Nano, at the ninth Auto

Expo. 2008 - Tata Motors completes acquisition of Jaguar Land Rover. 2011 - Tata Pixel, new city car concept for Europe, displayed at the

81st Geneva Motor Show

PASSENGER CARS• Tata Indica• Tata Vista• Tata Indigo• Tata Manza

• Tata Indigo Marina• Tata Nano• Tata Aria

 UTILITY VEHICLES• Tata Sierra (Discontinued)

• Tata Estate (Discontinued)

• Tata Sumo/Spacio• Tata Sumo Grande• Tata Safari

• Tata Winger• Tata Magic• Tata Xenon XT• Tata Venture• Tata Iris

COMMERCIAL VEHICLES• Tata Ace• Tata Super Ace• Tata TL/Telcoline/207

DI Pickup Truck• Tata 407 Ex and Ex2• Tata 709 Ex• Tata 809 Ex and Ex2• Tata 909 Ex and Ex2• Tata 1109

• Tata 1612/1616 • Tata 3015• Tata 3118 • Tata 3516 • Tata 4018 • Tata 4923• Tata Novus • Tata Prima

•Tata 1512 •Tata 1618 •Tata 1623 •Tata 1518C •Tata 1613/1615 •Tata 2515/2516•Tata Starbus •Tata Divo •Tata CityRide 

 MILITARY VEHICLES• Tata LSV (Light Specialist Vehicle)• Tata Mine Protected Vehicle• Tata 2 Stretcher Ambulance• Tata 407 Troop Carrier• Tata LPTA 713 TC • Tata LPT 709 E

• Tata SD 1015 TC • Tata LPTA 1615 TC • Tata LPTA 1621 TC • Tata LPTA 1615 TC • Tata Winger

 CONCEPT VEHICLES• 2000 Aria Roadster• 2001 Aria Coupe• 2002 Tata Indiva• 2004 Tata Indigo Advent• 2005 Tata Xover• 2006 Tata Cliffrider• 2007 Tata Elegante• 2009 Tata Pr1ma• 2010 Tata Versa• 2010 Tata Essota• 2011 Tata Pixel• 2011 Tata Sunny

BRANCHES IN INDIA

BRANCHES OVER THE WORLD

CORPORATE CULTURE

INTEGRITY: fairness, honesty and transparency. All initiatives must stand the test of public scrutiny.UNDERSTANDING: We must be caring, respectful, compassionate towards colleagues and customers around the world, and always work for the benefit of the community.EXCELLENCE: We must constantly strive to achieve the highest possible standards in our day-to-day work and in the quality of the goods and services we provide.UNITY: We must work cohesively with our colleagues across the group and with our customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation.RESPONSIBILITY: We must continue to be responsible, sensitive to the countries, communities and environments in which we work, always ensuring that what comes from the people goes back to the people many times over.

CORE VALUES

PURPOSEAt the Tata group we are committed to improving the quality of life of the communities we serve. We do this by striving for leadership and global competitiveness in the business sectors in which we operate.Our practice of returning to society what we earn evokes trust among consumers, employees, shareholders and the community. We are committed to protecting this heritage of leadership with trust through the manner in which we conduct our business.

NATIONAL INTEREST The Tata group is committed to benefit the economic development of the countries in which it operates. A Tata company’s management practices and business conduct shall benefit the country, localities and communities in which it operates, to the extent possible and affordable, and shall be in accordance with the laws of the land.

MISSION STATEMENT Shareholders: To consistently create

shareholder value by generating returns.

Customers: To strengthen the Tata brand and create lasting relationships with the customers.

Employees: To create a seamless organization that incubates and promotes innovation, excellence and the Tata core values.

Vendor and Channel Partners: To foster a long-term relationship so as to introduce a broad range of innovative products and services, that would benefit our customers and other stakeholders.

Community: To proactively participate in reshaping the country’s economic growth. To take a holistic approach towards environmental protection.

VISION STATEMENT

“To develop TATA into a world class Indian car brand for innovative and superior value

vehicles and to be best in the manner in which we operate, best in the

products we deliver, and best in our value system

and ethics."

ANALYSIS

• Well known brand with good reputation.

• Planned and smart international strategies.

• Nano could sell well in other geographic market.

• Jaguar and Land Rover can help Tata establish itself in luxury segment.

SWOT ANALYSIS

• Not well positioned in luxury cars.

• Lack of diversification.

• Powerful competitors in luxury markets.

• Rising input costs.• Rise in fuel costs will hurt

its product line.• Lack of experience in

passenger cars.

PEST Political:

• Cut in import duty on cars from Europe under the Indi-EU FTA- hamper domestic automobile industry.

Economic:• Exchange rate fluctuations• High input cost• GDP and Per-Capita Income

Social: Age composition of population Income consideration of customers.

Technological: Research and development New hybrid and concept cars

MICHAEL PORTER: FIVE-FORCESStrength of Barriers to Entry – Difficult Entry for

new rivals to enter the industry, substantial cost and legal formalities are involved.

Extent of rivalry between firms – Highly Competitive, growing market and involves high profit margins.

Supplier power – It maters on the type of input or technology required.

Buyer power – Customers have a greater power as wide choice is available in the market, and they are committing considerable amount of money.

Threat from substitutes – New Means of Public Transport like metro, monorails etc

KEY INDICATORS

Revenue: US$ 27.629 billion (2011)

Profit: US$ 1.653 billion (2011)

Total Assets: US$ 23.131 billion (2011)

Total Equity: US$ 4.683 billion (2011)

PROFITS TREND

SHARE PRICE

SALES

CORE COMPETITORS

Toyota Motors

MARKETING MIX

From its use of flash to its sleek website design, the company uses what is essential to great profits,- innovation. 

MARKETING MIX

1.  PRODUCT: Tata has a very wide range of products:

Passenger Cars Utility Vehicles Trucks Commercial Passenger Carriers Defense Vehicles

MARKETING MIX2.  PRICE:

Affordable & Competitive Prices.

Tata always have something for the lower class people with Nano being their trump card.

Discounts• For different months / seasons.• Special type of vehicles.

Discount can be made from Company’s profit or from dealer’s profit at certain range.

3. PLACE:Tata Motors has an Extensive Dealer

Network covering in both Indian and international markets.

The channel of distribution, physical location, and dealership method of distribution and sales is generally adopted.

The distribution of vehicle must be in a very systematic way, from the plant to dealership and to end user.

4. PROMOTION: • Tata motors promote their

products via:

– Advertising – After Sales Services

5. PROCESS: Tata motors follow Balanced Scorecard Collaborative Inc. for achieving excellence in overall Company performance.

6. PEOPLE: Tata Motors owes its success to the Highly Motivated and Talented Staff.

Their recruitment division picks the “crème-de-la-crème” from premier universities, management and engineering institutes in India.

They put them through rigorous training programmes to hone their entrepreneurial skills and impart comprehensive product knowledge.

AUTO EXPO 2012

Tata Motors unveils 3 new vehicles at Auto Expo 2012:

Tata Safari Storme, the new generation SafariTata Ultra, the new LCV & ICV rangeTata LPT 3723, India's first 5-axle rigid truck

Also demonstrates alternate fuel technology capability concepts:

Tata Nano CNGTata Indigo Manza diesel-electric hybridTata Starbus Fuel Cell (hydrogen)

TATA GROUP CSRJRD Tata's saying: “When you are successful, you must give back to society. Society gives us so much; we must reciprocate.”

Tata Steel introduced Eight-hour Working Days in 1912, well before it became statutory in much of the West

The First Tata Provident Fund Scheme was started in 1920 (governmental regulation on this came into force in 1952)

The Tata Townships, and the Facilities they have, are another example of the manner in which the Group extends itself to care for its employees.

TCS also designed and donated an innovative software package that teaches illiterate adults how to read in 40 hours.

Tata Group companies developed a compact, in-home water-purification device. It was called TATA SWACH. It is a low-cost product available for people who have no access to safe drinking water in their homes.

TATA MOTORS CSR• Tata Motors' concern is manifested by a dual approach -

1. Reduction of environmental pollution and regular pollution control drives

2. Restoration of ecological balance

• Cleaner Technology - Going Green.

• Society First– Driver Training Programmes– Mass Transportation– Safety– Community Development

ETHICS & COMMITMENT

The Group emphasis on ethical business practices

And is committed to the communities in which it operates.

PHILANTHROPHY

Trusts created by Tata Group control 65.8% of company shares, so it can be said that about 66% of the profits of Tata Group go to charity.

Each Tata Group company channels more than 4 percent of its operating income to the trusts and every generation of Tata family members has left a larger portion of its profit to them.

The Tata Group has helped establish and finance numerous quality research, educational and cultural institutes in India.

After the Mumbai attacks, salaries of then heavily attacked Taj Hotel employees were paid despite the hotel being closed for reconstruction.

About 1600 employees were provided food, water, sanitation and first aid through employee outreach centers.

Ratan Tata personally visited families of all the employees that were affected. The employee’s relatives were flown to Mumbai from outside areas and were all accommodated for 3 weeks.

Tata also covered compensation for railway employees, police staff, and pedestrians. The market vendors and shop owners were given care and assistance after the attacks.

A psychiatric institution was established with the Tata Group of Social Science to counsel those who were affected from the attacks and needed help.

Tata also granted the education of 46 children of the victims of the terrorist attacks.

TATA HALL The Tata Group has donated a Rs. 220 crore ($50 million)

to the prestigious Harvard Business School (HBS) to build an academic and a residential building on the institute’s campus in Boston, Massachusetts.

The amount is the largest from an international donor in the business school's 102-year-old existence.

CONTROVERSIES

LAND ACQUISITION IN SINGUR The Singur controversy in West Bengal

was the protests by locals and political parties over the forced acquisition, eviction and inadequate compensation to those farmers displaced for the Tata Nano plant.

As the protests grew, and despite having the support of the Communist Party of India (Marxist) state government, Tata eventually pulled the project out of West Bengal, citing safety concerns.

Ratan Tata subsequently embraced Narendra Modi, the Chief Minister of Gujarat, who quickly made land available for the Nano project

NANO PROBLEM Cases of Nano car on fire.

The car battery is placed under the driver's seat and this is the most potential reason for the fire incidents.

Tata Motors ask Nano customers to bring back their cars to add safety devices free of cost to prevent the vehicles from catching fire.

NANO’s POSITIVE SIDEFirst Innovation – Set a Benchmark & Created a

Niche Market.41 Patents for innovationsLow Price and StylishEnvironmental FriendlyHigh Fuel EfficiencySpace – Internal – 21% more than M – 800

External – 8% less than M – 800Variometric gear system – Magnifies torqueDiesel & electric variant

NANO CRITICS DESIGN SHORTCOMINGS:

No modern facilities ABS, PS, AC etcLess boot spaceNo headlight levelersNot fit for hilly terrainPoor traction controlSmall TyresWindows wind down by handNo passenger side mirrorPoor engine cooling & hence overheating

New competitors – Bajaj, Chery, Honda siel, GM etc. Also Electric Car like REVA. Traffic congestion & Reducing Parking Space Rising cost of raw material and Increased Taxes Missed the Opportunity of Initial High Demand.

REVIVING THE NANO

Addressing Safety IssuesFinancingDistribution ReformsMarketing Communication 

GLOBAL GOALSThe new millennium has seen Tata companies looking beyond Indian

shores for growth opportunities and a global footprint. Acquisitions of foreign enterprises have been one way of doing this.

FUTURE SENSE The future promises plenty for the Tata Group as it sets the agenda for the next phase of its evolution.

The words of Group chairman Ratan Tata sum it up best: “One hundred years from now, I expect the Tatas to be much bigger, of course, than it is now. More importantly, I hope the Group comes to be regarded as being the best in India — best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics.

“Having said that, I hope that a hundred years from now we will spread our wings far beyond India, that we become a global Group, operating in many countries, an Indian business conglomerate that is at home in the world, carrying the same sense of trust that we do today.”