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Strategic Management (MGT480)

Section- 05
Course Code- HRM 411

Submitted to

RUMANA AFROZE
ASSISTANTPROFESSOR
Department of Business Administration
East West University

Submitted by

Name ID
Rahila Khatun Sinthi 2016-1-10-321
Adiya Mirdha 2016-1-10-138
Fahima Sultana Rifa 2017-2-10-112
Arifa Tasnim Ria 2017-2-10-049
Md.Waliduzzaman 2015-2-10-223

Date of Submission:

15th April, 2021.

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 Contents

1. Introduction....................................................................................................................................................................4
2. CASE SUMMARY:........................................................................................................................................................... 5
1. The early years of TATA:................................................................................................................................................. 5
2. Tata expanded their business:..........................................................................................................................................5
3. Tata’s Largest Products are:........................................................................................................................................... 6
4.Dream Project of TATA:................................................................................................................................................... 6
5. The Challenges Tata faces:..............................................................................................................................................6
3. SWOT ANALYSIS:........................................................................................................................................................... 7
1. Tata’s Strengths:.............................................................................................................................................................. 7
2. Weakness of Tata:............................................................................................................................................................ 7
3. Opportunities of Tata:...................................................................................................................................................... 8
4.Threats of Tata:................................................................................................................................................................. 8
4. PORTER’S MODEL:........................................................................................................................................................ 9
1. Threats of new entrants:.................................................................................................................................................10
2. Bargaining power of suppliers:...................................................................................................................................... 10
3. Bargaining power of buyers:..........................................................................................................................................10
4. Threats of substitution products or services:..................................................................................................................11
5. Rivalry among the existing competitors:....................................................................................................................... 11
5. Functional Level Strategies............................................................................................................................................. 12
1. Marketing strategy:........................................................................................................................................................ 12
2. Financial Strategy:......................................................................................................................................................... 13
Research & Development Strategy:...................................................................................................................................14
4. Operation Strategy:........................................................................................................................................................ 15
6. BGS MATRIX:.................................................................................................................................................................16
7.PROBLEMS AND SOLUTIONS OF APPLE:.............................................................................................................. 20
8. Recommendation and Conclusion.................................................................................................................................. 24
Conclusion:........................................................................................................................................................................... 24
Bibliography......................................................................................................................................................................... 24
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 1. Introduction

Tata Group is an Indian multinational conglomerate holding company in India. Founded in 1868 by Jamsetji Tata, the
company gained international recognition after purchasing several global companies. One of India's largest conglomerates,
Tata Group is owned by Tata Sons. Tata is India’s oldest and largest private sector business entity. Founded in 1868, the
group now consists of more than 100 companies, with a turnover of more than $70bn. It has a wide range of interests, with
companies trading in fields as diverse as steel, cars and trucks, chemicals, IT consultancy, retailing and hotels. The Tata
group is highly decentralized, and member companies have great autonomy in terms of strategy and operations. The main
instrument for unifying the group is the Tata corporate brand, which embodies values that are shared by all companies in
the group.

The Tata Group came into being when Jamsetji Nusserwanji Tata started a trading firm in 1868. The group entered into
manufacturing in 1874 (textiles) and into services in 1904 (hotels). Jamsetji’s ambition to pioneer and set up new
industries in the country was sustained by his son, Sir Dorabji Tata who succeeded him as the chairman of the group.
Following Dorab’s death in 1932, Sir Nowroji Saklatwala became the group’s chair. Six years later Jehangir Ratanji
Dadabhoy Tata (J.R.D.) took over the position. His continued expansion of the company into new sectors—such as
chemicals (1939), technology (1945), cosmetics (1952), marketing, engineering, and manufacturing (1954), tea (1962),
and software services (1968)—earned Tata Group international recognition. In 1945 Tata Group established the Tata
Engineering and Locomotive Company (TELCO) to manufacture engineering and locomotive products; it was renamed
Tata Motors in 2003. In 2000 the group acquired London-based Tetley Tea, and in 2004 it purchased the truck-
manufacturing operations of South Korea’s Daewoo Motors. In 2001 Tata Group partnered with American International
Group, Inc. (AIG) to create the insurance company Tata-AIG.In 2007 Tata Steel completed the biggest corporate takeover
by an Indian company when it acquired the giant Anglo-Dutch steel manufacturer Corus Group. The following year the
company made headlines worldwide when it ventured into the automotive industry. On January 10, 2008, Tata Motors
officially launched the Nano, a tiny, rear-engine, pod-shaped vehicle that eventually sold at a base price (excluding
options, tax, and transportation fees) equivalent to $1,500 to $3,000. Although only slightly more than 3 meters (10 feet)
long and about 1.5 meters (5 feet) wide, the highly touted “People’s Car” could seat up to five adults and, in Tata’s words,
would provide a “safe, affordable, all-weather form of transport” for millions of middle- and lower-income consumers
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both in India and abroad. The first Nano hit the road in India in July 2009. Tata Motors purchased the elite British brands
Jaguar and Land Rover from the Ford Motor Company in 2008.

2. CASE SUMMARY:

1. The early years of TATA:

The case is about the Tata Group, which is India's largest industrial conglomerate. Throughout the Tata's 145 year history,
the growth of the company has advanced in parallel with the Indian economy. Their sales had over $100 billion in a year
and they operated more than 90 companies by 2013. The Tata group is managed by the holding company that is Tata Sons.
The Tata was founded by Jamsetji Nusserwanji as a textile trading company and the goal of the company was known as
House of Tata was helped industrialize India. After Jamsetji Tata's death, his eldest son Dorabji Tata actualized his
father's remaining goals and opened India's first private steel company which is the country's largest private sector steel
company, the Indian institute of science and hydroelectric power plant. He diversified the Tata group's interest by creating
the new Indian assurance company which was becomes the cash pillars of Tata group that allowed for the company to
reinvent in new projects without borrowing capital from lending institutions. During J.R.D Tata, the Tata portfolio
expanded from 14 to 95 businesses and he created an insular system of companies that were able to cross fund among the
Tata's subsidies without having to seek external capital.

2. Tata expanded their business:

At the time of the chairmanship of Ratan Tata expanded the Tata's business internationally by helping with the India's
government, as the government was losing the restrictions and gave Indian business more autonomy and mandated to
foreign firms for collaborating with domestic firms whether they wanted to enter India. Ratan Tata was seeking to
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increase the competitiveness of Tata's operating companies by cutting costs and employee ranks. Focusing on it, he
divests some operating companies through consolidating the others into seven categories, consumer products, energy,
engineering, information systems and communications, services, chemicals and materials. And every Tata company has
its own board of directors and shareholders.

3. Tata’s Largest Products are:

The largest Tata companies are Tata steel, Tata motors, Tata consultancy services, Tata power, Tata chemicals, Tata
global beverage, Tata Teleservices, titan, Tata communication and Indian’s hotels. During the fiscal year 2011-12, the
sector of consumer products made up 4% sales of Tata groups. Titan industries and Tata global beverage are the part of
the consumer product. One of the Tata's largest sales, which is 39% made up from engineering sector. This sector is
offering consulting services, precision tool design and manufacturing, automation, construction, and temperature
engineering. Tata motor is one of the businesses within this sector and Asian's largest auto manufacturers.

The third largest sector of sales, which is 16% made up from information systems and communications. By this India has
seen massive growth to penetrate the communication technology as mobile cellular subscriptions and internet use. Tata
also involved with the technology consultations which is the largest source of the revenue for this sector. The other sector
which is services made up 4% of Tata's sales and involved with the hospitality. The others 3% of sales made up from
chemicals sector and the other sector which is materials made up 28% of Tata's sales and operated steel production in this
sector.

4.Dream Project of TATA:

Tata's one of the dream project is the Nano project, which is coming from the mind of Ratan Tata through observing a
poor family and the entire family on a two-wheel scooter. He thought to make an affordable car with priced around Ra. 1
Lakh and that would be a challenge for them. For developing a Nano car, the design of the car and the entire system of a
car was re-invented. The innovation was at the aggregate level and they went through a tremendous amount of repetition
in the design process. They redesigned the entire engine for three times, entire body for twice, floor plan for around ten
times and wiper system for more than eleven times. And then it was officially launched at its intended price of Ra. 1 lakh
and met all of the Indian government's safety and emissions standards.

5. The Challenges Tata faces:

Though the conglomerate grew through acquisitions and JVs it had to face the challenge of divesting non-performing
firms on a regular basis. The group also had to deal with the integration challenges since it followed the inorganic route to
growth. It had to deal with the challenge of retention of personnel and co-ordination of sales and marketing functions in
case of international acquisitions.

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3. SWOT ANALYSIS:

SWOT Analysis is a strategic planning technique which is used to identify the strength, weakness, opportunities and
threats of a person or company. For example: who is on your team, your patent, intellectual property and location.

SWOT Analysis for TATA is discussed below:

1. Tata’s Strengths:

Tata have strong distribution channel and that help them to reach majority of its potential market.
They have strong dealer community.
They arrange training for their employees so that they are more capable to produced error free product.
It has built expertise at entering new markets and making success of them.
They do research before taken any project that help them to ensure the good returns from that project.
It has strong Brand Portfolio and over the years it has invested in building a strong brand portfolio.
It has a strong base of reliable supplier of raw material thus enabling the company to overcome any
supply chain bottlenecks.

2. Weakness of Tata:

Tata is not very good at demand forecasting and that forecasting leading to higher rate of missed
opportunities.
The marketing of the products left a lot to be desired.

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Even though the product is a success in terms of sale but its positioning and unique selling proposition is
not clearly defined.
Tata has a higher attrition rate.
The profitability ratio and Net Contribution % of Tata are below the industry average.
Financial planning is not done properly and efficiently.

3. Opportunities of Tata:

Tata have some unique competitiveness that their competitor doesn’t have
Tata have some core competency that their competitor is unable to copy that.
Decreasing cost of transportation because of lower shipping prices can also bring down the cost of Tata’s products
thus providing an opportunity to the company - either to boost its profitability or pass on the benefits to the
customers to gain market share.
The new taxation policy can significantly impact the way of doing business and can open new opportunity for
established players such as Tata to increase its profitability

They always try to follow new trends and try to understand the customer desire and based on this they develop
new products as a result they can attract more customer.
They always try to produced innovative products as a result they are succeed to get more attention from young
customers
They are advanced in technology that gives then a competitive advantage.

4.Threats of Tata:

New technologies developed by the competitor could be a serious threat for them and it can be created problem
for them in near future.
Rising pay level especially movements such as $15 an hour and increasing prices in the China can lead to serious
pressure on profitability of Tata.
The demand of the highly profitable products is seasonal in nature and any unlikely event during the peak season
may impact the profitability of the company in short to medium term.
Increasing trend toward isolationism in the American economy can lead to similar reaction from other
government thus negatively impacting the international sales.
Rising pay level especially movements such as $15 an hour and increasing prices in the China can lead to serious
pressure on profitability of Tata.

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4. PORTER’S MODEL:

Porter's Five Forces is a business analysis model that helps to explain why various industries
are able to sustain different levels of profitability.
Tata motors limited is one of the leading firms in the auto manufacturers. Porter’s five forces is a strategic
management tool to analyze the industry. Tata motors limited managers can use porter’s five forces understand
how the five competitive forces influence profitability and develop a strategy for enhancing Tata motors limited
competitive advantages.

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1.Threats of new entrants:

New entrants in auto manufacturers major brings innovation, new ways of

doing things and put pressure on Tata motors through lower pricing strategy,
reducing cost, and providing new value propositions to the customers. Tata
motors have to manage all these challenges and build effective barriers to safeguard its competitive edge.

How Tata group can tackle the threats of new entrants

By innovating new products and services. New products not only bring new customers to the fold but
also give old customer a reason to buy Tata group products.
By building economics of scale so that it can lower the fixed cost per unit.
Building capacities and spending money on research and development.

2. Bargaining power of suppliers:

All most all the companies in the auto manufactures major industry buy their raw material from numerous
suppliers. Powerful suppliers in consumer goods sector use their negotiating power to extract higher prices from
the firm in auto manufactures. The overall impact of higher supplier bargaining power is that its lowers.

How Tata groups can tackle bargaining power of the suppliers:

By building efficiency supply chain with multiple suppliers

Developing dedicated suppliers whose business depends on the firm.

3. Bargaining power of buyers:

Buyers are often demanding lot. They want to buy the best offerings available by paying the minimum price as
possible. The smaller and more powerful the customer base is of tata group the higher the bargaining power of
the customer and higher their ability to seek increasing discount and offers.

How Tata motors group can tackle the bargaining power of buyers:

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 By building a large base of customers. This will be helpful in two ways. It will reduce the
bargaining power of the buyers plus it will provide an opportunity to the firm to streamline its sales
and production process.
By rapidly innovating new products. Customers often seek discounts and offering on established
products so if Tata motors group keep on coming up with new products, then it can limit the
bargaining power of buyers.
New products will also reduce the defection of existing customers of Tata group to its competitors.

4. Threats of substitution products or services:

When a new product or service meets a similar customer needs in different ways, industry profitability suffers.

How Tata group can tackle the threats of substitute products:

By being service oriented rather than just product oriented.

By understanding the core need of the customer rather than what the
customer is being.
By increasing the switching cost for the customers.

5. Rivalry among the existing competitors:

If the rivalry among the existing players in an industry is intense then it will drive
down prices and decrease the overall profitability of the industry. Tata operates in a
very competitive auto manufacturer.

How tata motors group can tackle intense rivalry among the existing
competitors in auto manufacturers:

By building a sustainable differentiation.

By building scale so that can compete better.
Collaborating with competitors to increase the market size rather just
competing for small market.

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5. Functional Level Strategies

In Functional Level Strategy, the organization looks on:

Marketing strategy

Financial Strategy

Research & Development strategy

Operation strategy

All of the strategies are described below-

1. Marketing strategy:

Product- Tata Motors is associated with assembling of vehicles in classifications that incorporate autos
Hatchback, Sedan and utility vehicles, Trucks, Busses, Municipal Solutions, and Defense and country
security. The item portfolio in the showcasing blend of Tata Motors additionally covers brands like Jaguar
and Land Rover. The shoppers see the Tata Motors brand that produces vehicles that gives unwavering
quality, high caliber, and proficiency. Tata Motors positions in top four traveler vehicle marks in India. It
centers around advancement and due its immense mechanical experience, they ceaselessly chip away at
growing new vehicles with vigorous specialized determinations. Furthermore, Tata Motors follow stringent
Quality standards and complies with the principles set somewhere around the administrative offices. In its
concentrated created on development, Tata Motors had uncovered electric variants of Tata India vehicle and
Tata Ace business vehicle that sudden spikes in demand for lithium batteries. During Commonwealth games,
Tata Motors introduced CNG – electric half and half transports to Delhi Transport Corporation that were a
piece of condition cordial transports. The Tata 407, of the Light business vehicle class has sold more than 5,
00,000 units since its underlying dispatch.

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 Price- Tata Motors has a various portfolio, which implies an assorted valuing procedure. In 2008, Tata
Motors propelled Tata Nano the least expensive traveler vehicle on the planet. It followed infiltration valuing
procedure and vehicles produced by Tata Motors are nearly less expensive than its rivals are. Because of its low
cost, it pulled in media consideration and the vehicle announced an expansion in deals figure inside brief
timeframe during the underlying days of the dispatch. The lower valuing of Tata Nano likewise brought about
customers seeing it as a modest item. The infiltration valuing system can go about as section obstruction for
new players in the portion focusing on lower pay gathering. The valuing system in the promoting blend of Tata
Motors takes into account the lower class just as the well-to-do high society. Tata Motors' global obtaining
Jaguar Land Rover targets specialty clients giving excellent highlights.

Place- Tata Motors has the third biggest help and deals arrange in India. To disseminate its vehicles, it
has banded together with different merchants across India and the administration communities are well
furnished with the extra parts and extras. Tata Motors has broad conveyance organize set up across India,
likewise significant dispatches are shown in showrooms to encounter the item. To buy guard vehicles, Tata
Motors has set up provincial workplaces in the conditions of West Bengal, Maharashtra, Delhi and Karnataka. It
is likewise associated with the deals of Pre – Owned Cars and gives highlights, for example, service agreement.

Promotion- Tata Motors has been known to having an aggressive marketing strategy. To endorse its
passenger vehicles globally, Tata Motors declared Lionel Messi as their brand Ambassador. It also signed film
celebrities as brand ambassador for its commercial vehicle business. Tata Motors is the prime sponsor of many
events and it helped in creating awareness about its new product Tata Tiago in the minds of the consumers. The
company offers discount to its customers as part of festival offers in India hence developing interest among
consumers. The promotional strategy in the marketing mix of Tata Motors is carried out in the form of TV,
Newspapers, and electronic media. Tata Motors leverages upon Social media marketing to target customers
based on the search results. The Tata brand is considered a trusted brand hence it uses the same to tap on the
customers.

2. Financial Strategy:

Financial Analysis is a procedure that looks at the past and current budgetary records for esteeming the nature
of execution and to discover future danger of the organization. This investigation typically utilized by financial
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specialists, banks, administrators, legislative offices, providers, and so on for settling on right affordable choices
about the organization they pick. Speculators and loan bosses are constantly intrigued for getting into the fiscal
reports. The necessary data with respect to the organization can be handily seen by a financial specialist.

Tata Group Revenue

Trade Rates $= Rs 45.25

The examination shows the organizations salary from all the business exercises, for example, the offer of
products, benefits that are given to the clients, and so forth. The chart shows the gathering incomes from the
year 1992-2009. In 1992, the gatherings income was Rs 14,092 crores ($5.8 billion). From this year the
gathering began its extension. Constantly 2009, the shows 15.91% of addition on its all-out income, that is Rs 3,
25,334 cores ($70.8 billion).

The presentation of the organization year to year can't be simply seen by the fiscal summary. This is on the
grounds that the organization's budgetary structure shifts and it is once in a while indicated the organizations
accurate income. Ordinarily the money related data are brought to contrast and various organizations. This
additionally brings the distinguishing proof of execution, for example, activity, fund and money related hazard
execution. Return of benefit (ROA) goes under the section Operating execution. This measures how the board
utilizes their advantages as by given or distributed. The financial structure of the gathering is connected with the
budgetary exhibition of the gathering. The Return of value (ROE) assists with indicating how the gathering uses
the investor's value. Presently the Financial hazard execution generally manages the bank, providers and the
speculators. By esteeming this exhibition, the bank can see on the gathering's present proportion and can
address whether the organization can cover the tabs.

Research & Development Strategy:

Tata Motors is likewise growing its global impression, built up through fares since 1961. The
organization's business and traveler vehicles are as of now being promoted in a few nations in Europe,
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 Africa, the Middle East, South East Asia, South Asia and South America. It has franchisee/joint
endeavor get together activities in Kenya, Bangladesh, Ukraine, Russia, Senegal and South Africa.

The establishment of the organization's development in the course of the most recent 50 years is a
profound comprehension of monetary improvements and client needs, and the capacity to make an
interpretation of them into client wanted contributions through driving edge R&D. With more than 3,000
designers and researchers, the organization's Engineering Research Center, built up in 1966, has
empowered spearheading advancements and items. The organization today has R&D focuses in Pune,
Jamshedpur, Lucknow, Dharwad in India, and in South Korea, Spain, and the UK. It was Tata Motors,
which built up the main indigenously grew Light Commercial Vehicle, India's first Sports Utility
Vehicle and, in 1998, the Tata Indica, India's first completely indigenous traveler vehicle. Inside two
years of dispatch, Tata Indica turned into India's biggest selling vehicle in its section. In 2005, Tata
Motors made another fragment by propelling the Tata Ace, India's first indigenously created smaller
than normal truck.

In January 2008, Tata Motors uncovered its People's Car, the Tata Nano, which India and the world
have been anticipating. The Tata Nano has been in this way propelled, as arranged, in India in March
2009. An improvement, which means a first for the worldwide vehicle industry, the Nano brings the
solace and security of a vehicle inside the range of thousands of families.

4. Operation Strategy:

The activity the board of India's driving and the biggest vehicle producer "Tata Motors”. In the present
business condition tasks, the board assumes a significant job in choosing the achievement of the
organization. Activities the board utilizes the info assets to deliver yield to satisfy the market
requirement. This report talks about the activity system received by Tata engines utilized in the
assembling of its vehicles in India and its solid worth chain which has prompted the advancement of
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 new improvements, one of which is world's least expensive vehicle "Tata Nano". After constant
improvement in their tasks today, Tata engines are quickly expanding their impressions
comprehensively.

6. BGS MATRIX:

The BCG Growth Share Matrix was evolved in the early 1970s by Bruce Henderson, founder of the Boston
Consulting Group, to help corporations make investment and disinvestment decisions related to their business
units or product portfolios. The advantages of the BCG growth share matrix are manifold.

It plots business units (or products) that form part of a corporation’s portfolio on a grid of four equal quadrants
on the basis of their market growth and market share (which is why the BCG Matrix is also called the “Growth-
Share” Matrix). The management team can then decide on the right business strategy for each unit.

The matrix categories business units as “stars,” “cash cows,” “dogs,” and “question marks,” depending on
whether they deserve cash infusions or need to be closed down.

BCG matrix classifies

different business units or
products into 4 different
categories like Dogs, Stars,
Cash Cows and Question
Mark.

These classifications are

based on the grow threat of
the industry and the market
share of the respective
businesses which are relative
to the largest competitor
present, for that reason, BCG
Matrix is also called as
Growth-Share Matrix.

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BCG MATRIX OF TATA AND PRODUCT CATEGORY:

Star

Products in high growth markets with high market share.

Question Mark

Products in high growth markets with a low market share.

Cash Cow

These are the products which are in low growth markets with high market
share.

Dogs

These are the products with low growth or market share. Products.
which has low growth or market share and have limited chances of
showing any growth are referred to as Dog.

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Stars:

“Stars” are business units that have a high market share but consume a high amount of cash as they are situated
in a high-growth market.

Companies that are the first to enter a market and monopolies are described as “stars.” Stars generate cash
because of their high market share, but because a high-growth market also demands cash, most of the cash that
stars earn is absorbed by their capacity-building activities.

Stars may become “cash cows” if they can maintain their market share until the market itself stars to decline.

BCG Matrix Stars Strategy:

Invest in stars in the hope that they become cash cows and generate funds for the corporation’s future plans.

Cash cows:

“Cash cows” are business units with a high market share but find themselves in a mature, low-growth market.

Therefore, such units do not require cash but rather provide cash.

Cash cows can be “milked” to generate funds for other business units under the corporation, to turn “question
marks” into “stars,” to repay corporate debt, to issue dividend to shareholders, or to fund research.

BCG Matrix Cash Cows Strategy:

Invest in cash cows, but only to maintain their level of productivity, and until they become “dogs.”

BCG Matrix Question Marks Strategy:

Invest in them depending on the prospects, but sell them off if they do not start yielding profits.

Applying the matrix principles, all business units start off as question marks, then become stars and cows, and
finally end their life cycles as dogs. Tata companies are significantly involved in other segments like: Tata Steel,
Tata Motors, Tata Power, Tata Global Beverages, Titan, Tata Chemicals, Tata Consultancy Services, Tata
Teleservices, Tata Communications and Indian Hotel Companies.

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BCG MATRIX OF TATA GROUP

Star: The minerals division and specially Ferro-Alloys in TATA (Tata Steel Ltd.) would fall
into the group of stars of the BCG Matrix. It is the largest steel producing company, annually
producing 25.3 million tons of crude steel.

Cash Cow: The overall sale of the company is 6.170 million tones, producing about 6.439
million tones.

Question Mark: Tata Steel’s tubes and bearing division falls in the question mark category.
This division is having a rapid growth-rate in the market but with a low product-share. This division
have the potential to become star and cash cow when the market growth rate is slow.

Dog: All the divisions of the Tata Steel cannot be categorized in the Dogs, because every
division has a good market growth rate and its share.

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7.PROBLEMS AND SOLUTIONS OF TATA:

1. How can Tata Group can increase their Profit?

When investors want to make more money by investing their money in a variety of investment
options, they are said to be over diversifying. Those investments can be a variety of common opportunities
and investments, or they can be completely separate investments. This form of decision can go either way; it
can result in the most profitable investment for the enterprise or it can be detrimental to the entire reputation
and organization. The Tata Group is experiencing the same issue; they have over-diversified their portfolio
by engaging in a variety of opportunities. The Tata Party is one of the biggest.

Tata Teleservices, another sign of over diversification within the Tata community, is having financial
difficulties paying their daily expenses. Over-diversification will lead to a slew of financial issues,
including leverage, the stock market, and budgeting.

2. How can Tata Group solve the problem of short-term management issue?
Another short-term issue that the Tata group is dealing with is top management, which is a product of the
company's over-diversified business and investment portfolio. Ratan Tata took in the top management
department to the world market in 2013, where they could handle other divisions on a global scale.

Ratan Tata helps the Tata Community break out of their comfort zone and pursue new markets by
engaging in other businesses. Ratan Tata is a brilliant manager, and when he had to step down, the company
ran into a lot of trouble and no one else could run the company as well as he could. Tata Group faced a
second challenge at the time of the global recession in 2008. Due to a shortage of financial resources, the
Tata community was unable to sustain their societal picture of assisting the economy and culture. The
corporation was in financial trouble as a result of excessive spending on acquisitions and other investments.
Tata Teleservices, on the other hand, was in debt to the tune of INR 3400 billion.

3. How to create expert and strong Employee’s chain in Tata Group?

The Tata Group should begin exchanging top management and executives amongst its businesses. These
tactics have a number of advantages, including the ability to assist other organizations in solving challenges under
diverse ownership, the ability to avoid HR issues if anyone is to retire, the ability for managers to serve in unfamiliar
situations, and the ability for managers to go outside of their comfort zones.

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 Tata Group employees should be trained and filtered so that their use and expertise can be maximized. Tata
has given over 200,000 workers worldwide the ability to recognize their abilities and strengths, which they
can use if the situation calls for it.

4. How did Tata become India's first $100 billion company?

The Tata Group is India’s largest industrial conglomerate. The core values of Tata, integrity, understanding,
excellence, unity and responsibility lead Tata group to be the most respected business conglomerate of India. The
devotion of five generations has made Tata group one of India's oldest, largest groups of industries. The group's
businesses are spread over seven business sectors. Tata Group is now a $100 billion conglomerate–India’s first. After
pioneering the country’s steel, power, auto, and IT industries, among others, Tata is now seeing global sales drive its
growth, making it even more of a model for the rising crop of emerging-market multinationals that are challenging
Western companies’ reach in both rich and poor countries.

The Tata Group’s play in the global business process outsourcing business is yet to emerge fully–at least in
comparison to Wipro and Infosys–in terms of scope, scale and structure. Presently, TCS has got a 50:50 joint venture
with the Housing Development Finance Corporation in the form of Intel net, a BPO company. Another Tata company,
Tata InfoTech, has a 40% stake in SITEL India–a company that offers information technology-enabled services. TCS
also bought out an airlines process outsourcing subsidiary–AFS–from Swissair. However, in the coming year or two,
the Tata Group may seek a significant foothold in the BPO business, comparable in scale to what has done in the
telecom business.

Diverse industry: TATA group is known among the biggest Indian multinational conglomerate holding
company with its diversified industries in steel, hydro-power, hospitality, and airlines in India.

New markets: Started in heavy industry and gradually moved into high tech software development and
consulting industry. Tata first created Tata Limited in London in 1907 to start spreading business abroad—one of the
first global outposts from what we’d today consider an emerging market. International business has since become key
to the group’s growth, with 58% of revenues last year coming from the more than 80 countries other than India in
which Tata operates. Most overseas sales come from the US and UK, and include everything from tea to IT services.

Global acquisitions: Early start, though in a small way, in international market. Now actively participate in 85
countries. In recent years, Tata has bought its way into some of the world’s biggest markets, growing largely through
international acquisitions that have made it more efficient and locked down access to resources. Purchases included
UK-based Tetley Tea in 2000; South Korean Daewoo Commercial Vehicles and Swiss fiber-optics giant Tyco Global
in 2004; Singapore-based NatSteel in 2005; Anglo-Dutch steelmaker Corus in 2007; and UK-based Jaguar and Land
Rover in 2008.

Most emerging-market multinationals can’t build that sort of scope overnight. Unlike counterparts in many
developing regions, Tata was never state-owned, and so avoided the painful transition from public to private enterprise.
It did benefit from years of trade protectionism, which bought it time to develop and dominate at home while amassing
the cash to speed its recent acquisitions. Emerging-market corporations may look to Tata’s holding structure as more of

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an example, though: By delegating management to each individual company within its portfolio, it allows its holdings
to adapt and expand more rapidly abroad—helping to win the group recognition as a model of corporate
internationalization.

5. With what intentions were Tata Nano launched?

Tata Motors Ltd. is India's largest automobile company. Its latest passenger car Nano remains a modern-day
symbol of India's ingenuity. This was an outcome of a deep understanding of economic stimuli and customer needs,
and the ability to translate them into customer-desired offerings through leading edge R&D. Tata's dream project took
off in the year 2003.

The idea was to develop an innovative, attractive and cost-effective means of transportation for the
underprivileged while balancing the customer's expectations and meeting the regulatory requirements. Innovation with
new market segment requires major process reengineering which has to be accepted by the customers. Tata tried new
design of Nano to keep the cost low. In order to ensure a spacious interior, lower weight and low costs, engine was
strapped in the car's rear, with front wheel drive and the petrol tank to the front. This made the car more low-cost,
efficient and compact. A lot of fiber and plastic were used instead of steel to keep the weight of the car low. No radio,
power windows, air conditioning, anti-lock brakes, air bags, remote locks or power steering were part of the car. Tata
Nano was launched in India, targeting the families who use bikes as a form of travel. It was designed to allow the
families to have a more comfortable, safe means of travel. Price was also a factor in the development of the car and it
was supposed to be the most affordable car in the world.

6. What made TATA NANO a failure?

The Nano was Tata’s most ambitious project. Tata managed to achieve the unthinkable! Tata surprised all of
their competitors, and international brands with the Nano because of the fact that this project was so big but the
margins were incredibly small. This project is a testament to the goodwill of Tata. Things did not fall in place for Tata
or the Nano at the time, which led to the collapse of this project. It truly is very saddening to see such a good project go
away because of a few simple mishaps.

Positioning as Cheap: The automaker was under the misconception that the low price would be enough to
motivate people to buy the Nano. They did not account for their positioning it as a cheap vehicle which, in India’s
markets, translates to low quality. After all, who wants a daily driver that looks cheap and is poorly built? Simply put,
those who could afford a higher end Nano did not want to drive it. Also, when people are status conscious, they look
for things that make them look wealthier than their neighbors and colleagues. While a car sounds like it would be an
upgrade from bikes, a cheap one that looks the part will always be shunned and will never be perceived as a means to
boost one’s social status. An older, used sedan or hatchback that was more expensive when it was first launched would
have more value for such a market than a new one that was marketed as cheap.

Production Issues: Another major problem that contributed to the Tata Nano’s failure was the long wait time
for delivery. The Nano was supposed to be manufactured in the new plant in West Bengal. Unfortunately, the company
could not acquire land for the facility and instead had to start manufacturing from in Gujarat. Moreover, the lower

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production capacity could not keep up with the initial demand and many people simply did not buy a Nano early on
because there were not any available.

Solution TATA group needed

The Tata Group should establish a centralized organizational framework such that everyone understands their role
in the business. Since the Tata group has over 100 businesses around the world, they like to keep it centralized.

Instead of buying new small businesses, the Tata group should focus its efforts on developing complementary goods
and services. It will assist them in saving money and maximizing the use of c.

Tata's businesses should have a unified financial structure. It will assist stakeholders and top managers in
distributing capital evenly and budgeting accordingly.

The company should establish a proper alliance, tie-up, and merger plan. They should recruit a corporate planning
and economics team to assist them in expanding their divisions.

Businesses can better control their financial resources so that they do not have to deal with debt.

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8. Recommendation and Conclusion

Recommendations for TATA:

They should use social media more to create online buzz and try to directly communicate with
the customers regularly.
They should make their product m
Core differentiates through service.
They should give more focus on their innovation packaging.
They should arrange more training session for their employees.
Tata steel should train its unskilled worker in a better way so that they are aware about rule and
regulations that are made for contractor.

Conclusion:

After all the discussion, we can say that Tata is an overall strong company. It has several product lines in
the market and it operate their business in several country. They are known as global brand and they
always try to make their customer happy. They always try to give importance about customer desire and
make products based on their customer taste and preference and it is possible to make variety of product
because of their flexible manufacturing system. They always try to follow current market trend and make
innovative product with lower cost so that they can attract more customer. So, we can say that Tata is
very successful company. The Tata Party contributes to the development of India's economy and culture.
With the support of their parent and sister businesses, they have the highest quality goods and services.
From India, the Tata group is the world's biggest corporation. They have consistently proven to be self-
profitable and one of history's most promising businesses.

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The quotable Jamsetji Tata, http://www.tata.in/aboutus/articlesinside/

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