Tata Motors

ANALYSIS

SECTION-C GROUP-4
ABHISHEK RAJ (PGP/19/124)
CHANAKYA KHANDELWAL (PGP/19/134)
HIMANSHU DHINGRA (PGP/19/144)
PIYUSH JAIN (PGP/19/155)
SAKSHI BANSAL (PGP/19/166)
UTKARSH (PGP/19/177)

TATA Motors

DOMAINS, PRODUCTS & ENVIRONMENT

Variable

Complexity

Highly Complex

Large number of suppliers

Wide product range

Large dependence on technology

Market is highly dependent on external

factors

Dynamism

Highly Dynamic

Technology changes rapidly

Global expansion of Tata Motors

Richness

Low Richness

Various established automobile

manufacturers in market

Battle to attract customers

Environment
al Variable

Light
Commercial
Vehicles

Heavy
Commercial
Vehicles

Goods
Goods Carrier
Carrier
Passenger
Passenger
Carrier
Carrier

SK
SK 1613/36
1613/36
LPK
LPK 2516/38
2516/38
LPK
LPK 1618
1618
LPK
LPK 1618/36
1618/36

Passenger
Vehicles

Military
Vehicles

Tata
Tata Indigo
Indigo
Tata
Tata Manza
Manza
Tata
Tata Winger
Winger
Tata
Tata Nano
Nano

Tata
Tata LSV
LSV (Light
(Light
Specialist
Specialist
Vehicle)
Vehicle)
Tata
Tata Mine
Mine
Protected
Protected
Vehicle
Vehicle (44)
(44)
Tata
Tata 2
2
Stretcher
Stretcher
Ambulance
Ambulance

Degree of Uncertainty

Complex Structure
High Differentiation

Structural Variable

High Integration
Decentralized decision making
Mutual adjustments

TATA Motors: Current Strategic

Focus and Structure
Functional Strategy
Efficient and Low cost Vehicles
Skill in mergers and acquisitions
Location in a developing country-India
Advanced R&D Focus
Frugal Engineering and Innovation

Global Expansion Strategy

Entering countries with similar demandsSouth Africa, Thailand, Argentina though
JVs or acquisitions
Mass Customisation option
Retaining Brand Value
Product Reliability, Service Network,
Channel Reach

Business Strategy
Cheap Cars to Expensive Model of Cars
Economies of Scale through INR 28.8
billion investment
INR 60 billion for expansion in
Manufacturing plants

Corporate Strategy
Related Diversification in a new
customer base.
JVs and Acquisitions to explore new
domains

Matrix form involving

functional and divisional
forms

Functional Division are

divided in: Finance, Strategy
, Engg, Comm, HR, Legal

Functional Division construct

strategic framework on
which business sectors are
based: Commercial Unit BU,
Passenger Unit BU and
International BU.

Lesser levels in organisation

structure provide a better
platform for innovation and
customisation of products

Consensual type of
management style with
transformational leadership

How do structure and culture complement

each other?

Structur
e

Decentr
alisat
ion
Form
alisation
(Tata Co
de of
Conduct
)
Coor
dination
Com
municat
i
on
I nno
vation

How culture helps in Differentiation?

Tata Nano- Customer
focus (Middle class
Indian population) and
innovation
Whole organizationpersonal achievement

Business Results
Financial, market, HR
performance measurement and
improvement

Jaguar XF1- Innovation

and Excellence- Best
Executive car in 2008

Structural
Characteristics

Mass Production
Technology

Level in the
hierarchy

Span of Control
of CEO/MD

Span of control
of first-line
supervisor

30

Ratio of
managers to non
managers

1-5

Approximate
shape of
organization

Relatively tall, with

wide span of
control

Type of structure Mechanistic

Cost of operation Medium

Technology used and how it translates to specific

organization structure

Summary: Impact on Organizational Design and

Recommendations
Domain: Highly uncertain environment: Complexities in political, macro-economic
factors (general) as well as changing technology (dynamism)

Core Competency: Strong reputation/ legacy and inspirational leadership team

Strategy: Low cost business level strategy and follow related diversification
in newer markets to hedge against general environment complexity

Technology: High Technical complexity with mass production system. Slowly

moving towards advanced manufacturing systems with CAD/ CAM technologies.
Technology
Imperative
Present scenario: Mechanistic
Structure
Need to move towards more organic
structure - Adapt to technology
breakdowns in advanced
manufacturing process.

Move towards more Global Product

structure to implement international
strategy.
Culture: Learning organization through
TBEM Model to ensure knowledge flow.

Thank You.