BUSINESS STRATEGY EVALUATION

What we will cover in this

presentation

Objective of the presentation

Tata Motors Introduction

Business Structure

Financial Analysis over the last 5 yrs

Environment that effects Tata Motors Industry / Remote / Operating

Strategy & Business Plan

Executive Summary

Objective of the presentation

Analyse and evaluate the business strategy of Tata Motors.

Organisation and vis a vis the Industry.

Introduction, Growth and Expansion Spree

Entered commercial vehicle sector in 1954 after forming a joint venture with
Daimler-Benz of Germany.

Entered the passenger vehicle market

1991 by launching the Tata Sierra. , a multi utility vehicle.

1992 launched the Tata Estate
1994 Tata Sumo
1998 Tata Safari India's first sports utility vehicle). / Indica in 1998, the first fully indigenous Indian
passenger car. A
Tata Motors acquired Daewoo's South Korea-based truck manufacturing unit, Daewoo Commercial
Vehicles Company, later renamed Tata Daewoo.[6]

On 27 September 2004, Tata Motors rang the opening bell at the New York Stock
Exchange to mark the listing of Tata Motors.[7]

In 2005, Tata Motors acquired a 21% controlling stake in the Spanish bus and coach
manufacturer Hispano Carrocera.[8]

Introduction and Expansion Spree

2006, Tata formed a joint venture with the Brazil-based Marcopolo, Tata Marcopolo Bus, to
manufacture fully built buses and coaches. [9]

In 2008, Tata Motors acquired the British car maker Jaguar Land Rover, manufacturer of the
Jaguar, Land Rover, and Daimler luxury car brands, from Ford Motor Company. [10][11][12][13]

In May 2009, Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo;
[14] the range went on sale in South Korea, South Africa, the SAARC countries, and the Middle
East at the end of 2009.[14]

In 2010, Tata Motors acquired an 80% stake in the Italian design and engineering company
Trilix for 1.85 million. The acquisition formed part of the company's plan to enhance its
styling and design capabilities.[17]

In 2012, Tata Motors announced it would invest around 6 billion in the development of
Futuristic Infantry Combat Vehicles in collaboration with DRDO.[18]

Introduction and Expansion Spree

In 2013, Tata Motors announced it will sell in India, the first

vehicle in the world to run on compressed air (engines
designed by the French company MDI) and dubbed "Mini
CAT".

In 2014, Tata Motors introduced first Truck Racing

championship in India "T1 Prima Truck Racing
Championship

On 2 November 2015, Tata Motors announced Lionel Messi

as global brand ambassador at New Delhi, to promote and
endorse passenger vehicles globally.[20]

Operations

Vehicle assembly operations in India, the United Kingdom, South Korea,

Thailand, Spain and South Africa. Plans to establish plants in Turkey,
Indonesia, and Eastern Europe.

The Tata Motors European Technical Centre (TMETC) design, engineering,

and research company. Campus of the University of Warwick UK.
Established in 2005.2013 Expansion at a cost of 100 million.[36][37] The
initiative will be a partnership between Tata Motors, the university, and
Jaguar Land Rover, with 30 million in funding coming from Tata Motors.[38
]

Tata Hitachi Construction Machinery : JV for Excavators and Construction

equipments.

CORPORATE STRATEGY
This excerpt taken from the TTM 20-F filed Oct 7, 20014.

Our goal is to position ourselves as a major international

automotive company..... offering products across various
markets.... combining our engineering strengths.... strategic
acquisitions.
Strategy :
Leveraging capabilities:

We believe that our in-house research and development capabilities,

our subsidiary TDCV in South Korea
Association with Hispano in Spain
JV with Marcopolo of Brazil in India and with Thonburi in Thailand - DTC
Relationship with Fiat
Acquisition of the Jaguar Land Rover business

Growth in numbers
It focused on domestic and international growth through new products
and improved sales and service.
Domestic

Exports

Total

Category 2015-16 2014-15 2013-14 2015-16 2014-15 2013-14 2015-16 2014-15

2013-14

M& HCV

123,551

99,943

80,494

15,322

12,955

7,790

138,873

112,898

88,284

LCV

134,774

159,647

214,721

28,088

24,615

22,960

162,862

184,262

237,681

UTILITY

15,470

20,585

23,579

508

861

838

15,978

21,446

24,417

CARS

91,648

84,688

79,937

2,620

2,156

4,656

94,268

86,844

84,593

TOTAL

365,443

364,863

398,731

46,538

40,587

36,244

411,981

405,450

434,975

SWOT Analysis
STRENGHTS
One of the most established company in automobile sector
Wide & extensive distribution and service network
Good market penetration in the taxi & rental segment
Many associations like Jaguar Land Rover, Hispanso, Macropolo etc which increases
international presence
More than 60,000 employees
Highly diversified product portfolio
WEAKNESSES
Limited international presence
Faces alleged quality and durability issues
No much customer engagement programs and activities

OPPORTUNITIES
Expanding automobile market
Increasing per capita income and purchasing capability of potential customer base
Leveraging customer engagement experience to acquire new customers
Leveraging mergers and acquisitions to acquire newer technology
Augmenting the distribution and service network in various countries
THREATS
Increasing fuel costs
Competition from other big automobile giants
Competitive products offering same level features at a lesser price
Product innovations and frugal engineering by competitors

Information Technology Strategy

Enterprise

Resource Planning

Prior to the SAP implementation TML has a host of legacy applications led to
redundancy, inconsistency and inefficiency in data management.

1997 A unified real time database was approved by their BoD to integrate. Across
functions, locations. Customer convenience. Distribution Channel ease.

Power of SAPs ERP infrastructure.Prior to SAP was Oracle database solutions,

Unix as operating system and predominantly IBM for hardware support.
The implementation of SAP ERP solution (Version 3.1H) 1998 to 2000.
connecting 3500 users.
2003 moved to version4.6C on a single server platform.Benefits enterprise integration,
reduction of inventories, better control over receivables, easier financial consolidation, single
unified database, reduced redundancy, and inconsistency, reduced response time to
customers, reduction of operational costs.

Financial Analysis
Operating Profits
Return on Investment / Capital employed
Current Ratio (Current Assets / Current Liability)
Net Profit Margins
Debt Equity Ratios

For the organisation, Year on year for the organisation

Vis a Vis the industry

Operating Profits

Returns on Investment

Current Ratio

Net profit margins

Debt Equity Ratio

Summary

Brand name, finances, market penetration, social

acceptability but could not leverage.
Need of the hour is organizational restructure and
performance improvement.

THANK YOU
Aniket Kenkre 005
Joel Days 018
Melroy Rebello 020
Sanchita Banerjee 025
Vasudev Manerkar 038