It can also mean a rise in costs or a drop in returns. Employing 1,400 scientists and engineers, Tata Motors’ Research and Development team is ahead of the pack in India’s market and right with the rest of the field internationally. In addition, it also identifies the weaknesses of the organization that will help to be eliminated and manage the threats that would catch the attention of the management. Tata Motors has experienced tremendous success in the hyper competitive Indian automobile industry. This will be especially vital in the future as Tata Motors continues to expand and grow into new markets. Both have won numerous national awards in research and development efforts since their inception in 1966. These awards are presented annually on July 29th, the birthday of JRD Tata. One way that Tata Motors has done this is by producing one of the most efficient and low cost vehicles on the market. The company's operating profit decreased by 21.6% YoY during the fiscal. Also, OneCAT only goes 62 miles per hour for 56 miles in an urban cycle. Copyright © 2003 - 2021 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for Tata Motors Limited if it is situated in unstable political environment. The company provides its products under the Tata, Daewoo, Fiat, Jaguar, and Land Rover brands. On one hand this can be a threat, but on the other it may not affect Tata Motors at all because people will still want to purchase their product since they were the pioneers of all the excitement. 4.2 Cost drivers of Tata Motors Ltd Value Chain Analysis Having chosen Tata Motors (We still don’t know why) as our company for analysis, we started brainstorming on various analytical parameters as sought. Currency fluctuations can equate to higher or lower demands for Tata vehicles which in turn affect profitability. If you need assistance with writing your essay, our professional essay writing service is here to help! Detailed Research Quality Reports Marketing. In fact, the Pakistan’s Transmission Motor company has built a basic four-wheeler for only $2,100. Tata has enjoyed the prestige of having developed Tata Ace, India’s first indigenous light commercial vehicle; Tata Safari, India’s first sports utility vehicle; Tata Indica, India’s first indigenously manufactured passenger car; and the Nano, the world’s least expensive car. So the market for a low-priced car is huge which benefits Tata Motors perfectly since they produce the lowest priced car on the market. Another Value Chain Analysis Example is using the value chain information to make modest advertising budget that can reduce marketing costs and offer the product at an affordable cost. Tata Motors is active, competitive, and dynamic in all aspects of the automotive industry, which means that there must be many different activities going on in all areas of the company. Read on for a complete analysis of TATA MOTORS's quarterly results. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. Its products include passenger cars, trucks, vans, coaches, buses, sports cars, construction equipment and military vehicles. The Nano was able to achieve its low price and gain the attention of the entire automotive industry through its advances in materials and adhesives technology. Study for free with our range of university lectures! Tata Motors is in collaboration with Fiat and Ford. “Tata will give us some space. But they also have to pay attention to not just the domestic currency, the rupee, but also to the dollar, euro, bhat, won, and pound, to just name a few. We're here to answer any questions you have about our services. Established under the parent company, Tata Group, in 1945, Tata Motors Limited has become India’s largest automobile company. This is a huge opportunity for Tata Motors because if they can get their feet into that market of people that do not have cars because they cannot afford them, then they will make large profits down the road. The Tata Group as a whole has over 20 publicly listed enterprises and operates in more than 80 countries world-wide. The Research Center at Jamshedpur and the Engineering Research Center in Pune are among the finest in the country (Tata.com). Registered Data Controller No: Z1821391. They have done so by benchmarking quality standards through the Tata business excellence model as well as providing incentives for companies to strive to improve the quality of their service, by awarding JRD quality management awards. KUMAR SAURABH We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. We bring about technological innovation in automobile industry. TATA MOTORS Income Statement Analysis. After a large drop in revenues from 2004 to 2005 when the company first went public on the NYSE (stock prices from May 1-22, 2008 can be found in Appendix C), it has been increasing revenues greatly annually, from 4,422.0 million in 2005 to 7,354.0 in 2007. Tata Motors achieved this is through using new materials such as, re-engineered plastics and modern adhesives. With the new acquisition of Jaguar and Land Rover, Tata will have to be careful with how they handle the acquisition. Tata Motors commercial line has been established for several years in many market segments such as Europe, Africa, The Middle East, Australia, Southeast Asia, and South Asia. These models are entrenched in the company’s ethnical standards and Tata feels strongly about enforcing both throughout the company. “Tata Group’s corporate governance is founded upon a rich legacy of fair, ethical, and transparent governance practices” (tatacarsworldwide.com). In January they announced that they, “would release a $2,500 car that could replace the motor scooters commonly used in developing countries to cart around whole families” (Carty, USA Today). They have experience and resources from five continents across the globe, thus when any variable changes in the market they can gather information and resources from all over the world to address any issues. Tata has committed to ensuring quality and ethical standards not only within Tata Motors, but throughout their many other branches and sectors of the Tata Group. The motor group was established in 1945 as part of the larger Tata Group. Tata Motors Limited Porter Five (5) Forces Analysis for Consumer Goods Industry Threats of New Entrants New entrants in Auto Manufacturers - Major brings innovation, new ways of doing things and put pressure on Tata Motors Limited through lower pricing strategy, reducing costs, and providing new value propositions to the customers. Let’s take a dig into the Tata Motors stock to understand what the company has gone through in the past decade and what that implies for long term investors. The company began in 1945 and has produced more than 4 million vehicles. Currently, Tata Motors has a line of five passenger vehicles and a large line of commercial vehicles producing pickups, trucks, tractor trailers, tippers, and buses. This market understanding and knowledge allows Tata Motors to manufacture their products at lower costs, sell them to emerging markets while making profits as well as take advantage of the strong labor base in India. For instance, the market in India for cars is much different than the market for cars in Italy. Tata Motors is able to leverage Indian automotive market because the current increase in demand due to the improvements in infrastructure and growth of population and disposable incomes in India. This is a huge threat to Tata Motors because at first they had low competition, but once other car manufactures find out how they invented such a low cost car, and then these companies too will jump on board and design their own line of low cost automobiles. Another strength that Tata Motors possesses is high corporate responsibility. This is yet another large acquisition for the Tata Motors group and could create great success for the company in the near future. The OneCAT weighs only a 350 kg and has a piston engine that runs on compressed air. Rather than using de-culturation or assimilating Daewoo, Tata took an integrated approach, and continued building and marketing Daewoo’s current models as well as introducing a few new models globally just as it had been done under Korean management. Tata Motors Limited Porter Five (5) Forces Analysis for Consumer Goods Industry Threats of New Entrants New entrants in Auto Manufacturers - Major brings innovation, new ways of doing things and put pressure on Tata Motors Limited through lower pricing strategy, reducing costs, and providing new value propositions to the customers. The investments would be in product development, capital expenditure in capacity enhancement, domestic and international acquisitions and mergers” (Tata.com). How can Tata Motors manufacture such a cheap car that meets emission and safety standards being so young? This car, which is just emerging into the market, is the world’s cheapest car. This acquisition helps them dive into the more mature markets in Japan, Europe and the U.S. As a company, Tata has positioned itself to capture a significant share of the market for hybrid electric vehicles. Fiat and Tata share the manufacturing facility in India whereas Tata has purchased Ford’s Jaguar and Land Rover. This acquisition gave Tata Motors a significant presence in the Korean market. This innovation gives Tata Motors their main competitive advant… Operating in numerous countries across the world, Tata Motors functions with a global economic perspective while focusing on each individual market. The Tata business excellence model is upheld by Tata quality management services. Although they have made the most inexpensive car out on the market, it has yet to pass all the safety standards which is a legal factor. The two main processes that the quality management services employees focus on are business excellence and business ethics. This location has allowed them to understand not only the Indian market but also the dynamics of emerging and developing markets. It also examines the opportunities the company should explore and the threats it should address with appropriate strategies. The products include trucks, passenger cars, vans, buses, coaches, and military vehicles, construction equipment. They employ approximately 1,400 scientists and development officers. Just because the rupee is strong against the dollar does not mean it is strong against all the other currencies. On March 26, 2008, Tata Motors reached an agreement with Ford to purchase Jaguar and Land Rover. Overall, their competencies in this area are comparable with the competencies of Ford Motor Company. The company was formerly known as Tata Engineering and Locomotive Company Limited and changed its name to Tata Motors Limited in July 2003. The Tata Motors group is a passenger and commercial vehicle manufacturer based in India. Tata motors is headquartered in India and they are the market leader in India. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. Tata Motors only have been making passenger cars for the approximately last ten years. Gas prices continue to rise and the Nano requires gas, but those who purchase the Nano probably do not have a lot of money and so if gas prices keep jumping up then that market of consumers will not be able to purchase the car. So although it is marketed as being emission free, it technically is not and this is another weakness. If OneCAT can be made as cheaply as th. This concept car is a fiberglass vehicle that virtually powered by air and is emission free. Or analyse: Avanti Feeds Godawari Power Rossell India NGL Fine Chem Marksans Pharma Alembic Pharma Lincoln Pharma Poly Medicure Shivalik Bimetal Vikram Thermo RACL Geartech Sandur Manganese. Pest Analysis on Tata 1416 Words | 6 Pages. Operating income during the year rose 3.6% on a year-on-year (YoY) basis. Company Registration No: 4964706. Acquisitions, mergers, and expansion is another core competency that Tata Motors has is embedded in their company structure and philosophy. Tata Motors excels when it comes to innovation through intensive research and development. They are beginning to employ a similar technique as they now expand into the passenger car business. Established in 1945, the company’s products include passenger cars, trucks, vans, coaches, buses, sports cars, construction equipment and military vehicles. From the above graph we can infer that the company hit the 52-week high of Rs. The company that Tata Motors purchases will look exactly the same in terms of management and organizational structure as if it was never purchased by Tata Motors. Established in 1945, the company’s products include passenger cars, trucks, vans, coaches, buses, sports cars, construction equipment and military vehicles. Tata Motors makes everything from tractor-trailers to the world’s least expensive car. Second, you must also take into affect the demographics and the average income of each market. Tata Motors Finance Limited (TMFL) and Tata Motors Finance Solutions Limited (TMFSL) are Non-Banking Financial Companies (NBFCs). They have long been known for their commercial vehicles and in the past ten years entered into the passenger car market. The company's operating profit decreased by 21.6% YoY during the fiscal. Since Tata Motors is a part of a large conglomerate company it needs to have a strong corporate governance to ensure that its employees act ethically and the business continues to run smoothly especially during the ever changing and dynamic global economy. In the automotive industry, it is becoming increasingly crucial for manufacturers to stay on top of the technology curve with new problems always rising such as escalating gas prices and pollution problems. Tata, like many new businesses it acquires, is allowing this new segment of the business to be run by previous management since they have more experience in the luxury automotive business. This can be viewed as a weakness from a customer standpoint since a decade does not seem like a lot to consumers and therefore they will think that Tata Motors is inexperienced car manufacturing. VAT Registration No: 842417633. Attention to currency is important because it influences where capital investment will develop and prosper. TATA MOTORS Company Summary Tata Motors Limited designs, develops, manufactures, and sells a range of automotive vehicles. In the CV segment, which is the backbone of the domestic business, the Company has maintained its leadership position in the industry with a 45.1% market share in FY 2018-19. Tata Group supplies Tata Motors with access to knowledge, resources, technology and companies operating in many different industries worldwide allowing innovation and easy availability to access other sources. TATA MOTORS 2018-19 Annual Report Analysis (Annual Result Update) Jul 5, 2019 | Updated on Jul 5, 2019. The company had sold a total of 47,862 units in the same month last year, Tata Motors said in a statement. INTRODUCTION : - Tata Group was Established under the parent company in year 1945. As of March 2008 Tata Motors finalized a deal with Ford Motor Company to acquire the British businesses, Jaguar Cars and Land Rover. The knowledge transfer from these two companies will greatly improve Tata Motors ability to continue to grow and flourish in both developing and developed market segments. They want us to run our business, be a premium British car company” (Mike O’Driscoll, managing director of Jaguar). Currently, Tata Motors has a line of five passenger vehicles and a large line of commercial vehicles producing pickups, trucks, tractor trailers, tippers, and buses. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. “Jaguar cost Ford some $10 billion during its 18-year stewardship and its sales were in headlong decline, especially in America, its most important market. “The foundation of the company’s growth is 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). Car sales in India are less than 1 million annually. This is a huge opportunity for Tata Motors since they will acquire the large knowledge base and technologies for producing and marketing luxury vehicles. It manufactures commercial and passenger vehicles, and employs in excess of 23,000 people. Industry analysts also struggled to see what value Tata could add that had eluded Ford, and what synergies there could be between a maker of trucks and basic cars… and two luxury marques.” (Economist). Japan, North America, and Europe automobile sales went up over the years because of demand for smaller cars increased. This draws a problem because Tata Motors may not get the sales that the company hopes for and how can they sell cars to people who are not buying cars? There will always be something else to invent or improve on and Tata Motors is a prime example of that. Tata Motors is also a very eco-friendly company. In its diversified portfolio, it has many types of products. Tata Motors has implemented programs that allow it to prosper while maintaining low costs and high profits. They donate a portion of their profits from stock increases towards a specific charity. This is a major break through in the automotive industry and shows how far reaching, diverse, and competitive the Tata Motors group is becoming. In April 2005, Tata Motors Limited merged with Tata Finance, and lastly in March 2008 Tata paid Ford Motor Company 2.3 billion for Jaguar and Land Rover companies (Tata.com). The foundation of the company’s growth internationally is a deep understand of economic stimulation, customer needs, and individual government regulations and laws. In 2011, the company launched a land rover with an advanced plug-in hybrid diesel technology. In summation, Tata Motors views the economy from a global perspective with operations across the entire globe; however, they must also maintain a local market understanding and knowledge when it comes to product positioning and placement throughout the different markets Tata conducts business in. PRESENTED BY: Tata Motors Key concerns of the business Source: www.tatamotors.com Italians have a higher average income per capita than Indians and Italian citizens tend to drive larger and fancier cars. These two objectives have helped build Tata into the strong, dynamic company it is today. Presentation on Company Analysis of Tata Motors PRESENTED BY: KUMAR SAURABH MBA (FINANCE & MARKETING) 4TH SEMESTER 2. You can change your ad preferences anytime. The Society of Indian Automobile Manufacturers stated, “India, where some 1.4 million new cars are sold each year, is also a hugely attractive market for dozens of car companies and most of them can’t risk ignoring what appears to now be a potent competitive advantage for Tata Motors. This includes every stakeholder from the CEO and President, down to the line workers who screw the door panel into place, from the investor to the customer, the culture and attitude of all these people will ultimately determine the future of a company and whether they will be profitable or not. Tata Motors income statement, balance sheet and statement of cash flows along with other key statistics can be found in Appendix D. Tata Motors is able to maintain, as well as increase, their market share by capitalizing on their core competencies. Tata Motors Limited was founded in 1945 and is headquartered in Mumbai, India. For this reason, Tata Motors tends to use an integration and rarely separation technique with foreign companies they acquire. Tata Motors keeps the original management of that company intact. The car’s engine’s emission can be used as an air conditioner in the cabin. *You can also browse our support articles here >. Finally, Tata Motors largest competitive advantage is that it has prospered and grown in only developing markets for over 70 years. Since Tata Motors operates in multiple countries across Europe, Africa, Asia, the Middle East, and Australia, it needs to pay close attention to the political climate but also laws and regulations in all the countries it operates in while also paying attention to regional governing bodies. Check out why Tata Motors share price is up today. TATA is very innovative company. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. A Value Chain Analysis Example for Tata Motors Ltd is that it can use the analysis as a tool to negotiate the best prices and maximise the in-bound and out-bound transportation processes. TATA MOTORS operates under Auto Manufacturers classification in India and is traded on Bombay Stock Exchange. This is an extensive analysis on TATA Motors Limited which analyses the various factors impacting the operations of the company in the country and the Strategic Advantages the company has.

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