Acquiring JLR brand improves reputation of Tata Motors and also Tata Motors acquire acknowledge of JLR and producing cheapest cars “Nano” is innovative activity to Tata Motors’ targeting market. Also, when effective implementation of company strategies is dependent on the capacity of mangers to have a say in the decision-making process. Low-end level: Tata Motors is a fast leaner in globalizing, absorbing lessons from other companies in innovation. Tata Motors features among the seven manufacturers that have applied for the ‘Eco-Car’ project. But it has maintained its differentiation by establishing distribution and service network all over India. When you are a manager in an organization it is easy to assume that there is just one culture for the whole organization. Seeking new demographics and geographies for growth in order to face limitations that the domestic market imposes is the company’s prerogative. We have followed the ‘Denison’ model. Adaptability: Adaptability refers to the organization’s capacity to make the demands of the market practical. Overall purpose and scope of an organisation, Literature Review Human Resource Management, Consequences Of Lacking Loyalty In The Work Place Management Essay, CustomWritings – Professional Academic Writing Service, Tips on How to Order Essay. But only the local market is not enough for a company like Tata motors. Tata acquired JLR brand and has made great success on it especially in China market. TATA MOTORS LTD •TML is … By looking at the SWOT analysis of Tata Motors, you will know why Tata Motors Company is able to produce more than 4 million different types of vehicles such asc a r s, trucks, commercial vehicles, 4×4…etc since the company began in 1945. Every employee specializes in a specific task and consequently makes only a small contribution to the company’s final output. CHANGES AT TATA MOTORS ORGANISATIONAL CHANGE • Change in Technology • Change in Strategy CHANGE IN WORKFORCE AND CULTURE • Employees were exposed to outside world • Young Employees were encouraged 5. These are distinct models for looking at organizational culture. Thailand has introduced the ‘Eco-car’ project, an initiative to build green cars which are fuel and cost efficient. Constancy, when properly inculcated, creates an impactful organizational culture based on joint beliefs, values and symbols for the workforce. Tata Motors launched the Ace truck in May 2005 for just above Rs 200,000. Academic Content. 15 12. Model Culture change at the highest level: It is important to ensure and show that the management force is in favor of the change. Giving discount every month and special promotion for certain type of vehicle also one of the strong strategy use by Tata Motors. An awareness of the situation so that the employees can adapt successfully toe organizational changes and whole heartedly accept change. As we all know, strategy and structure is one of the most fundamental and significant part of an organization. Market share in the LCV segment expanded by 200 basis points registering a 62.2% market share inFY 2012-13. FOR ONLY $13.90/PAGE, The Role of Divorce Attorneys in Eagle County. Tata Motors was founded in 1945, as a locomotive manufacturer. Tata Motors leverages upon Social media marketing to target customers based on the search results. It is also used in situations where the workforce is enabled and empowered to make decisions and resolve problems. What this has done is that Tata and Fiat has enhanced the terms of production and exchange of knowledge. 4. 2. are of great interest to both internal and external investors.The Tata Group was founded in 1868 when India was under British Empire. Tata Motors new launches like Aria and the new 2011 Safari to regain its lost market share. Tata Nano has installed commensurate features that meet the required minimum safety standards. 47 Bergen St--Floor 3, Brooklyn, NY 11201, USA, Sorry, but copying text is forbidden on this Phase 1 aimed at building up a system of market pricing and to decrease the break even point. A structure of organization which is rigid and controlled tightly. As below shown the main foreign competitors. Tata Motors Limited has to manage all these challenges and build effective barriers to safeguard its competitive edge. Tata Motors supports collaborative research and partnerships with academic institutions for win-win results. This product turned to be the main products to large and low-price car market both in India and other developing countries. Tata Motors has been the biggest automobile company in India because of the passion from the Chairman Jamsetji Tata. Tata, Jaguar and Land Rover senior management teams must communicate accurate information transparently, explicitly and as quickly as possible. 6.5 lakh to Rs. Weaknesses: The weaknesses of Tata Motors are mainly too many competitors form domestic and foreign: Domestic competitors: Because of the barriers to entry Indian automobiles markets by government policy, there are mainly three major competitors: The first one is “Maruti Suzuki”, which is controlled by Japanese company Suzuki and is the largest passenger car segment in India.The second one is “Mahindra and Mahindra”, which is targeting Multi-Utility Vehicle Sector (MUVs) market. Therefore, they are threats to Tata Motors in India market and they set barriers to entry to Tata Motors because of their economic of scale in their targeting market. Expert service professionals available. Through this mission, 24,000 employees are guided to produce high effective and useful automobiles to satisfy customers’ needs for maximum profits. Tata Group was established by Jamsetji Tata in 1868, which is the largest corporate group in India and has the biggest capitalization and revenues. This can be done through the behavior of the management team to symbolize the kind of values and attitudes it desires. BUSINESS LEVEL STRATEGY Tata nano, the cheapest car in the world Swach, the cheapest water filter from Tata Chemicals. If we look at the organizational structure of Tata Motors, we will find that the functional units are divided into the categories of Finance, Strategy, Engineering, Communications, Human Resources and Legal. However, The cyclical nature of domestic sales had to be taken into account first. website. Please, specify your valid email address, Remember that this is just a sample essay and since it might not be original, we do not recommend to submit it. Thereafter, as part of the transformational strategy, international diversification was the next logical step. Even though Tata Motors has a lot of competitors in both domestic and abroad, Tata Motors insists on innovation strategy and purchasing other world brand for learning and improving reputation. Its percentage of revenue from international operations has increased from 9% in 2016 to 79.80% in 2018. Tata motors went through a period of significant transition in 2001. This stage implies the acceptance of the new processes. Organizational structure of Tata Motors: The structure of an organization has to do with the organizational climate along with knowledge management. The company also has significant stakes in former Soviet Republics, the Middle East South Africa, South Asia and Turkey. The diversification strategies along with the management strategies of the business division of Tata motors will be discussed in the study[1]. Tata Motors shares an effective and successful partnership with Italian automobile giant Fiat since 2006. That means, Tata Motors pays more attention on innovation and decides to put innovation in significant role in R&D. One of the disadvantages has been that the company’s passenger car products are dependent on 3rd and 4th generation platforms. With over 8.5 million Tata branded vehicles plying globally, we offer a wide spectrum of vehicles that are customised for local conditions and meet the highest standards for quality, safety, environment norms and user comfort. For other brands of Tata Motors such as Jaguar Land Rover, strategy is to achieve uniqueness by providing superior quality and luxury. In these countries, Tata Motors now has dedicated manufacturing facilities, marketing teams and sales teams. TATA Motors is the worlds fifth-largest automobile manufacturing company. Feedback: This involves the awareness at the individual level, group level and organizational work dynamics. For expanding its business to other countries, especially some developing countries such as China and Korean, Tata Group has to compete with these multinational auto companies through analyzing their strategies. Parag Gadher (245956) 3. The structure becomes informal and voluntary instead of being formal and forced. Companies include Tata Consultancy Services, Tata Motors, Tata Steel, Tata Chemicals, Tata Consumer Products, Titan, Tata Capital, Tata Power, Tata Advanced Systems, Indian Hotels and Tata Communications. By clicking “Proceed”, you agree to our terms of service and privacy policy. ... $35.80 for a 2-page paper. BLUE OCEAN STRATEGY Red Ocean Blue Ocean … Threats: As weaknesses showed above, Tata Motors are facing to many competitors includes domestic and foreign competitors. ... lifecycle management and business case including strategy. Strategy and structure is come up by planning process during processes of management in organization, therefore, it is not possible to ignore how well an organization in determining its mission and goal, planning appropriate strategies and structures of organization and implementing these strategies. Tata Motors has a relatively flat structure, thus it facilitates easy interaction between the different levels in the organization. HAVEN’T FOUND ESSAY YOU WANT? In terms of size, they are much smaller compared to This dissertation is dedicated to Strategic Analysis techniques of Tata Motors.the strategic valuations like Michael Porter's Diamond Model, SWOT Analysis, Balanced Score Carding, etc. At that point, it develops strategic and tactical for objectives. Change is the only constant thing in life. Currently Tata Nano is the lowest price car in the world in micro car segment. Nano has achieved a breakthrough in frugal engineering where innovation is accompanied by cost savings and sheer ingenuity. What has been learned is now been practiced. Tata companies also extend social welfare activities to communities around their industrial units. Gathering and sharing knowledge is another way. Involvement includes commitment among the employees. In its quest to be leaner and stronger organisation, Tata Motors kicked off a new structural revamp programme designed to bring about ‘speed, simplicity and agility’. In this article, I will firstly) identify the mission and goals of Tata Motors, secondly) use SWOT analysis and the Five Forces Model to evaluate how well Tata Motors in strategy formulating and thirdly) evaluate the process of implementing these strategies. Philosophy of organizational activities 2. The 5 billion rupee loss in 2001 triggered off a rethinking within the organization. Mission: Mission defines a long term direction for the organization. In the framework pertaining to international expansi… Tata Power Delhi Distribution changed a loss - making government organization into a beneficial and gainful business through improved organization innovation and better client support. 3. Tata Motors is widening internationally on the concept of two-fold strategy. The organization put into use various approaches for cost-reduction such as bench marking rivals. Giving discount every month and special promotion for certain type of vehicle also one of the strong strategy use by Tata Motors. Tata Motors has been applying two short-term strategies includes acquiring JLR brand and producing cheapest cars called “Nano”. The company evaluates locations on the basis of market opportunities and labour skills. The environment becomes static and complex. Nevertheless, both strategy and structure is the result of decision making by managers through analyzing the organization and market, segmenting markets, selecting market, positioning themselves and using resources to implement the process. What Tata Motors really wanted was to optimize products globally. P9) have presented a framework with five various ways of thinking about change. The question that comes up is: Has the company’s brand imaging as a producer of commercial and low-cost passenger cars isolated it from the lucrative luxury segment in the emerging Indian economy. Security, Unique Tata Motors is set to offer utility vehicles at every price point right from Rs. For doing these, Tata Motors need to deeply understand what customers’ real needs and demands and following this direction, Tata Motors’ innovation strategies can attract new customers and remain existed customers to get profits. These weight reduction measures have brought the weight of Tata Nano to about 592 Kg. However, Fiat, Jaguar and Land Rover do not carry such inhibitions. These called for major cut down in variable costs, diced costs and interest cost. Apart from that, there are recruitment problems, maintenance of corporate social responsibility and upgrading of the standards of the company at global level. Title Slide of Study on organizational structure and leadership style of tata motors Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. One potential market has been Thailand which is a major automobile manufacturing hub in the ASEAN region. Tata is looking at doubling SUV annual volumes to over 70,000 units in the next 12-18 months, including exports. Meanwhile, the other strategy of producing innovative cars “Nano” did not bring expected profit to Tata Motors which cost plenty of capital and human resources. There also have been takeovers such as that of Daewoo’s commercial vehicle business in South Korea and a 21% stake in Hispano Corracera, the Spanish automobile producer. Constancy refers to the values and systems which contribute to a strong culture. Managers at a lower-level are not enabled in the decision-making process as managers at the upper-level. What he wanted to see Tata Motors is going to be the top one in India and abroad. Otherwise, among foreign competitors, Toyota is the leader in Asian market, and Ford and General Motors have big market shares in Euro market. This offer is a viable one for Nano. Also, this structure is not advisable when a major portion of the workforce is highly skilled professionals. Tata companies also extend social welfare activities to communities around their industrial units. Conclusion and Implications All in all, Tata Motors has been in a good structured group, Tata Group, and has many strategies for improving itself. The next phase, i.e. This group owns hundreds of companies that produce everything from cars to software to watches and running hotels.One of the group companies Tata Motors Limited ( TTM ) trades on the NYSE. There features are essentially functional in nature. 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. Tata Motors has agreed on a joint venture with Chery Automobiles in China for Jaguar Land Rover. In English, the word ‘Tat’ means rubbish. (Richard, L, 2009) Opportunities. They are currently changing from the inside of the company by building modern manufacturing facilities to enhance the production efficiency to cut costs when they can and also to embrace the innovation culture. Kurt learns has recommended three phases in bringing in change: Older ideals and systems must be either upgraded or eliminated to make way for newer ones. Acquisition Strategy ---- House of Tata: Acquiring a Global Footprint (written by Tarun Khanna, Krishna G. Palepu, and Richard J. Bullock) 1. For other brands of Tata Motors such as Jaguar Land Rover, strategy is to achieve uniqueness by providing superior quality and luxury. 32 33. What our vehicles bring to the market are a winning combination of power-packed performance and lower lifecycle cost of ownership. Monitor and control: The Tata motors are using Key Performance Indicators (KPI) and Key Performance Measures (KPM) to monitor and control the organization. Sagar Parmar (245989) 3. The present essay is about an organization, which is about Tata motors in India lead by Ratan Tata – an Indian successful business leader. 31. External Analysis 2.1 Global Competition Tata Motors competes in the global market. Therefore, managers acquire innovative ideas quickly and give feedback to employees quickly, which significantly improves effectiveness in company and highly develops innovation level. Phase 2 also involved setting up a new sales planning process, tightening credit regulations, improving the liquidity and profitability of dealers, rethinking customer satisfaction levels, and expanding the range of distribution network. Organizational development in Tata Motors Tata Motor was incepted in 1954 when Tata Group entered the automobile manufacturing business in partnership with the German Daimler-Benz, the predecessor of today‟s Daimler AG, to produce commercial vehicles. Turnaround strategy: It is a retrenchment technique where the accentuation is laid on upgrading the inside productivity of a falling or a misfortune making endeavor. Waddell, D, J. Devine, G. Jones and J. George (2011), Contemporary management (2nd edition), North Ryde, NSW: McGraw-Hill, Australia. SWOT Analysis on Tata Motors Strengths(Strategies with different time horizons): Long-term Strategies Three-pronged strategy: Tata Motors concentrates on better communication and recognition of innovative ideas and efforts(Omid, N and Patrica, A.N, 2012). TATA Motors is one of the oldest multinational companies of India, founded in the year of 1945. Yet, the company has not been able to get a steady hold in the luxury car segment in the domestic Indian market. A structure which is highly flexible and ready to adapt to changes. The current strategy of the Tata motors best known as Disruptive innovation. 34 Findings 1. It was previously known by the name TELCO. As a part of the company's new internationalization strategy, the company has decided to focus on a narrow base of 14-15 countries where market conditions are similar to that of India. Formulation of a clear strategic vision: An organization must have a clear vision of the new strategy, values and attitude to direct and ensure an effective cultural change. Obviously, Tata Motors’ targeting market is mainly low-price markets in developing countries because in these markets, customers do not have plenty of money and they only afford low price products. Confrontation: A confrontation brings to the surface differences in beliefs, values, and norms and thus facilitates a negotiation. First of all it is expanding across geographies through strategic acquisitions. This can make a new customer base in the local market and worldwide as well. General characteristics of organisation 2. Bhat wasn’t there to shop but to watch people shop. In two and a half years, Tata Motors brought down the break-even from nearly two-thirds. Tata Motors has a wide & extensive distribution and service network. Tata Motors is focusing on innovation. (Richard, L, 2009) Name of CompetitorsTargeting Market, Maruti Suzukipassenger car MahindraMulti-Utility Vehicle Sector (MUVs) Hindustan Motorspassenger cars, trucks and other commercial vehicles, Foreign competitors Even though Tata Group has been the leader in auto industry in India already, it has many foreign competitors such as Ford Motor Co., Toyota, General Motors Corporation, etc. It also has in place a program of intensive management development to ensure a good leadership for the future. ...Marketing strategies of TATA motors is one of the most successful marketing strategies in automobile industry. Tata motors will need to capitalize on both the young population in India through new product designs as well as the low discretionary income in third world companies through a new introduction of the Nano. Among these competitors, the domestic competitors that contains Maruti Suzuki, Mahindra and Hindustan Motors are all followers compared to Tata Motors. b) Pursuing innovation in two levels: High-end level: ‘Frugal Innovation’(Omid, N and Patrica, A.N, 2012), which means new products designed to appeal to poor people and the rising middle class. All rights reserved. Tata has brought down the overall cost by coming up with innovative and practical ways. Economic Factors By and large, the GDP of the state is a significant factor assisting in the success of the organization like Tata Motors. Organic structure cannot work when the organization faces a crisis, or when the firm is large. This way Tata Motors can continue to exchange talent and expertise. They add that the new Managing Director, Guenter Butscheck, has initiated this change to foster faster and effective decision-making, and to have a prime customer focus. It also has in place a program of intensive management development to ensure a good leadership for the future. Modify the organization to support organizational change: Select and socialize newcomers and terminate deviants: A way to incorporate culture is to connect it to membership and adaptability. Instances would be the new stonecutters Bridge construction or daily operations at MTR. The rationalisation of the vendor base coincides with the rolling out of new-generation modular vehicle platforms. What Tata Motors truly wanted was to optimise merchandises globally. Ravikant who played a major role in the process of change. Actually, Tata Motors is always on the way learning from its competitors to improve itself through purchasing their facilities or even part of their firms and brands. 33 34. Latest examples are acquisition of Jaguar Land Rover (JLR) and Daewoo Motors Ltd. Tata Motors has adopted a new, flat organisational structure, claim industry sources. This process of practice involves the contrasting emotions of confusion and hope, overload and discovery, despair and excitement. By horizontal analysis, cooperation and compatibility focus on internal dynamics of the organization, while adaptability and mission in the external environment. Part of the USD 113 billion Tata group, Tata Motors is India’s largest and the only OEM offering extensive range of integrated, smart and e-mobility solutions. 5. The first aspect is called the ability of realization and reacting to the external environment. Actually, Tata Motors is always on the way learning from its competitors to improve itself through purchasing their facilities or even part of their firms and brands. SWOT analysis is a vital strategic planning tool that can be used by Tata Motors Limited managers to do a situational analysis of the organization . Education: Educational activities aim at upgrading knowledge and concepts, beliefs, attitudes and skills. Omid, N and Patrica, A.N (2012), ‘Strategy and Structure: The case of Tata Group’, CF, Vol.10, No.1, 2012 Richard, L (2009), ‘Business Strategy Case Study: Tricky Time for Tata Motors’, 2009 Tata Motors, 67th Annual Report 2011-2012. The third competitor is “Hindustan Motors”, which is targeting passenger cars, trucks and other commercial vehicles. FONTS Organisational culture of Tata Motors TATA MOTORS Tata has a very strong culture giving much importance to ethics and moral values. Tata Motors has been able to envision the basic tenets of efficiency, while building up Nano, The Company has achieved this by including only the necessary items and excluding not so relevant ones. However, in some specific area such as in passenger market, Maruti Suzuki is the leader and in Multi-Utility Vehicle Sector market Mahindra has more than 50% market shares. In the Indian market, Tata Motors ranks second in the passenger vehicles segment. FONTS Organisational culture of Tata Motors TATA MOTORS Tata has a very strong culture giving much importance to ethics and moral values. A support structure to ensure that employees take change easily and get adequate support from the management. Tata Motors has been wooing customers in Latin America since 2009. Tata Motors has already picked more than 100 high-performers for the L1and L2 positions. Tata Motors concentrates on most customers’ needs, that means, Tata Motors is going to produce more products to satisfy low and middle classes’ needs, such as providing low price products. In terms of size, they are much smaller compared to This dissertation is dedicated to Strategic Analysis techniques of Tata Motors.the strategic valuations like Michael Porter's Diamond Model, SWOT Analysis, Balanced Score Carding, etc. Tata Motors rejigs organisational structure for its standalone entity. Other than the low price-tag, other factor like the running cost of the car is also taken into account. In the case of Tata Motors, the organization has understood the importance of interactions between employers and workers. we might edit this sample to provide you with a plagiarism-free paper, Service Nano uses a 623 cc two cylinder petrol engine which is comparatively smaller and lighter than other car engines. The instrument panel consists of only a speedometer, odometer, and fuel gauge similar to that of a two-wheeler. In phase 3, the company also focused on inorganic. These surging energy costs will also have to be factored in by the owners of Nano along with the cost of replacement parts and service maintenance for the car. Tata Nanos, the latest offering by Tata Motors has been called the ‘people’s car’. Tata Group has several major companies, which are Tata Motors, Tata Steel, Tata Consultancy Services, Tata Power, Tata Chemicals, Tata Global Beverages, India Hotels and Tata Communications(Shown on graph below). Company’s mission and structure Tata Motors is a multinational manufacturing company in Mumbai, India. Strategy analysis to ensure that the employee understands their role in the organization. Participation: Participation facilitates problem solving, goal setting and innovation. Mechanistic organizational structure tends to be very rigid and static which slows it down and resists adaptation to change in environmental situations. Many companies ignore these markets because they may think it is difficult to gain a lot profit from these markets, so Tata Motors decided to target these markets and provided low price cars that customers can afford. Tata Motors has been wooing customers in Latin America since 2009. 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