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TitleStrategic Management short Project for Tata Motors
File Size1.2 MB
Total Pages18
Table of Contents
                            INTRODUCTION
CORPORATE STRATEGY
	Corporate Governance
1Enterprise Process Model (EPM) - Process Management at Tata Motors
Operations & Production Management
	Inbound Logistics

	Vendor Management
	Manufacturing
	Product development
	Cost Cutting Techniques
	Quality Management
	Operations
Sales & Marketing at Tata Motors
	Product and Brand Strategy
	Pricing
	Promotion
	Distribution
Financial Strategy of TATA MOTORS
	Cost cutting and recovery strategies:
	Tata Motors Finance Ltd (TMFL)
Human Resource at Tata motors
Information Technology Strategy
	Enterprise Resource Planning
	Customer Relationship Management
                        
Document Text Contents
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Contents

INTRODUCTION ....................................................................................................... 3

CORPORATE STRATEGY .......................................................................................... 3

Corporate Governance ........................................................................................ 3

Enterprise Process Model (EPM) - Process Management at Tata Motors ................ 5

Operations & Production Management ................................................................... 6

Inbound Logistics ................................................................................................ 6

............................................................................................................................... 6

Vendor Management .......................................................................................... 6

Manufacturing ..................................................................................................... 7

Product development .......................................................................................... 7

Cost Cutting Techniques ..................................................................................... 7

Quality Management ........................................................................................... 8

Operations ........................................................................................................... 8

Sales & Marketing at Tata Motors .......................................................................... 8

Product and Brand Strategy ................................................................................ 8

Pricing ............................................................................................................... 10

Promotion .......................................................................................................... 10

Distribution ........................................................................................................ 10

Financial Strategy of TATA MOTORS ..................................................................... 11

Cost cutting and recovery strategies: ............................................................... 11

Tata Motors Finance Ltd (TMFL) ........................................................................ 12

Human Resource at Tata motors .......................................................................... 14

Information Technology Strategy ......................................................................... 17

Enterprise Resource Planning ............................................................................ 17

Customer Relationship Management ................................................................ 17

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products of benefit from the association with the TATA brand, which in India
stands for trust and reliability. TATA motors products can be categorised into
four major categories: Passenger cars, Utility vehicles, trucks and commercial
passenger carriers. The following table shows the different product lines of each
category and the launch periods as well. (Source: Company Website).

TATA Motors Product Portfolio Product and Variant Launch years

1989
TATA Mobile 206 3rd LCV

1991
TATA Sierra
TAC Crane

1992
TATA Estate

1996
Sumo
Safari

1998
Indica

2000
CNG Buses
Indica V2, Indica V2 Petrol, CNG Indica, TATA Safari Ex

2003
Tata 207 DI
Tata Sumo'+' Series
2003 SAFARI range
Tata Indigo
135 PS Safari (EXi) petrol

2004
New Indica V2
Tata LPT 909EX Turbo Truck
NOVUS

2005
Ace
Safari Dicor
Indica V2 Turbo Diesel
Tata Novus truck
Tata TL 4X4-sports utility vehicle

2006
Indica V2 Zeta
Tata ACE' in Sri Lanka
Indigo and Indigo Marina range

2007
Magic
Winger
‘Tata ACE’ in Nepal

2008
TATA Nano
Indica Zeta LPG
Super Milo range of Buses

2009
Sumo Grande MK II
Prima World Truck
IndiGo Manza
Freelander 2 launched in India
Tata 407 Pickup
Tata Super Ace
Tata Ace EX

The product strategy in TATA motors has been driven by two primary objectives –
Identifying the market need and creating new market segments.

The success stories in the past two decades (Sumo, 207, Ace, Indica etc) have
been able to fulfil these overall objectives. The strategy adopted behind these

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products also reflects the commitment of TATA Motors to customer needs and
new product innovation. The company has also exported its vehicles after
creating customised variants which have higher payload and engine capacity. It
has also customised its domestic products by introducing passenger option,
higher payloads, bigger engines etc.

In broad terms the following sums up the TATA motors marketing philosophy:

Pricing
TATA motors have a pricing advantage due to its low cost leans manufacturing
abilities. The in-house steel company acts as a shock absorber against steel price
fluctuations. The pricing methodology adopted is that of a perceived value
pricing. It was demonstrated by the Rs 1 Lakh price of TATA Nano, where the cost
of producing the car left a very small margin for TATA.

Promotion
TATA Motors uses extensive promotion for its passenger car segment. The Utility
vehicle and commercial passenger carrier follow this segment based on Share of
Voice.

Distribution
TATA Motors has a large network of dealers and Stockyards, all across the globe
and uses the DMS technology for efficient cooperation between these dealers. Its
distribution network includes operations in India, Nepal, Bhutan, Ghana, Italy,
Poland, South Africa, Spain, Sri Lanka and Turkey. The company's dealership,
sales, services and spare parts network comprises over 3500 touch points.

Apart from the wide distribution network Tata Motors also has Distributed
manufacturing – it has Assembly units at South Africa, Thailand, Bangladesh,
Brazil apart from India. The company's manufacturing base in India is spread
across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh),
Pantnagar (Uttarakhand) and Dharwad (Karnataka).

To augment the scarce resources, it has a joint venture with Fiat wherein Fiat
sells its vehicles through Tata dealerships and in return Tata Motors has access
to Fiat’s technology and unutilized capacity

Over the years, one of the major success factors of Tata Motors is their supply
chain excellence. To keep their distribution costs to the minimum they have
outsourced the logistics and distribution part of their business to Tata Motors Ltd.
Distribution Company (TDCL), a wholly owned subsidiary of Tata Motors Ltd.

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Today the core values of Tata Motors are slightly skewed towards business, but
that is because the context changes with era. As the time changes one has to
constantly change and adapt with the changing times and as they say, “No
prescription is a permanent prescription”, Tata Motors is simply evolving with
time, yet at every step, taking care of what it leaves behind.

Information Technology Strategy

Enterprise Resource Planning
Prior to the SAP implementation TML has a host of legacy applications which had
been developed and maintained over a period of time. Thus the underlying
technologies and platforms were diverse along with diversity in functions and
locations. This led to redundancy, inconsistency and inefficiency in data
management. A unified real time database with an IT infrastructure that was
integrated across the functions, locations and even businesses was the need of
the hour, in order to cut costs and manufacturing cycle times and also serve the
customers more efficiently.

Why SAP?

“SAP has a clear superiority in the market. It has a large presence and good
support, so we chose the SAP ERP Solution for our company. The results have
definitely exceeded our expectations,” says Probir Mitra, CIO, Tata Motors.

• SAP was the business leader in ERP solutions space.

• SAP offered strategic fit to TML’s TO-BE stage process mapping.

• SAP was able to integrate various functions across geographies yet
maintaining real time data updates.

• TML’s business processes were rationalized across all manufacturing units
using the power of SAP’s ERP infrastructure.

The existing environment prior to SAP implementation was – Oracle database
solutions, Unix as operating system and predominantly IBM for hardware support.
The implementation of SAP ERP solution (Version 3.1H) started in about 1998 and
was finished by 2000 for about 3500 users. Later in 2003 TML moved to version
4.6C on a single server platform.

The major benefits from implementation included enterprise integration,
reduction of inventories, better control over receivables, easier financial
consolidation, single unified database, improved efficiency by reducing
redundancy and inconsistency, reduced response time to customers and
reduction of operational costs.

Customer Relationship Management
With increasing competition from both Indian and foreign automakers in a
cyclical business environment, Tata Motors needed strategies to build

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