Entrepreneurship Management

Entrepreneurship is a distinct activity relating to production/distribution of goods and services

to earn rewards and to assume risks. It can be said that entrepreneurship is what the modern
world is all about. Without, entrpreneurship, modern world would not have witnessed
inventions and innovations. The entrepreneur acts as a catalyst of growth and development in
today’s modern world.

Entrepreneurship management is a process of Planning, Organizing, and Controlling,

performed to determine and accomplish objectives in business enterprises.

Every entrepreneur must conduct an SWOT analysis of himself as well as as of his

Business/Company. It helps the entrepreneur to consolidate strengths, minimise
weaknesses, grab opportunities and diffuse threats.

SWOT analysis (alternatively SWOT Matrix) is a structured planning method used to

evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in
a business venture. A SWOT analysis can be carried out for a product, place, industry or person.
It involves specifying the objective of the business venture or project and identifying the
internal and external factors that are favorable and unfavorable to achieving that objective. The
technique is credited to Albert Humphrey, who led a convention at the Stanford Research
Institute (now SRI International) in the 1960s and 1970s using data from Fortune
500 companies.
Setting the objective should be done after the SWOT analysis has been performed. This would
allow achievable goals or objectives to be set for the organization.

 Strengths: characteristics of the business or project that give it an advantage over

others

 Weaknesses: are characteristics that place the team at a disadvantage relative to

others

 Opportunities: elements that the project could exploit to its advantage

 Threats: elements in the environment that could cause trouble for the business or
project

Identification of SWOTs is important because they can inform later steps in planning to
achieve the objective.

First, the decision makers should consider whether the objective is attainable, given the
SWOTs. If the objective is not attainable a different objective must be selected and the
process repeated.

Users of SWOT analysis need to ask and answer questions that generate meaningful
information for each category (strengths, weaknesses, opportunities, and threats) to make
the analysis useful and find their competitive advantage.

SWOT analysis aims to identify the key internal and external factors seen as important to
achieving an objective. The factors come from within a company's unique value chain SWOT
analysis groups key pieces of information into two main categories:

1. internal factors – the strengths and weaknesses internal to the organization

2. external factors – the opportunities and threats presented by the environment

external to the organization

Analysis may view the internal factors as strengths or as weaknesses depending upon their
effect on the organization's objectives. What may represent strengths with respect to one
objective may be weaknesses (distractions, competition) for another objective. The factors
 may include all of the 4Ps; as well as personnel, finance, manufacturing capabilities, and so
on.

The external factors may include macroeconomic matters, technological change, legislation,
and socio-cultural changes, as well as changes in the marketplace or in competitive
position. The results are often presented in the form of a matrix.

SWOT analysis is just one method of categorization and has its own weaknesses. For
example, it may tend to persuade its users to compile lists rather than to think about actual
important factors in achieving objectives. It also presents the resulting lists uncritically and
without clear prioritization so that, for example, weak opportunities may appear to balance
strong threats.

It is prudent not to eliminate any candidate SWOT entry too quickly. The importance of
individual SWOTs will be revealed by the value of the strategies they generate. A SWOT
item that produces valuable strategies is important. A SWOT item that generates no
strategies is not important.

A tool that identifies the strengths, weaknesses, opportunities and threats of an organization.
Specifically,SWOT is a basic, straightforward model that assesses what an organization can
and cannot do as well as its potential opportunities and threats. The method of SWOT analysis
is to take the information from an environmental analysis and separate it into internal (strengths
and weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT
analysis determines what may assist the firm in accomplishing its objectives, and what
obstacles must be overcome or minimized to achieve desired results.

When using SWOT analysis, be realistic about the strengths and weaknesses of your
organization. Distinguish between where your organization is today, and where it could be in
the future. Also remember to be specific by avoiding gray areas and always analyze in relation
to the competition (i.e. are you better or worse than competition?). Finally, keep your SWOT
analysis short and simple, and avoid complexity and over-analysis since much of the
information is subjective. Thus, use it as a guide and not a prescription.
TATA MOTORS LTD

Abstract

Tata Motors Limited, formerly known as TELCO (TATA Engineering and Locomotive
Company), is a multinational corporation headquartered in Mumbai, India. It is India's largest
passenger automobile and commercial vehicle manufacturing company. Part of the Tata Group,
and one of the world's largest manufacturers of commercial vehicles. The OICA ranked it as the
world's 20th largest automaker, based on figures for 2006.

Tata Motors was established in 1945, when the company began manufacturing locomotives.
The company manufactured its first commercial vehicle in 1954 in a collaboration with
Daimler-Benz AG, which ended in 1969 Tata Motors was listed on the NYSE in 2004, and in
2005 it was ranked among the top 10 corporations in India with an annual revenue exceeding
INR 320 billion. In 2004, it bought Daewoo's truck manufacturing unit, now known as Tata
Daewoo Commercial Vehicle, in South Korea. It also, acquired a 21% stake in Hispano
Carrocera SA, giving it controlling rights in the company. Tata Motors launched the Tata Nano,
noted for its Rs 100,000 price-tag, in January 2008.

In March 2008, it finalised a deal with Ford Motor Company to acquire their British Jaguar
Land Rover (JLR) business, which also includes the Rover, Daimler and Lanchester brand
names.The purchase was completed on 2 June 2008

Tata Motors has its manufacturing base in Jamshedpur, Pantnagar, Lucknow, Ahmedabad and
Pune.
1. History

Tata Motors launches its first truck in collaboration with Mercedes-Benz

Tata Motors is a part of the Tata and Sons Group, founded by Jamshedji Nussarwanji Tata and J.
Baker. The company was established in 1945 as a locomotive manufacturing unit and later
expanded its operations to commercial vehicle sector in 1954 after forming a joint venture with
Daimler-Benz AG of Germany.

2.Cars

Tata Indica

After years of dominating the commercial vehicle market in India, Tata Motors entered the
passenger vehicle market in 1992 by launching the Tata Sierra, a multi utility vehicle. After the
launch of three more vehicles, namely, Tata Estate (1992, a stationwagon design based on the
earlier 'TataMobile' [1989] a light commercial vehicle which some people may still think of as
Tata's first passenger car), Tata Sumo (LCV, 1994) and Tata Safari (1998, India's first sports
utility vehicle); In 1998 Tata launched the Indica, the first fully indigenous passenger car of
India. Though the car was initially panned by auto-analysts, the car's excellent fuel economy,
powerful engine and aggressive marketing strategy made it one of the best selling cars in the
history of the Indian automobile industry. A newer version of the car, named Indica V2, was a
major improvement over the previous version and quickly became a mass-favorite. A badge
engineered version of the car was sold in the United Kingdom as the Rover CityRover. Tata
Motors also successfully exported large quantities of the car to South Africa. The success of
Indica in many ways marked the rise of Tata Motors. Note: In 1996-97 Tata launched the Tata
Sumo Deluxe and the Tata Sierra Turbo variants respectively.

3.Daewoo acquisition
Main article: Tata Daewoo Commercial Vehicle

Tata Novus is one of the best selling commercial trucks in South Korea.

With the success of Tata Indica, Tata Motors aimed to increase its presence worldwide. In 2004,
it acquired the Daewoo Commercial Vehicle Company of South Korea. The reasons behind the
acquisition were:

 Company’s global plans to reduce domestic exposure. The domestic commercial vehicle
market is highly cyclical in nature and prone to fluctuations in the domestic economy.
Tata Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in
the light commercial vehicle (LCV) segment. Since the domestic commercial vehicle
sales of the company are at the mercy of the structural economic factors, it is
increasingly looking at the international markets. The company plans to diversify into
various markets across the world in both MHCV as well as LCV segments.

 To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tata
Novus from Daewoo’s (South Korea) (TDCV) platform. Tata plans to leverage on the
strong presence of TDCV in the heavy-tonnage range and introduce products in India at
an appropriate time. This was mainly to cater to the international market and also to
cater to the domestic market where a major improvement in the Road infrastructure was
done through the National Highway Development Project

On its journey to make an international foot print, it continued its expansion through the
introduction of new products into the market range of buses (Starbus & Globus).
4. Joint ventures

Tata MarcoPolo NON-AC City Bus in Delhi.The NON-AC version is only used in Delhi while
AC versions are used in Bangalore, Mumbai and Delhi alike

In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motors acquired 21%
stake in Hispano Carrocera SA , Aragonese bus manufacturing company and introduced its
high-end inter-city buses in the country.

Tata Motors has also formed a 51:49 joint venture with Marcopolo S.A., a Brazil-based global
leader, lead by Brian Behrle, in bus body building. This joint venture is to manufacture and
assemble fully-built buses and coaches targeted at developing mass rapid transportation
systems. The joint venture will absorb technology and expertise in chassis and aggregates from
Tata Motors, and Marcopolo will provide know-how in processes and systems for bodybuilding
and bus body design.

5. Tata Ace

Tata Ace was India's first mini truck

Main article: Tata Ace

Tata Ace, India's first indigenously developed sub-one ton mini-truck, was launched in May
2005. The mini-truck was a huge success in India with auto-analysts claiming that Ace had
changed the dynamics of the light commercial vehicle (LCV) market in the country by creating
a new market segment termed the small commercial vehicle (SCV) segment. Ace rapidly
emerged as the first choice for transporters and single truck owners for city and rural transport.
By October 2005, LCV sales of Tata Motors had grown by 36.6 percent to 28,537 units due to
the rising demand for Ace. The Ace was built with a load body produced by Autoline
Industries.By 2005, Autoline was producing 300 load bodies per day for Tata Motors. Ace is
still one of the number maker for TML, TML sold the 2,00,000th Ace in August 2008, within 4
years since its introduction.

Tata Ace has also been exported to several European, South American and African countries.
Electric-versions of Tata Ace are sold through Chrysler's Global Electric Motorcars division.

6. 2007

Tata Pick Up, unveiled in 2007, is expected to enter European and American market by 2009.

In 2007, Tata Motors generated revenues of Rs 31,884.69 crore.

In 2007, Tata Motors launched several concept models and future designs of existing models. It
also formed joint ventures with various local companies in several countries to assemble Tata
cars. Tata Motors launched a re-designed version of Tata Xenon TL during Motor Show
Bologna which would be assembled in Thailand and Argentina. A pick-up variant of Tata Sumo
was also launched under the program 'Global Pick-Up'. The company plans to launch the new
pick-up model in India, Southeast Asia, Europe, South Africa, Turkey and Saudi Arabia. Tata
Motors also unveiled newer model of Tata Indigo and Tata Elegante concept-car during the
Geneva Auto Show.
Tata Motors also formed a joint venture with Fiat and gained access to Fiat’s diesel engine
technology.Tata Motors is looking to extend its relationship with Fiat and Iveco to other
segments like the 'Global Pick-Up' program. The launch of the 'Global Pick-Up' will mark the
entry of the company into developed markets like Europe and the United States. The project
was initially a collaboration between Tata Motors and its subsidiary Tata Daewoo Commercial
Vehicles, but later Tata Motors decided to work with Iveco as Daewoo’s design was not in sync
with the needs of sophisticated European customers. The company has formed a joint venture
with Thailand’s Thonburi Company, an independent auto assembler, in which Tata Motors will
hold a 70% stake.

7.2008 onwards

8. Compressed air car

Motor Development International of Luxembourg has developed the world's first prototype of a
compressed air car, named OneCAT.In 2007, MDI owner Guy Negre was reported to have "the
backing of Tata"

It has airtanks that can be filled in 4 hours by plugging the car into a standard electrical plug. In
2008 MDI planned to also design a gas station compressor, which would fill the tanks in 3
minutes.There are no gasoline costs and no fossil fuel emissions from the vehicle when run in
town, but "the compressed air driving the pistons can be boosted by a fuel burner".

OneCAT is a five seat vehicle with a 200-litre (7.1 cu ft) trunk. With full tanks it will run at
100 km/h (62 mph) for 90 kilometres (56 mi) range in urban cycle. It is actually a dual fuel car
but it is more efficient than any present Hybrid cars.

9. Tata Nano

Tata Nano
Tata has developed a car, named Tata Nano, that aims to sell in 2008. It is the least expensive
production car in the world: the price is about Rs. 1,00,000 (USD $2,000)The company
unveiled the supermini car during the Auto Expo 2008 exhibition in Pragati Maidan, New
Delhi. Bajaj Auto and Mahindra-Renault have[when?] plans to launch cars in this price range.

Tata has faced controversy over developing the Nano. Some environmentalists are concerned
that the launch of such a low-price car could lead to mass motorization in India with adverse
effects on pollution and global warming. There was also strong opposition to the compulsory
acquisition of land for the proposed car factory in Singur West Bengal. NowTata Motors
Limited plan to set up the Nano factory in Sanand, Gujarat, because of the problems faced in
West Bengal.

To solve this, Tata is goingto produce the E-Nano, an electric version, in partnership with
Miljøbil Grenland AS

10. Jaguar Cars and Land Rover

Main articles: Jaguar Cars and Land Rover

As of 27 March 2008, Tata Motors reached agreement with Ford to purchase their Jaguar and
Land Rover operations for US$2 billion. The sale is expected to be completed by the end of the
second quarter of 2008Tata will also gain the rights to the Daimler, Lanchester, and Rover
brand names.

In addition to the brands, Tata Motors has also gained access to 2 design centers and 3 plants in
UK. The key acquisition would be of the intellectual property rights related to the technologies.

11.Electric vehicles

Tata Motors unveiled the electric versions of passenger car Tata Indica and commercial vehicle
Tata Ace. Both run on lithium batteries . The company has indicated that the electric Indica
would be launched locally in India in about 2010, without disclosing the price. The vehicle
would be launched in Norway in 2009.

Tata Motors' UK subsidiary, Tata Motors European Technical Centre, has bought a 50.3%
holding in electric vehicle technology firm Miljøbil Grenland/Innovasjon of Norway for
US$1.93 M, which specialises in the development of innovative solutions for electric vehicles,
and plans to launch the electric Indica hatchback in Europe next year.

12. Global operations

The purchase of Jaguar Cars is expected to help give Tata Motors a foothold in European and
American markets.

With the unveiling of Tata Elegante during Geneva Motor Show, Tata Motors revealed its
intention to enter the sedan and sports car markets.

Tata Indica during an auto exhibition in Bangkok, Thailand. Indica and Xenon TL will be
assembled in Thailand and Argentina.
Tata Prima was unveiled during the Geneva Motor Show in 2009. The Luxury Sedan was
designed by Pininfrina and has marked the entry of Tata into the international sedan market.
The car is to be sold in India by 2013 and around the world by 2015

Tata Motors has expanded its production and assembly operations to several other countries
including South Korea, Thailand, South Africa and Argentina and is planning to set up plants in
Turkey, Indonesia and Eastern Europe.

13.Global brands

Tata Motors has been aggressively acquiring foreign brands to increase its global presence. In
2004, Tata Motors bought Daewoo's truck manufacturing unit, now known as Tata Daewoo
Commercial Vehicle, in South Korea. In March 2005, it acquired a 21% stake in Hispano
Carrocera SA, giving it controlling rights in the company.

On 26 March 2008 Tata Motors agreed to purchase Jaguar Cars and Land Rover from Ford
Motor in a deal worth $2.3bn (£1.15bn)Tata Motors has also acquired from Ford the rights to
three other brand names: Daimler, Lanchester and Rover. it was rumoured in 2008 that Tata was
in negotiations along with Fiat, General Motors and Renault-Nissan as a possible suitor for the
rapidly declining Chrysler, which is currently owned by Cerberus Capital Management 14.
Present global challenge

Tata Motors have some distinct advantages in comparison to other multi-national competitors.
There is definite cost advantage as labor cost is 8-9 percent of sales as against 30-35 percent of
sales in developed economies. Tata motors have extensive backward and forward linkages and
it is strongly interwoven with machine tools and metals sectors. Tata Group's strong expertise in
the IT based engineering solution for products and process integration has helped Tata Motors.
India has a large auto component industry noted for its world class capabilities. There is huge
demand in domestic markets due to infrastructure developments and Tata Motors is able to
leverage its knowledge of Indian market. There are favorable Government polices and
regulations to boost the auto industry.
However, some major automakers have moved their operations to India to cut costs. Volvo
entered India in 1998 to focus on production of its fully built buses. In India, it has focused on
providing economical transport solutions in consonance with its values of safety, quality, and
environmental care. Its competitive advantage is its high technology which makes the vehicle a
very comfortable option to travel through. Tata's trucks have long been reputed for their
unmatched performance, build, and technological advancements that are the flag bearers in their
production activities in India. It is still operating in the niche market of high end buses where
the Tata compete through its Hispano Carrocera and Marcopolo S.A. JV buses.

The Government of India announced an automobile policy in December 1997. The policy
required majority-owned subsidiaries of foreign car firms to invest at least US$50 million in
equity if they wished to set up manufacturing projects in India. It also forced them to take on
export obligations to fund their auto part imports and required them to submit to a schedule for
increasing the share of locally made parts in their cars. Mere car assembling operations were
not welcomed.

An Indian cabinet panel will soon consider a new automobile policy that aims to set fresh
investment guidelines for foreign firms wishing to manufacture vehicles in the country.
Investments in making auto parts by a foreign vehicle maker will also be considered a part of
the minimum foreign investment made by it in an auto-making subsidiary in India. The move is
aimed at helping India emerge as a hub for global manufacturing and sourcing for auto parts.
The policy sets an export target of $1 billion by 2005 and US$2.7 billion by 2010. The policies
adopted by Government will increase competition in domestic market, motivate many foreign
commercial vehicle manufactures to set up shops in India, whom will make India as a
production hub and export to nearest market. Thus Tata Motors CV will have to face tough
competition in near future, which might affect its growth negatively.

15.Future challenges
Tata Xover

Plastic Car Production- Tata plans on producing a car that is made of nearly 100% plastic.

 Mahindra and Mahindra: JV with ITEC, North American leader in heavy trucks. M&M
has formed a 51:49 JV called Mahindra International with ITEC, USA (parent Navistar
International), to manufacture commercial vehicles and to bolster its position in the CV
business. ITEC is the leader in medium and heavy trucks and buses in North America,
and is the world's largest manufacturer of medium-duty diesel engines. Mahindra
International aims to have a presence across the CV market (6-35 tonnes GVW) with
variants of passenger transport, cargo and specialised load applications and is likely to
start producing medium/heavy commercial vehicles from FY09.

 Force Motors Ltd: JV with MAN for manufacturing high-tonnage vehicles Force
Motors has paired up with MAN in a 70:30 JV to manufacture high-tonnage and
specialty vehicles, such as long-haul trucks, tippers, tractor trailers and multi-axle
vehicles in the 16-32 tonne range at its Pithampur plant, with an initial capacity of
24,000 units per annum and at an investment of Rs7bn. The JV plans to sell nearly half
of its production in the domestic market, while the rest is to be exported to the Middle
East, Turkey, Russia, Asia and Africa. Further, the two companies have formed another
JV to manufacture buses in India from end-2007.

 Ashok Leyland: Acquisition of Czech Republic-based Avia. Ashok Leyland (ALL)

recently acquired the truck unit of Czech Republic-based Avia for US$35m. Avia
manufactures 6-9 tonne LCVs and has a capacity of 20,000 units per annum. The
acquisition has given ALL direct access to an entire range of Avia trucks, Avia’s press
shop with dies and tools, welding lines, state-of-the-art paint shop and R&D facilities.
ALL has also entered into technology agreements with Hino Motors of Japan and ZF of
Germany to complement its in-house R&D efforts and developing complementary
components and aggregates.

Various Products of TATA Motors

[1] Passenger cars and utility vehicles

Tata Indigo SW

 Tata Sierra

 Tata Estate

 Tata Sumo/Spacio

 Tata Safari

 Tata Indica

 Tata Indigo

 Tata Indigo Marina

 Tata Winger

 Tata Nano (3RD March 2009)

 Tata Xenon XT

 Tata Xover (2009)

[2] Concept vehicles

Tata Cliffrider

 2000 Aria Roadster

 2001 Aria Coupe

 2002 Tata Indica

 2002 Tata Indiva

 2004 Tata Indigo Advent

 2005 Tata Xover

 2006 Tata Cliffrider

 2007 Tata Elegante

 2009 Tata Prima

[3] Commercial vehicles

Tata 1616 Starbus

Tata Marcopolo Buses in the Delhi BRT.

Tata StarBus in Nagpur, Maharashtra. Tata Low Floor Buses are also used by administrations in
Delhi, Mumbai, Pune, Udaipur and Indore

 Tata Ace

 Tata TL/Telcoline/207 DI Pickup Truck

 Tata 407 Ex and Ex2

 Tata 709 Ex

 Tata 809 Ex and Ex2

 Tata 909 Ex and Ex2

 Tata 1109 (Intermediate truck)

 Tata 1510/1512 (Medium bus)

 Tata 1610/1616 (Heavy bus)

 Tata 1613/1615 (Medium truck)

 Tata 2515/2516 (Medium truck)

 Tata Starbus (Medium Bus)

 Tata Globus (Low Floor Bus)

 Tata Marcopolo Bus (Low Floor Bus)

 Tata 3015 (Heavy truck)

 Tata 3118 (Heavy truck) (8X2)

 Tata 3516 (Heavy truck)

 Tata 4923 (Ultra-Heavy truck) (6X4)

 Tata Novus (Heavy truck designed by Tata Daewoo)

[4] Military vehicles

 Tata LSV (Light Specialist Vehicle)

 Tata 2 Stretcher Ambulance

 Tata 407 Troop Carrier, available in hard top, soft top, 4x4, and 4x2 versions

 Tata LPTA 713 TC (4x4)

 Tata LPT 709 E

 Tata SD 1015 TC (4x4)

 Tata LPTA 1615 TC (4x4)

 Tata LPTA 1621 TC (6x6)

 Tata LPTA 1615 T

Other Tata services:

1) Tata Insurance:

Tata AIG Life Insurance Company Limited and Tata AIG General Insurance Company Limited
(collectively 'Tata AIG') are joint ventures of the Tata Group and American International Group,
Inc. (AIG). Tata AIG combines the strength and integrity of the Tata Group with AIG's
international expertise and financial strength,

2) Tata motor finance:

Tata Motors is the largest automobile company in this part of Asia. The company has grown in a
big way in recent years and has embarked on expansion and acquisition programs. As part of it,
Tata Motors has also strengthened and expanded on its finance wing Tata Motor Finance that
provides for loan and financing options to the customers buying Tata Motors automobiles.Tata
Motorfinance (TMF) is the automobile financing wing of Tata Motors. It was launched in June
2003 and provides for loans on various segments of company automobiles like passenger cars,
utility and commercial vehicles along with construction equipments. The company that has
grown into most of the Indian cities along with a significant presence in some of the foreign
markets too, today boasts of 109 branches in 22 Indian states.
Some of the terms associated with the Tata Motor finance are as follows:

 Car financing/loan options available for customers belonging to different categories

 The repayment period varies to the tune of 36 months-84 months
 The interest paid on the loans are on the lower end
 Finance on passenger and commercial vehicles on all Tata vehicles and Fiat models
Palio and Adventure include top up loans, used vehicle finance, loan takeover and
refinancing
 The paperwork is limited and the financing company's representative can be called
even at home to complete the formalities, including calculating the likely Equated
Monthly Installment (EMI) that the customer might have to pay.

SWOT analysis of TATA motors:

SWOT analysis (alternately SLOT analysis) is a strategic planning method used to evaluate
the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in
a business venture. It involves specifying the objective of the business venture or project and
identifying the internal and external factors that are favourable and unfavourable to achieve
that objective.
STRENGTHS:

1. Strong Domestic player (Indian market):

Tata has a strong presence in India and is a key manufacturer of commercial
vehicles. It is a market share of ~64% which has almost remained constant. Also,
Tata Motors is India‟s largest automobile manufacturer by revenue .Tata Motors
Limited is India‟s largest automobile company, with revenues of `1,23,133.30
crore in 2010–11. It is the leader in commercial vehicles in each segment, and
among the top three in passenger vehicles in India with products in the compact,
midsize car and utility vehicle segments. Tata vehicles are sold primarily in India, and
over 4 million Tata vehicles have been produced domestically since the first Tata
vehicle was assembled in 1954.

2. It is a demand driven, and customer-oriented, taking care of customers‟ preferences and

taste.
3. Long list of portfolios:
Its products include passenger cars, trucks, vans and coaches.

It is world‟s 4th biggest truck producer, it is also world‟s second biggest bus producer.
4. Global Presence
Tata Motors has been in the process of acquiring foreign brands to increase its
global presence. Through acquisition, Tata has operations in the UK, South Korea,
Thailand and Spain. Among these acquisitions is Jaguar Land Rover, a business
comprising two struggling iconic British brands that was acquired from the Ford
Motor Company in 2008. In 2004, Tata acquired the Daewoo Commercial Vehicles
Company, South Korea‟s second largest truck maker. Today two-thirds of heavy
commercial vehicle exports out of South Korea are from Tata Daewoo.
Tata Motors has expanded its production and assembly operations to several other
countries including South Korea, Thailand, South Africa and Argentina and is
planning to set up plants in Turkey, Indonesia and Eastern Europe.
Tata also has franchisee/joint venture assembly operations in Kenya, Bangladesh,
Ukraine, Russia and Senegal. Tata has dealerships in 26 countries across 4 continents.
5. Dealership, Sales and Service Access: The Company‟s dealership, sales, services
and spare parts network comprises over 3500 touch points.
6. Research and Development Activities:
Tata motors is known as an innovative global leader. The company has a very strong
R&D having over 3000 engineers and scientists. The Engineering Research Centre
(ERC) in Pune was setup in 1966 and is among the finest in the country. It has been
honoured with two prestigious awards - 'The DSIR National Award for R&D
Effort in Industry - 1999' and
'National Award for Successful Commercialisation of Indigenous Technology by an
Industrial
Concern - 2000.' Tata Nano was a recent outcome from the
ERC .
WEAKNESS:

1. Return on Investment on TATA motors shares in low.

2. Tata motors products are not considered as
luxurious.
The products are generally targeted for
economy class rather than for luxury. Hence,
the company lacks a strong footprint in the
sector of luxury products.
3. Safety standards are not maintained/ often
ignored.
This has led to diminish of public image of the
TATA
automobiles (eg Tata
Nano).
FRIDAY, APRIL 9, 2010: TATA
4. Limited consumer NANO caught fire
base
5. Though Tata is present in many countries it has only managed to create a large
consumer base in the Indian Subcontinent, namely India, Bangladesh, Bhutan, Sri
Lanka and Nepal. Tata has a growing consumer base in Italy, Spain and South Africa.
6. Relatively smaller proportion of market share in Passenger vehicles in India.
7. One weakness which is often not recognized is that in English the word 'tat' means rubbish.
Would the brand sensitive British consumer ever buy into such a
brand?

8. The company's passenger car products are based upon 3rd and 4th generation
platforms, which put Tata Motors Limited at a disadvantage with competing car
manufacturers.
OPPORTUNITY:

1. In the summer of 2008 Tata Motor's announced that it had successfully purchased the Land Rover
and Jaguar brands from Ford Motors for UK £2.3 million. Two of the World's luxury car brand
have been added to its portfolio of brands, and will undoubtedly off the company the chance to
market vehicles in the luxury segments.
2. Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004 for around
USD $16 million.
3. Nano is the cheapest car in the World - retailing at little more than a motorbike. Whilst the World is
getting ready for greener alternatives to gas-guzzlers, is the Nano the answer in terms of concept
or brand? Incidentally, the new Land Rover and Jaguar models will cost up to 85 times more than a
standard Nano!
4. The new global track platform is about to be launched from its Korean (previously Daewoo) plant.
Again, at a time when the World is looking for environmentally friendly transport alternatives, is now
the right time to move into this segment? The answer to this question (and the one above) is that new
and emerging industrial nations such as India, South Korea and China will have a thirst for low-cost
passenger and commercial vehicles. These are the opportunities. However the company has put in
place a very proactive Corporate Social Responsibility (CSR) committee to address potential
strategies that will make is operations more sustainable.
5. The range of Super Milo fuel efficient buses are powered by super-efficient, eco-friendly engines.
The bus has optional organic clutch with booster assist and better air intakes that will reduce fuel
consumption by up to 10%.

THREATS:
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 1. Other competing car manufacturers have been in the passenger car business for 40, 50 or more
years. Therefore Tata Motors Limited has to catch up in terms of quality and lean production.
2. Environmental Regulation:
Sustainability and environmentalism could mean extra costs for this low-cost producer. This could
impact its underpinning competitive advantage. Obviously, as Tata globalizes and buys into other
brands this problem could be alleviated.
3. Intense competition:
Since the company has focused upon the commercial and small vehicle segments, it has left itself
open to competition from overseas companies for the emerging Indian luxury segments. For example
ICICI bank and DaimlerChrysler have invested in a new Pune-based plant which will build 5000
new Mercedes-Benz per annum. Other players developing luxury cars targeted at the Indian
market include Ford, Honda and Toyota. In fact the entire Indian market has become a target for other
global competitors including Maruti Udyog, General Motors, Ford and others.
Presently, Tata Motors face intense competition from its domestic as well as foreign competitors
including General Motors, Honda Motor, Maruti Udyog, Mitsubishi Motors, Fiat, Ford and so
on. Competition is expected to intensify further as Indian automobile
manufacturers obtain greater access to debt and equity financing in the international capital
markets or gain access to more advanced technology through alliances. Additionally, in recent years,
the government of India has permitted automatic approvals for foreign equity ownership of up to
100% in entities manufacturing vehicles and components in India.
4. Rising cost of manufacturing:
Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts.
The price of steel and aluminum is increasing putting pressure on the costs of production. Many of
Tata's products run on Diesel fuel which is becoming expensive globally and within its traditional
home market.
5. Low safety standards can hamper the public trusts it has already attained which may prove fatal to
its domestic market.

REFERENCES AND BIBLIOGRAPHY

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www.google.com

www.scribd.com

www.managementparadise.com

www.wikipedia.org

www.businessgrowthconsultant.com

www.marketingteacher.com

www.economist.com

http://www.slideshare.net

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