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Presentation topic:Presentation topic:Comparison of corporate strategy of TATA Motors Comparison of corporate strategy of TATA Motors Private Limited & Nissan Motors India Private Limited Private Limited & Nissan Motors India Private Limited

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Submitted ToSubmitted ToProf. Niranjan Shastri Prof. Niranjan Shastri

Submitted BySubmitted By(Group No. 4 4 ) (Group No. ) Rajkamal Paroha Rajkamal Paroha Sharad Pateriya Sharad Pateriya Vaibhav Zhelawat Vaibhav Zhelawat Vijaypal Singh

Introduction On TTM

Founded : 1945 Founder : JRD Tata Headquarters : Mumbai,india key people : Ratan Tata,chairman Parent : Tata Group

Subsidiaries : Jaguar and land rover Products :automobiles and engines Revenue :Rs.70,938.85 crores(2008-09) Net profit :Rs.1001.26 crores(2008-09)

History
Started in 1945 in Mumbai, India. Original production was on locomotives. 1954

First car rolled off of the assembly line.

Tatas are a family of Indian industrialists and philanthropists. The family founded:

Ironworks Steelworks cotton mills hydroelectric-power plants

Are of their endeavors have been proved to be crucial to India's industrial
development.

History
Started in 1945 in Mumbai, India. Original production was on locomotives. 1954

First car rolled off of the assembly line.

Tatas are a family of Indian industrialists and philanthropists. The family founded:

Ironworks Steelworks cotton mills hydroelectric-power plants Are of their endeavors have been proved to be crucial to India's industrial development.

History
Tata Motors is Indias owns the largest independent company in India. Mercedes and Tata teamed up to create a
truck line. First major business deal with another firm.

Together both companies started their commercial vehicle

operations in 1960. in 1986 the company created and sold the first LCV LCV = light commercial vehicle Was the Tata 407

History
Tata Motors decided to pursue joint ventures.

Cummins Engine Co., Inc., was the first company to jointly venture

with Tata in 1993. Manufactured a diesel engine that had high horsepower and emitted less harmful chemicals.

Began creating new lines in the late 1990s and early 2000s:
Compressed natural gas buses 1109 vehicle, used for commercial purposes. Ex-series Newly designed LCV called the 207 DI

Vision
To devlop Tata into a world class India car brand for innovative and superior value
vehicles.

Mission
To be the most admired multinational Indian car company producing vehicles that people
love to buy.

Create an organization that people enjoy working for doing business with and investing
in.

Products
Passenger cars and utility vehicles

Tata Sierra Tata Estate Tata Sumo Tata Safari Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Magic Tata Nano Tata Xenon XT Tata Xover (2009)

Tata Xover

Products
Concept vehicles

2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indiva 2004 Tata Indigo advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante 2009 Tata Prima

Tata Prima

Products
Commercial vehicles

Tata Ace Tata TL Tata 407 Ex and Ex2 Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 Tata 1510/1512 Tata 1610/1616 Tata 1613/1615 Tata 2515/2516 Tata Starbus

Tata Globus Tata Marcopolo Bus Tata 3015 Tata 3118 Tata 3516 Tata 4018 Tata 4923 Tata Novus Tata World Truck

Tata Novus

Products
Military vehicles

Tata LSV Tata 2 Stretcher Ambulance Tata 407 Troop Carrier Tata LPTA 713 TC Tata LPT 709 E Tata SD 1015 TC Tata LPTA 1615 TC Military Trucks Tata LPTA 1621 TC Tata LPTA 1615 TC Tata Winger Passenger Mini Bus

Corporate Governance
Process Approach EPM (derived from APQC processes and TBEM
model.

17

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EPM Model of tata motors

Corporate Governance
Tata Motors being part of the Tata conglomerate has its philosophy
deeply linked to the core philosophy of the Tata group.

It has fair, ethical and transparent governance practices along with

highest standards of professionalism, honesty, integrity and ethical behavior. The company gives maximum importance to the value creation and sustainability of all the other stakeholders viz. customers, creditors, employees, vendors, community and the Government.

Tata Motors have implemented the Tata Business Excellence model

which is a part of Tata code of conduct applicable to all subsidiaries of Tata group. The company operates with a strong social conscience and believe in bringing benefit to peoples lives.

Corporate Governance(Contd..)
Tata Motors strictly follows The Whistle Blower Policy, an extension of the Tata
Code of Conduct, which requires very employee to promptly report to the management any actual or possible violation of the Code or an event he becomes aware of that could affect the business or reputation of the Company.

Ethics and Compliance Committee who monitors the compliance of the Tata Code
of Conduct for Prevention of Insider Trading by checking monthly reports on dealings in securities and also decides penal action, if necessary.

This is more important since in Indian market Tata brand is synonymous with
Trust. CSR activities of Tata Motors cover major areas like environment, energy and water conservation, health, education and livelihood.

BCg Matrix

They have divided their business are: Commercial Vehicles (Light weight trucks to multi-axle 40 ton vehicles) Passenger Cars, economy and luxury (Indica, Nano, JLR) Utility vehicles, standard and premium (Sumo, Safari) Spare parts, components and accessories (HV Axles and transmission, High horse power engine via Tata Cummins) Financing for customers and channel partners (via Tata Motors Finance)

Corporate Purpose
TMF aspires to be a preferred financier by choice for Tata Motors customers &
dealers across all its products. Tata Motor finance would be the top-of-the-mind choice for all stakeholders when it comes to Tata Motors products.

with a core purpose to reach out & help customers realize the dream of owning a
TATA vehicle easily, we are present across 150+ locations and at all Tata Motors Ltd authorized dealerships.

Schemes designed to suit every customer requirement, flexible repayment options,

hassle-free eligibility criteria, simple documentation and fast sanctioning process makes it the preferred choice of any customer desirous of owning a Tata Car or Commercial vehicle.

Corporate strategy of tata motors

The current corporate strategy of the Tata Motors can best be
summarized as Disruptive Innovation, wherein it has offered lower priced products and surpassed the market expectations.

Its two latest offerings have further strengthened the Tata Motors
position as a leading player. While Ace has been a rage in the market.

As per their mission statement to be most admirable multinational

company they continuously makes innovation in their product and as per the need of targeted customer they designed their product as they design Tata Nano has taken the world with awe.

Corporate Strategy from Diversified Business

To buy premium vehicle brands such as Land Rover and Jaguar bolster Tata Motors
image as a global company and increase its global reach and scale

Overall, the Tata group has spent around $15.5 billion in acquiring foreign companies The Tata name is a unique asset representing leadership with trust,leveraging this
asset to enhance group synergy and becoming globally competitive.

Synergy developed as a result of the strengths of domestic and foreign market share,
congregating under the umbrella of Tata group

The Tata Group as a whole has over 20 publicly listed enterprises and operates in more
than 80 countries world-wide - lots of experience and resources to draw from for research and development purposes , Strong corporate governance based on rich legacy of fair, ethical, and transparent governance practices to ensure that its employees act ethically and the business continues to run smoothly.

Advantages for tata motors from diversified business

Corporate Advantages from Diversified Business
Sharing of Activities/Resource
Tata Steel Tata Motor TCS Tata Cummins

Sharing of Skills/Core Competence

Tata Steel
Core Competence Tata Cummins

TAML

TACO
46

Corporate Strategy from Diversified Business

ENRICHING PEOPLES LIVES

Introduction On Nissian
It is a multinational automaker headquartered in Japan. Nissan (Japan) is amongst the top three car manufacturers in Japan and the
top five in the world.

In 1999, Company joined with Renault SA, a French automobile manufacturer

aiming to achieve profitable and balanced growth for the two partners through the creation of a bi-national group. Motor Limited Japan, was incorporated in 2005 with a vision of Enriching Peoples Lives through latest Nissan Technology and products.

Nissan Motor India Private Ltd. (NMIPL), a 100% subsidiary of Nissan

New HQ building under construction(April, 2008)

A Nissan dealership in Moncton, Canada

History
The company was formerly established under the name Jiidosha Seizo Co
Ltd. in December 1933.

Late in 1934 June the company name was changed to Nissan Motor.
Co. Ltd. (Nissan Jidosha Kabushki geisha shortened to Nissan).

This accompany earlier marketed vehicles under the "Datsun" brand

name.

Nissans Mission provides unique and innovative automotive products and services that deliver superior measurable values to all stakeholders in alliance with Renault

Nissan Motor Company Ltd (Nissan) is Japanese Company engaged in the automotive industry worldwide.

The company and its brands designs, produces and sells more than 3.7 million passenger cars and commercial vehicles in more than 190 countries

Product of Nissan motors in india

MICRA X-TRAIL

TEANA
SUNNY 370Z

Nissan - Porters Five Force

Nissan recognized that their business and traditional values would be in need of a
radical overall, to gain market share in Europe. Hence the improvements stated, such as the localisation of production and distribution channels in Europe. 1. Entry of competitors.

There are many new products, but not many new competitors in the market place at the moment. The established car manufacturers have been established for years. This is a very difficult market for new organisations to enter. Although there is the occasional new electric car hitting the market place now and again, through a new company. They do not seem to last very long, however.

2. Threat of substitutes.

Nissans strategy of continual improvement should assist them in surviving the threat of substitute products. The saturation of the manufacturer market place does not assist the situation, so the threat of substitutes is very real. However, Nissan are well equipped to handle it.

Nissian - Porters Five Force

3. Bargaining power of buyers.

At the moment the buyer is being provided with a proliferation of alternative products in the car market. Advertisements show up on the television daily. In terms of the bargaining power of buyers this is very good as there are so many choices and products available.

4. Bargaining power of suppliers.

Renault-Nissan Purchasing Organisation This purchasing organisation, established in 2001 is no one of the key ways in which Renault and Nissan combine their resources to create a more efficient organisation. Currently both Nissan and Renault share 60% of the same facts and or material suppliers.

This means that Nissan have achieved greater purchasing power and have served to reduce costs and reduced the bargaining power of suppliers. There still remain still for the RNPO to decrease costs and provide increased competitive advantage.

Nissian - Porters Five Force

5. Rivalry among the existing players.

In total there are now roughly 15 companies trying to compete for market share. To
some extent, Nissan have staved off this particular threat, by focusing on making their operations more profitable and differentiating themselves from their competitors by creating unique vehicles. This allows Nissan to maintain their competitive advantage.

Corporate Strategy
Asia market: - Lower penetration coupled with strong rise in income levels, led to
continuous jumps in car sales in markets like china and India. Hence it is necessary for the major corporate strategy of Nissan to be present in these countries. In India in year 2009-10 domestic sales of car and utility vehicles has crossed the 1 million mark. Therefore Asia market will create a huge demand.

Now Nissian corporate level makes there corporate strategy to be focus on relocate its
manufacturing unit to reduce cost: - China, India and Thailand have been regarded as the Low Cost Production bases with their unique offering to the outsourcers. Low cost country will provide them the global clientele and technology and also have synergetic operation. Area of opportunity for India lies in the products which have high level of design and engineering requirements, low level of automation and significant assembly requirement.

Renault-Nissan Purchasing Organization (RNPO): - The RNPO, was one of the main
ways in which Renault-Nissan would combine their resources to create a more competent organization. This has led Nissan to achieve greater purchasing power and has served to reduce costs and reduce the bargaining power of suppliers.

Corporate Strategy
The new Corporate plan, known as Nissan GT 2012, begins in fiscal year
2008. The GT name stands for growth and trust. During this five year plan Nissan GT 2012 will focus the companys efforts on long-term performance and their responsibilities to stakeholders as Nissan becomes truly global business, they design there new corporate plan as per there mission statement provides unique and innovative automotive products and services that deliver superior measurable values to all stakeholders in alliance with Renault

Corporate purpose

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