Project Report on

SWOT ANALYSIS OF TATA MOTORS

In partial fulfilment of requirement for the
Award of Degree of M.Com

Subject:
Enterprenurship Management

Submitted By:
Mr.HiteshRohra
Roll No. 117
M.Com. Part II, Semester - III

Under the Guidance of:

Prof. Mr. Kishore Karia

SMT. CHANDIBAI HIMATHMAL MANSUKHANI COLLEGE

ULHASNAGAR 421003

UNIVERSITY OF MUMBAI
2015 2016

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SWOT Analysis Of
Tata Motors
DECLARATION

I, Mr.HiteshRohra student of SMT. CHANDIBAI HIMATMAL MANSUKHANI

COLLEGE, ULHASNAGAR studying in M.Com Part II, Semester III, hereby
declare that I have completed this project on SWOTAnalysisOfTataMotorsfor
thesubject EnterpreneurshipManagement in the academic year 2015-16.The
information submitted is true and original to the best of my knowledge.

_______________
Mr.HiteshRohra

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ACKNOWLEGEMENT
To list who all have helped me is difficult because they are so numerous
and the depth is so enormous.
I would like to acknowledge the following as being idealistic channels and
fresh dimensions in the completion of this project
I take this opportunity to thank the University of Mumbai forgiving me
chance to do this project.
I would like thank my Principal, Dr. Padma V. Deshmukh for providing
the necessary facilities required for completion of this project.
I would also like to express my sincere gratitude towards my project
guide Prof. Mr. Kishore Karia whose guidance and care made the project
successful.
I would like to thank my college library, for having provided Various
reference books and magazines related to my project.
Lastly I would like to thank each & every person who directly or indirectly
helped me in completion of the project especially my parents & peers
who supported me throughout my project.

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EXECUTIVE SUMMARY
The automotive industry in India grew at a computed annual growth rate (CAGR) of
11.5 percentover the past five years, the Economic Survey 2008-09 tabled in
parliament on 2nd July09 said.The industry has a strong multiplier effect on the
economy due to its deep forward and backwardlinkages with several key segments of
the economy, a finance ministry statement said.The automobile industry, which was
plagued by the economic downturn amidst a credit crisis,managed a growth of 0.7
percent in 2008-09 with passenger car sales registering 1.31 percentgrowth while the
commercial vehicles segment slumped 21.7 percent.Indian automobile industry has
come a long way to from the era of the Ambassador car to Maruti800 to latest TATA
nano. The industry is highly competitive with a number of global and
Indiancompanies present today. It is projected to be the third largest auto industry by
2030 and just behind to US & China, according to a report. The industry is estimated
to be a US$ 34 billionindustry.Indian Automobile industry can be divided into three
segments i.e. two wheeler, three wheeler &four wheeler segment. The domestic twowheeler market is dominated by Indian as well asforeign players such as Hero
Honda, Bajaj Auto, Honda Motors, TVS Motors, and Suzuki etc.Maruti Udyog and
Tata Motors are the leading passenger car manufacturers in the country. AndIndia is
considered as strategic market by Suzuki, Yamaha, etc. Commercial Vehicle market
iscatered by players like Tata Motors, Ashok Leyland, Volvo, Force Motors, Eicher
Motors etc.The major players have not left any stone unturned to be global. Major of
the players have gotinto the merger activities with their foreign counterparts. Like
Maruti with Suzuki, Hero withHonda, Tata with Fiat, Mahindra with Renault, Force
Motors with Mann.
India ranks 12th in the list of the worlds top 15 automakers Entry of more
international players Contributes 5% to the GDP Production of four wheelers in
India has increased from 9.3 lakh units in 2002-03 to 23 lakhunits in 2007-08
Targeted to be of $ 145 Billion by 2016 Exports increased from 84,000 units in
2002-03 to 280,000 units in 2007-08

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TABLE OF CONTENT
1. Definition of SWOT Analysis .. 03
2. Background and History of the SWOT Analysis ... 05
a. Strengths 06
b. Opportunities07
c. Weakness..08
d. Threats .10
3. Strategies from SWOT Analysis ..13
4. Addressing of SWOT Analysis ....14
5. When to use SWOT Analysis............15
6. Importance..15
7. Benefits and Limitation ..16

8. Abstract................................................................................................................................... 18
9. Introduction. To Tata Motors ..................................................................................................19
10. Company Profile .. 20
11. Product Profile .24
12. SWOT Analysis ..........................................................................................................................27
a. Strengths ..................................................................................................28
b. Weaknesses................................................................................................30
c. Opportunities ..............................................................................................31
d. Threats .......................................................................................................31
13. STEEPLED Analysis.......................................................................................................................32
a. Social ........................................................................................................................... .....32
b. Technological................................................................................................................... ..33
c. Economical .............................................................................................................. ........36
d. Environmental............................................................................................................. ......37

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e. Political ................................................................................................................ ..39

f. Legal .......................................................................................................................4 0
g. Ethical ...................................................................................................................... 41
h. Demographical......................................................................................................... 43
14. Conclusion............................................................................................................................. 45
15. Bibliography......................................................................................................................... .45

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Introduction Of 'SWOT Analysis'

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.

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SWOT analysis is a management tool used to identify strategies for success. It may be used to
guide individual thinking, group discussion, or a large, formal planning process. It is widely
utilized by companies as part of their strategic planning process, but it can be used by any group
or individual seeking improvement.
SWOT analysis begins by focusing on each topic to identify and analyze all ideas related to it.
For example, employees might spend 30 to 60 minutes brainstorming and discussing their
companys strengths. They would repeat this process to discuss the weaknesses, opportunities,
and threats for the company as well. After the analytical phase, they begin a creative discussion
of these topics. In this part of SWOT analysis, they brainstorm new ideas to take greater
advantage of strengths and opportunities, and to minimize weaknesses and threats. Management
might then use these ideas to help build a strategic plan for growth over the next year. The key
to using this process successfully is to foster an open and honest atmosphere for self-analysis.
This can include a group brainstorming session or a personal self-assessment.
Strengths and weaknesses tend to be Internal characteristics of the company, such as location,
price, or brand awareness. Opportunities and threats tend to be External characteristics,
coming from competitors or customers.

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. Background & History of the SWOT Analysis

The origins of the SWOT analysis technique is credited by Albert Humphrey, who led a
research project at Stanford University in the 1960s and 1970s using data from many top
companies. The goal was to identify why corporate planning failed. The resulting research
identified a number of key areas and the tool used to explore each of the critical areas was
called SOFT analysis. Humphrey and the original research team used the categories What is
good in the present is Satisfactory, good in the future is an Opportunity; bad in the present is
a Fault and bad in the future is a Threat.

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In 1964 Urick and Orr at a conference changed the F to a W, and it has stuck as that, soFt to
sWot. Some researchers reference the 1965 publication business Policy, text and cases by
Learned, Christensen, Andrews and Guth (from Harvard University) in which a framework is
used which closely resembles a SWOT analysis, however these words are not used and certainly
the framework is not described as succinctly as we know it today. In this book the terms used
are:
a)
b)
c)
d)

Opportunities,
Risks,
Environment &
Problems of other industries.

In fact these authors reference a course note from K R Andrews a concept of corporate strategy
for much of the strategy framework. On its own, it is said that a SWOT analysis is
meaningless. It works best when part of an overall strategy or in a given context or situation.

Strengths
Questions need to be asked are

What advantages does your organization have?

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What do you do better than anyone else?

What unique or lowest-cost resources can you draw upon that others can't?

What do people in your market see as your strengths?

What factors mean that you "get the sale"?

What is your organization's Unique Selling Proposition (USP)?

Consider strengths from both an internal perspective, and from the point of view of customers
and people in market. Also, if having any difficulty identifying strengths, writing down a list of
organization's characteristics. When looking at strengths, thinking about them in relation to
competitors. For example, if all of competitors provide high quality products, then a high
quality production process is not a strength in organization's market, it's a necessity.
Examples of strength analysis,
1. Strength analysis of a Pharmaceutical company (Botanical Botany)

Consistent Quality Production of high quality medicinal plants.

Saleable plants Producing a high ratio of healthy plants.
Experience Co owners having a strong combination of business development and
horticulture experience.

2. Strength analysis of NovOculi

NovOculi, Inc. is a start-up company that has designedand plans to develop and market
ophthalmological surgical tools and a unique method of incisionless refractive correction
dubbed NICS (Non-Invasive Corneal Sculpting)

Patented Technology Patents on NICS and two novwl devices.

FDA approval No need to wait for approval.
Principal Expertise Principals having extensive experience with refractive correction
techniques.

Opportunities

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A useful approach when looking at opportunities is to look at companys strengths and find out
whether these open up any opportunities. Alternatively, looking at their weaknesses and ask
themselves whether they could open up opportunities by eliminating them. And to find out a
companys opportunities an analyzer must go for the answers of below questions.
a. What good opportunities can you spot?
b. What interesting trends are you aware of?

Useful opportunities can come from such things as:

a.
b.
c.
d.

Changes in technology and markets on both a broad and narrow scale.

Changes in government policy related to your field.
Changes in social patterns, population profiles, lifestyle changes, and so on.
Local events.

Example
Android OS have some opportunities like
a. They can easily boost up their sale because all mobile networks support their OS.
b. Their share will be doubled up within next three years from the present state of 35% market
share.
c. Android OS is developer friendly which result in development of advanced apps compared
to other OS.
d. Better handset layout, storage, connectivity, messaging, multiple languages support, web
browser, Java support, Multi touch, tethering, screen capture and some of the highlights of
android OS.
e. Because of their cheaper rate sells increase in developing countries.
f. Android OS is compatible to other devices.

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Now these opportunities of Android OS are threats to Apple IOS. If Apple Company can
understand these threats which are rise from the weakness of IOS, they can easily overcome
these threats by converting their weakness into their opportunities.

Weakness

Weaknesses are areas capable of improvement. From weaknesses, we get to know

Whether a business is lacking skills or new products?

Do it has a higher cost base or lower productivity than other competitors?

Can the strategy be better?

What can be avoided?

What causes problems or complains?

Weakness as an (Internal factors)

Absence of important skills

Weak branding and reputation

Poor access to distribution

Low customer retention

Unreliable product/service

No clear strategy

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Lack of management depth and talent

Some mega projects which are costly and complex

Online presence of competitors

Limited human resources

As examples we can mention about

a. Botanical Bounty an Oregon based perennialfarm that grows a variety of botanical medicinal
plants. This family owned farm has been in existence for two years, initially operating as a hobby
for the owners- who have training in planet biology rather than a profit producing business.
Weakness found in SWOT analysis for Botanical Bounty
1. Lack of funding: They will need to borrow $100,000 in funds for the first year.
2. No reputation yet.We havent established ourselves as a reputable grower in the botanical
market.
3. Limited human resources as it is a family owned farm.
4. Less branding of the farm.
5. There are lot of competitors online to reach the customers and here they kept behind.
b. Incepta Pharmaceutical Ltd is a leading pharmaceutical company in Bangladesh established in
the year 1999. SWOT analysis has been done on this company and the weaknesses found are given
below
1. Patent law is not updated to accommodate benefits of LCDs. In Bangladesh patents are
more prohibited under patents and Drugs Act 1911 as amended for time and patents and
Drugs Rules 1933. In order to make best use of compulsory licensing and parallel
imports, recent patent law needs to be updated.
2. A Task Force was created comprising members from EPB , Drug Authority , Ministry of
commerce, NBR, Bangladesh Bank , Income Tax , Customs and so many but
3.
4.
5.
6.

unfortunately this committee could not work up to the level requirement.

Dependency on imported raw materials or absence of API plants.
Absence of international standard quality control and testing laboratory.
Absence of bio-equivalence testing and clinical facilities.
Inadequate knowledge on TRIPS and trade related matters.

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7. Little research and development on new molecule development etc.

8.
9.

Threats

Elements in the environment that could cause trouble for the you to achieve objective or
goal.

External factors, beyond an organizations control, which could place the organization
mission or operation at risk.

The organization may benefit by having contingency plans to address them if they should
occur.

Classify them by their seriousness and probability of occurrence.

Questions to be asked for threat analysis

What obstacles do you face?
What are your competitors doing?
Are quality standards or specifications for your job, products or services changing?
Is changing technology threatening your position?
Do you have bad debt or cash-flow problems?
Could any of your weaknesses seriously threaten your business?

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A threat can be
a. Unfavourable regulation changes
b. A new entrant into the market
c. Problems with the economy
d.

Market shrinkage

Examples of threat analysis

a. Threat analysis example for a Cosmetics manufacturer might include
New affordable luxury entrants to the market threatening to take share from premium

brands
Major competitor planning to integrate vertically and sell direct to the consumer
Rise in popularity of nail spas leading to decline in demand for nail products

b. Threat Analysis of a Pharmaceutical Company may include

Generally within the main pharmaceutical companies there is a high level of competition for
the generics markets where patents finish and it is the first to entry where success will

generally be determined.
Technological developments with bio-tech concepts will potentially move the traditional
pharmaceutical methods out of the market place in the long term although there is an
economical argument that this form of development can be segregated to run alongside
traditional methods and complement as opposed to replace.

c. Threat analysis for a Carpet company can be

Move towards less carpet and more diverse types of flooring

Consumers are more price conscious in the down economy

Competition from online only stores that dont have the same overhead costs
Better flooring materials is increasing the time span between flooring changes.

d. Threat analysis of Small Management Consultancy can be

Large consultancies operating at a minor level

Other small consultancies looking to invade the marketplace

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. Strategies from SWOT analysis or SWOT matrix

Matching strengths to opportunities - S-O or Maxi-Maxi strategy. Indicates using a strength

to maximise an opportunity.

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Matching weaknesses to opportunities - W-O or Mini-Maxi strategy, Improving capability

to maximise an opportunity.
Matching strengths to threats - S-T or Maxi-Mini strategy, Minimising a threat with a

strength.
Matching weaknesses to threats W-T or Mini-Mini strategy, Minimising weaknesses and
threats at same time.

Addressing of SWOT analysis (Beginning of decision making

process)

Matching and converting

Traditionally the way to address the weaknesses and threats from a SWOT analysis is to match
and convert them.
Matching
Matching involves taking your strengths and seeing if they line up with any of your
opportunities. For example, one of Wolfram and Harts opportunities is that despite the fact two
competitors have recently relaunched their websites, the general standard of site is very poor.
When matched with Wolfram and Harts lack of budgetary constraints and internal buy in about
improving the site, there is an exciting chance to pass the competition online. Equally Wolfram
and Harts experience in the technology sector, combined with this sectors heavy use of online
tools, creates an opportunity to better engage this audience.
Converting
The other tactic for addressing weaknesses and threats is to look for chances to convert these
into opportunities or strengths. This is easy to say but not so easy to do. However it is possible.
I can give a real example of this relating to the Wiltshire Farm Foods website. They had a
serious weakness because they used a franchise model. These regional franchises could set their

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own prices and so it was impossible to show users a price until they had given the site their
postcode. Users were forced to enter the postcode before seeing anything on the site. Obviously
this was a major weakness. The original Wiltshire Farm Foods site had a serious weakness in
that it required users to enter a postcode before entering the site. Now this weakness is turned
into an opportunity by taking the following steps
Now it showed the highest price to users when they arrived on the site, allowing them to
immediately see products and a price. Once they enter a postcode and if the price is lower, it tell
the user they have received a lower rate (making them happy).
When they enter a postcode they are given information on their local franchisee, including a
telephone number, name and photo. The elderly audience that buy from Wiltshire Farm Foods
loved this because they worry about dealing with a large faceless organization, but feel
reassured if they know their local supplier. They turned their weakness into strength by using
post code entry as a way of meeting your local franchisee. Obviously, it is not always possible
to change a weakness or threat into an opportunity. Where it is impossible, the alternative is to
minimize its effect.

When to use SWOT

A SWOT analysis can be used to:

Explore new solutions to problems

Identify barriers that will limit goals/objectives

Decide on direction that will be most effective

Reveal possibilities and limitations for change

To revise plans to best navigate systems, communities, and organizations

As a brainstorming and recording device as a means of communication

To enhance credibility of interpretation to be utilized in presentation to leaders or key

supporters

Importance of SWOT Analysis

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The importance of SWOT analysis lies in its ability to help clarify and summarise the key
issues and opportunities facing a business. Value lies in considering the implications of the
things identified and it can therefore play a key role in helping a business to set objectives and
develop new strategies. The ideal outcome would be to maximise strengths and minimise
weaknesses in order to take advantage of external opportunities and overcome the threats. For
example, the environment may present an opportunity for a new product but if the company
does not have the capacity to produce that product it may either decide to invest in new plant
and machinery or to just steer clear.

Benefits and limitations of SWOT analysis

SWOT (strengths, weaknesses, opportunities and threats) analysis can help a company identify
and understand key issues affecting their business, but it does not necessarily offer solutions. So
a company should be aware of the limitations as well as the benefits of a SWOT analysis before
they decide to conduct one. Knowing what they can reasonably expect to achieve will make the
SWOT analysis more useful for their business, and will save their time. Ultimately, they must
be prepared to spend the time to review their SWOT analysis and use it to determine the best
way forward in their business.
Benefits of SWOT analysis
a. The main advantages of conducting a SWOT analysis is that it has little or no cost - anyone
who understands their business can perform a SWOT analysis.
b. A company can also use a SWOT analysis when it doesn't have much time to address a
complex situation. This means that a company can take steps towards improving their
business without the expense of an external consultant or business adviser.
c. Another advantage of a SWOT analysis is that it concentrates on the most important factors
affecting a companys business. Using a SWOT, one can: understand their business better
address weaknesses deter threats capitalize on opportunities take advantage of their
strengths develop business goals and strategies for achieving them.

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Limitations of SWOT analysis

a. While conducting a SWOT analysis, a company should keep in mind that it is only one
stage of the business planning process. For complex issues, business companies usually
need to conduct more in- depth research and analysis to make their decisions.
b. Keep in mind that a SWOT analysis only covers issues that can definitely be considered a
strength, weakness, opportunity or threat. Because of this, it's difficult to address uncertain
or two-sided factors, such as factors that could either be a strength or a weakness or both,
with a SWOT analysis (e.g. a company might have a prominent location, but the lease may
be expensive).

c. A SWOT analysis may be limited because it doesn't prioritize issues doesn't provide
solutions or offer alternative decisions can generate too many ideas but not help you choose
which one is best can produce a lot of information, but not all of it is useful.

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Abstract
This report is a brief SWOT and STEEPLED analysis of TATA motors.
TATA motors is the leading automobile company of India, and also having a
major share outside the country. To make any company successful its very much required
to analyse different factors those can influence companys performance. SWOT and
STEEPLED covers most of the factors from a managers point of view.
Through this report we are trying to show the strength and weaknesses that are
present in the company. What are the opportunities the company have? And what are the
threats to the company?
Again we are showing the different factors like politics, economy, legal, technology
etc. which are having influence on the company as well as environment, social,
ethical, demographical etc. influence of the company.
We have also covered the actions taken by TATA motors to improve some of
the fields

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Introduction
Established under the parent company, Tata Group, in 1945, Tata Motors Limited has
become Indias largest automobile company. It was the first Indian automobile company to
list on the New York Stock Exchange. Tata Motors began manufacturing commercial
vehicles in 1954 with a 15-year collaboration agreement with Daimler Benz of Germany.
This partnership has led Tata Motors to not only become Indias largest automobile company
but also Indias largest commercial vehicle manufacturer; the worlds top five manufactures
of medium and heavy trucks and the worlds second largest medium and heavy bus
manufacturer. Having just entered the passenger vehicles market segment in 1991, Tata
Motors now ranks second in Indias passenger vehicle market.
Tata has enjoyed the prestige of having developed Tata Ace, Indias first indigenous
light commercial vehicle; Tata Safari, Indias first sports utility vehicle; Tata Indica, Indias
first indigenously manufactured passenger car; and the Nano, the worlds least expensive car.

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Company profile
Tata Motors Limited
Tata Motors Limited is India's largest automobile company, with revenues of Rs. 24,000 corers
(USD 5.5 billion) in 2005-06. It is the leader by far in commercial vehicles in each segment, and
the second largest in the passenger vehicles market with winning products in the compact, midsize
car and utility vehicle segments. The company is the world's fifth largest medium and heavy
commercial vehicle manufacturer.
The company's 22,000 employees are guided by the vision to be best in the manner in which we
operate best in the products we deliver and best in our value system and ethics.
As an enterprise under Indias largest multi holding company, Tata Motors has grown significantly
in the past 60 years since its establishment in 1945.The company caters to three main market
segments globally: the passenger cars, utility vehicles and commercial vehicles. A significant
breakthrough for the company was the development and commercialization of the truly Indian carsTata Indicia and Tata Indigo. The company produced its first mini truck, first light and first heavy
vehicle and many more fists in India ,being an innovator in their industry. It has followed a strategy
of acquisitions and joint ventures in its mid-stage and launched new products at a rapid pace in
different market segments. Today, Tata Motors enjoys the position of being Indias leading
automobile manufacturer with increasing presence in Europe, South East Asia. Africa and the
Middle East with a total income of US $4 billion in 2004-05.The company focuses on providing
customers the best value for their money and meets European standards and environmentally
regulations through their advanced technologies.
Established in 1945, Tata Motors is one of the 32 publicly listed enterprises infer the Tata Group,
Indias largest business conglomerate. Tata Motors collaborated with Germanys Daimler Benz in
1945 for 15 years to manufacture commercial vehicles .Since then, Tata Motors has grown
enormously and produces several vehicles through their main
Divisions- Passenger Cars, Utility Vehicles and Commercial Vehicles. In 1959, they set up their
first and largest R&D centre in Jamshedpur.In 1961, exports had begun and the first truck was
shipped to Sri Lanka.Another R&D Centre was started in Pune in 1966 to support automobile
research which produced the first commercial vehicle by 1983 and light commercial vehicles three
years later. With increasing sales popularity, they sold their one millionth vehicle by 1991 .Their
interest in tapping the diesel engine market was evident through their joint venture with Cummins
Engine Co.Inc in 1993 for the production of high horsepower and emission friendly diesel engine.
After the joint venture in 1993, a few others were pursued the following year. An agreement with
Daimler-Benz in 1994, allowed Tata Motors to produce high end Mercedes Benz passenger cars for
the Indian market .In 1998, they launched their first sports utility vehicle, Tata Safari. This was an
important year as their sales doubled to 2 million vehicles and marked the munch of Indias first
fully indigenous passenger car, Tata Indicia .The Indicia was a success and over 115,000 bookings
with full payment
Within a year of its launch.
Tata Motors' presence indeed cuts across the length and breadth of India. Over 3.5 million Tata
vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base
is spread across Jamshedpur, Pune and Lukhnow, supported by a nation-wide dealership, sales,
services and spare parts network comprising about 1,200 touch points.
Tata Motors, the first company from India's engineering sector to be listed in the New York Stock
Exchange (September 2004), has also emerged as a global automotive company. In 2004, it
acquired the Daewoo Commercial Vehicles Company, Korea's second largest truck maker. The
rechristened Tata Daewoo Commercial Vehicles Company has already begun to launch new
products. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus
and coach manufacturer, with an option to acquire the remaining stake as well. Hispano's presence
is being expanded in other markets.

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These acquisitions will further extend Tata Motors' global footprint, established through exports
since 1961. The company's commercial and passenger vehicles are already being marketed in
several countries in Europe, Africa, the Middle East, Australia, South East Asia and South Asia. It
has assembly operations in Malaysia, Kenya, Bangladesh, Spain, Ukraine, Russia and Senegal.
The foundation of the company's growth over the last 50 years 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.
With 1,400 engineers and scientists, the company's Engineering Research Centre, established in
1966, has enabled pioneering technologies and products. It was Tata Motors, which developed the
first indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in
1998, the Tata Indicia, India's first fully indigenous passenger car. Within two years of launch, Tata
Indicia became India's largest selling car in its segment.
The pace of new product development has quickened. In 2005, Tata Motors created a new segment
by launching the Tata Ace, India's first indigenously developed mini-truck. The years to come will
see the introduction of several other innovative vehicles, all rooted in emerging customer needs.
Besides product development, R&D is also focusing on environment-friendly technologies in
emissions and alternative fuels.
Through its subsidiaries, the company is engaged in engineering and automotive solutions,
construction equipment manufacturing, automotive vehicle components manufacturing and supply
chain activities, machine tools and factory automation solutions, high-precision tooling and plastic
and electronic components for automotive and computer applications, and automotive retailing and
service operations.
True to the tradition of the Tata Group, Tata Motors is committed in letter and spirit to Corporate
Social Responsibility. It is a signatory to the United Nations Global Compact, and is engaged in
community and social initiatives on human rights, labour and environment standards in compliance
with the principles of the Global Compact.
Simultaneously, it also plays an active role in community development, serving rural communities
adjacent to its manufacturing locations.
With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.
It has been a long and accelerated journey for Tata Motors, India's leading automobile
manufacturer. Some significant milestones in the company's journey towards excellence and
leadership from the glorious year of 1945 till date it is working on it success road.
In its senior management position Mr. Ravi Kant is the Managing Director of this company.
Manufacturing
Tata Motors owes its leading position in the Indian automobile industry to its strong focus on
indigenization. This focus has driven the Company to set up world-class manufacturing units with
state-of-the-art technology. Every stage of product evolution-design, development, manufacturing,
assembly and quality control, is carried out meticulously. Our manufacturing plants are situated at
Jamshedpur in the East, Pune in the West and Lucknow in the North.
Jamshedpur:
This was the first unit of the Company established in 1945 and is spread over an area of 822 acres.
It consists of 3 divisions - Truck, Engine (including the Gear Box division) and Axle. The
divestments in March 2000 hived off the Axle and Engine plants into independent subsidiaries. The
Truck Division boasts of two assembly lines. The main assembly line, measuring 180 meters in
length, has 20 stations with a vehicle rolling out every 8 minutes while the other line is dedicated to
Special Purpose Vehicles (SPVs). State-of-the-art facilities like a Centralized Paint and Press Shop
with a set-up of a 5000 tonne Siempelkamp press line and a cut-to-length line for strip preparation
purchased from M/s. Kohler of Germany makes it a fairly advanced production outfit.
This is supported by a fully equipped Foundry, which supplies high-grade SG Iron castings for
automobile components and excavators and is rated as one of the cleaner, better and highly
automated foundries in the world. The Foundry has a sophisticated Kunkel Wagner high pressure

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molding line, which has a rated production capacity of 90

Pairs of moulds every hour. The Foundry has its own melting shop, core shop and sand plant.
Other advanced facilities include Channel Furnaces, Computerized Testing Equipment etc. In 1993,
the Foundry was ISO 9002 certified by the Bureau Verities Quality International and later followed
it up with the more stringent QS 9000 certification from the BVQI in the year 2000.
The unit is also equipped with a semi-automated forging line, with 40,000 mkg Bache hammer and
state-of-the art presses from Kurimoto of Japan and is one of the most modern forging set-ups in the
country. It produces critical forgings like crankshafts, front axle beams and steering parts for the
automobile plant. The new forging line, installed on April 20, 1984, has the capability to forge front
axle beams at 90 sec per piece and crankshafts at 120 sec per piece. Mechanical presses help
produce a variety of heavy forgings. The sophisticated FIDIA Digit 165 CC graphite-milling
machine links shop floor machines to the design workstation. The Forge has been certified as ISO
9002 and QS 9000 by the BVQI.
Pune:
The Pune unit is spread over 2 geographical regions- Pimpri and Chinchwad and has a combined
area of around 510 acres. It was established in 1966 and has a Production Engineering Division,
which has one of the most versatile tool making facilities in the Indian sub-continent. It houses a
Vehicle manufacturing complex which is one of the most integrated automotive manufacturing
centers in the country producing a large variety of individual items and aggregates. It is engaged in
the design and manufacture of sophisticated press tools, jigs, fixtures, gauges, metal pattern and
special tools, as well as models for the development of new ranges of automobile products. Its
capabilities have enabled Tata Motors to introduce new products and improve existing ones without
resorting to imports of dies or fixtures.
Lucknow:
Established in 1991 and covering an area of 600 acres, the Lucknow Plant was established to
assemble Medium Commercial Vehicles (MCVs) to meet the demand in the Northern Indian
market.
In 1995, the unit started manufacturing bus chassis of Light Commercial Vehicles (LCVs) and Tata
Sumos. The unit is also equipped with facilities to manufacture spare parts.
Research & Development:
Research provides the much-needed inspiration for the birth of new ideas, which in turn breathes
new life into products. World-class automotive research and development are key factors that
contribute to the leadership of the Company.
Engineering Research Centre (ERC):
The Research Centre at Jamshedpur regularly upgrades components and aggregates. A wellequipped torture track enables rigorous and exhaustive testing of modifications before they are used
as regular fitments. The Engineering Research Centre in Pune was setup in 1966 and is among the
finest in the country. It has been honored with two prestigious awards - 'The DSIR National Award
for R&D Effort in Industry - 1999' and 'National Award for Successful Commercialization of
Indigenous Technology by an Industrial Concern - 2000.'
Central Tool Room, Jamshedpur:
The Central Tool Room at Tata Motors, Jamshedpur is one of the most modern tool rooms in India.
Equipped with the latest CNC Machines, Tryout Presses and Inspection facilities, this tool room has
the proven capability of developing tooling solutions for all applications.

Customers'Quote
"We are happy to inform you that the feedback received from our Japanese personnel (after their
visit to your plant) is very positive and hence have decided to set the die quality of Tata Motors,

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Jamshedpur dies as benchmark."

STTI (Toyota),
Bangalore
March, 2004
Tata Motors has proven excellence over the years through its technologically advanced products,
market expansion, customer satisfaction and increasing sales.Tata Motors consistently strives to
increase shareholder value, build stronger customer relations and work with its business partners to
provide the best value for money. The company is also involved in accelerating the countrys
economic growth and protecting the environment. With the initial financial backing of the giant
parent company,Tata Group, the division has built a strong business over the past 60 years and
continues to show strong financial results. The continual improvement and introduction of new
products in the market have allowed it to successfully enter as well as dominate the automobile
industry in India. Tata Motors reported a record sale of 454,345 vehicles (including exports) for the
fiscal year 2005-06, its highest ever, and a growth of 13.7 per cent over the 399,566 vehicles sold in
2004-05. Total sales (including exports) for the month of March 2006 were 56,406 units, the
companys highest ever monthly sales and an increase of 27 per cent over the 44,432 units sold in
March 2005.
In case of exports, The Company exported 6,508 vehicles in March 2006 as compared to 3,964
vehicles in March last year, an increase of 64.2 per cent. The cumulative sales from exports during
the year at 50,539 vehicles, a new peak, have recorded a strong 65.7-per cent growth over the
30,496 vehicles sold last year.Tata Motors continues to make deep inroads abroad with its strategy
of focusing on select markets with relevant products from its commercial vehicles and passenger
vehicles range.
With increasing sales, employees, product offering, manufacturing facilities and distribution
centers along with expansion outside India, the company seems to have promising future.

Product profile
Tata Indicia Xeta
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Webster's Dictionary circa 2050 Indica: A successful Indian product of truly Indian origins. The
word is derived from the first automobile to be designed, manufactured and sold successfully by an
Indian company. Several variants of its original hatchback design were spawned and eventually
over one million vehicles based on the platform were sold. The diesel-engine vehicle sold in large
numbers across the nation and even has the notable achievement of having been exported to several
countries across the globe. The diesel-engine Indica received notable appreciation from all around,
whereas the petrol-fuelled versions played second fiddle on the sales graphs.
TATA Motors has launched a new version of its small car. Christened Indica V2 Xeta, the
petrol-powered car with a 1.4-litre engine is said to deliver a mileage of 14 kmpl under standard test
conditions. The Xeta's engine, delivering 70 PS, is far more powerful than the earlier version.
Besides common black and silver, the car is available in three flashy hues. The Xeta is touted be
among the first few small cars to sport beige interiors. Besides these compelling features, the
pricing is also attractive, at Rs 2.94 lakh

for the AC model. The Xeta range is priced between Rs 2.69 to Rs 3.65 lakh ex-showroom Delhi.
Customers may avail themselves of loans of up to 90 per cent from select financiers over a sevenyear period with EMIs as low as Rs 4,471.
We can have some inside view of this wonderful car:

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Design and engineering

The design of the Xeta is exactly the same as the Diesel version, no significant changes, except the
upholstery and the beige dashboard. Xeta carries with it all the virtues, like space and comfort.
Seats are reasonably good and the Air con is also quite good, but the spread of the vents could
really have been better.
There are a few things about Tata build quality that are quite frankly annoying. The door ajar
warning switch has been placed right next to the door hinge; this results in the cabin lamp switching
off, even when the door is in fact ajar! Tata has also used bolts to fit the wheels to the hubs, which
is unlike the Japanese who normally use studs and nuts. The result is that it is quite hard to replace a
flat tire. The Indica though, unlike its some of its Japanese competitors can easily accommodate 5
passengers with much space to spare, and the best part about the interiors of the Indica are its 2
front seats that provide excellent comfort and support. The rear seats though lacking in comfort
compared to the ones in the front has great legroom for its passengers. This can be a big boon on
long journeys helping reduce fatigue.
Engine and transmission
The entire design effort of this new car is concentrated on the engine alone, the engine although the
same block as the diesel, displaces 1405cc and has been detuned to now pump 70ps and 14kgm of
torque. The best part of this engine is not just that figure, it the way it's delivered. The Indica petrol
ceases to be a rampage, a fuel-guzzling monster; it is now able to pump loads of torque into those
front wheels. The Indica is now able to pull from as low as 800rpm.
The crux of the changes incorporated in the new Indica. The New Indica Xeta now sports a slightly
detuned 4-cylinder in line, 1405cc 32bit microprocessor controlled fuel injected petrol engine,
which is able to pump out 70ps at 4600rpm 14kgm at 2600rpm. Tata Now claims that this engine,
thanks to the torque it is able to generate will be able to churn out
efficiency of around 14kpl. Customers really impressed by the optimism, but when the car floored
the accelerator
Ride and Handling
The Indica Xeta is a big car, as far as dimensions go, compared to the puny Alto and bigger
compared to the Santro and Wagon R when it comes to weight almost 200kgs. So, the suspension

~ 30 ~

does belong to big car category. The tread of the tire is wider by 10mm to the Wagon R VXi and the
Santro by 10mm, this helps the car grip a bit better, and although we expected the slightly lower
profile to play truant when in came to absorbing bumps, the intrusive rear suspension really did
work out. The handling though is a bit of another story. The Indica being heavy does mean more
cornering forces, and the extra weight also means a wee bit of extra roll, but the wide stance of the
Xeta is able to cope with the cornering with aplomb. The steering though is just a bit heavy, which
although is very helpful at higher speeds can be a bit of a drawback around those city runs.
Verdict
The Xeta now competes with tried and tested Japanese cars like the Maruti's Wagon R, Zen and
Alto and the Korean Santro Xing. Compared to these cars, the XETA is able to provide far more
space; thanks to its handling, it is able to hold the road much better also absorbing the undulations
of road surface better the handling though seems a bit front heavy; the car, overall looks even
heavier. Tata build quality is yet to really make its impact on Japanese car fans, but the fact that this
1400cc 70ps engine with oodles of torque is able to churn out excellent fuel economy should.
Pros

Cons

Silent engine, comparatively more refined

Tires have a tendency to lock up

Truck loads of space

Gearbox, bit too numb

Excellent ride; especially at higher speeds

The boot could've been much bigger

beige interiors and seats

Engine is not rev-happy

Excellent torque; especially low down

Engine doesn't feel like a 1.4

boot space quite good

Tata is still in its learning curve

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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.

~ 32 ~

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 Indias
largest automobile manufacturer by revenue .Tata Motors Limited is Indias largest
automobile company, with revenues of `1,23,133.30 crore in 201011. 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.
th
It is worlds 4 biggest truck producer, it is also worlds second biggest bus producer.

~ 33 ~

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 Koreas 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 Companys 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:
~ 34 ~

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 NANO caught fre

4. Limited consumer 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:
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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, ecofriendly engines. The bus has optional organic clutch with booster assist and better air intakes
that will reduce fuel consumption by up to 10%.

THREATS:
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

~ 36 ~

manufacturers obtain greater access to debt and equity financing in the international cpital
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.

STEEPLED analysis of TATA motors

STEEPLED is abbreviation for Social, Technological, Education, Ethnic, Political, Legal,
Economic and Demographic factors
STEEPLED analysis is a means of conducting a scan of an organisations external
environment, with particular reference to the future and any changes that may come about. The
purpose of STEEPLED is to identify factors that may impact on the services, customers (or Patients),
products, markets, staff, profitability, etc. of the organisation.

S O C I A L A N A LY S I S
Social factors include the cultural aspects and include health consciousness, population growth rate,
age distribution, career attitudes and emphasis on safety. Trends in social factors affect the
demand for a company's products and how that company operates. For example, an aging
population may imply a smaller and less-willing workforce (thus increasing the cost of
labour). Furthermore, companies may change various management strategies to adapt to these
social trends (such as recruiting older workers).
Undoubtedly, the beliefs, opinions, and general attitude of all the stakeholders in a company will
affect how well a company performs. 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.
For this reason, Tata Motors tends to use an integration and rarely separation technique with foreign
companies they acquire. On the other hand, some economic issues that Tata Motors face must also be
looked at from a more localized perspective.
1) For instance, the market in India for cars is much different than the market for cars in Italy. For
one, India has over one billion more people than Italy does, thus the market is much larger or not as
limited. Second, you must also take into effect the demographics and the average income of each
market. Italians have a higher average income per capita than Indians and Italian citizens tend to
drive larger and fancier cars. For this reason, the Tata Nano might not do so well in the Italian market.

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2) 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. In 2004, Tata Motors acquired Daewoo Commercial Vehicles Company, which was at the
time Koreas second largest truck maker. Rather than using de-culturation or assimilating
Daewoo, Tata took an integrated approach, and continued building and marketing Daewoos current
models as well as introducing a few new models globally just as it had been done under Korean
management.
3) With the new acquisition of Jaguar and Land Rover, Tata will have to be careful with how they
handle the acquisition. While Land Rover is thriving while under the helm of Ford, Jaguar was more
of the trouble child. 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. 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 marquees. Separation
could be a good approach for the immediate future to keep the name of Jaguar and Land Rover
distinguishable and associated with the luxury automobile market. Overall, Tata does a good job
of integrating some aspects of their large multi-national conglomerate into new acquisitions;
however, the company must also understand that separation from the name Tata can be valuable in
some social areas.
4) Safety has been a concern for Tata Motors and the Company is taking steps to reduce the injuries
and accidents. All Tata Motors manufacturing units, including the new manufacturing unit at
Uttarakhand are certified under Occupational Health and Safety Standards 18801 (OHSAS 18001,
2007 version). OHSAS 18001 is an Occupation Health and Safety Assessment Series for health and
safety management systems. It is intended to help an organization to control occupational health and
safety risks. It was developed by the Government of India in response to widespread demand for a
recognized standard against which to be certified and assessed.
In addition, Tata Motors manufacturing unit at Pune has been certified Social Accountability 8000
compliant. Clause No. 3 of the SA 8000 pertains to occupational health and safety. A Zero Accident
Plan was launched in 2007-08, wherein area ownership was developed by teams comprising of
management and supervisory grade workers called Bay Owners. The Bay Owners met twice a week
and conducted cross audits and organised awareness building programmes.

TECHNICAL ANALYSIS:
Tata Motors and its parent company, the Tata Group, are ahead of the game in the technology
field. The Tata Group as a whole has over 20 publicly listed enterprises and operates in more
than 80 countries world-wide. This equates to Tata Motors having lots of experience and resources
to draw from for research and development purposes. Ratan Tata says that The foundation of the
companys 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.
Employing 1,400 scientists and engineers, Tata Motors Research and Development team is ahead of
the pack in Indias market and right with the rest of the field internationally. Among Tatas firsts
are the first indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle
and, in 1998, the Tata Indica, India's first fully indigenous passenger car, as well as the
increasingly famous Tata Nano, which is projected to be the worlds cheapest production car. In
the automotive industry, it is becoming increasingly crucial for manufacturers to stay on top of the

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technology curve with new problems always rising such as escalating gas prices and
pollution problems. Tata

~ 39 ~

recognizes this and dedicates lots of resources and time into research and development to be
even with or preferably ahead of other competitors, global trends, and changing economies. In
all, an automobile manufacturer must change, adapt, and evolve to stay competitive in the
automotive game, and this is exactly what Tata is doing with their rapid growth, and
extensive research and development.
Indias only certified crash test facility for cars and hemi anechoic chamber for testing of noise and
vibration is owned by Tata motors. Tata Motors European Technical Centre (TMETC) was set up in
2005, which is primarily involved in design engineering and development of products, supporting
Tata Motors skill sets. Approximately 2% of the annual profits of the company invested in research
and development. Tata established extensive prototype building and testing facilities in each plant. On
th

May 11 of every year, Technology Day organized across all Tata plant locations. Tata Motors has
the only world-class crash facility in Asia outside Korea and Japan. It has developed an AECU (Electronic Control Unit) and low-cost accessories that would effectively manage critical
engine and vehicle systems without calling for a full-fledged and expensive conventional ECU. The
company is striding towards new emission standards. It is planning to equip vehicles of the
future with technologies for improving communication, navigation and entertainment. One-CAT
[Compressed Air Technology] conceptual car with fibre glass is powered by air and it is emission
free, which is an example of Tatas technological research. Another example is Tata Nano,
which is a city car manufactured by Tata Motors. It was a result of aiming at Production of more
from less investment for more people. It is the smallest as well as lowest powered (624cc) cars
in the World; it was designed to be the cheapest car in India aimed mainly at the lowest price
segment in the Indian domestic market.Tata motors has strategic partnership with Motor
Development International (a French company designing compressed air car prototypes marketed
under the title "the Air car"), and Ford for performing research to develop new automotive
technologies. Furthermore, they will have to come up with hybrid and electric cars to compete with
the already strong competition of the market. There are already some big players, among them
Chevrolet, which will be releasing its Chevrolet Spark in the future, with hybrid and all-electric
models. Tata motors should give more importance to R&D in order to develop highly efficient
automotive technology at an optimal cost. The new product introduction [NPI] process followed by
Tata motors for developing a new product and releasing into market can be seen in the below figure.

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The pace of new product development has quickened through this organization wide structured New
Product Introduction (NPI) process. The process with its formal structure for introducing new
vehicles in the market brings in greater discipline in project execution. The NPI process helped
Tata Motors create a new segment by launching the Tata Ace, Indias first mini-truck.

ECONOMIC ANALYSIS:
Operating in numerous countries across the world, Tata Motors functions with a global economic
perspective while focusing on each individual market. Because Tata is in a rapid growth period,
expanding
or
forming
a
joint
venture
in
over
five
countries world-wide
since 2004, a global approach enables Tata Motors to adapt and learn from the many different regions
within the whole automotive industry. 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. For instance, if the price of the Aluminium
required to make engine blocks goes up in Kenya, Tata has the option to get the aluminium from other
suppliers in Europe or Asia who they would normally get from for production in Ukraine or Russia.

Tata Motors also has to pay close attention to shifts in currency rates throughout the world. Currency
fluctuations can equate to higher or lower demands for Tata vehicles which in turn affect profitability.
It can also mean a rise in costs or a drop in returns. But they also have to pay attention to not just the
domestic currency, the rupee, but also to the dollar, euro and pound, to just name a few. Attention to
currency is important because it influences where capital investment will develop and prosper.
In the case of Tata Motors, and the creation of the Nano and One CAT [Compressed Air technology]
from a line of service and military vehicles provide a variety of different ways for other companies as
well as other industries to capitalize on the success that Tata has realized. Tata Motors integrates the
management, programs, and knowledge of the businesses it buys out. Tata Motors places
heavy investment into research and development. Tata has succeeded in growing, profiting, and
reducing costs in developing markets for over half a century.
Over 6.5 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The
company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune
(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad
(Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint
venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata
cars and Fiat powertrains. The company's dealership, sales, services and spare parts network
comprises over 3,500 touch points; Tata Motors also distributes and markets Fiat branded cars in
India.
Tata Motors, the first company from India's engineering sector to be listed in the New York Stock
Exchange (September 2004), has also emerged as an international automobile company.
Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea,
Thailand, Spain and South Africa. Among them is Jaguar Land Rover, a business comprising the two
iconic British brands that was acquired in 2008. JLR supports two state of the art engineering and
design facilities and three manufacturing plants (Solihull, Castle Bromwich & Halewood) in the UK.

~ 41 ~

In 2004, Tata Motors acquired the Daewoo Commercial Vehicles Company, South Korea's second
largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched
several new products in the Korean market, while also exporting these products to several
international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are
from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed
Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009. Hispano's
presence is being expanded in other markets. In 2006, Tata Motors formed a joint venture with the
Brazil-based Marcopolo, a global leader in body-building for buses and coaches to manufacture
fully-built buses and coaches for India and select international markets. In 2006, Tata Motors
entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to
manufacture and market the company's pickup vehicles in Thailand. The new plant of Tata
Motors (Thailand) has begun production of the Xenon pickup truck, with the Xenon having been
launched in Thailand in 2008. Tata Motors (SA) (Proprietary) Ltd., Tata Motors' joint venture with
Tata Africa Holding (Pty) Ltd., has its assembly plant in South Africa at Rosslyn, north of Pretoria,
in the Gauteng province of South Africa. The plant can assemble, from semi knocked down (SKD)
kits, light, medium and heavy commercial vehicles ranging from 4 - 50 tons.
Tata Motors is also expanding its international footprint, established through exports since 1961. The
company's commercial and passenger vehicles are already being marketed in several countries all
over the world. It has franchisee/joint venture assembly operations in Bangladesh, Ukraine, and
Senegal.
Tata will have to adapt its strategy on the economic level, from the point of view of the consumers,
but also internally. They will have to deal with exchange rates, inflation, and GDP trends. For
example, with the recent economic crisis, there has been a significant decrease in car retail. When the
GDP is low and belts are being tightened, it is probably not be the best time to enter a new market.
However, since they have an important competitive advantage with its pricing strategy, it could help
them and could be the best choice for American consumers with lower budget. In the same trend, a
low GDP brings unemployment, thus Tata might want to set up a factory and employ former auto
workers who have been laid off. These auto workers have experience and are asking for more jobs in
their industry. This environment could create a win-win situation for both Tata and the workers. Tata
Motors, like its parent company Tata Group, has much knowledge and understanding in working in
developing markets and countries. Companies considering expanding into developing markets should
consider forming a joint venture or partnership with any of Tata Groups numerous industries. The
knowledge transfer can save time and money and further ensure a more successful expansion.

ENVIRONMENTAL ANALYS IS:

TATA motors tries to preserve the environment by different means. All TATA motors manufacturing
facilities (Pune, Jamshedpur, Lucknow and Uttarakhand) have been certified to the ISO: 14001
Environmental Management System (EMS) Standard. At Jamshedpur the Engineering, Health Care &
Civic Services to Tata Motors Township have also achieved certification to ISO: 14001.

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TATA motors have an environmental management system. The working of system is described
as follows:
How it operates (Methods/ Practices)
1. Assess the significant environmental aspects of products and activities as per established EMS
procedures All Process Owner s identify the significant environmental aspects of products and activities with
the help of ERC centrally & Environment Group at respective Works locations.
2. Define Operational Controls, Emergency Action Plans and set Objectives and Targets
Operational Control Procedures and Emergency Action Plans are established and deployed. Process
requirements are assessed in.
Inputs
National & International Legislation & protocols
Quality & Environmental Policy
Rules & Regulations
Plant level waste disposal guidelines.
ISO: 14001
New developments
Global developments such as Climate Change
Key Steps in -Environment Management
Assess the significant environmental aspects of products and activities
Set Control Processes and Objectives & Targets
Deploy the process and implement Action Plans to achieve Objectives & Tar gets including
Climate Change related issues
Review processes for improvements / and conduct internal / external audits
Review the process
Outputs
Improvements in environmental performance (e.g.: reduction in pollution, reduction in natural
resources consumption, elimination of hazardous material etc.)
Compliance to environmental requirements as per statutory norms
Reduce CO2 emissions / increased carbon offsets
Efficiency
Improvement over previous years environmental performance
Except the points mentioned above TATA motors works for environment protection in following
ways:
1) Recycling:
Re-cycling of material is best illustrated in the use scrap metal generated externally as well as
internally.
For the packing of parts which are transported from one TATA center to another, reusable metal
boxes are used.
Collapsible, custom-built polypropylene (PP) boxes are returned to the vendors after delivery.
2) Energy conservation:
Tata Motors considers energy conservation critical to the operation of its manufacturing units. Apart
from reducing operational costs, the energy saved amounts to environment protection by way of
avoiding pollution due to power generation processes. Energy conservation is driven throughout the
organization, by way of setting Division-wise targets and monitoring performance on everyday
basis for optimizing energy consumption.

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3) Participation in different committees working for improvement of environment:

Apart of the internal factors representatives of the Company are participating in many national
committees working for improvement of environment throughout the country like Air quality
monitoring, emission inventory and source apportionment studies for Indian cities constituted by
Central pollution control board, Delhi, Group on Technical evaluation of Automotive Research
Association of India reports on development of emission factors constituted by Central pollution
control board, Delhi etc.
4) Initiatives to use renewable energy sources and increase energy efficiency:
The demand for energy has grown along with rapid industrial growth. Studies have forecast a shortage
of fossil fuel worldwide leading to ultimate extinction, when natural deposits will be
completely depleted. Fossil fuel based conventional power generation is recognized as a major
contributor to environmental pollution and to the Greenhouse Effect. So, TATA motors are
trying to use the nonconventional energy resources for its work. The company has started using
wind power at the Pune center. It is to be further noted that Tata Motors is working with the
steering committee of National Hydrogen Energy Board, India, to find ways in which India may
harness hydrogen potential energy of future.
5) Recycling and reusing water:
Tata motors try to reuse and recycle the used water. Different techniques are used to remove
hazardous materials from water.
Paint sludge generated at Centralized Paint Shop is removed from the scrub water with a
Hydropac system for effective separation. The water is re-used in the paint booths along
with makeup water. This prevents the raw Paint Shop effluent from reaching the ETP directly.
Paint sludge is collected and sent to Industrial Incinerator.
Press Filter is provided for removal of sludge from phosphating bath.
Incinerator model LRD-250 of capacity 250 kg /hr has been installed to incinerate
hazardous waste without production of smoke or odour and to enable all hazards taken care
of properly and to provide a cleaner, safer and healthier environment.

6) In the form of NGOs:

The Ministry of Environment & Forest (MoEF), Government of India, has appointed Gram Vikas
Kendra, Jamshedpur (GVKJ) an NGO supported by Tata Motors, Jamshedpur, as the Regional
Resource Agency (RRA) for National Environmental Awareness Campaigns (NEAC) 2008 for
Jharkhand State for 15th consecutive year. GVKJ is working on different water harvesting projects,
tree plantation drive, and forest protection activities in Jharkhand.
Many others protections have been taken to reduce the emission of Greenhouse gases, ozone
depleting gases etc.
Total environmental expenditure in 2007-08 on various environment development initiatives at TATA
motors manufacturing units was Rs.169 million.

POLITICAL ANALYSIS
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. Laws
governing commerce, trade, growth, and investment are dependent on the local government as
well as how successful local markets and economies will be due to regional, national and local
influence
March 26, 2008, Tata Motors reached an agreement with Ford to purchase Jaguar and Land Rover

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In order to be capable of this acquisition, Tata Motors must have a full comprehension of the
governing bodies and laws regulating commerce in the home country, the United Kingdom, but also
in countries Jaguar and Land Rover operate in. In accordance, Tatas headquarters in Mumbai, India,
strictly controls and regulates operations in all dealerships and subsidiaries, in addition to knowing
and abiding by all labour laws in the multiple countries where they have manufacturing plants it has to
watch political change. This will be especially vital in the future as Tata Motors continues to
expand and grow into new markets. While currently about 18% of its revenues are from international
business, the company's objective is to expand its international business, both through organic and
inorganic growth routes (Tata.com). The foundation of the companys growth internationally is a
deep understand of economic stimulation, customer needs, and individual government regulations and
laws. Although it is the headquarters ultimate responsibility to make sure each individual office and
branch is operating and abiding by the local laws, it will become increasingly more important for that
duty to be taken care of at the regional or even local level.

LEGAL ANALYSIS
Since Tata Motors operates in multiple countries across Europe, Africa, Asia, the Middle East, and
Australia, it needs to pay close attention to the laws and regulations in all the countries it operates in
while also paying attention to regional governing bodies. Laws governing commerce, trade, growth,
and investment are dependent on the local government as well as how successful local markets and
economies will be due to regional, national and local influence.
On March 26, 2008, Tata Motors reached an agreement with Ford to purchase Jaguar and
Land Rover. In order to be capable of this acquisition, Tata Motors must have a full comprehension of
the governing bodies and laws regulating commerce in the home country, the United Kingdom, but
also in countries Jaguar and Land Rover operate in.
In accordance, Tatas headquarters in Mumbai, India, strictly controls and regulates
operations in all dealerships and subsidiaries, in addition to knowing and abiding by all labor laws in
the multiple countries where they have manufacturing plants it has to watch political change. This
will be especially vital in the future as Tata Motors continues to expand and grow into new markets.
Tata says, While currently about 18% of its revenues are from international business, the
company's objective is to expand its international business, both through organic and inorganic
growth routes. The foundation of the companys growth internationally is a deep
understand of economic stimulation, customer needs, and individual government regulations
and laws. Although it is the headquarters ultimate responsibility to make sure each individual
office and branch is operating and abiding by the local laws, it will become increasingly more
important for that duty to be taken care of at the regional or even local level.
Tata Motors had planned to build a plant at Singur in the West Bengal, where it wanted to make
Nano car. Early in the year 2011, the West Bengal government enacted the "Singur Land
Rehabilitation and Development Act, 2011," to return the acquired land to the original land owners..
Tata Motors opposed this act and had moved the Calcutta High Court challenging the constitutional
merits of the act as well as the land rehabilitation and development rules framed under the act.
Court has directed the government to compensate Tata Motors as per the provisions of the Land
Acquisition Act - 1894, and has asked the state machinery to ensure a smooth transfer of the land back
to farmers. However, following large-scale violent protests from local farmers against the plant,
Tata Motors scrapped this project in 2008 and later moved it to the western state of Gujarat. It took

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about 14 months to build a new factory in Sanand, Gujarat.

In America, there is not really any lobbying at the government level to do when entering the
market; however, they will have to get their cars approved by the governments agency in every
country they are going to enter. For example, the Tata Nano had to be modified in order to gain
access to the European Union. Standards in safety regulations and gas emissions are different in
every part of the world. Also, entry barriers and quotas might importunate them in their attempts to
reach the American consumers. They might have to pay more, thus increase their cars retail price.
For a company that is trying to be among the cheapest cars, it might be hard to keep their competitive
advantage.

ETHICAL ANALYSIS
Business ethics maintains a moral course in turbulent times, cultivates strong team work and
productivity, support employee growth as an individual, helps to ensure that policies are
legal, and helps in detection of issues and violations along with quality management and
strategic planning.
Corporate governance establishes policies and does continuous monitoring of their proper
implementation, by members of governing bodies of the organization.
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. Tata
Groups corporate governance is founded upon a rich legacy of fair, ethical, and transparent
governance practices. One of the more important parts of this is the transparency of the
company people have a right to know what the company is doing not only to ensure ethical
practices, but for the insurance of their many shareholders whom have a right to know the
inner workings of the company.
Tata has created some models for employees to guide themselves through everyday
business practices to ensure that the corporate governance is continuously being upheld. The
Tata business excellence model is upheld by Tata quality management services. The two
main processes that the quality management services employees focus on are business
excellence and business ethics. These two objectives have helped build Tata into the strong,
dynamic company it is today. These models are entrenched in the companys ethical
standards and Tata feels strongly about enforcing both throughout the company. Tata
quality management services play the role of supporter and facilitator in the journey that Tata
enterprises undertake to reach the peaks of business eminence while, at the same time,
adhering to the highest ethical standards.
TATAS BUSINESS ETHICS PRINCIPLES:
1) NATIONAL Interest: Committed to benefit the economic development of the countries in
which it operates.
2) Financial reporting and records: prepare and maintain its accounts fairly and accurately and in
accordance with the accounting and financial of the country

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3) Competition: fully support the development and operation of competitive open markets.
4) Equal opportunities employer: provides equal opportunities to all its employees and qualified
applicants for employment.
5) Gifts and donations: Its employees neither receive nor offer or make, directly or indirectly,
any illegal payments, remuneration, gifts, donations or comparable benefits.
6) Govt. agencies: A TATA company and its employees shall not, unless mandated under
applicable laws, offer or give any company funds or property as donation to any government
agency or its representative.
7) Political non-alignment: Be committed to and support the constitution and governance
systems of the countries in which it operates.
8) Health, safety and environment: A TATA Company shall strive to provide a safe, healthy,
clean and ergonomic working environment for its people.
9) Quality of product and services: Be committed to supply goods and services of world class
quality standards, backed by after-sales services consistent with the requirement of customers.
10) Corporate citizenship: committed to good corporate citizenship, not only in the compliance of
all relevant laws and regulations but also by actively assisting in the improvement of quality
of life of the people in the communities in which it operates.
11) Cooperation of TATA companies: Cooperate with other TATA companies including
applicable joint ventures, by sharing knowledge and physical, human and management
resources.
12) Public representation of company and the group: Honour the information requirements of
public and its stake holders.
13) Third party representations: Parties which have business dealings with the TATA group but
are not members of the group, such as consultants, agents, sales representatives, distributers,
channel partners, contractors and suppliers, shall not be authorized to represent a TATA
company without written permission.
14) Use of TATA brand: The use of TATA name and trademark shall be governed by manuals,
codes and agreements issued by TATA sons.
15) Group policies: A TATA company shall be committed to enhancing shareholder values and
complying with all regulations and laws that govern shareholder rights.
16) Ethical conduct: Every employee of TATA Company shall preserve the human rights of every
individual and the community, and shall strive to honour commitments.
17) Regulatory compliance: Employees of TATA Company, in their business conduct, shall
comply with all applicable laws and regulations, in letter and spirit.
18) Concurrent employment: Consistent with applicable laws, an employee of TATA Company
shall not, without the requisite, officially written approval of the company, accept
employment or a position of responsibility with any other company.
19) Conflict of interest: Employees act in the interest of the company, and ensure that any
business or personal association which he/she may have does not involve a conflict of interest
with the operation of the company

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20) Security transactions and confidential information: An employee of a TATA Company

and his/her immediate family shall not derive ant benefit of counsel or assist others to
derive any benefit from access to and possession of information about the company.
21) Protecting company assets: The assets of TATA Company shall not be misused.
22) Citizenship: The involvement of A TATA employee in civic or public affairs shall be
with express approval from the chief executive of hoe/her company.
23) Integrity of data furnished: Every employee of a TATA Company shall ensure, at all
times, the integrity of data information furnished by him/her to the company.

DEMOGRAPHIC ANALYSIS
Demography is the study of the characteristics of human populations, such as size, growth,
density, and distribution. Demographic analysis provides insights into the links between these
characteristics and the cultural, economic, geographic, and other social attributes present in a given
area.

Demographic factors
Demographic factors affect lifestyle, consumer trends, the type of risk aversive behaviour,
spending power and value per customer. The state of demographic trends allows building
projections for the use of particular type of products. Demographic factors areAge: anybody of age between 18 to 50 years.
Income: anybody with an income of over 4 lakh
p.a.
Occupation: millennial employed as professional, managers and those who want to buy their first
car.
Social Class: Middle Class, Upper Middle, Lower Upper and Upper
Upper GENDER
Gender Type
Male

Frequen
cy
64

Female

36

Total

100

The above mentioned chart clearly shows that

out of 100 respondents 64 were males and 36 were
Females.

AGE DISTRIBUTION
Age
18-30 yrs.
30-50 yrs.
Above 50 yrs.
Total

No. of Respondents
64
32
4
100

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The above mentioned chart clearly shows that majority of the respondents lies between the
age Group of 18-50 yrs.

PROFESSION
Profession

No. of Respondents

10
Govt. Employee
44
Pvt. Sector Employee
31
Student
12
Businessman
3
Professional
0
Any other
100
Total
The above mentioned chart shows that data
was collected from respondents having varied
types of Occupations. The majority of the
respondents were
Pvt. Sector employee and students.

INCOME GROUP
Monthly Income

No. of Respondents

Rs.5000-Rs.10000
Rs.10000-Rs.15000
Rs.15000-Rs. 20000
Above Rs. 20000
Not Earning
Total

10
16
14
29
31
100

AWARENESS OF TATA NANO

Awareness

No. of Respondents

Aware

92

Unaware

Total

100

Other factors:
Acceptance level, preferences over other model, colour preferences, most inspired feature etc.

Conclusion
The SWOT and STEEPLED analysis of TATA motors was done and we concluded that Tata

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Motors is an overall strong company that has found strength and expansion through its parent
company, Tata Group, but also through its numerous acquisitions and mergers. Although
Tata Motors stock prices have fallen since the start of the 2008 year due to suggestions that
Tata Motors is overreaching by adding luxury brands to pair with the Nano, the world's
cheapest car. Chairman of Tata Group, Ratan Tata, rejects suggestions that, ``We're not trying
to be a global player,'' he told reporters in New Delhi Jan. 10 after unveiling the Nano, which
will be built in a new plant costing 10 billion rupees ($249 million). ``We will grow
internationally in select markets'' (Krishnamoorthy).

Bibliography:
1.
2.
3.
4.
5.

www.googledocs.com
www.scribd.com
TATA motors global sustainability report
www.wikipedia.org
www. marketingteacher.com

6.
7.

www.economist.com
www.businessgrowthconsultant.com

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