S.R.

LUTHRA INSTITUTE OF MANAGEMENT

Strategic Management
Assignment [CEC Module V]
MBA
Sem-III/ Shift 2/ S1

Study the strategic perspective of Chanakya and Ratan Tata.

Compare and contrast.

Submitted to: Ms.Drashti shah

Submitted by:

Name

Enrollment No.

Rawal Ankit

158050592005

Bharodiya Ankita

158050592012

Boghara Hetal

158050592014

Dave Dhruvi

158050592018

Desai Shivani

158050592022

Gujarati Tejas

158050592033

1. INTRODUCTION ABOUT TATAS STRATEGIES

Ratan Tata has been credited with transforming the Tata group into a streamlined
conglomerate of more than 100 companies and earning a global reputation for his
consolidation and expansion strategies, Tata brought to bear on critical aspects of
business excellence such as leadership, strategic planning, customer focus,
measurement, analysis and knowledge management, workforce focus, process
management and business results.
(Tata Administrative Services) and other leadership initiatives, Ratan Tata was able
build a cadre of leaders who demonstrate the Tata values and contribute significantly to
the organization. A common leadership thread runs through and across different Tata
enterprises and there is a strong link to the group values and purpose. There is a
distinctive leadership profile and leadership development agenda at the top; a
leadership engine that takes care of early planning and picking the right people for the
future and training them to take on bigger responsibilities.
The value chain of Tata group is highly independent of companys resources; the value
Chain of Tatas is developed in a manner to produce the resources at the place of
Manufacturing. The groups cost leadership strategy in steel industry led the group to
Develop the city of Jamshedpur. The core strategies of the group are to acquire the
Resources and feed the other industries such as steel and automobile. However; having
an excellent business model, a good competitive advantage and an effective value
chain depends on the exploitation of resources and competence.
The group is acquiring the different strategy in the different market; such as; in the home
country Tatas strategies are same as to cost leadership and differentiations. Market
penetration strategies possess lowest risks associated with the implementation but
diversification possesses highest risks associated with the implementation. If we take a
closer look at the strategies of Ford Motor Company and Tata Motors and map with
Ansoff matrix, we can easily conclude that the Ford Motor Company is applying
strategies having lowest risk although they are paying highest price for the same

whereas Tata Motors is applying strategies with highest risks and hence is in a make or
break mode.
The current market downturn has definitely affected their revenues and the higher cost
of supply chain is hurting them. But with the relatively safer strategy of targeting new
markets for existing product lines has kept the interest of their investors alive
irrespective of their dismal financial performance. Moreover they have sold off the nonperforming assets like Jaguar and Land Rover companies to reduce the burden of
operating costs. It is due to their confidence on their low risk strategies that they have
refused to avail aid from government and are expecting to break even by 2011.

2. INTRODUCTION ABOUT CHANAKYA STRATEGIES

Vyavahaara Anuloma Dharma Business According to Principles. Chanakya clearly

constructed the strategy and system of Leadership, Management and wealth
generation on the basis of values and principles (Neethi).
Alabhdva Labhadadi Chatushtayam Raajya Tantram
The strategy of managing a kingdom or a company is to be based on four core
guidelines.
a) Protecting existing wealth
b) Enhancing existing wealth
c) Adding new wealth
d) Taking care of all stake holders.
. Teertham Pratipadyate
The Corporate Leadership is the source for continuous improvements Thus Chanakya
based his principles and practice on wealth generation, people and improvements.

Adoption Strategy
Learn from the mistakes of othersyou cant live long enough to make it all
yourselves!
There are others out there to make mistakes for you to learn from and learn from your
mistakes as well. For example wrong positioning as done by Nirma, by launching
beauty soap, was a lesson for many brands. So before implementing any marketing
strategy apart from market research, marketing manager must look into similar recent
attempts made by other companies and learn from their mistakes.

Business Ethics Practises

A person should not be too honest. Straight trees are cut first and honest people
are screwed first

We all know that brands going for honesty as there marketing strategy dont usually
succeed in whatever they plan to do, whereas not so honest brands always get there
work done, the way they want it. Fraud and dishonesty is not the right way to market a
product but complete honesty is also not advisable e.g. Famous Pan Masala brand,
while advertising dont really describe the contents of the product and its side-effects but
at the same time they cant be blamed for misleading people as they have a statutory
warning printed on the packets. So if a brand or company goes all honest and straight
forward about the ill-effects or the disadvantages of a product it might just lead the
customer even further away from the product rather than appreciating the honesty of the
marketer.

New entrance threat

Even if a snake is not poisonous, it should pretend to be venomous

A newcomer, a new entrant to the market is like a toothless snake at first. It has no
market share, no knowledge about the market and enough danger in form of
competition. In such a case, this toothless snake should act venomous even if not
poisonous lest it will be crushed to death by the competitors. It should try hard to build
the market share and brand name without seeming too desperate for it but at the same
time knowing its capabilities. Its marketing strategy should be differentiated and should
stand out if the product cant do so.

Core Competency
The biggest Guru-Mantra is: Never share your secrets with anybody. It will
destroy you!

The biggest threat to a business is posed by its competitors. Tough competition has
lead many companies to take serious actions to safeguard there interest in many forms.
Trademarks, Patents and copyrights are the results of these actions and are the perfect
example for the given Chanakya sutra. Monetising the innovations and new ideas today
is very much needed to survive. Save the secret of what different you have from others
and you will able to reap the benefit for a longer period.

Acquisition Strategy
As soon as the fear approaches near, attack it and destroy it

Fear for a company could be either losing market share or losing manpower. Both these
fears should be faced heads up. If company fears loss of market share to a competitor
due to some new market strategy adopted by him, in spite of waiting for the right time, it
should pounce upon it using a counter strategy to fail the initial effects of the
competitors efforts itself. Waiting has become a synonym for losing in the highly
competitive and demanding market these days.

3. Compare and contrast between strategies of Ratan tata and

Chanakya