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Cover Page for Academic Tasks

Course Code: QTT509 Course Title: Statistical Analysis for Decision Making

Course Instructor: Dr. Mahesh Chandra Joshi

Academic Task No.: 01 Academic Task Title: Assignment

Date of Allotment: 15-01-2020 Date of submission: 25-01-2020

Student’s Roll no: B61, B62, B63 (Q1948) Student’s Reg. no: 11606755

Learning Outcomes: In this Assignment, we have leant the regression concepts on the data and how
to apply regression, correlation, in the data. How one variable is affected by independent variable.

Declaration:

I declare that this Assignment is my individual work. I have not copied it from any other student’s
work or from any other source except where due acknowledgement is made explicitly in the text,
nor has any part been written for me by any other person.

Student’s Signature: Prachya Sourav panda

Evaluators comments (For Instructor’s use only)

General Observations Suggestions for Improvement Best part of assignment

Evaluator‟s Signature and Date:

Marks Obtained: Max. Marks: …………………………

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Peer Rating

Name Roll Registration Peer Signature

no. No. Rating

Ajit Kumar B61 11606755 10

Singh

Mukarram B62 11607010 0

Hussain
Prachya B63 11607233 10
Sourav Panda
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Table of Content
Page Number
1. Introduction -------------------------------------------------------------------------- 1-3
1.1 Introduction -------------------------------------------------------------------- 1
1.2 Vision of the Company ------------------------------------------------------- 2
1.3 Mission of the Company ----------------------------------------------------- 2
1.4Value of the Company --------------------------------------------------------2
1.5 Product Range of the Company --------------------------------------------- 3
2. Corporate Governance of Tata Motors -------------------------------------------- 4
3. SWOT Analysis ---------------------------------------------------------------------- 5
4. Sales and Profit Analysis -----------------------------------------------------------7
5. Correlation---------------------------------------------------------------------------- 10
6. Regression ----------------------------------------------------------------------------10
7. Mean Deviation ---------------------------------------------------------------------- 11
8. Standard Deviation ------------------------------------------------------------------12
9. Recommendations -------------------------------------------------------------------14
10. Conclusion ------------------------------------------------------------------------- 14
11. References ------------------------------------------------------------------------- 15
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TATA MOTORS LTD.

Introduction
Tata Motors, is a company of Tata group which was founded in 1945.It was started as a locomotive
manufacturer. The Tata Group entered into the commercial vehicle market in 1954 with a 15 years
collaboration agreement Daimler Benz of Germany. Despite the success of the commercial
vehicles, Tata realized that the Tata motors had to diversify there company and they decide to
building a small car would be the most practical new venture. So, in 1998 it launched India’s first
fully indigenous passenger car TATA INDICA. It became hit in the Indian market.

Tata Motors is India’s largest automobile company with revenue of Rs. 24,000 crores in 2005-06
.It was the first Indian automobile company to list on the New York Stock Exchange. The company
caters to three main market segments globally: the passenger cars, utility vehicle and commercial
vehicle. A significant breakthrough for the company was to development and commercialization
of the truly Indian cars-Tat Indica 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.
Today, Tata Motors enjoys the position of being one of the India’s leading automobile
manufacturer with increasing presence in Europe, South East Asia, Africa and the Middle East
with 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.

In 1959, they set up their first and largest R&D center 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. 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.
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Tata Motors invests approximately up to 2 per cent of its annual turnover on research and
development, with an emphasis on new product / aggregates development and technology up
gradation. Its Engineering Research Centre in Pune employs over 1,400 scientists and engineers
and has India's only certified crash-test facility and hemi- anechoic chamber for testing of noise
and vibration. The company also draws on the resources of leading international design and styling
houses like the Institute of Development in Automotive Engineering, SPA, Italy, and Stile
Bertoni, Italy. The company has also been implementing several environmentally sensitive
technologies in manufacturing processes and uses some of the world's most advanced equipment
for emission checking and control.

VISION OF THE COMPANY

By FY 2023-24, we will become the most aspirational Indian auto brand, consistently winning by

 Delivering superior financial returns

 Driving sustainable mobility solution
 Exceeding customer expectation and
 Creating a highly engaged workforce

MISSION OF THE COMPANY

We innovate mobility solutions with passion to enhance the quality of life

VALUES OF THE COMPANY

 Integrity
 Accountability
 Excellence
 Teamwork
 Customer centricity
 Speed
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Product Range of Tata Motors

Commercial vehicles
 Tata Ace
 Tata Super Ace
 Tata TL/ Telco line /207 pick-up truck
 Tata 407 Ex and Ex2
 Tata 709 Ex
 Tata 807 (Steel cabin chassis, cowl chassis, medium bus chassis, steel cabin + steel
body chassis)
 Tata 809 Ex and Ex2
 Tata 1210 SE and SFC (Semi Forward)
 Tata 1210 LP (Long Plate)
 Tata 1109 (Intermediate truck/ LCV bus)
 Tata 1512c (medium bus chassis)
 Tata 1612c/1616c/1618c (heavy bus chassis)
 Tata 1618c (semilow-floor bus chassis) etc.

Military vehicles
 Tata LSV (Light Specialist Vehicle)
 Tata Mine Protected Vehicle (4×4)
 Tata 2 Stretcher Ambulance
 Tata 407 Troop Carrier
 Tata LPTA 713 TC (4x4)
 Tata LPT 709 E
 Tata SD 1015 TC (4x4)
 Tata LPTA 1615 TC (4x4)
 Tata LPTA 1621 TC (6x6)
 Tata LPTA 1615 TC (4x2)
 Tata LPTA 5252 TC (12x12)
 Tata Sumo 4x4
 Tata Xenon
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Corporate Governance of Tata Motors

FIG-1 –Corporate Governance Chart

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SWOT ANALYSIS

Strengths

1. Strong Domestic player (Indian market): Tata has a strong presence in India and is a key
manufacturer of commercial vehicles. It is a market share of ~64% which has almost remained
constant. Also, Tata Motors is India’s largest automobile manufacturer by revenue . It is the leader
in commercial vehicles in each segment, and among the top three in passenger vehicles in India
with products in the compact, midsize car and utility vehicle segments. Tata vehicles are sold
primarily in India, and over 4 million Tata vehicles have been produced domestically since the
first Tata vehicle was assembled in 1954.

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

3. Long list of portfolios: Its products include passenger cars, trucks, vans and coaches. It is
world’s 4th biggest truck producer, it is also world’s second biggest bus producer.

4. Global Presence: Tata Motors has been in the process of acquiring foreign brands to increase
its global presence. Through acquisition, Tata has operations in the UK, South Korea, Thailand
and Spain.

Weakness

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

2. Tata motors products are not considered as luxurious. The products are generally targeted for
economy class rather than for luxury. Hence, the company lacks a strong footprint in the sector of
luxury products.

3. Safety standards are not maintained/ often ignored. This has led to diminish of public image of
the TATA automobiles (e.g., Tata Nano).

4. Limited consumer base

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Opportunity
1. In the summer of 2008 Tata Motor's announced that it had successfully purchased the Land
Rover and Jaguar brands from Ford Motors for UK £2.3 million. Two of the World's luxury car
brand have been added to its portfolio of brands, and will undoubtedly off the company the chance
to market vehicles in the luxury segments.

2. 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.

3. Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004 for around
USD $16 million.

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. 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.

4. Low safety standards can hamper the public trusts it has already attained which may prove
fatal to its domestic market.
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SALES OF TATA MOTORS FOR LAST SIX YEARS:

Sales in cr.
80000
69202
70000
58689
60000
47383 49054
50000
37758 39531
40000

30000

20000

10000

0
2013 2014 2015 2016 2017 2018 2019 2020

Graph.1: Sales of company in Cr.

Here we see in this chart the sales volume is increasing regarding to year. In 2014 the total sales
were Rs. 37758 Cr. and by the end of March, 2019 it has been increased up to Rs. 69202 Cr.
This means the company turnover gets well.
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PROFIT OF TATA MOTORS FOR LAST SIX YEARS:

Profit in cr.
6000

5000
4738.95
4000

3000

2000 2020.6

1000
334.52
0 -62.3
2013 2014 2015 2016 2017 2018 2019 2020
-1000 -1034.85
-2000
-2429.6
-3000

Graph.2: Profit/Loss of company in Cr.

From the above graph we can conclude that profit of the company is unstable. In 2015, the
company achieved their highest profit of Rs.4738.95 Cr. then for consecutive 3 years the
company has bearded the loss. By the end of March, 2019 profit of the company is Rs. 2020.6
Cr.

Profit And Sales in cr.

80000
69202
70000
58689
60000
47383 49054
50000
37758 39531
40000

30000

20000

10000 4738.95
334.52 -62.3 2020.6
-2429.6 -1034.85
0
2013 2014 2015 2016 2017 2018 2019 2020
-10000

Sales in cr. Profit in cr.

Graph.3: Sales and Profit of Tata motors (in Cr.)

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SALES and PROFIT ANALYSIS OF TATA MOTORS:

YEAR SALES(X) in cr. PROFIT(Y) in cr.

2019 69202 2020.6
2018 58689 -1034.85
2017 49054 -2429.6
2016 47383 -62.3
2015 39531 4738.95
2014 37758 334.52
X= 301617 Y= 3567.32

AIRTHMATIC MEAN OF SALES AND PROFIT:

Sales: µ= X/n
= 301617/6
=50269.5
So, the average sales for last six years for tata motors is Rs. 50269.5 Cr

Profit: µ= Y/n

= 3567.32/6
= 594.55
So, the average profit for last six years for tata motors is RS. 594.55 Cr.

Median: The data contains total 6 observations i.e., n=6(even).

So, median= (49054+47383)/2
= 48218.5
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CORRELATION:
YEAR SALES(X) in PROFIT(Y) XY X2 Y2
Cr. in Cr.
2019 69202 2020.6 139829561.2 4.8E+09 4082824.36
2018 58689 -1034.85 -60734311.7 3.4E+09 1070914.523
2017 49054 -2429.6 -119181598 2.3E+09 5902956.16
2016 47383 -62.3 -2951960.9 2.2E+09 3881.29
2015 39531 4738.95 187335432.5 1.6E+09 22457647.1
2014 37758 334.52 12630806.16 1.4E+09 111903.6304
X= 301617 Y= 3567.32 XY= X2= Y2=
156927928.9 1.6E+10 33630127.07

r= 6(156927928.9)-(301617)(3567.32) / [6(1.6E+10)-(301617)2]  [6(33630127.07)-(3567.32)2]

r= -0.149653703

So, r = -0.14965, there exists degree of negative relationship between the sales (x)
and the profit (y)
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REGRESSION
Regression is a statistical measurement used in finance, investing, and other disciplines that
attempts to determine the strength of the relationship between one dependent variable (usually
denoted by Y) and a series of other changing variables (known as independent variables).

Regression Equation, y = a + bx

Regression= 0.777

The sign of a regression coefficient tells you whether there is a positive or negative correlation
between each independent variable the dependent variable. A positive coefficient indicates that
as the value of the independent variable increases, the mean of the dependent variable also tends
to increase.
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MEAN DEVIATION OF SALES:

Mean of sales, µx= 50269.5

X- µx |X- µx |
Sales in cr.(X)
18932.5 18932.5
69202
8419.5 8419.5
58689
-1215.5 1215.5
49054
-2886.5 2886.5
47383
-10738.5 10738.5
39531
-12511.5 12511.5
37758
|X- µx |= 54,704

Mean deviation= |X- µx |/n

= 54704/6

= 9117.33

So, the mean deviation of the total sales of the company is Rs. 9117.33 Cr.
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MEAN DEVIATION OF PROFIT:

Mean of sales, µy = 594.5533333

Y-µy |Y-µy |
Profit in cr.(Y)
1426.04666666667 1426.04666666667
2020.6
-1629.40333333333 1629.40333333333
-1034.85
-3024.15333333333 3024.15333333333
-2429.6
-656.853333333333 656.853333333333
-62.3
4144.39666666667 4144.39666666667
4738.95
-260.033333333333 260.033333333333
334.52
|Y- µy |= 11,140.84

Mean deviation= |Y- µy |/n

= 11140.84/6
= 1856.8

STANDARD DEVIATION OF SALES:

x X-µx ǀ X-µx ǀ (X-µx)2
358439556
69202 18932.5 18932.5
70887980.3
58689 8419.5 8419.5
1477440.25
49054 -1215.5 1215.5
8331882.25
47383 -2886.5 2886.5
115315382
39531 -10738.5 10738.5
156537632
37758 -12511.5 12511.5

S.D = (X-µx)2/n =10885.69301

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STANDARD DEVIATION OF PROFIT:

Y Y-µy ǀ Y-µy ǀ (Y-µy)2

2020.6 1426.04666666 1426.04666666 2033590.08
-1034.85 -1629.4033333 1629.40333333 2654944.36

-2429.6 -3024.1533333 3024.15333333 9145501.37

-62.3 -656.85333333 656.853333333 431451.923
4738.95 4144.3966667 4144.39666666 17175968.5

334.52 -260.033333333 260.033333333 67615.60

S.D = (Y-µy)2/n

= 2291.621154

In the sales case, the standard deviation is lesser than the mean. In the profit case, it is greater
than the mean. But ultimately, their relative size matters little - it's what they tell you about the
structure of the data, the way it is distributed, that is important.

A smaller standard deviation indicates that more of the data is clustered about the mean. A larger
one indicates the data are more spread out.
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Recommendations

 From the analysis of sales and profit of the company we have seen that the company’s mean
sales and mean profit are quite good. But the company should focus on its structure and profitability.

 We have observed that company was in loss for 3 consecutive years. So, it should try to increase the
efficiency to gain profit.

 The correlation between the sales and profit is weak negative correlation. A
negative correlation between two variables means that one variable increase whenever the other
decreases. Correlation should always be calculated. Business planners may look at existing
relationships between variables.

 Quality control department should remain prompt always. So that it can maintain a certain level of
standard as per the market demand to capture the foreign market share it should strive more.

Conclusion

The flourishment of any industry requires combined efforts and co-operation from several parties. Social,
political and macroeconomic environment play pivotal role in this regard. Tata Motors Ltd. is a large-scale
company in the respective sector, its growth and expansions are praiseworthy. It’s contributing the
country and serving the nation in different ways. If it can up hold it’s much toward advancement, it will be
able to set a role model in our country.
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References

1. http://www.capitalmarket.com/Company-Information/Financials/Profit-and-Loss/Tata-
Motors/560

2. https://www.tatamotors.com/about-us/company-profile/
3. Ezekiel, M. (1930). Methods of correlation analysis.
4. stattrek.com/multiple-regression/excel.aspx
5. https://economictimes.indiatimes.com/tata-motors-ltd/profitandlose/companyid-
12934.cms