A report on TATA MOTORS LTD for Organisation Design

Prof Amit Gupta

Submitted By: Mukesh Sahu
NMP-22


1. Briefly describe the main business of your organization?

Main Business:
Tata Motors is India's largest automobile company, with consolidated revenues of Rs1,88,818 crore (USD
34.7 billion) in 2012-13. Through subsidiaries and associate companies, Tata Motors has operations in the
UK, South Korea, Thailand, Spain, South Africa and Indonesia. Among them is Jaguar Land Rover, the
business comprising the two iconic British brands. Following a strategic alliance with Fiat in 2005, it has set
up an industrial joint venture with Fiat Group Automobiles to produce both Fiat and Tata cars and Fiat
powertrains.

Tata Motors is the country's market leader in commercial vehicles and among the top three in passenger
vehicles. It is also the world's fifth-largest truck and fourth-largest bus manufacturer. Tata Motors
commercial and passenger vehicles are being marketed in several countries in Europe, Africa, the Middle
East, South Asia, South East Asia, South America, CIS and Russia. It has franchisee / joint venture assembly
operations in Bangladesh, Ukraine and Senegal.
The company, formerly known as Tata Engineering and Locomotive Company, began manufacturing
commercial vehicles in 1954 with a 15-year collaboration agreement with Daimler Benz of Germany. It has,
since, developed Tata Ace, India's first indigenous light commercial vehicle; the Prima range of trucks; the
Ultra range of international standard light commercial vehicles; Tata Safari, India's first sports utility vehicle;
Tata Indica, India's first indigenously manufactured passenger car; and the Nano, the world's most affordable
car.
Tata Motors has over 4,500 engineers, technicians and scientists at R&D centres in India, South Korea, Italy,
Spain and the UK.
Areas of business
Tata Motors makes passenger cars, multi-utility vehicles and light, medium and heavy commercial vehicles.
Passenger cars: The company launched the compact Tata Indica in 1998, the sedan Indigo in 2002
and the station wagon Indigo Marina in 2004.
Utility vehicles: The Tata Sumo was launched in 1994 and the Tata Safari in 1998.
Commercial vehicles: The commercial vehicle range extends from the light two-tonne truck to heavy
dumpers and multi-axled vehicles in the above 40-tonne segment.
Passenger buses: The company also manufactures and sells passenger buses, 12-seaters to 60-seaters,
in the light, medium and heavy segments.
Joint ventures, subsidiaries, associates
Tata Motors has a joint venture (JV, 51:49) with Marcopolo, the Brazil-based maker of bus and coach bodies.
Tata Motors (SA) (Proprietary) is Tata Motors' JV with Tata Africa Holding (Pty); the JV assembly plant at
Rosslyn, Pretoria, assembles light, medium and heavy commercial vehicles ranging from 4-50 tonnes from
semi knocked down kits.
Other associates include:
Tata Daewoo Commercial Vehicle Company, a 100-percent subsidiary of Tata Motors in the business
of heavy commercial vehicles (www.tata-daewoo.com).
Tata Motors European Technical Centre is a UK-based, 100-percent subsidiary engaged in design
engineering and development of products.
Telco Construction Equipment Company makes construction equipment and provides allied services.
Tata Motors has a 60 percent holding; the rest is held by Hitachi Construction Machinery Company,
Japan (www.telcon.co.in/).
Tata Technologies provides specialised engineering and design services, product lifecycle
management and product-centric information technology services (www.tatatechnologies.com/).
Tata Motors (Thailand) is a joint venture between Tata Motors (70 percent) and Thonburi
Automotive Assembly Plant Co (30 percent) to manufacture and market the companys pickup
vehicles in Thailand (www.tatamotors.co.th/).
Tata Cummins manufactures high horsepower engines used in the companys range of commercial
vehicles.
HV Transmissions and HV Axles are 100-percent subsidiaries that make gearboxes and axles for
heavy and medium commercial vehicles.
TAL Manufacturing Solutions is a 100-percent subsidiary that provides factory automation solutions
and designs and manufactures a wide range of machine tools (www.tal.co.in/).
Hispano Carrocera is a Spanish bus manufacturing company in which Tata Motors acquired a 100
percent stake in 2009 (www.hispano-net.com/).
Concorde Motors is a 100 percent subsidiary retailing Tata Motors range of passenger vehicles
(www.concordemotors.com/).
Tata Motors Finance is a 100 percent subsidiary in the business of financing customers and channel
partners of Tata Motors (www.tmf.co.in).

Location
Tata Motors' plants are located at Jamshedpur (eastern India), Pune and Sanand (west), Dharwad (south west)
and Lucknow and Pantnagar (north). Tata Motors and Fiat have set up a common manufacturing facility at
Ranjangaon, near Pune.


2. What are the most significant external challenges that your organization is facing?
i. Economic conditions

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.
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. 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
Group"s numerous industries. The knowledge transfer can save time and money and further ensure a more
successful expansion.

ii. Impact of Government on your industry.

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. 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 had 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, Tata"s
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.

3. Impact of Competition - existing and emergent competition on your organization.

Threat of New entrants
The threat of new entrants is very high for the small car industry. The growing economy and the increasing
buying power of the customers has made every automobile player to grab the opportunity in small car
segment. The norms for Foreign Investment and import of technology have been progressively liberalized
over the years for manufacture of vehicles including passenger cars in order to make this sector globally
competitive The industry had an investment of about Rs. 50,000 crore in 2002-03 which has gone up to Rs.
80,000 crore by the year 2007. The automotive industry has already attained a turnover of Rs. 1,65,000 crore
(34 billion USD). At present 100% Foreign Direct Investment (FDI) is permissible under automatic route in
this sector including passenger car segment. The import of technology/technological up gradation on the
royalty payment of 5% without any duration limit and lump sum payment of USD 2 million is allowed under
automatic route in this sector With all the policies regarding the FDI and Tariff barriers as mentioned above,
it has become easier for the foreign players to enter the Indian automobile industry. Result: Threat of new
entrants is HIGH, hence Industry attractiveness is LOW

Threat of substitutes
A products price elasticity is affected by the presence of substitutes as its demand is affected by the change
in the substitutes prices. The new technologies available also affect the demand of the product. Substitutes
for the Tata already existed in the market from players like Maruti, General Motors, Mitshibushi, Hyundai,
Honda, etc. Most of the car manufacturer has a product in this segment to defend their market share in terms
of volume.

Result: Threat of substitutes is HIGH, hence Industry attractiveness is LOW

4. Customers - existing and new, changes in their profiles and expectations.

For the produced which are adding values to the product the switching cost of company will have low
bargaining power because it will directly affect the customers. TML has to keep good relation with supplier
to enjoy the benefit of discounted prices so they have to keep long relation with supplier and they cant
change supplier time to time. In that case buyer will have high bargaining power.
When TML goes for backward integration in that case customers have the high bargaining power. E.g. Tata
steel which has its own steel plants and thus can face the problem of shortage of raw material. When the
customers power is strong, the buyer is the one who sets the price in the market. Here there are purchases of
large volumes. There is prevalence of alternative options It specifies the impact of customers on the product
Price sensitive customers were some of the factors that determine the extent of influence of the buyers in this
industry. The major focus of Indian Component suppliers is Quality as suggested by one of the Japanese
Quality focus firm. The Industry association ACMA reports that over 170 of its members have already
received ISO-9000 certification and 23 have received QS9000 certification.

5. Technol ogy - i mpact of emergent t echnol ogi es on t he organi zat i on.

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 company"s 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 India"s market and right with the rest of the field internationally. Among Tata"s 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 world"s cheapest production car. In the automotive industry, it is becoming increasingly
crucial for manufacturers to stay on top of the technology curve with new problems always rising such as
escalating gas prices and pollution problems. Tata 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.
India"s 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 May 11th 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 A-ECU (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 Tata"s 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.


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, India"s first mini-truck.

6. Potential pool of employees - changes in their skills, profiles and
expectations.

The Companys key strength is its people. The over 22,000 employees comprise a very broad talent base,
with the required skills in every aspect of the industry. With increasing international initiatives by the
company, this talent base is now getting enriched with the necessary competencies to respond to meet world-
class standards of quality and cost. The company will achieve this by developing and marketing relevant
products, on its existing platforms and new ones, which delight consumers in every market they are
introduced in.

7. Other most significant condition, if any.

Strong Domestic player (Indian market):
Tata has a strong presence in India and is a key manufacturer of commercial vehicles. It is a market share of
~64% which has almost remained constant. Also, Tata Motors is India"s largest automobile manufacturer by
revenue .Tata Motors Limited is India"s largest automobile company, with revenues of `1,23,133.30 crore in
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.


It is a demand driven, and customer-oriented, taking care of customers" preferences and taste. 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.
Global Presence
Tata Motors has been in the process of acquiring foreign brands to increase its global presence. Through
acquisition, Tata has operations in the UK, South Korea, Thailand and Spain. Among these acquisitions is
Jaguar Land Rover, a business comprising two struggling iconic British brands that was acquired from the
Ford Motor Company in 2008. In 2004, Tata acquired the Daewoo Commercial Vehicles Company, South
Korea"s second largest truck maker. Today two-thirds of heavy commercial vehicle exports out of South
Korea are from Tata Daewoo.
Tata Motors has expanded its production and assembly operations to several other countries including South
Korea, Thailand, South Africa and Argentina and is planning to set up plants in Turkey, Indonesia and
Eastern Europe.
Tata also has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia and
Senegal. Tata has dealerships in 26 countries across 4 continents. Dealership, Sales and Service Access: The
Company"s dealership, sales, services and spare parts network comprises over 3500 touch points.


3. What are the most significant internal challenges that your
organization is facing?

The current financial situation of its recently acquired firms like Corus and Land Rover-Jaguar is very
big headache for the company and it should be back to the track in the near future.

The high ratio of debt equity ratio is also weakness of the company.

The small car segment is still not good for the company due to Maruti-Suzuki so, it need to tap this
section also.

The CV segment is becoming highly competitive by new player like BharatBenz, Volvo, and rivals like
Ashok Leyland and M &M are coming with new products to cater the TATA in the market as the rural area
has given thumps up to M&M during this year.

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.

Despite buying the Jaguar and Land Rover brands (see opportunities below); Tat has not got a foothold in
the luxury car segment in its domestic, Indian market. Is the brand associated with commercial vehicles
and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more
aspiring India?

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? Maybe not, but they would buy into Fiat,
Jaguar and Land Rover.

1. Structure and processes - strengths and weaknesses of the existing structure and processes.

The organisation structure of TML is of Divisional type. A divisional organizational structure usually
consists of several parallel teams focusing on a single product or service line. Examples of a product line are
the various car brands under General Motors or Microsoft's software platforms. One example of a service
line is Bank of America's retail, commercial, investing and asset management arms.
Unlike departments, divisions are more autonomous, each with its own top executive--often a vice
president--and typically manage their own hiring, budgeting and advertising. Though small businesses rarely
use a divisional structure, it can work for such firms as advertising agencies which have dedicated staff and
budgets that focus on major clients or industries.
Strength
Divisions work well because they allow a team to focus upon a single product or service, with a leadership
structure that supports its major strategic objectives. Having its own president or vice president makes it
more likely the division will receive the resources it needs from the company. Also, a division's focus allows
it to build a common culture and esprit de corps that contributes both to higher morale and a better
knowledge of the division's portfolio. This is far preferable to having its product or service dispersed among
multiple departments through the organization.
Weakness
A divisional structure also has weaknesses. A company comprised of competing divisions may allow office
politics instead of sound strategic thinking to affect its view on such matters as allocation of company
resources. Thus, one division will sometimes act to undermine another. Also, divisions can bring
compartmentalization that can lead to incompatibilities. For example, Microsoft's business-software division
developed the Social Connector in Microsoft Office Outlook 2010. They were unable to integrate Microsoft
SharePoint and Windows Live until months after Social Connector could interface with MySpace and
LinkedIn. Some experts suggested that Microsoft's divisional structure contributed to a situation where its
own products were incompatible across internal business units.
2. Culture - strengths and weaknesses of the existing culture

Tatas follow a very strong culture giving much importance to ethics and moral values.Tata companies also
extend social welfare activities to communities around their industrial units. Very strong employee
relationships. CEO plays an important role in leading transformation at tata motors. The role of CEOs is
unique in that they stand at the top of the pyramid and all the other members of the organization take cues
from them. Principles, values, and beliefs that define what is right and wrong behaviour. Heres what we
used to believe at our company every employee of Tata motors shall exhibit culturally appropriate behaviour
in the countries they operate in, and deal on behalf of the company with professionalism, honesty and
integrity, while conforming to high moral and ethical standards. In Tata motors, we have a distinct culture
and wearing uniform is mandatory that create a sense of solidarity and unity. Eating at the same canteen
where all rungs dine with each other, there is a unsaid unity in disguise. Tata motors follows an espoused
value of SQDCM, this is Safety, Quality, Delivery, Cost, Morale. These values are inbuilt in Tata motors;
every person follows it by heart. When ever you meet some from the organisation, you will see the espoused
value at work.

3. Organizational capabilities for change and innovation - how do the existing systems and
processes in the organization facilitate or impede change and innovation.

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.

4. Inter-organizational relations (suppliers / distributors / outsourcing / other alliances)

Tata Marcopolo
Tata Marcopolo is a bus manufacturing joint venture between Tata Motors (51%) and the Brazil-based
Marcopolo S.A. (49%). The joint venture manufactures and assembles fully built buses and coaches targeted
at developing mass rapid transportation systems. It utilises technology and expertise in chassis and
aggregates from Tata Motors, and know-how in processes and systems for bodybuilding and bus body design
from Marcopolo. Tata Marcopolo has launched a low-floor city bus which is widely used by Chandigarh,
Kolkata, Chennai, Coimbatore, Delhi, Hyderabad, Mumbai, Lucknow, Pune, Agra, Kochi, Trivandrum and
Bengaluru transport corporations. Its manufacturing facility is based in Dharwad.

Fiat-Tata
Fiat-Tata is an India-based joint venture between Tata and Fiat which produces Fiat and Tata branded
passenger cars as well as engines and transmissions. Tata Motors has gained access to Fiats diesel engine
technology through the joint venture.
The two companies formerly also had a distribution joint venture through which Fiat products were sold in
India through joint Tata-Fiat dealerships. This distribution arrangement was ended in March 2013, since
when Fiats have been distributed in India by Fiat Automobiles India Limited, a wholly owned subsidiary of
Fiat.
Tata Hitachi Construction Machinery[edit]
Tata Hitachi Construction Machinery is a joint venture between Tata Motors and Hitachi which manufactures
excavators and other construction equipment. It was previously known as Telcon Construction Solutions.

5. HR issues like recruitment, performance assessment, rewards systems
and career and compensation management

The appraisal model which is followed on annual basis starting from the month of April till March has been
extremely effective for the employees of Tata Motors.
Half yearly appraisal system, was started a year ago. This activity was started keeping in mind the dynamic
behavior of the industry. With a half yearly appraisal system, the employee gets feedback twice a year, which
gives him/her a chance to re-look at his/her approach of working. Necessary steps are also undertaken for
employees who deviate from their goals. They have introduced a comprehensive system of quarterly
appraisals where an employee selects his/her own goals or Key Result Area (KRAs) every quarter and him/
her self assesses his/her own performance against these parameters. At Spice jet while formally the process is
annual, for several of the frontline employees, there are performance related quarterly payouts designed to
reward them with incentives for their performance. This has resulted in quarterly assessments which are
aligned overall to annual KRAs

Tata Motors have a midterm review for all those who have been performers, thereby creating an expectation
amongst the employees of an increase in salary twice a year if they perform well. They used to have annual
appraisals earlier, but then they felt that the incentives are not enough to motivation the sales department,
which generates major revenues or the organization. They do give monetary increments and designation
hikes, according to the performance. If the employee deserves both, they give him/her both the advantages
otherwise at least one of them. Designation hikes are given annually. These are proportional to effort of the
individual, team and the department. Designation changes are given keeping in mind the immense
responsibility one has to shoulder in a high rank. Monetary increments are primarily incentives that are given
either in cash or kind for example they give them travel package within India or outside. Also, they have an
accumulating incentive scheme in which employees can accumulate incentives and get them annually with
interest.
To meet the new demands of the business and to motivate the employees for higher performance, they have
started linking a part of the salary increase to individual performance measures as variable pay. At present,
between 6 to 8 percent of the compensation is variable pay, which they are planning to increase over a period
of time. Executives are categorized in levels based on their performances in a relative ranking and based on
outcome performance-linked pay is awarded..

6. Other most significant issues, if any.

4. What are some of the actions that your organization needs to take to
be able to deal with these external and internal challenges?

While the start of the new fiscal has continued from the moderate performance of last year, there is a
cautious optimism that FY 2013-14 would see the start of the revival in the global and domestic economies.
The Indian economy is also expected to look up marginally from growth in GDP of 5% in the last year.
Within the market however, there are certain segments which would react quicker to a revival in sentiment
than others. The M&HCV segment would recover later than others and is expected to see an upswing only
after a few more conscious monetary and fiscal policy moves from the Government and RBI, as well as
growth in infrastructure projects spending. While current account deficit and fiscal deficit will continue to be
priorities for the Government, striking a balance between controlling expenditure and encouraging growth
will be key for this year. On the background of pressure on volumes in India and limited headroom in pricing
due to the intensely competitive market dynamics, the focus will be on effective cost management- both
direct and indirect to maintain margins. Even in this challenging environment, as envisioned in its Mission
statement, the Company is looking to 'passionately anticipate' and provide vehicles and solutions that 'excite
customers globally'. The objective remains to be the 'most admired' Company by all stakeholders. One of the
key elements of this strategy would be to improve the relationship with the customer the experience the
customer has with the Company at each touch point from sale to service and replacement sales experiences.
This would include improving the physical look of the setup, setting up right processes and forums for
speedy resolution of customer issues. The Company will also actively pursue growth in the right
International markets and look to consolidate its position in markets where it is already present. While
Europe remains uncertain in the short term, JLR will continue to focus on growth from other markets, in
particular the emerging markets. With entry been established in China last year, growing and consolidating
presence in this market would be key to JLR's strategy for the coming year. Investment in new products and
technologies along with enhancing capacity as required in the right geographies would continue for both
Jaguar and Land Rover.

References:

1. www.tata.com
2. www.wikipedia.com
3. www.tatamotors.com