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A Research Paper

On

A CASE STUDY OF TATA MOTORS

By

Pratik Bhosale

Under Guidance Of

Dr. Robert Vega

For Course
Strategic Management

Submitted to

ABMTC

In partial fulfillment of the requirement for the award of the degree of

DOCTORATE OF BUSINESS ADMINISTRATION [D.B.A]

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Abstract

This report provides an in-depth study of the environment in which India-based


company Tata Motors competes along with effects of global economic slowdown and
its impact on the global automobile industry. A SWOT and PEST analysis was done
considering to understand the key aspects of the company.

Also in this report is discussed the issues with the highly popular deal between Tata
Motors and JLR and the failure of Tata Nano. Based on the analysis suggested
strategies which Tata can adopt in future to improve their current situation.

Along with the general strategies, a brief implementation plan is given to demonstrate
how to put these strategies into action.

Keywords: Tata Motors, automobile sector, strategic decision making, global


economy

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Table of Contents

1 Executive Summary............................................................................................. 4
2 Global Automotive Industry ................................................................................ 5
3 Indian Automotive Industry ................................................................................. 6
4 Tata Group Profile................................................................................................ 7
5 Tata Motors Profile .............................................................................................. 8
5.1 MISSION....................................................................................................... 8
5.2 VISION .......................................................................................................... 8
5.3 VALUES ........................................................................................................ 8
6 Analysis ................................................................................................................. 9
6.1 PEST Analysis ............................................................................................. 9
6.1.1 Political ............................................................................................................... 9
6.1.2 Economic .......................................................................................................... 10
6.1.3 Social ................................................................................................................ 10
6.1.4 Technology....................................................................................................... 11
6.2 SWOT Analysis.......................................................................................... 12
6.2.1 Strengths .......................................................................................................... 12
6.2.2 Weaknesses .................................................................................................... 12
6.2.3 Opportunities ................................................................................................... 13
6.2.4 Threats.............................................................................................................. 14
7 Recommendation ............................................................................................... 16
8 Reference ............................................................................................................ 17

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1 Executive Summary

In the current era of globalization and technological advancement it’s the need of
hour to be highly competitive and complex if you need to stay in the market. The
customer's needs, wants and expectations are changing at an exponential rate. For
surviving and thriving in this scenario companies need to develop effective brand
positioning strategies.

In the current global scenario of global automobile industry Tata struggled to cope up
with the advancements. While facing tough competition Tata needs to will need to
take preventive and preparatory action against these threats as well as expose and
capitalize on the different opportunities. The high barriers of entry results in a low
threat of entry for new competitors, but the access to affordable substitute goods
makes competing in the auto industry exceptionally difficult.

The failed launch of Tata Nano and the tough aftermaths of the TATA-JLR deal
needs to be rethought and the strategies needs to be re worked considering the
Indian economy as well the Indian consumer mind-set.

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2 Global Automotive Industry

Global sales of passenger cars are forecast to hit 78.6 million vehicles in 2017. Along
with China, the United States is counted among the largest automobile markets
worldwide, both in terms of production and sales. About 6.9 million passenger cars
were sold to U.S. customers in 2016, and around four million cars were produced
here in the same year. The United States became a key automotive market in the
early 1900s, when Ford introduced assembly line car production to mass-
manufacture its Model T. Today, the Ford Motor Company still ranks among the
leading manufacturers of passenger cars, its most popular passenger car model
currently being the Ford Focus, which was also one of 2016’s bestselling light
vehicles worldwide. In terms of revenue, Toyota, Volkswagen, and Daimler topped
the list of major automobile makers in 2016, while the automotive supplier industry
was dominated by Bosch, Continental, Denso and Magna.

Prompted by global initiatives, such as the Paris Agreement, several countries


around the globe are enacting stricter emissions controls on new vehicle models. As
such, automakers are beginning to expand their business into the electric mobility
sector. Germany is expected to lead the way with projected electric car production to
reach some 1.3 million units by 2021.

Over the next decade, Internet-connected car technologies and autonomous vehicles
are set to stir up yet another revolution in the automotive sector. In 2016, some 40
percent of U.S. respondents stated that they were willing to use fully autonomous
vehicles, presumably because they consider autonomous vehicles to be safer than
conventional cars. The global market for autonomous driving hardware components
is expected to grow from 400 million U.S. dollars in 2015 to 40 billion U.S. dollars in
2030. [1]

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3 Indian Automotive Industry

The Indian auto industry is one of the largest in the world. The industry accounts for
7.1 per cent of the country's Gross Domestic Product (GDP). The Two Wheelers
segment with 80 per cent market share is the leader of the Indian Automobile market
owing to a growing middle class and a young population. Moreover, the growing
interest of the companies in exploring the rural markets further aided the growth of
the sector. The overall Passenger Vehicle (PV) segment has 14 per cent market
share.

India is also a prominent auto exporter and has strong export growth expectations for
the near future. Overall automobile exports grew 15.81 per cent year-on-year
between April-February 2017-18. In addition, several initiatives by the Government of
India and the major automobile players in the Indian market are expected to make
India a leader in the 2W and Four Wheeler (4W) market in the world by 2020.

Market Size
Production of passenger vehicles, commercial vehicles, three wheelers and two
wheelers grew at 14.41 per cent year-on-year between April-February 2017-18 to
26,402,671 vehicles.

The auto industry is set to witness major changes in the form of electric vehicles
(EVs), shared mobility, Bharat Stage-VI emission and safety norms. Electric cars in
India are expected to get new green number plates and may also get free parking for
three years along with toll waivers@. India's electric vehicle (EV) sales increased to
25,000 units during FY 2016-17 and are poised to rise further on the back of cheaper
energy storage costs and the Government of India’s vision to see six million electric
and hybrid vehicles in India by 2020. [4]

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4 Tata Group Profile

Founded by Jamsetji Tata in 1868, the Tata group is a global enterprise,


headquartered in India, comprising over 100 independent operating companies. The
group operates in more than 100 countries across six continents, with a mission 'To
improve the quality of life of the communities we serve globally, through long-term
stakeholder value creation based on Leadership with Trust'.

Tata Sons is the principal investment holding company and promoter of Tata
companies. Sixty-six percent of the equity share capital of Tata Sons is held by
philanthropic trusts, which support education, health, livelihood generation and art
and culture. In 2016-17, the revenue of Tata companies, taken together, was
$100.39 billion. These companies collectively employ over 695,000 people.

Each Tata company or enterprise operates independently under the guidance and
supervision of its own board of directors and shareholders. There are 29 publicly-
listed Tata enterprises with a combined market capitalisation of about $130.13 billion
(as on March 31, 2017). Tata companies with significant scale include Tata Steel,
Tata Motors, Tata Consultancy Services, Tata Power, Tata Chemicals, Tata Global
Beverages, Tata Teleservices, Titan, Tata Communications and Indian Hotels.

Many Tata companies have achieved global leadership in their businesses. For
instance, Tata Communications is #1 international wholesale voice provider and Tata
Motors is among the top ten commercial vehicle manufacturers in the world. Tata
Steel is among the top fifteen best steelmakers and TCS is the second largest IT
services company in the world by market cap and profit. Tata Global Beverages is
the second-largest tea company in the world and Tata Chemicals is the world’s
second-largest manufacturer of soda ash. Employing a diverse workforce in their
operations, Tata companies have made significant local investments in different
geographies.

In tandem with the increasing international footprint of Tata companies, the Tata
brand is also gaining international recognition. Tata companies bring to their
customers worldwide a whole host of reputed brands which touch their lives every
day. Brand Finance, a UK-based consultancy firm, has valued Tata’s multi-brand
portfolio at over $23 billion in 2016.

With its pioneering and entrepreneurial spirit, the Tata group has spawned several
industries of national importance in India: steel, hydro-power, hospitality and airlines.
The same spirit, coupled with innovativeness, has been displayed by entities such as
TCS, India’s first software company, and Tata Motors, which made India’s first
indigenously developed car, the Tata Indica and the smart city car, the Tata Nano.
Pursuit of excellence has similarly been manifested in recent innovations like the
SilentTrack technology developed by Tata Steel Europe and the next-generation
Terrain Response, including infrared laser scanning to predict terrain, and Wade Aid
to predict water depth, by Jaguar Land Rover.

The Tata trusts, majority shareholders of Tata Sons, have endowed institutions for
science and technology, medical research, social studies and the performing arts.
The trusts also provide aid and assistance to non-government organisations working
in the areas of education, health care and livelihoods. Tata companies themselves
undertake a wide range of social welfare activities, especially at the locations of their
operations, as also deploy sustainable business practices.

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Going forward, Tata companies are building multinational businesses that seek to
differentiate themselves through customer-centricity, innovation, entrepreneurship,
trustworthiness and values-driven business operations, while balancing the interests
of diverse stakeholders including shareholders, employees and civil society. [2]

5 Tata Motors Profile

Tata Motors Group, a USD 42 billion organisation, is a leading automobile


manufacturer with a portfolio that includes a wide range of cars, sports vehicles,
trucks, buses and defence vehicles.
Their marque can be found on and off-road in over 175 countries around the globe.
Part of the USD100 billion Tata group founded by Jamsetji Tata in 1868, Tata Motors
is among the world’s leading manufacturers of automobiles. [3]

5.1 MISSION

Innovate mobility solutions with passion to enhance the quality of life

5.2 VISION

 Be Among the top three in global CV and domestic PV

 Achieving sustainable financial performance

 Delivering exciting innovations

5.3 VALUES

 Integrity

 Teamwork

 Accountability

 Customer focus

 Excellence

 Speed

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6 Analysis

The part of analysis includes the detailed analysis of the problems faced by the
automobile section of the Tata conglomerate. The main problems of Tata motors
includes in the expansion strategy along with the maintenance of operation of
different processes of business in the foreign countries. It is seen that Tata motors
faces huge cost in the manufacturing sites of different vehicles.[19]

The company is lacking in finding proper supplier list in the target country. The core
culture of Tata is focusing on the research and development department of its
various divisions of business. Tata motors also emphasize on the development of
new features on the vehicles manufactured by the company especially in the car
section. PEST analysis, SWOT analysis described in the analysis section of the
study.

6.1 PEST Analysis


6.1.1 Political

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 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. [18]

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 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. “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 company’s 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.

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6.1.2 Economic

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 aluminum
required to make engine blocks goes up in Kenya, Tata has the option to get the
aluminum 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 return.
But they also have to pay attention to not just the domestic currency, the rupee, but
also to the dollar, euro, baht, won, and pound, to just name a few. Just because the
rupee is strong against the dollar does not mean it is strong against all the other
currencies. Attention to currency is important because it influences where capital
investment will develop and prosper.

6.1.3 Social

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. 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.

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 Korea’s second largest truck maker. Rather than using de-culturation or
assimilating Daewoo, Tata took an integrated approach, and continued building and
marketing Daewoo’s current models as well as introducing a few new models globally
just as it had been done under Korean management.

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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 marques.” (Economist).

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.

6.1.4 Technology

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. “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” (Tata). 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 (Tata).

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.

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6.2 SWOT Analysis

6.2.1 Strengths

Strengths of Tata Motors include its strong brand image. The main market of Tata
motors is its domestic market i.e. India. Customers of India along with other countries
such as United States have a good knowledge of the ethics and culture followed by
Tata motors in the company. Apart from that, the company’s strong focus in the
research and development department is considered as core strength. [20]

Tata Motors excels when it comes to innovation through intensive research and
development. Their ability to make the least expensive car on the market, the Nano
which will retail for $2,500, is far beyond what any other car dealership has created.
This innovation gives Tata Motors their main competitive advantage. Tata Motors
makes everything from tractor-trailers to the world’s least expensive car. This product
diversity grants them a competitive advantage over their competitors because they
can satisfy more markets and customer needs. Another strength that Tata Motors
possesses is high corporate responsibility. They donate a portion of their profits from
stock increases towards a specific charity. This highlights Tata Motors overall desire
for community improvement while also emphasizing Tata Motors’ high morals and
values which is something money cannot buy.

Tata Motors is also a very eco-friendly company. One of their goals is to produce an
emission friendly car, and in 2000 Tata Motors launched the first compressed natural
air bus. This air bus requires the owner to plug the car into a standard electric plug
for four hours to fill the air tanks. This brought the concept of an “air-car” to reality
and the name for this compressed natural air car is “OneCAT”. OneCAT has no gas
costs or fossil fuel emissions which makes it a very attractive car for the more mature
markets but also the upper classes in developing countries at this point. It is also a
great car to have in highly populated countries, such as China and India, because
pollution with its adverse effects is a very large concern. OneCAT also is more
efficient than any other present Hybrid car, so when inventors think they have the
best product out on the market, they actually do not. There will always be something
else to invent or improve on and Tata Motors is a prime example of that.

Tata Motors is unique in a way in which when it buys a company. Tata Motors keeps
the original management of that company intact. The company that Tata Motors
purchases will look exactly the same in terms of management and organizational
structure as if it was never purchased by Tata Motors.

6.2.2 Weaknesses

Apart from having much strength, there are many weaknesses that are prevalent in
Tata motors, Recruitment of desired candidates in the strategic department is absent
in the different branches of Tata motors. Formulating proper strategy related to
globalization and internalization is not done properly as there are no competent
managers that will take care of the international client relations of the company[21].
It also causes problems in the adoption of proper strategy of mergers and
acquisitions with other foreign countries.

There are strings attached with every new invention and improvement on products.
These strings are Tata Motors weaknesses and what other groups perceive as their
weaknesses. One weakness that Tata Motors faces is its inability to meet safety
standards. Although they have made the most inexpensive car out on the market, it

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has yet to pass all the safety standards which a legal factor is. Some consumers and
pessimists inquire as to how Tata Motors can make such a cheap car and
withstanding a car accident or not just falling apart after hitting something once.
Pessimistic people also want to believe that car manufactures are already doing
everything they can to keep costs low for the consumer, and if that is the case, then
putting the cheapest car out on the market automatically questions if it is safe to
drive.

Tata Motors only have been making passenger cars for the approximately last ten
years. This can be viewed as a weakness from a customer standpoint since a
decade does not seem like a lot to consumers and therefore they will think that Tata
Motors is inexperienced car manufacturing. Consumers will wonder how a car
manufacturer can be in the market for 10 years and produce the cheapest car out on
the market. How can Tata Motors manufacture such a cheap car that meets
emission and safety standards being so young? This causes consumers to be
skeptical.

Another weakness that Tata Motors faces is within its domestic market. Car sales in
India are less than 1 million annually. This draws a problem because Tata Motors
may not get the sales that the company hopes for and how can they sell cars to
people who are not buying cars?

The new and innovative OneCAT still has some rough spots that need to be worked
out and one of them is that it has pollutant emissions and greenhouse gas emissions
from the generation of electricity used to compress the air. So, although it is
marketed as being emission free, it technically is not, and this is another weakness.
Also, OneCAT only goes 62 miles per hour for 56 miles in an urban cycle. This is not
very far, and Tata Motors will have to improve on this weakness as well as the
emission weakness in order to draw more consumers to this new automobile.

6.2.3 Opportunities

Opportunities for Tata motors include immense opportunities in the foreign markets.
The automobile industry worldwide is very competitive in nature. There are many
countries where Tata has not entered their automobile business verticals. Tata has a
worldwide reputation and has different scopes related to the operational and
expansion strategies[22].

Tata Motors has already opened the doors for many new and innovative ideas, but
not only for their company, but their competitors as well which could turn into a
threat. One of the major opportunities that Tata Motor faces is that as of right now 90
percent of China and India’s adult population do not own cars, partly because cars
are costly and require more expenses after purchased. So, the market for a low-
priced car is huge which benefits Tata Motors perfectly since they produce the lowest
priced car on the market. This is a huge opportunity for Tata Motors because if they
can get their feet into that market of people that do not have cars because they
cannot afford them, then they will make large profits down the road. China’s total car
sales are estimated at over 8 million dollars annually and they were the world’s
second largest car market in 2006. China’s government forecasts that demand for
cars will top 20 million by 2020. With Tata Motors in the market with the cheapest
car, China’s demand for cars will probably increase even more significantly which will
in turn increase sales for Tata Motors.

Japan, North America, and Europe automobile sales went up over the years because
of demand for smaller cars increased. This demand for smaller cars is a great

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window of opportunity for Tata Motors because not only are their cars small, but they
are cheap and environmentally friendly as well. Once people in these countries get
Tata Motor automobiles then their automobile sales will continue to rise.

As of March 2008 Tata, Motors finalized a deal with Ford Motor Company to acquire
the British businesses, Jaguar Cars and Land Rover [18]. This is a huge opportunity
for Tata Motors since they will acquire the large knowledge base and technologies for
producing and marketing luxury vehicles. This acquisition helps them dive into the
more mature markets in Japan, Europe and the U.S. The knowledge transfer from
these two companies will greatly improve Tata Motors ability to continue to grow and
flourish in both developing and developed market segments.

6.2.4 Threats

Threats of Tata motors refers to the increasing competition in the global markets. In
Indian markets, many automobile companies are entering into the country for their
increased sales. Lack of integration between the international strategies with the
organizational goals is also considered as a threat to the organization.

The obvious threat to Tata Motors is intellectual property rights. Tata invented the
cheapest car on the market and every automobile manufacturer wants to know how
Tata did it. Headhunters are soon going to find out this valuable information and
make it available to their own company. This is a huge threat to Tata Motors
because at first, they had low competition, but once other car manufactures find out
how they invented such a low cost car, and then these companies too will jump on
board and design their own line of low cost automobiles. On one hand this can be a
threat, but on the other it may not affect Tata Motors at all because people will still
want to purchase their product since they were the pioneers of all the excitement.

Other companies are starting to compete for some of this market share. In fact, the
Pakistan’s Transmission Motor company has built a basic four-wheeler for only
$2,100. This car is considerably cheap, and the Pakistan Transmission Motor
company started exporting them to Sudan, Qatar, and Chile. This is going to be the
beginning of new emerging car manufactures that will be producing low priced cars.

Another obvious threat is that dealing with gas prices. Gas prices continue to rise,
and the Nano requires gas, but those who purchase the Nano probably do not have a
lot of money and so if gas prices keep jumping up then that market of consumers will
not be able to purchase the car. If OneCAT can be made as cheaply as the Nano,
then that will benefit the consumers even more because they will get a car that does
not run on gas and it will be cheap to purchase. On the other hand, gas company will
not want OneCAT to hit the market because there will be no profits to be made off
the vehicle. Gas companies have a lot of say over the automobile industry, so this
could be a big threat.

Another main concern that Tata Motors faces is that cheap cars in India will have an
adverse effect on pollution and global warming because most of the population will
be able to afford the cars. With more people driving cars there will be more
accidents and deaths, as well as higher fossil fuels leaked into the environment
causing even more pollution then there already is.

Tata Motors is family owned and this can potentially cause problems down the road
because some family members can become greedy and money hungry. Once they

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really start to rapidly grow then there may be family feuds and people not pulling their
part.

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7 Recommendation

The recruitment policies of the company must be changed or modified as per the
current trends of the market. Employees will shift to other companies if they found
competitive advantage in the required designation. However, Tata has many
advantages in the schemes of HR policies.

However, there are lack of people that are actually eligible in the designations that
are involved in the internalization. Organizational culture is not followed properly in
many verticals of Tata automobiles. The senior management should focus on this
issue particularly to cope up the gap created by the officials of the organization.

Tata motors have to formulate sustainable strategies related to the manufacturing


sites that are present in foreign location. It should also focus on formulating
strategies that controls the cost of production of the cars in the manufacturing sites of
the company. Research and development department should find some new features
and systems that attract the customers compared to other products of the market.

Focusing on higher price segment cars in developed countries of North American


and Europe will lead to profitability and increase in the market share. Selection of
proper entry mode while penetrating a new target market is essential for maintaining
market share in the global automobile market.

The above- recommended strategies are the best methods of solution provided to the
company. Recruitment of the deserving candidates by implementing improved
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methods is the best solution that can easily handle the organizational problems .
Employee benefits are also introduced for the new recruited employees to motivate
them in their field of work. Development of cars for the high- income segment in the
foreign countries is a good example of long-term strategy that will help in gaining a
significant market share in the global automobile market.

Innovation in the field of the research and development is an example of


development of new products in the market. Various policies of management should
be introduced in the organizational level and its impact on other operational process
of the company is essential for the long-term success. Short-term policies are
involved in the change of the environment and process of operations in the
manufacturing facilities of Tata motors at different foreign locations.

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8 Reference

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02
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