STRATEGIC MANAGEMENT Strategic management is the process of specifying an organization's objectives, developing policies and plans to achieve these

objectives, and allocating resources so as to implement the plans. It is the highest level of managerial activity. It is not a task, but a rather a set of managerial skills that ought to be exerted throughout the organization, in a wide array of functions. An organizations strategy must be appropriate for its resources, environmental circumstances, and core objectives. The process involves matching the company's strategic advantages to the business environment the organization faces. One objective of an overall corporate strategy is to put the organization into a position to carry out its mission effectively and efficiently. A good corporate strategy should integrate an organizations goals, policies, and tactics into a cohesive whole, and must be based on business realities. Business enterprises can fail despite 'excellent' strategy because the world changes in a way they failed to understand. Strategy must connect with vision, purpose and likely future trends.

Strategic management can be seen as a combination of strategy formulation and strategy implementation, but strategy must be closely aligned with purpose.

For strategic management to be a success, organizations must not fail to follow the plan. They should be guided by the set of objectives that they have formulated, envisioning a prosperous business. They should strive to understand customers more thoroughly. Overestimation of resource competence and under-estimation of time requirements should be avoided. Employee and senior management commitment should be obtained through keeping communication channels open and healthy. Most crucially, the management should acquire the ability to predict environmental reaction and manage change.

TATA MOTORS
INTRODUCTION Tata Motors, leader in commercial vehicles, is India's largest automobile company with revenue of USD 14 billion in 2008-09. Tata Motors, the first company from India's engineering sector to be listed in the New York Stock Exchange and has operations in the UK, South Korea, Thailand and Spain. Tata Motors started operations in 1945 and entered commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz that lasted till 1969. In more than six decades of its operations, it has grown both organically and inorganically. In 2004, Tata Motors bought Daewoos truck manufacturing unit in South Korea followed by the acquisition of the Hispano Carrocera in South Africa. In 2008, it acquired prestigious brands Jaguar and Land Rover from Ford Motor Company. This acquisition was important since before that Tata Motors was considered as a formidable global player at lower market segment only. SWOT ANALYSIS:

Strength:Strong domestic player, Good brand image,Steady revenue growth,Research and Developement activities

Weakness: Decline in vehicle sales, Limited market presence in India and Emerging countries, Employee productivity

SWOT
Opportunities:Product launches like Nano,Growing passanger car market in India,Acqisition of Jaguar & Land Rover Threat: Entry of foreign players and increased competition,Environment regulations

Enterprise Process Model (EPM) - Process Management at Tata Motors When Tata Motors made a huge loss of 500 cores in the year 2000-01, analysts had all but written off Tata Motors fortunes. But TML was determined to bounce back and hence started the process of serious introspection. Three key reasons were identified for the massive lossa) Lack of customer focus b) lack of process management c) lack of new products and variants. TML had decided the three elements in a systematic manner, the major emphasis being process management.

Operations & Production Management Vendor Management . The main objective was to serve form joint ventures with international auto

In the Year 1997, Tata Motors promoted a company called Tata Autocompsystems Limited (TACO) component manufacturers and streamlining the vendor management processes for the company. 1 Tata Motors sources from vendors who focus on their own R & D to reduce cost. Most of the vendors develop products with Tata Motors itself and quite a few were given designs by Tata

Motors. TML also helped the vendors find international partners to make products that would meet their requirements. Some of the vendors who supply to Tata Motors also did competitive buying of material from China and Thailand. Product development

New Product Development would involve idea generation, product screening, concept testing, Business and financial analysis, product development, test marketing and commercialization. An automobile product development cycle is said to be consisting of concept stage (where the car starts), Advance engineering (where the car takes shape), product engineering (where the details are filled in), production engineering (where the car is worked out) and the manufacturing stage (where all comes together)2. Tata Motors Engineering Research Centre in Jamshedpur focuses in upgrading the components and parts with evolution of technology and also is one of the best in determining the needs of a customer and developing a new product to cater to the needs. Tata Nano is one such product from the stable of Tata motors. Besides this centre the Research and development of Tata motors has become international with centres in Spain, UK and South Korea also. Cost Cutting Techniques

After a rough fiscal year in 2001, Tata Motors realized that the only way to survive this market was to cut down on costs. They started practicing an entirely new way of procuring their supplies and hence gave rise to a unique way of managing supplier relationship. The earlier traditional method that Tata Motors gave the technical specifications to the supplier and the supplier who was successful in acquiring the bid filled up the orders. However under the new system Tata Motors simply provided the output they expected, and allowed the suppliers to be as creative and innovative with their designs, materials, and prices. In other words Tata Motors would simply describe the goal that they wanted to achieve with certain part and the suppliers would supply the parts according their own convenience. For example instead of giving technical specifications for the wind shield of Tata Indica, it would just describe the goal of cleaning the windshield, and let the suppliers come up with ideas to meet those goals in the most cost effective manner, without

compromising on quality. This practice led to huge cost savings in raw materials and the Tatas could deliver the cheapest car of the world at just 2500$. By leveraging local design capabilities and avoiding the dependency on high end design systems, Tata Motors has been able to provide low cost solutions in a continuous and efficient manner. Also Tata Motors tried the innovative method of Zero Based Costing. For example initially TML paid for forged components

on a cost plus basis, in the new system it paid a price depending on the weight of the forgings. Quality Management

The shifting of focus on TQM (Total Quality Management) and Six Sigma principles by Tata Motors has been a gradual one since the year 2000. One quarter of the work force undergo training to maintain and create high quality products every year. The personnel are even sent to foreign manufacturers locations, whenever a new machine would be imported, to undergo training.

Sales & Marketing

Product and Brand Strategy

Tata Motors follows a sub brand strategy. Although there is no separate Brand for TATA motors as such but the TATA brand is used as a mother brand. All products of benefit from the association with the TATA brand, which in India stands for trust and reliability. TATA motors products can be categorised into four major categories: Passenger cars, Utility vehicles, trucks and commercial passenger carriers. The following table shows the different product lines of each category and the launch periods as well. Pricing

TATA motors have a pricing advantage due to its low cost leans manufacturing abilities. The inhouse steel company acts as a shock absorber against steel price fluctuations. The pricing methodology adopted is that of a perceived value pricing. It was demonstrated by the Rs 1 Lakh price of TATA Nano, where the cost of producing the car left a very small margin for TATA.

Distribution

TATA Motors has a large network of dealers and Stockyards, all across the globe and uses the DMS technology for efficient cooperation between these dealers. Its distribution network includes operations in India, Nepal, Bhutan, Ghana, Italy, Poland, South Africa, Spain, Sri Lanka and Turkey. The company's dealership, sales, services and spare parts network comprises over 3500 touch points. Apart from the wide distribution network Tata Motors also has Distributed manufacturing it has Assembly units at South Africa, Thailand, Bangladesh, Brazil apart from India.

Financial Strategy
Cost cutting and recovery strategies:

In 2001 Tata Motors decided on a recovery strategy that had three distinct phases, each of which was intended to last for around two yearssix years in all. Phase one was intended to stem the bleeding. Phase two was to be about consolidating our position in India, and phase three was to involve going outside India and expanding our operations internationally. phase two, the concentration was on improving product quality and upgrading product features so as to make the products more competitive. It also started work on new products that would be required by the market after three to five years and strengthened its position in the marketplace by setting up a new sales-planning process, tightening credit norms, improving the liquidity and profitability of the dealers, reorienting toward customer satisfaction, and extending the reach of its distribution network. For phase three, the concentration was on starting work on international markets by identifying key markets and segments and developing a comprehensive plan to improve its competitive position so as to get a respectable market share. It also started looking at opportunities for inorganic growth.

Information Technology Strategy

Enterprise Resource Planning

Prior to the SAP implementation TML has a host of legacy applications which had been developed and maintained over a period of time. Thus the underlying technologies and platforms were diverse along with diversity in functions and locations. This led to redundancy, inconsistency and inefficiency in data management. A unified real time database with an IT infrastructure that was integrated across the functions, locations and even businesses was the need of the hour, in order to cut costs and manufacturing cycle times and also serve the customers more efficiently. Customer Relationship Management

With increasing competition from both Indian and foreign automakers in a cyclical business environment, Tata Motors needed strategies to build competitive advantage through strong relations with customers and good customer service. Being a global player with a widely dispersed dealer network Tata Motors was in the need of a common system to link its company, dealers and customers. In 2005, Tata Motors took a decision to implement a robust CRM throughout the organization. Oracles Siebel Automotive CRM solution customized for the automotive industry was chosen as the CRM system for the organization.

CORPORATE SOCIAL RESPONSIBILITY

CSR activities of Tata Motors cover major areas like environment, energy and water conservation, health, education and livelihood. Cleaner Technology - Going Green: Tata Motors has been at the forefront of the Indian automobile industry's anti-pollution efforts by introducing cleaner engines. It is the first Indian Company to introduce vehicles with Euro norms well ahead of the mandated dates. Tata Motors' joint venture with Cummins Engine Company, USA, in 1992, was a pioneering effort to introduce emission control technology for India. Over the years, Tata Motors has also made investments in setting up of an advanced emission-testing laboratory.

With the intention of protecting the environment, Tata Motors has upgraded the performance of its entire range of four and six cylinder engines to meet international emission standards. These engines are used in Tata Motors buses in the Indian market, as well as in over 70 export markets. Tata Motors is constantly working towards developing alternative fuel engine technologies. It has manufactured CNG version of buses and followed it up with a CNG version of the Hybrid Bus, which is indeed a benchmark in terms of emission quality. Society First Driver Training Programme: Tata Motors leads a number of driver training programme across the nation with a view of ensuring safety of all its passengers. These programme have also been aimed to increase employment and hone the skills of the drivers. A trained driver always derives more from any vehicle leading to better fuel efficiency and lower emission levels. Mass Transportation: Tata Motors has always been a supporter of mass transportation by modes such as buses and trains, leading to considerably lower pollution levels and decongestion of Indian roads as compared to private modes of transportation. We have always supported advance mass transportation programme such as Bus Rapid Transit Systems and have worked on development of specific products that perfectly suit these applications. Safety : Tata Motors buses are equipped with numerous safety features to ensure that the passengers experience a secure journey. Especially, the School Buses from Tata Motors have a number of safety features like tooth guards, padded windows, and many more to ensure extra safety for the children. Many safety features in these buses are in addition to the ones mandated by the Government. Community Development: In addition to all above mentioned activities, Tata Motors takes initiatives to contribute to the society in other areas like health and education. Along with conducting training programme for drivers, Tata Motors also organizes health camps for them. Tata Motors goes a step further by reaching out to these drivers' families by educating their children.

DABUR INDIA LTD

Dabur India Limited is a leading Indian consumer goods company with interests in health care, Personal care and foods. Over more than 100 years we have been dedicated to providing nature-based solutions for a healthy and holistic lifestyle. Vision Dedicated to health and well being of every household.

Strategic Intent Of Dabur India Ltd Focus on growing our core brands across categories, reaching out to new geographies, within and outside India, and improve operational efficiencies by leveraging technology Be the preferred company to meet the health and personal grooming needs of our target consumers with safe, efficacious, natural solutions by synthesizing our deep knowledge of Ayurveda and herbs with modern science Provide our consumers with innovative products within easy reach Build a platform to enable Dabur to become a global Ayurvedic leader Be a professionally managed employer of choice, attracting, developing and retaining quality personnel Be responsible citizens with a commitment to environmental protection Provide superior returns, relative to our peer group, to our shareholders.

SWOT Analysis of Dabur India Ltd. STRENGTHS : One of the largest FMCG companies in India: Differentiated products:

 Wide distribution network: Brand strength: Extensive Supply Chain IT Initiatives R & D a key strength

WEAKNESS: Seasonal Demand Low Penetration High price Limited differentiation OPPORTUNITIES: Untapped Market Market Development Export opportunities. Innovation Increasing income level of the middle class Creating additional consumption pattern THREATS: Existing Competition New Entrants Threat from substitutes Porters five force model Analysis of Dabur India Ltd. Porter's five forces analysis is a framework for the industry analysis and business strategy development. It uses concepts developed in Industrial Organization (IO) economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one where the combination of forces acts to drive down overall profitability. 1) The threat of substitute products:

The existence of close substitute products increases the propensity of customers to switch to alternatives in response to price increases (high elasticity of demand). Buyer propensity to substitute Relative price performance of substitutes Buyer switching costs Perceived level of product differentiation In case of Dabur since it is in major areas of FMCG and health care products so it need not fear threat of substitute products in the recent future. But it has to constantly re invent its existing product lines in order to cope up with the innovations of its competitors.

2) The threat of the entry of new competitors: Profitable markets that yield high returns will draw firms. This results in many new entrants, which will effectively decrease profitability. Unless the entry of new firms can be blocked by incumbents, the profit rate will fall towards a competitive level (perfect competition).

of product differences

Dabur India is in business for more than 100 years. Dabur India Ltd. Made its beginnings with a small pharmacy, but has continued to learn and grow to a commanding status in the industry. The Company has gone a long way in popularising and making easily available a whole range of products based on the traditional science of Ayurveda. The various product lines into which Dabur India is operating are: Personal care through Ayurveda Launched Dabur Chyawanprash in tin pack Entered Oral Care & Digestives segment Care with fun Leadership in health care Real blitzkrieg Super specialty drugs 3) The intensity of competitive rivalry: For most industries, this is the major determinant of the competitiveness of the industry. Sometimes rivals compete aggressively and sometimes rivals compete in non-price dimensions such as innovation, marketing, etc. Number of competitors Rate of industry growth Intermittent industry overcapacity Diversity of competitors Informational complexity and asymmetry Fixed cost allocation per value added Level of advertising expense Economies of scale Sustainable competitive advantage through improvisation Key players and competitors of Dabur India currently are Hindustan Unilever Ltd., Tata Tea, Nestle India Ltd., Britannia Industries Ltd., Colgate Palmolive Ltd., Marico Ltd., Galaxo

Smithkline consumer, Cadbury India ltd., Reckitt Benckiser Ltd., Procter & Gamble. Since the industry is growing at a very rapid pace and so is the no. of players. So Dabur India has to constantly relook at its strategy in order to increase its global dominance.

4) The bargaining power of customers: Also described as the market of outputs. The ability of customers to put the firm under pressure and it also affects the customer's sensitivity to price changes. Buyer concentration to firm concentration ratio Degree of dependency upon existing channels of distribution Bargaining leverage, particularly in industries with high fixed costs Buyer volume Buyers Switching cost relative to firm switching costs Buyer information availability Availability of existing substitute products Buyer price sensitivity Differential advantage (uniqueness) of industry products RFM Analysis Bargaining powers of buyers have increased dramatically with the advent of Globalization. With increased presence of other players in the market as mentioned previously, suppliers have got wide range of choices. So Dabur India has to formulate strategy in such a manner to keep abreast with the increasing competition by improving the quality and reducing the prices over the period. 5) The bargaining power of suppliers: Also described as market of inputs. Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm. Suppliers may refuse to work with the firm, or e.g. charge excessively high prices for unique resources.

ion ratio

firms

FUTURE GLOBAL STRATEGY: Developing Market Expand business in South East Asia, Middle East and Africa. Similar consumer preferences and media spill over. Promote 100% subsidiaries / Joint ventures to overcome tariff barriers. Developed Market Target Indian diaspora in the first horizon. Large potential markets for herbal/Ayurvedic Offerings Set up distribution alliances for entering mainstream herbal segments.

RECOMMENDATIONS: Establishing care centre. Provide consumers with innovative products within easy reach. Reaching out to new geographies, within and outside India. Improve operational efficiencies by leveraging technology.

CORPORATE SOCIAL RESPONSIBILITY

Sustainable Development Society (SUNDESH) is sworn to the mission of ensuring overall

socio-economic development of the rural & urban poor on a sustainable basis, through different participatory and need-based initiatives. It aims to reach out to the weaker and more vulnerable sections -- such as women and children, illiterate and unemployed of the society. Today, SUNDESH operates in Ghaziabad and Gautam Budha Nagar district of Uttar Pradesh, and has -- more recently established presence in Rudrapur district of Uttrakhand. Over the years, it has contributed to many worthy causes, addressing childrens literacy, improving healthcare services, skill development, and environment, to name a few.

 Dabur Nepal Pvt. Ltd. is a joint venture company established in the year 1989 when probably
very few investors had their roots in Ayurveda. Thanks to the favourable climatic conditions here, Nepal has been a major source for the herbal plants which are extensively used in Tibetan, Chinese, Nepalese and Indian medicines. However, due to indiscriminate use, over exploitations, poor collection methods, early harvesting and lack of the post harvest technology, these natural reserves are depleting speedily. Whats worse, there are no systematic efforts to replenish these natural resources of medicinal plants in the Himalayan region.

Dabur Nepal has started the project on medicinal plants in Nepal to provide the modern
technology for cultivation of the required medicinal herbs of Himalayas to the farmers. The only eco-friendly project of CSR nature in Nepal, this initiative is fully integrated with the companys business vision.

A state-of-the-art Greenhouse facility has been set up at Banepa, which has the capability to produce 5-6 million saplings of medicinal plants per annum. All the required climatic parameters for uniform growth of saplings of the medicinal plants like temperature, humidity etc. are controlled by automatic computer systems. Besides helping preserve natural resources, this initiative has also gone a long way in generating employment and income for local people and improving the socio-economic conditions of local populace in the Himalayan Kingdom.