CHIMC

(CH INSTITUTE OF MANAGEMENT AND COMMUNICATION)

Forwarding

PGDM
I have great pleasure in forwarding this project report of Rajkamal Paroha entitled competitive analysis of FROOTI and its competitor Managementretailers behavior Post Graduate Diploma in & analyzing the towards the company products which was carried out under my supervision and guidance for the partial fulfillment of his Post Graduation Diploma in management under CEREBRAL HEIGHTS INSTITUTE OF BUSINESS STUDIES .AICTE approved. He had carried out this work during the period of 05th may 2010 to 04th July 2010 at Parle agro Pvt Ltd Indore. he has learnt about various steps of Marketing along with its supply Term Paper chain management.

Batch-II

endeavors.

His conduct was good during stay with us.I wish all success in his future ON

Comparison of corporate strategy of Tata Motor Pvt. Ltd. and Nissan Motor India Pvt. . Ltd. Mr. Tapan Sarangi
Subject of Strategic Management
Business head M.P & C.G

Under the Guidance of Dr.Niranjan Shastri

Submitted to Prof.Niranjan Shastri

Submitted BySharad Pateriya Rajkamal Paroha Vijaypal Singh Rathore Vaibhaw Zelawat Mayank Dubey

DECLARATION

I hereby declare that the work entitled Comparison of marketing mix for coca cola & Pepsi co. in CHIMC submitted to Dr. Niranjan Shastri is a record of an original work done by us under the guidance of Dr. Niranjan Shastri Prof of Strategic management PGDM batch II Term IV in CHIMC college and this project work is submitted in the partial fulfilment of the requirement for award of post graduate diploma in management and communication. The results embodied in this project have not been submitted to any other institute for the award of any diploma.

Date - 22/12/2011

Sharad Pateriya Rajkamal Paroha Vijaypal Singh Rathore Vaibhav Zelawat Rajendra singh chouhan Mayank Dubey

Acknowledgement
I owe a great many thanks to a great many people who helped and supported me during the writing of this book. My deepest thanks to Lecturer Dr.Niranjan Shastri ,The Guide of the project, for guiding and correcting various documents of us with attention and care. He has taken pain to go through the project and make necessary correction as and when needed. I would also thank my Institution and my faculty members without whom this project would have been a distant reality.

CERTIFICATE

This is to certify that the project entitled Compariso of corporate stretagy of Tata Motor Pvt.Ltd. and Nissan Motor India Pvt.Ltd. has been carried out by Sharad Pateriya, Rajkamal Paroha,Vijaypal Singh Rathore, Vaibhav Zelawat, Rajendra singh chouhan, Mayank Dubey under my guidance in partial fulfilment of the Post graduate Diploma of management from CH Institute of Business Studies.

Date Place Indore

Signature & Seal

Prof. Niranjan Shastri Prof. of Strategic Management

Contents
Introduction............................................................................................................ 6 INTRODUCTION To TATA MOTOR PVT.LTD...............................................................7 Introduction of Nissan Motor India Pvt.Ltd.............................................................12 Corporate Strategy...............................................................................................16 CORPORATE STRATEGY OF TATA MOTORS............................................................17 Enterprise Process Model (EPM) - Process Management at Tata Motors ..............21 Strategic Benchmarking........................................................................................22 .............................................................................................................................24 Business Strategy ................................................................................................ 25 Operations & Production Management..................................................................25 ............................................................................................................................. 25 Financial Strategy of TATA MOTORS......................................................................31 Human Resource at Tata motors-..........................................................................34 Information Technology Strategy..........................................................................36 Corporate strategy................................................................................................38

Nissan Motors India Pvt.Ltd...................................................................................38

Introduction

INTRODUCTION To TATA MOTOR PVT.LTD.

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 Tata Motors Limited is Indias largest automobile company, with consolidated revenues of Rs.1,23,133 crores (USD 27 billion) in 2010-11. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The Company is the world's fourth largest truck manufacturer, and the world's third largest bus manufacturer. The Company's over 25,000 employees are guided by the vision to be "best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics." Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India. Over 5.9 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The Company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to
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produce both Fiat and Tata cars and Fiat powertrains. The Company's dealership, sales, services and spare parts network comprises over 3500 touch points; Tata Motors also distributes and markets Fiat branded cars in India.

The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009. Hispano's presence is being expanded in other markets. In 2006, Tata Motors formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the Company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck, with the Xenon having been launched in Thailand in 2008. 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 in Europe, Africa, the Middle East, South East Asia, South Asia and South America. It has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia, Senegal and South Africa. The foundation of the Company's growth over the last 50 years is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customerdesired offerings through leading edge R&D. With over 4,500 engineers and scientists, the Company's Engineering Research Centre, established in 1966, has enabled pioneering technologies and products. The Company today has R&D centres in Pune, Jamshedpur, Lucknow, Dharwad in India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed 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. Within two years of launch, Tata Indica became India's largest selling car in its segment. In 2005, Tata Motors created a new segment by launching the Tata Ace, India's first indigenously developed mini-truck. In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the world have been looking forward to. The Tata Nano has been subsequently launched, as planned, in India in March 2009. A development, which signifies a first for the global automobile industry, the Nano brings the comfort and safety of a car within the reach of
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thousands of families. The standard version has been priced at Rs.100,000 (excluding VAT and transportation cost). Designed with a family in mind, it has a roomy passenger compartment with generous leg space and head room. It can comfortably seat four persons. Its mono-volume design will set a new benchmark among small cars. Its safety performance exceeds regulatory requirements in India. Its tailpipe emission performance too exceeds regulatory.

In terms of overall pollutants, it has a lower pollution level than two-wheelers being manufactured in India today. The lean design strategy has helped minimise weight, which helps maximise performance per unit of energy consumed and delivers high fuel efficiency. The high fuel efficiency also ensures that the car has low carbon dioxide emissions, thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint. In May 2009, Tata Motors ushered in a new era in the Indian automobile industry, in keeping with its pioneering tradition, by unveiling its new range of world standard trucks called Prima. In their power, speed, carrying capacity, operating economy and trims, they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost. Tata Motors is equally focussed on environment-friendly technologies in emissions and alternative fuels. It has developed electric and hybrid vehicles both for personal and public transportation. It has also been implementing several environment-friendly technologies in manufacturing processes, significantly enhancing resource conservation. Through its subsidiaries, the Company is engaged in engineering and automotive solutions, construction equipment manufacturing, automotive vehicle components manufacturing and supply chain activities, machine tools and factory automation solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations. Tata Motors is committed to improving the quality of life of communities by working on four thrust areas employability, education, health and environment. The activities touch the lives of more than a million citizens. The Company's support on education and employability is focussed on youth and women. They range from schools to technical education institutes to actual facilitation of income generation. In health, our intervention is in both preventive and curative healthcare. The goal of environment protection is achieved through tree plantation, conserving water and creating new water bodies and, last but not the
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least, by introducing appropriate technologies in our vehicles and operations for constantly enhancing environment care. With the foundation of its rich heritage, Tata Motors today is etching a refulgent future..

Vision and Mission -

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11

Introduction of Nissan Motor India Pvt.Ltd.

Nissan Motor India Private Ltd. (NMIPL), a 100% subsidiary of Nissan Motor Limited Japan, was incorporated in 2005 with a vision of Enriching Peoples Lives through latest Nissan Technology and products. Chennai is a strategic hub for production, R&D and exports for Nissan. In February 2008, Nissan together with its global alliance partner Renault signed a MoU with Government of Tamil Nadu to set up a manufacturing plant at Oragadam, near Chennai with an investment of Rs. 4500 crores over a period of 7 years. On March 17, 2010, the Renault-Nissan alliance plant was inaugurated in a record time of 21 months since its groundbreaking ceremony in June 2008. The Plant has an initial capacity of 2,00,000 units per year and will reach 4,00,000 units per year in full capacity in the future. NMIPL existing range of products include the X-Trail (SUV model), the Teana (luxury Sedan) and 370Z (iconic sports car) all three imported from Japan as CBU (completely built units) and Nissan Micra. The launch of the first locally made global compact hatchback (Nissan Micra) in July 2010 marks the serious foray into the mass market by Nissan in India. NMIPL also commenced exports in September 2010 to more than 100 countries including Europe, Middle East and Africa. NMIPL has appointed Hover Automotive India (HAI) as their exclusive strategic alliance partner to handle sales and marketing, dealer development, customer relationship management and after sales in India. The company has 30 dealers operational in major cities across the country and aims to have more than 100 dealers by 2013. In line with its global philosophy of corporate sustainability, NMIPL has already begun its commitment to make a meaningful contribution to the community. The plant has already completed constructing 16 residential homes for relocated families from construction site, apart from constructing local Police Station and a fire service station in the Oragadam village. At the corporate level, NMIPL has also partnered with Habitat for Humanity for providing shelter to 75 families by constructing homes for the socially and economically less fortunate section of the society. "The power comes from inside." This simple phrase familiar to every Nissan employee conveys a powerful truth. Any company is only as strong as the people who bring it to life. Companies do not create products, deliver services or solve problems; people do. And the people who work at Nissan are facing major evolutions that are changing the global automotive industry as we know it today. One trend is the shift in demographics. The world's population is expanding at a rapid pace, from 6.7 billion today to more than 9 billion by 2050. More people will create the demand
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for more cars. Today, there are 600 million vehicles worldwide; by 2050, statistics show there may be up to 2.5 billion vehicles.

Where will the growth occur? Many vehicles will be sold to the rising middle classes all over the world, particularly in emerging markets. A car is an important symbol of freedom, status and personal achievement, and growing numbers of new drivers will seek affordable transportation and the benefits that car ownership provides. Another important trend is the growing demand for a cleaner environment. Automakers are accelerating the development of products to offer greater fuel efficiency and fewer CO2 emissions, from more efficient gasoline-fueled engines to hybrids, clean diesel, electric vehicles and fuel cell vehicles.

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Vision

Mission-

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Company Profile
Company Name President and Chief Executive Officer Registered Head Office NISSAN MOTOR CO., LTD. Carlos Ghosn 2, Takara-cho, Kanagawa-ku, Yokohama-shi, Kanagawa 220-8623, Japan

Headquarters

1-1, Takashima 1-chome, Nishi-ku, Yokohama-shi, Kanagawa 220-8686, Japan TEL. 81(0)45-523-5523

Business Outline Date of Establishment

Manufacturing, sales and related business of automotive products and marine equipment. December 26, 1933

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Paid-in Capital

605,813 million yen

Stock Information

Number of authorized shares:6,000,000,000 Common stock (issued and outstanding):4,520,715,112 Number of shareholders:267,600 28,403 (non-consolidated basis) 155,099 (consolidated basis)

Number of Employees

Corporate Strategy

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CORPORATE STRATEGY OF TATA MOTORS

The current corporate strategy of the Tata Motors can best be summarized as Disruptive Innovation, wherein it has offered lower priced products and surpassed the market expectations. Its two latest offerings have further strengthened the Tata Motors position as a leading player. While Ace has been a rage in the market, As per their mission statement to be most admirable multinational company they continuously makes innovation in their product and as per the need of targeted customer they designed their product as they design Tata Nano has taken the world with awe. Much of the practices of Tata Motors, including its customer focus, attributes to the learning and experience of over six decades. Tata Motors that started with a huge success and market demand faced its first product failure in the launch of 1516. 1. With the foreign players entering India, Tata motors that was primarily focusing on High weight commercial vehicles, included LCV in its offering and came up with Tata 407. Tata Motors in the meanwhile was also vying to develop end to end in-house technical competence and thus ventured into engine design by partnering with Cummins.

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2.Tata motors continuously faced the problem of overloading by the users and responded by introducing stronger machines. However, a major change came after a heavy loss of Rs 550 crore in 1999 where in it re-aligned its marketing team and became more sensitized to customer needs. The revival strategy of Tata motors had three phased business plan. Firstly, it focused on the cost reduction initiatives for immediate turnaround. Secondly, it focused on domestic and international growth through new products and improved sales and service. Finally, it linked long term growth with increased business in LCVs, new product segments and new geographies. The strategy and learning have gone a long way with Tata Motors earning net profit of more than Rs 1000 cr even in a lean FY 2008-09.

Corporate Governance
Tata Motors being part of the Tata conglomerate has its philosophy deeply linked to the core philosophy of the Tata group. It has fair, ethical and transparent governance practices along with highest standards of professionalism, honesty, integrity and ethical behaviour. The company gives maximum importance to the value creation and sustainability of all the other stakeholders viz. customers, creditors, employees, vendors, community and the Government. Tata Motors have implemented the Tata Business Excellence model which is a part of Tata code of conduct applicable to all subsidiaries of Tata group. The company operates with a strong social conscience and believe in bringing benefit to peoples lives. Tata Motors strictly follows The Whistle Blower Policy, an extension of the Tata Code of Conduct, which requires very employee to promptly report to the management any actual or possible violation of the Code or an event he becomes aware of that could affect the business or reputation of the Company. the Ethics and Compliance Committee who monitors the compliance of the Tata Code of Conduct for Prevention of Insider Trading by checking monthly reports on dealings in securities and also decides penal action, if
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necessary. This is more important since in Indian market Tata brand is synonymous with Trust. CSR activities of Tata Motors cover major areas like environment, energy and water conservation, health, education and livelihood.

SWOT Analysis

TATA-JLR
TATA Motors bought the iconic Jaguar and Land Rover operations from Ford for 1.15 billion pounds in Mar-Apr08. Tata gained the rights to the Daimler, Lanchester, and Rover brand names. In addition to the brands, Tata Motors also gained access to 2 design centers and 3 plants in UK. The key acquisition would be of the intellectual property rights related to the technologies. However there is a challenge related to the technology changes in the new entity and Fords technology will help in the short run and looking at the emerging emission standards hybrid and green technology will be the need of the hour.

BCG Matrix for Tata Motors SBUs

The Major SBUs of Tata Motors in which they have divided their business are: Commercial Vehicles (Light weight trucks to multi-axle 40 ton vehicles)
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Passenger Cars, economy and luxury (Indica, Nano, JLR) Utility vehicles, standard and premium (Sumo, Safari) Spare parts, components and accessories (HV Axles and transmission, High horse power engine via Tata Cummins) Financing for customers and channel partners (via Tata Motors Finance)

Corporate strategy, parenting and synergies

To buy premium vehicle brands such as Land Rover and Jaguar bolster Tata Motors image as a global company and increase its global reach and scale Overall, the Tata group has spent around $15.5 billion in acquiring foreign companies The Tata name is a unique asset representing leadership with trust
Leveraging this asset to enhance group synergy and becoming globally competitive.

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 synergy developed as a result of the strengths of domestic and foreign market share, congregating under the umbrella of Tata group
The Tata Group as a whole has over 20 publicly listed enterprises and operates in more

than 80 countries world-wide - lots of experience and resources to draw from for research and development purposes
Strong corporate governance based on rich legacy of fair, ethical, and transparent

governance practices to ensure that its employees act ethically and the business continues to run smoothly.

Corporate Advantages from Diversified Business

Corporate Ad antag fromD ersified v es iv B sines u s

Sharing of Activities/Resource
Tata Steel Tata Motor TCS Tata Cummins

Sharing of Skills/Core Competence

Tata Steel
Core Compet ence Tata C ummins

TAML

TACO
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Enterprise Process Model (EPM) - Process Management at Tata Motors

When Tata Motors made a huge loss of 500 crores 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.

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Tata Motors hence started to adopt the APQC 13 (American Productivity and Quality Center) processes and sub process and hence derive the Tata Business Excellence Model (TBEM, based on the Malcolm Baldrige National Quality Award Process), thus adopting a process oriented approach than merely people oriented approach. This practice minimized the influence of individual employees in running the operations. This also entailed the documentation of the processes, which brought about lot of clarity in terms of roles and responsibilities of process owners, inputs and outputs of the processes, in process and end process measures, entities involved and its linkage with the ISO and TS standard system. The Enterprise Process Model has been depicted in the figure below

Strategic Benchmarking

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23

Leveraging the resources

H ow did TATA create initial resource com plem ent to overcom e the disadvantage of being new com ers in passenger car business?
STRATEGY
R& D Strategic partnerships J oint ventures Acquisitions Intensive management development Government support (10Year Plan)
N ew institutions for trade prom otion, technology up gradation, quality enhancem ent ( :A ACM Autom otive ponent Com M anufacturers A ssociation , SIAMSociety of Indian : Autom obile M anufacturers )
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INSTITUTIONS

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Business Strategy
Operations & Production Management
Inbound Logistics

Procurement -

Vendor Management

In the Year 1997, Tata Motors promoted a company called Tata Autocompsystems Limited (TACO) . The main objective was to serve form joint ventures with international auto component manufacturers and streamlining the vendor management processes for the company.1 Tata Motors sources from vendors who focus on their own R &
1

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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.3

Manufacturing In an automotive industry, the main emphasis on quality would be on the manufacturing process. There would be about fifteen thousand accessories and component parts to assemble and activate while we manufacture a car. Tata motors believes in the indigenous development of manufacturing process and development of technology. Unless many automobile companies, the strategy of the firm is not to blindly adopt any new successful technology. It believes in state-of-the-art technology. With reference to the product market matrix (with product development, market development, market penetration and diversification) which composes the merging of production and marketing strategies Tata motors is seen to follow the diversification strategy wherein it produces new products and gets into new market to target with the product.

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.

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Cost Cutting TechniquesAfter 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.

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Operations

Outbound Logistics

Product and Brand StrategyTata 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. (Source: Company Website). TATA Motors Product Portfolio Product and Variant Launch years

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18 99 T T M b 2 63dL V A A o ile 0 r C 19 91 T T S ra A A ier TC rn A Ca e 19 92 T T Et t A A sae 19 96 Sm u o Sf r aai 19 98 In ic da 20 00 C G ue N Bs s In ic V ,In ic V P t o C G d a T T Sf r E d a 2 d a 2 er l, N In ic , A A aai x 20 03 T t 2 7D aa 0 I T t S m'+ eie aa u o ' Sr s 2 0 S F Rr n e 0 3 AA I a g T t In ig aa d o 1 5P Sf r ( X p t o 3 S aai E i) er l 20 04 N w d aV e In ic 2 T t L T9 9 X ub Tuk aa P 0 E T r o r c NVS OU 20 05 Ae c Sf r D o aai ic r In ic V T r oD s l d a 2 ub iee T t N v st uk aa o u r c T t T 4 4s ot uilit v h le aa L X - p r s t y e ic 20 06 In ic V Zt d a 2 ea T t A EinSi L n a aa C' r a k In ig a dIn ig M r ar n e d o n d o ain a g 20 07 Mg a ic W gr in e aaA E inN p l T t C ea 20 08 T T Nn AA a o In ic Zt L G d a ea P S p rM r n eo B s s u e ilo a g f ue 20 09 S m Ga d M II u o r ne K Pim Wr Tuk r a old r c In iG M na d o az Fe la d r2la nh dinIn ia r e ne uce d T t 4 7P k p aa 0 ic u T t S p rAe aa u e c T t AeE aa c X

The product strategy in TATA motors has been driven by two primary objectives Identifying the market need and creating new market segments. The success stories in the past two decades (Sumo, 207, Ace, Indica etc) have been able to fulfil these overall objectives. The strategy adopted behind these products also reflects the commitment of TATA Motors to customer needs and new product innovation. The
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company has also exported its vehicles after creating customised variants which have higher payload and engine capacity. It has also customised its domestic products by introducing passenger option, higher payloads, bigger engines etc.

In broad terms the following sums up the TATA motors marketing philosophy:

PricingTATA motors have a pricing advantage due to its low cost leans manufacturing abilities. The in-house 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. Promotion TATA Motors uses extensive promotion for its passenger car segment. The Utility vehicle and commercial passenger carrier follow this segment based on Share of Voice. DistributionTATA 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. The company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka).

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To augment the scarce resources, it has a joint venture with Fiat wherein Fiat sells its vehicles through Tata dealerships and in return Tata Motors has access to Fiats technology and unutilized capacity Over the years, one of the major success factors of Tata Motors is their supply chain excellence. To keep their distribution costs to the minimum they have outsourced the logistics and distribution part of their business to Tata Motors Ltd. Distribution Company (TDCL), a wholly owned subsidiary of Tata Motors Ltd. Through this arrangement, Tata Motors is able to reduce its logistical costs by at least 1% and to focus more on the core business. This in turn has provided flexibility to Tata Motors in terms of delivering the right product at the right time at the right place. Therefore, today, Tata Motors is a fully integrated automobile manufacturer with a portfolio which covers trucks, buses, utility vehicles & passenger vehicles/cars. The dealers and suppliers are bound by a Supplier Relationship Management Program and Dealer Management System. These programs are reviewed from time to time. The efficiency of transactions within the organization and also supplier coverage are given importance. Suppliers day, Vendors meets, Channel partner meets are organised wherein the Board members can interact with suppliers to share ideas and thoughts.

Financial Strategy of TATA MOTORS

Cost cutting and recovery strategies: The transformation of Tata Motors into a highly successful, well-diversified, and globally ambitious automobile giant represents one of Indias most remarkable corporate-success stories in recent times. In 2001 after a decade of strong revenue and margin growth, Tata Motors plunged into a financial crisis when demand for its trucks suddenly collapsed. The lost sales compounded by heavy investment for its entry into the passenger car business, the cost of complying with new emissions standards, and an increasing threat from overseas competitors caused Tata Motors to shock the markets with a 5 billion rupee ($110 million) loss for the fiscal year ending March 2001. Even in late 90s Tata Motors was predominantly a manufacturer of commercial vehicles, and that is a very cyclical business. At the time it was making huge investments in car manufacturing to move away from that cyclicality. But while it was in the middle of this diversification, the commercial-vehicle market in India shrank by more than 40 percent,
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with massive consequences for both the top and, more particularly, the bottom lines of the company. The 5 billion rupee loss in 2001 was the first time something on this scale had happened in the companys history which really shook everybody within the organization. So 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. The key objectives were to move to a system of market pricing and to reduce our breakeven point, both of which called for major reductions in costsvariable costs, fixed costs, and interest costs. It used many approaches to cost reduction, including bench-marking its rivals. For example, it took apart vehicles to see what they could do to modify their products and to lower costs. They went in for e-sourcing, which was then very new, but today it is the largest company doing e-sourcing in India and one of the leading ones in the automobile industry worldwide. In two and a half years, it reduced our break-even from nearly two-thirds of capacity utilization to around one-third, which meant that even if the market shrank by close to 60 percent, it would still be profitable. The whole organization really got together to ensure that the bleeding stopped. For 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.

Tata Motors Finance Ltd (TMFL)

The auto financing arm for Tata Motors was established in 1957 in the name of BHPC (bureau for Hire Purchase and Credit). TMFL came into existence in June 2003. This was a common front-end, jointly formed by BHPC (Bureau for Hire Purchase and Credit) of Tata Motors and the asset financing arm of erstwhile Tata Finance Ltd. It was in the market for exclusively financing Tata Motors vehicles. Subsequently Tata Finance was merged with Tata Motors and in April 2005 TMF became a division of Tata Motors. It is engaged

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in financing entire range of passenger cars & commercial vehicles manufactured by Tata Motors Ltd. TMF is the largest financier of vehicles manufactured by Tata Motors Ltd. With more than 2 million customers financed, TMF reaches out & helps customers to realize their dreams of owning a Tata vehicle easily.

Corporate Purpose TMF aspires to be a preferred financier by choice for Tata Motors customers & dealers across all its products. Tata Motor finance would be the top-of-the-mind choice for all stakeholders when it comes to Tata Motors products. With a core purpose to reach out & help customers realize the dream of owning a TATA vehicle easily, we are present across 150+ locations and at all Tata Motors Ltd authorized dealerships. Schemes designed to suit every customer requirement, flexible repayment options, hassle-free eligibility criteria, simple documentation and fast sanctioning process makes it the preferred choice of any customer desirous of owning a Tata Car or Commercial vehicle. Strategy defined TMF came into existence for the prime reason of easy financing the Tata Car or Commercial vehicles. Through these new initiatives, TMF aimed to reach small towns and villages, where they could find buyers for their products, such as the Ace and, going forward, for their small car. In the competitive world, there is an existing demand for cars, and along with it, it is important to make finance available to the potential buyers to help them buy the vehicles. With the low availability of conventional banking services in rural areas, it was necessary for them to offer finance to their buyers in such far-flung markets. Tata Motors has dealers in nearly every district in India. This helps them to build a good database of the financial credibility and worthiness of their customers across the country, which will be valuable information for the entire Tata Group.

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Human Resource at Tata motorsFew specific events related to downsizing at Tata Motors would help us describe the HR culture at the company. From 1970s to present Tata Motors share value has increased nearly 4000 pp, turnover has increased from about 1800Cr. to 75000 Cr. But manpower figures have not been following the same trend. From a figure of 11000 employees it rose to 35000, then came down to almost half (18000) and the number is again on rise.

For understanding the trend, we must become familiar with the factors affecting manpower. Some of these factors are listed below: Volume of business: a fast growing business like Tata Motors needed more hands to work on day by day Locational delinkage: Tata Motors started off a new unit at Pune Adopting new product or technology: advent of passenger cars and light commercial vehicles Shift in customer preferences: style and comfort became important like never before Starting support activities o o o o Finance: the need to provide finance to people to buy their vehicles, Tata Motors started off Tata Motors Finance Logistics: the Hub n Spoke model of the dealer network was introduced IT: need for information was growing day by day and it needed to be addressed soon Automation: automation in assembly was introduced

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This has provided us with a fair background of the changes in the company. Now let us try to understand the companys HR policies and culture against this backdrop.

Phase I: During 1970s, money and people were available in abundance with Tata Motors. It
cared for its employees like a father cares for his children. Todays buzz words like mentoring and coaching were actually practiced nearly three decades back in Tata Motors. Senior executives handheld new employees and helped them blend with the company. Colonies were made for the TELCO community, which provided residents, apart from basic amenities, with, facilities like security, health care, clubs etc. Tata Motors wanted its employees to have no reason to leave the organization before their retirement. Though it also set out some basic codes of conduct, to which, if one fails to conform, he would be asked to leave the Tata Motors family within a stipulated time period. These included refraining oneself from stealing (even stealing a pencil was an offence), and not indulging in an undesirable relationship between a man and a woman who lived in the colony. The sincerity of management at Tata Motors in implementing these two rules can be judged from the incident that when Daimlers Chief was found guilty of getting into an undesirable relationship he was given a return ticket to his homeland. Also employees were given loans without any interest rates being charged from them. With the advent of IT, IBM 1401 was introduced in the company. The machine required inputs through punch cards and hundreds of people were required to punch these cards. Tata Motors again found a chance to work for the society at large. It employed several widows to do the job in three different shifts and helped them earn bread and butter for their families. Also there was some reconditioning of motors and the winding department had work that could again be performed by women, so again it employed even more women for the job. By 1980s, too much automation had taken place, the wizards of the organization who earlier experienced a sense of vanity about their expertise of precisely identifying the problem areas in a machine or assembly line, felt useless. They were gradually becoming technologically obsolete. At that point Tata Motors offered them a scheme that if they do not wish to stay in the company they may leave but they would continue to get benefits of employment till 60 years of age. Company was in good shape at that time and was still trying to look after them as parents. The scheme received an overwhelming response and resulted in voluntary downsizing. We see here that though there was a downsizing still it was not cruel; employees werent chopped cruelly off the muster rolls of the company.

Phase II: This would show the survival mode adopted by the company. From the year 1995
onwards, company was compelled to share publicly the quarterly results for the benefit of the shareholders. Cost of employees had also risen from about 10% to nearly 30%. Also the company was facing stiff competition. This led to the development of the Tata Business Excellence Model. Every individual was put under a scanner. 360 degree appraisals, Balance Score Cards started 35

being implemented to assess employee performance. Big consultants like Mckinsey and the Tata group itself joined the scanning process. The company was bleeding, everyone was fearing that the company might close down completely. Finally it was decided that the bottom 10% would have to leave the organization. A hockey stick syndrome prevailed throughout the organization; within a very short period of time there was a tremendous morale crash. The company lost about 7000 employees over the years due to the process. It had to take corrective actions. As a result: Salaries of those who stayed were jacked up 4-6 times Huge induction from outside was done at every level Brilliant people were given promotional jumps, eg: Tata Nano chief

Phase III: Tata Motors started in Jamshedpur, operating in the product range of locomotives,
commercial vehicles, excavators. Then it started off a new unit at Pune that was majorly a centre for R&D along with production of commercial vehicles. It then had to open up a new plant in Lucknow without any agenda, just because of the pressure from the centre. It involved huge costs. The hierarchy had been becoming unwieldy. Company had to adopt a profit oriented face. It revisited following areas of improvements; Automation Development employed nearly 3000 employees, so many of them were not really needed and were a burden on the company Today finance is available in abundance, a captive finance company like Tata Motors Finance was not really needed The Hub n Spoke model required thousands of drivers, a number of logistics companies are available today and all this could be easily outsourced at a much lower cost

All these led to several of integrated organs like Tata Motors Finance, Tata Motors Automation Ltd., Tata Engineering & Constructions, Tata Motors Logistics etc. to be snapped out and become individual companies with independent GMs of whom Tata Motors would only be one of the clients.

Information Technology Strategy

Enterprise Resource PlanningPrior 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 36

even businesses was the need of the hour, in order to cut costs and manufacturing cycle times and also serve the customers more efficiently.

Why SAP?
SAP has a clear superiority in the market. It has a large presence and good support, so we chose the SAP ERP Solution for our company. The results have definitely exceeded our expectations, says Probir Mitra, CIO, Tata Motors. SAP was the business leader in ERP solutions space. SAP offered strategic fit to TMLs TO-BE stage process mapping. SAP was able to integrate various functions across geographies yet maintaining real time data updates. TMLs business processes were rationalized across all manufacturing units using the power of SAPs ERP infrastructure.

The existing environment prior to SAP implementation was Oracle database solutions, Unix as operating system and predominantly IBM for hardware support. The implementation of SAP ERP solution (Version 3.1H) started in about 1998 and was finished by 2000 for about 3500 users. Later in 2003 TML moved to version 4.6C on a single server platform.

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Corporate strategy
Nissan Motors India Pvt.Ltd.

Three Cornerstones of Nissan's Corporate Governance

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1. Compliance -

Compliance built on the high ethical standards of all employees is integral to promoting CSR. To foster compliance awareness throughout the company, Nissan has established specialized departments and placed officers in charge of promoting compliance policy in each region where it operates.

2. Risk Management -

At Nissan, we define risk as anything that might prevent us from achieving our business goals. By detecting risk as early as possible, examining it, planning the necessary measures to address it and implementing those measures, we work to minimize the materialization of risk and the impact of damage caused should it arise.

3. Information Security-

Nissan shares its Information Security Policy with group companies worldwide and implements necessary measures through the Information Security Committee, bolstering its capability to prevent information leaks and other such incidents. Furthermore, we carry out various in-house programs every year to thoroughly educate and motivate employees to uphold their responsibilities in this regard.

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Nissan's environmental philosophy, "a Symbiosis of People, Vehicle and Nature," expresses our ideal picture of a sustainable mobility society. To achieve this, we have defined three key issues to be tackled: reducing CO2 emissions, reducing other emissions (to protect the air, water and soil) and recycling resources. We are working toward the ultimate goal of keeping the environmental impact caused by our operations and Nissan vehicles throughout their life cycle to a level that can be absorbed naturally by the Earth.

Three Key Issues

1. Reducing CO2 Emissions

The automobile industry is entering an age when it must work not only to help reduce CO2 emissions, but also to reinvent its business structures to reduce reliance on fossil fuels. As a global automobile manufacturer, Nissan is working to reduce CO2 emissions at every stage of its vehicles' lives, from production to transport and operation, as well as to develop technologies for making use of renewable energy and to create related business models.

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Protecting the Air, Water and Soil Our lives depend on a balance within the ecosystem composed of air, water, soil and other living beings. At Nissan, we are working to reduce the environmental effects of our vehicles throughout their life cycles so that we may hand down a healthy global environment to future generations. We are making this approach a new part of our values as we continue to develop and champion environmentally friendly technologies.
2. Recycling Resources

Nissan manufactures and markets its vehicles all around the world, utilizing resources in a variety of forms. In line with our basic stance of treating resources as limited, and believing that they should be used as efficiently as possible, we are working to make effective use of resources at every stage of our vehicles' life cycles.

By achieving sustainable, profitable growth for itself, Nissan hopes to contribute to the economic development of society as a whole. Toward this end, we aim to maintain top-level performance in the global automotive market and to build a foundation for highly profitable
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business into the future. We also focus on speedily and accurately providing information on how we implement our strategies, vision and management plans to our shareholders, investors and other stakeholders. Two Pillars of Nissan's Economic Contribution

1. Creating Corporate Economic Value

In response to the global financial and economic crisis of recent years, Nissan has pursued a recovery plan built around revenue growth, tight cost management and the generation of free cash flow. Toward future growth, meanwhile, we have continued investing strategically in priority business areas and markets. We will keep on working to produce healthy profits and to enhance the value we create for society. 2. Speedy, Accurate Information Disclosure Nissan views its shareholders and investors as partners in the creation of a more sustainable society. To help them understand our business activities more accurately, we carry out IR activities rooted in the speedy, highly transparent disclosure of information on an ongoing basis. We will continue to enhance our communication efforts, allowing not just institutional investors but securities analysts and individual investors as well to make optimal investment decisions.

Nissan's Corporate Citizenship Activities

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