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International Business Management




By:
Lysandra D‘silva (1016015)
Kranthi (1016077)
Joel Pais (1016018)
                Aloysius Institute of Management and Information Technology
Tata Motors is India's largest automobile company, with consolidated revenues of Rs 92,519
crore ($20 billion) in 2009-10. Tata Motors Limited is an Indian multinational automotive
corporation headquartered in Mumbai, India. Part of the Tata Group, it was formerly known as
TELCO (TATA Engineering and Locomotive Company). Its products include passenger cars,
trucks, vans and coaches.

Through subsidiaries and associate companies, Tata Motors has operations in the UK, South
Korea, Thailand and Spain. Among them is Jaguar Land Rover, the business comprising the two
iconic British brands. It also has an industrial joint venture with Fiat in India. Tata Motors is
South Asia‘s largest automobile company; it is the leader in commercial vehicles and among the
top three in passenger vehicles. The company is the world's fourth largest truck manufacturer,
the world's second largest bus manufacturer, and employs 50,000 workers. Tata Motors has
produced and sold over 4 million vehicles in India since 1954.

Established in 1945, when the company began manufacturing locomotives, the company
manufactured its first commercial vehicle in 1954 in collaboration with Daimler-Benz AG,
which ended in 1969. Tata Motors is a dual-listed company traded on both the Bombay Stock
Exchange and New York Stock Exchange. In 2010, Tata Motors surpassed Reliance to win the
coveted title of 'India's most valuable brand' in an annual survey conducted by Brand Finance
and The Economic Times.

Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow,
Sanand, Dharwad and Pune, India, as well as in Argentina, South Africa, Thailand and the
United Kingdom.

Tata Motors is the country's market leader in commercial vehicles and among the top three in
passenger vehicles. It is also the world's fourth largest manufacturer of medium / heavy
commercial vehicles, and the second largest bus manufacturer. Tata cars, buses and trucks are
being marketed in several countries in Europe, Africa, the Middle East, South Asia, South East
Asia and South America.

The company, formerly known as Tata Engineering and Locomotive Company, began
manufacturing commercial vehicles in 1954 with a 15-year collaboration agreement with
Daimler Benz of Germany. It has, since, developed Tata Ace, India's first indigenous light
commercial vehicle, Tata Safari, India's first sports utility vehicle, Tata Indica, India's first
indigenously manufactured passenger car, and the Nano, the world's cheapest car.

Tata Motors has over 1,400 engineers and scientists in six R&D centers in India, South Korea,
Spain and the UK.




Areas of business

Tata Motors makes passenger cars, multi-utility vehicles and light, medium and heavy
commercial vehicles.

       Passenger cars: The company launched the compact Tata Indica in 1998, the sedan Indigo
       in 2002 and the station wagon Indigo Marina in 2004. Tata Motors also distributes Fiat‘s
       cars in India.
       Utility vehicles: The Tata Sumo was launched in 1994 and the Tata Safari in 1998.
       Commercial vehicles: The commercial vehicle range extends from the light two-tonne
       truck to heavy dumpers and multi-axled vehicles in the above 40-tonne segment.
       Passenger buses: The Company also manufactures and sells passenger buses, 12-seaters
       to 60-seaters, in the light, medium and heavy segments.




History

Tata Motors is a part of the Tata Group manages its share-holding through Tata Sons. The
company was established in 1950 as a locomotive manufacturing unit and later expanded its
operations to commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz
AG of Germany. Despite the success of its commercial vehicles, Tata realized his company had
to diversify and he began to look at other products. Based on consumer demand, he decided that
building a small car would be the most practical new venture. So in 1998 it launched Tata Indica,
India's first fully indigenous passenger car. Designed to be inexpensive and simple to build and
maintain, the Indica became a hit in the Indian market. It was also exported to Europe, especially
the UK. Tata acquired Spanish bus and coach manufacturer Hispano Carrocera in 2009. In 2006
it formed a joint venture with Marcopolo S.A. of Brazil, and introduced low-floor buses in the
Indian Market under the name Tata Marcopolo Bus. Recently, it has acquired British Jaguar
Land Rover (JLR), which includes the Daimler and Lanchester brand names.




Acquisitions

    In 2004 Tata Motors acquired Daewoo's truck manufacturing unit, now known as Tata
    Daewoo Commercial Vehicle, in South Korea.
    In 2005, Tata Motors acquired 21% of Aragonese Hispano Carrocera giving it controlling
    rights of the company.
    In 2007, formed a joint venture with Marcopolo of Brazil and introduced low-floor buses in
    the Indian Market.
    In 2008, Tata Motors acquired British Jaguar Land Rover (JLR), which includes the Daimler
    and Lanchester brand names.
    In 2010, Tata Motors acquired 80% stake in Italy-based design and engineering company
    Trilix for a consideration of €1.85 million. The acquisition is in line with the company‘s
    objective to enhance its styling/design capabilities to global standards.




Expansion

After years of dominating the commercial vehicle market in India, Tata Motors entered the
passenger vehicle market in 1991 by launching the Tata Sierra, a multi utility vehicle. After the
launch of three more vehicles, Tata Estate (1992, a station wagon design based on the earlier
'TataMobile' (1989), a light commercial vehicle), Tata Sumo (LCV, 1994) and Tata Safari (1998,
India's first sports utility vehicle). Tata launched the Indica in 1998, the first fully indigenous
passenger car of India. Though the car was initially panned by auto-analysts, the car's excellent
fuel economy, powerful engine and aggressive marketing strategy made it one of the best selling
cars in the history of the Indian automobile industry. A newer version of the car, named Indica
V2, was a major improvement over the previous version and quickly became a mass-favorite.
Tata Motors also successfully exported large quantities of the car to South Africa. The success of
Indica in many ways marked the rise of Tata Motors.




Products

Passenger cars and utility vehicles
    Tata Nano Europa                                     Tata Vista
    Tata Starbus Low Floor 1610                          Tata Indigo
    Tata Marcopolo buses in the Delhi                    Tata Manza
    BRT.                                                 Tata Indigo Marina
    Tata Aria                                            Tata Winger
    Tata Sierra (Discontinued)                           Tata Magic
    Tata Estate (Discontinued)                           Tata Nano
    Tata Sumo/Spacio                                     Tata Xenon XT
    Tata Sumo Grande                                     Tata Aria
    Tata Safari                                          Tata Venture
    Tata Indica                                          Tata Iris

Concept vehicles
    2000 Aria Roadster                                  2007 Tata Elegante
    2001 Aria Coupe                                     2009 Tata Pr1ma
    2002 Tata Indiva                                    2010 Tata Versa
    2004 Tata Indigo Advent                             2010 Tata Essota
    2005 Tata Xover                                     2011 Tata Pixel
    2006 Tata Cliffrider

Commercial vehicles
    Tata Ace                                            Tata TL/Telcoline/207 DI Pickup Truck
    Tata Super Ace                                      Tata 407 Ex and Ex2
Tata 709 Ex                                 Tata Divo (Fully built luxury coach)
   Tata 809 Ex and Ex2                         Tata CityRide (12 – 20 seater buses for
   Tata 909 Ex and Ex2                         intra-city use)
   Tata 1109 (Intermediate truck)              Tata 3015 (Heavy truck)
   Tata 1512 (Medium bus chassis)              Tata 3118 (Heavy truck) (8×2)
   Tata 1612/1616 (Heavy bus chassis)          Tata 3516 (Heavy truck)
   Tata 1618 (Semi Low Floor bus chassis)      Tata 4018 (Heavy truck)
   Tata 1623 (Rear Engined Low Floor bus       Tata 4923 (Ultra-Heavy truck) (6×4)
   chassis)                                    Tata Novus (Heavy truck designed by
   Tata 1518C (Medium truck)                   Tata Daewoo)
   Tata 1613/1615 (Medium truck)               Tata Prima (The World Truck designed
   Tata 2515/2516 (Medium truck)               by Tata Motors and Tata Daewoo)
   Tata Starbus (Branded Buses for city,
   inter city, school bus and standard
   passenger transportation)




Military vehicles
   Tata LSV (Light Specialist Vehicle)         Tata LPT 709 E
   Tata Mine Protected Vehicle (4×4)           Tata SD 1015 TC (4×4)
   Tata 2 Stretcher Ambulance                  Tata LPTA 1615 TC (4×4)
   Tata 407 Troop Carrier, available in        Tata LPTA 1621 TC (6×6)
   hard top, soft top, 4×4, and 4×2 versions   Tata LPTA 1615 TC (4×2)
   Tata LPTA 713 TC (4×4)                      Tata Winger Passenger Mini Bus
Tata Motors technology and design subsidiaries

Tata has dozens of technology and design subsidiaries. These include the main ones.

Telco Construction Equipment (TELCON)

TELCON is a joint venture between Tata Motors and Hitachi, which focuses on excavators and
other construction equipment. and research work are done.

HV Transmission (HVTL) and HV Axles (HVAL)

HVAL and HVTL are 85% subsidiary companies of Tata Motors engaged in the business of
manufacture of gear boxes and axles for heavy and medium commercial vehicles, with
production facilities and infrastructure based at Jamshedpur.

Tata Technologies Limited (TTL)

TTL provides Engineering and Design (E&D) solutions to the Automotive Industry. Tata Motors
holds 86.91% of TTL‘s share capital. TTL is based in Pune (Hinjawadi) and operates in the US
and Europe through its wholly owned subsidiaries in Detroit and London respectively. It also has
a presence in Thailand. Tata Technologies is a software service provider in the IT services and
BPO space. Its global client list includes Ford, General Motors, Toyota and Honda, to name a
few. It bought over the British engineering and design services company, Incat International Plc
for Rs.4 billion in August 2005. Incat specializes in engineering & design services and product
lifecycle management in the international automotive, aerospace and engineering markets. With
this acquisition, Tata Motors will have closer proximity to its global customers and be able to
provide a wider range of services.

Tata Motor European Technical Centre

Tata Motor European Technical Centre is Tata's subsidiary based in the UK. It was the joint
developer of the World Truck.
Operations

Tata in India

Tata Motors Limited is India‘s largest automobile company, with revenues of 35,651.48 crore
(US$7.23 billion) in 2007–08. It is the leader in commercial vehicles in each segment, and
among the top three in passenger vehicles in India with products in the compact, midsize car and
utility vehicle segments. Tata vehicles are sold primarily in India, and over 4 million Tata
vehicles have been produced domestically since the first Tata vehicle was assembled in 1954.
The company‘s manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune
(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka).
Following a strategic alliance with Fiat in 2005, Tata set up an industrial joint venture with Fiat
Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat
powertrains. The company is establishing a new plant at Sanand (Gujarat). Tata's dealership,
sales, service and spare parts network comprises over 3500 touch points. Tata Motors also
distributes and markets Fiat branded cars in India.

       Sales & Service Network

Tata Motors has more than 250 dealerships in more than 195 cities across 27 states and 4 Union
Territories of India. It has the 3rd largest Sales and Service Network after Maruti Suzuki and
Hyundai.




Tata's global operations

Tata Motors has been in the process of acquiring foreign brands to increase its global presence.
Through acquisition, Tata has operations in the UK, South Korea, Thailand and Spain. Among
these acquisitions is Jaguar Land Rover, a business comprising two struggling iconic British
brands that was acquired from the Ford Motor Company in 2008. In 2004, Tata acquired the
Daewoo Commercial Vehicles Company, South Korea‘s second largest truck maker. The re-
branded 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% controlling stake in Hispano Carrocera, a Spanish bus and
coach manufacturer. Tata Motors continued its market area expansion through the introduction
of new products such as buses (Starbus & Globus, jointly developed with subsidiary Hispano
Carrocera) and trucks (Novus, jointly developed with subsidiary Tata Daewoo). In May, 2009
Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo Debuting in
South Korea, South Africa, the SAARC countries and the Middle-East by the end of 2009. In
2006, Tata formed a joint venture with the Brazil-based Marcopolo to manufacture fully built
buses and coaches for India and other international markets. Tata Motors has expanded its
production and assembly operations to several other countries including South Korea, Thailand,
South Africa and Argentina and is planning to set up plants in Turkey, Indonesia and Eastern
Europe.

Tata also has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine,
Russia and Senegal. Tata has dealerships in 26 countries across 4 continents. Though Tata is
present in many countries it has only managed to create a large consumer base in the Indian
Subcontinent, namely India, Bangladesh, Bhutan, Sri Lanka and Nepal. Tata has a growing
consumer base in Italy, Spain and South Africa.




Business excellence

A key vector that has helped Tata companies grow and establish themselves on the global stage
as business leaders in their respective fields is the strong business excellence movement in the
group.

One of the initiatives in the business excellence movement is a framework known as the Tata
Business Excellence Model (TBEM), which has been adapted from the renowned Malcolm
Baldrige archetype. TBEM assesses core aspects of business operations: leadership, strategic
planning, customer focus, measurement, analysis and knowledge management, workforce focus,
process management and business results.

The model works under the aegis of Tata Quality Management Services (TQMS), an in-house
organisation mandated to help different Tata companies achieve their business excellence and
improvement goals.

In recent years, the TBEM framework has been adapted to include new business and societal
initiatives such as governance, safety, climate change and innovation.

The other core elements of the Tata business excellence movement are the Tata Code of Conduct
(TCoC), a mandatory pan-Tata policy that defines how Tata employees can conduct themselves,
and the Management of Business Ethics, a programme that helps Tata companies drive ethics
and values in the organisation.

Since the 1990s, there is a formal arrangement that governs the relationship between individual
Tata companies and the superstructure that is the Tata group. In order to use the Tata
nomenclature, a group company has to sign a contract called the Brand Equity and Business
Promotion (BEBP) Agreement. This places an obligation on the company signing on to adopt
TBEM and TCoC as a means to attaining business leadership.

As a result, the business excellence processes have come to characterise the Tata way of
enhancing and conducting its business endeavours, and to a great extent, have helped define the
Tata brand.

The TBEM movement in Tata has a built-in reward and recognition mechanism wherein
companies that have achieved a score of 600 on the TBEM framework are felicitated with the
JRD QV Award.

TQMS

Tata Quality Management Services (TQMS), a division of Tata Sons (the principal promoter
company of the Tata group of companies), is a trusted partner, working closely with Tata
companies to achieve their business excellence and improvement goals.
TQMS collaborates with group companies, through long and short-term initiatives, in the areas
of innovation, climate change, business ethics, customer focus, improvement, strategy
development, safety, human resource, process improvement, corporate governance, training and
affirmative action.

Through TBEM, TQMS helps Tata companies gain insights on their strengths and their
opportunities for improvement. This is managed through an annual process of 'applications and
assessments'. Each company writes an application wherein it describes, in the context of the
TBEM matrix, what it does and how it does it. This submission is then gauged by trained
assessors, who study the application, visit the company and interact with its people. The
assessors map out the strengths and improvement opportunities existing in the company before
providing their feedback to its leadership team.

TQMS trains and certifies assessors, who are selected from across the group, and it designs and
administers an assessment apparatus that helps them evaluate different Tata companies. The
contact point person in each company is the 'corporate quality head', nominated by the CEO as
the business excellence process owner. Typically, each company has a network of business
excellence people from a variety of functions and locations.

The commitment a company makes when it signs the BEBP contract compels it to attain explicit
business excellence scores over specific time periods. A result-driven scoring mechanism
enables the company to track its progress over time, and ensure that it keeps improving. There is
also an annually administered, group-wide recognition system for companies that exceed a
certain score, thereby reflecting excellence, industry leadership and consistent improvement.

Implicit in the TQMS approach is the belief that its wide-ranging methodology will enable Tata
companies to become exemplars — on business as well as ethical parameters — in their
respective spheres.

TBEM
The TBEM methodology has been moulded to deliver strategic direction and drive business
improvement. It contains elements that enable companies following its directives to capture the
best of global business processes and practices. The model has retained its relevance thanks to
the dynamism built into its core. This translates into an ability to evolve and stay in step with
ever-changing business performance parameters.

The TBEM matrix is used for the organisational self-assessment of Tata companies, recognition
and awards, and for providing feedback to applicants. In addition, TBEM plays three important
supportive roles in strengthening the competitiveness of Tata companies:

        It helps improve business excellence practices, capabilities and results.
        It facilitates communication and sharing of best practices among Tata companies.
        It serves as a working tool for understanding and managing performance, for providing
        planning guidance, and for identifying learning opportunities.

The TBEM methodology comprises a set of questions that applicant Tata companies have to
answer. Its main objectives are to enhance value to customers and contribute to marketplace
success; maximise enterprise-wide effectiveness and capabilities; and deliver organisational and
personal learning.



The core values and concepts of TBEM are embodied in seven categories: leadership; strategic
planning; customer focus; measurement, analysis and knowledge management; workforce focus;
process management; and business results. The TBEM system focuses on certain key areas of
business performance: customer-focused results; product and service results; financial and
market results; human resource results; organisational effectiveness results; governance and
social responsibility results.




JRD QV Award

While quality has always been one of the cornerstones of the Tata way of business, the need to
introduce a formal system that calibrated how different group companies were faring on this
scale began to be felt in the early 1990s. That led to the institution, in 1995, of the JRD Quality
Value Awards, the forerunner to TBEM. Named after JRD Tata, the late chairman of the group
and a crusader for the cause of business excellence in Tata companies, the awards have now been
incorporated in TBEM.

Jehangir Ratanji Dadabhoy Tata, or JRD, as he was popularly known in business circles, guided
the destiny of India‘s largest business house for well over half a century. Over the years that he
was at the helm of affairs of the group, JRD Tata helped establish many new enterprises.

He was always conscious about the importance of quality, and ensured that this quality
consciousness prevailed in all the organisations that belonged to the Tata group. He was proud
that the companies within the group were known, domestically and internationally, for the
quality of their products and services.

As a tribute to his quest for perfection in every sphere of activity, the JRD Tata Quality Value
Award was instituted in his memory.

The JRD QV Award is modelled on the lines of the Malcolm Baldrige National Quality Award,
integrating beneficial attributes from other national quality awards. The award recognises a
company within the Tata group, which excels in quality management and has achieved the
highest levels of quality.

This is an annual award presented to the winning company on the 29th day of July, the birth
anniversary of JRD Tata.

The objectives of the award are:

       This award is given to group companies in order to create awareness on the importance of
       the value of quality and the need for total customer satisfaction in all areas of operations
       within the Tata group companies.
       To achieve and sustain continuous excellence and consequently leadership in the
       marketplace through perfection and the achievement of quality which will be recognised
       as being the best and ahead of competition.
Evaluation process

Tata companies participate in a bi-annual process of external assessments. The idea is to subject
them to an assessment, based on the excellence parameters embedded in the Tata Business
Excellence Model (TBEM).

Each company writes an application in which it describes what job it does and how it does the
job in the context of the criteria set by TBEM. This application is then 'assessed' by trained
TBEM assessors who study the document, visit the company and interact with its people, draw
out the strengths and the improvement opportunities, and then provide feedback to the leadership
team. An in-built scoring mechanism enables the company to track its progress over time, and
ensure that it keeps improving.

Criteria for recognition:

       JRD QV Award: 600+ for the first time
       Leadership in Excellence: 700+ for the first time
       Sustained Excellence: 3 successive improvements beyond 600
       Active Promotion: 500 to 600 for the first time
       Serious Adoption: 450 to 500 for the first time
       High Delta: High improvement in one year min 75 for 500-
       High Delta 500+: High improvement in one year min 50
       High Delta 600+: High improvement in one year min 25




Addressing climate change

The Tata group is facing up to the challenge of climate change and making it integral to its
processes. The broad idea is to develop a common approach to the critical questions confronting
the group's businesses on the environmental front, and formulate policies that can deal
effectively with issues that impact climate change.
Coordinating and directing the climate change efforts of the group's companies is Tata Quality
Management Services (TQMS), a centrally administered organisation that draws on the
experience and expertise of senior Tata leaders.

The Tata group considers climate change to be a serious issue and is taking the following steps to
increase carbon consciousness and institute mitigation strategies:

       A steering committee and working group have been assigned to address the climate
       change issue and cascade it into a group-level movement.
       Tata companies from five business sectors — steel, automotive, power, chemicals and
       IT — will participate in the first phase through the following strategies:
           o   Intensive awareness and training programmes will be conducted for senior
               leadership. Climate change champions will be identified in each company.
           o   Policies on energy efficiencies, green buildings, green data centres and green
               protocols will be developed. Awareness will be created amongst all stakeholders.
           o   Individual Tata companies will measure their current carbon footprint to assess
               where the group stands. This will be extrapolated for future years.
           o   Cost abatement curves will be established and mitigation strategies identified for
               the major companies. Other Tata companies will follow in the second phase.
           o   The climate change initiative will be integrated with the Tata group's internal
               business excellence framework, the Tata Business Excellence Model, in order to
               further motivate and encourage companies.

Climate change policy for Tata companies

Tata companies will play a leadership role in climate change by being knowledgeable,
responsive and trustworthy, and by adopting environment-friendly technologies, business
practices and innovation, while pursuing their own growth aspirations and the enhancement of
shareholder value. Tata companies will measure their carbon footprint and will strive to:

       Be the benchmark in their segment of industry on the carbon footprint, for their plants
       and operations.
Engage actively in climate change advocacy and the shaping of regulations in different
       business sectors.
       Incorporate ‗green‘ perspective in all key organisational processes.




Global Presence:

Tata in Asia Pacific

Asia Pacific is a key market for the Tata group as it enjoys a strong brand presence in the
region — apart from the Indian sub-continent, Tata is present in Singapore, Thailand, Vietnam,
Indonesia, Malaysia, the Philippines, South Korea, Australia and China.

Although most Tata companies are headquartered in India, the group's growing global spread has
resulted in the Asia Pacific region becoming a significant base of operations as well. Singapore is
the headquarters of Tata Technologies and Tata NYK and also the regional headquarters of Tata
Consultancy Services.

Several Tata companies have set up manufacturing plants, sales and marketing operations and
representative offices around the region. For instance, NatSteel, a Tata Steel company, is the
leading provider of steel in the region with plants and bases in several Asia Pacific nations. A
significant portion of Tata Communications network is located in the area.

Tata Motors has two large operations — Tata Daewoo in South Korea and Thonburi Automotive
Assembly Plant Company in Thailand. Indian Hotels has set up several Taj properties in the area,
including its luxury getaways in Malaysia, Bhutan and the Maldives, and the Blue in Sydney.

Tata in China

China is a critical and growing market for the Tata group, which has a bit of history with regard
to doing business with the Middle Kingdom. In 1859, a young Jamsetji Tata, the founder of the
Tata group, was sent to Hong Kong to open a branch for his father's banking firm. He relocated a
few months later to Shanghai, where he remained till 1863.
Currently the Tata group has a fairly significant presence in China, with the number of
companies and operations growing steadily. Tata companies employ over 2,600 employees in
China, generated $3 billion worth of sales in the country and purchased goods and services worth
$700 million in 2010.



Recognising the potential for high growth in existing businesses and opportunities for new ones,
Tata Sons, the group promoter company, has set up representation in China.




Tata motors in North American




Tata TTM -0.36% has received twice as many orders for the $2,000 micro car as it is set up to deliver
through 2010. Some investors nevertheless expressed dismay Tuesday, disappointed that Tata didn't haul
in even more orders.

It's a problem anyone still holding stock in Ford F +0.68% or General Motors GM +0.04%might relish.

Detroit need not fear an imminent incursion of home turf by the Nano. There are no Tata Motors
distributorships in North America, creating a protective buffer zone that for the time being affords a good
chuckle.

Seriously. What's the likelihood that a car with a 650 cc, two-cylinder engine with a top speed of 63 mph
poses a threat to anything larger than a scooter?

America has a long history of making fun of little foreign cars. Back in the 1950s, it was the Volkswagen
Beetle. But then it sort of caught on. In the 1960s, the jokes were aimed at those little Japanese imports
from Toyota and Datsun. And who can forget those dinky Honda Civics? All were dismissed as cheap
knock-offs of what we knew to be real cars.

Then came the 1973 Arab oil embargo, gasoline shortages, and suddenly our precious land yachts were
being swapped at par for those little foreign jobs that, despite initial skepticism, seemed to holding up
pretty well after all.
Gradually the U.S. auto industry realized it was losing home court advantage to the imports. The backlash
was painful and palpable. No one in their right mind would park a Toyota on the streets of the Motor City
without fearing it would be keyed by some angry patriot.

Eventually we found new cars to joke about. Now it's Tata's turn.

But there's a pattern here. Like earlier invaders, Tata is backed by a company much bigger and a history
much older than we care to recognize.

While the Nano grabs headlines, it's only the latest model in a Tata lineup of sedans, SUVs and
commercial vehicles. Tata has a distributor network that spans parts of Europe, Asia and Africa. And it is
in full growth mode, teamed up with Fiat IT:F +3.18% and capitalizing on some staggering production
advantages when sized up against North American competitors.

Given the evolution of the industry over the past 60 years, Tata is bound to face lots of jokes. But Detroit
needs to take this relative newcomer deadly serious because they are going to find themselves in head-to-
head competition for many of the same overseas customers and, just as importantly, the same pool of
investor capital.




Retail Production of tata motors in north American

Tata motors is considering pooling engine production. Ratan Tata, chairman of the Indian holding group
whose automotive business owns Jaguar Land Rover, has spoken of setting up joint engine production for
its mass-market Indian operations and the two UK premium brands.

JLR, which specialises in high-end executive saloons and four-by-fours, had in the past spoken of
building engines in the UK or India, but this is the first time Tata Motors has spoken of combining the
two parts of its business.

―To optimise the synergetic strengths between JLR and Tata Motors in India, an examination is also
under way on a joint engine development programme which would have manufacturing facilities both in
the UK and India‖, Mr Tata said in the company‘s annual report, released on Monday.

JLR currently gets its engines from Ford Motor, which sold the premium carmakers to Tata for $2.3bn in
2008.
Joint engine development with India‘s largest carmaker – best known for the tiny, cheap Nano – could be
a sensitive topic for Jaguar and Land Rover on the competitive premium-car market. Tata is investing at
least £5bn over the next five years to improve the quality of the car brands‘ products and designs, as it
takes on Germany‘s larger premium car marques.

Jaguar‘s image took a knock under Ford‘s ownership, when the brand‘s X-Type car was criticised for
having too much in common with the Ford Mondeo.

However, since then carmakers – including the German premium producers – have established
increasingly global manufacturing operations or teamed up with mass-market rivals, as they seek to cut
costs and build cars closer to where they sell them.

BMW and Daimler‘s Mercedes-Benz brand make cars in the US, and rival premium brand Audi is
considering a US production site. Daimler is co-operating with mass-market carmakers Renault and
Nissan in areas including small cars and commercial vehicles.

Chas Hallett, editor of Britain‘s WhatCar magazine, said: ―I don‘t think where things are made has any
bearing on consumers any more. What‘s more important are that [JLR‘s] cars are engineered and
designed in Britain. Where they‘re actually manufactured is irrelevant‖.

Jaguar and Land Rover have rebounded strongly since the financial crisis, on the back of reviving global
demand for premium cars and well-reviewed products such as the recently launched Range Rover
Evoque.

In an interview last month, Ralf Speth, JLR‘s chief executive, said that the carmakers had not yet decided
on an engine strategy.

Mr Speth said: ―We have a long-term contract with Ford. We don‘t need another partner.‖ However, he
added that if JLR decided to produce its own engines, the company might do so ―either in the UK or in
India or both‖.

Industry observers widely expect the UK carmakers to develop their own capacity for what is seen as a
core automotive technology. Rival UK premium carmaker Aston Martin, which Ford sold in 2007, said
earlierthis month it had extended an agreement to buy engines from Ford, due to lapse in 2012, for at least
four more years.

Production process of Tata motors in north American

1) Build out a network of dealerships versus utilize existing distribution networks.
2) Import all completed cars from India versus setting up an auto manufacturing plant in the US or
Mexico.

Import Finished Cars from India or Build an Auto Manufacturing Plant Many large foreign auto
companies import thousands, sometimes millions, of cars into the US each year. Toyota, for example,
imports so many vehicles that it operates its own logistical branch, Toyota Logistics Services (TLS),
which operates container ships and organizes import activities for many of Toyota‘s imports.
Accordingly, economies of scale benefit these companies and make importing each vehicle relatively
inexpensive when compared to the cost of setting up an auto manufacturing plant for those same cars here
in the US or in Mexico. Further, the private nature of these types of logistics subsidiaries makes it
difficult to determine the exact cost of importing a vehicle. While a breakdown of the complete import
supply chain follows in a later section, estimating the cost to push a vehicle through Tata‘s supply chain is
contained in Exhibit 6. This simple financial analysis compares the roughly $600 estimated cost of
importing each Nano to the US to the prospective capital outlay that building a Nano factory would
require, around $225 million on the low-end. While these figures are not directly comparable, they do
play a role in determining whether importing or building in North America is the better route.
The prospect of spending $225 million to build a North American factory is supported by the very low
transportation cost that Tata would pay in delivering completed cars from the factory to its dealerships in
the US. This is where the benefits end, however, as lengthy list of cons presents itself. First, spending this
much capital is an unlikely option for Tata as intra-Asia and European expansion are the company‘s main
concerns right now. The establishment of a dealer network involves many millions of dollars, however its
operational and long-term strategic benefits are immediately clear. Second, the standardization of parts in
Tata vehicles makes the current Nano plant‘s location in India ideal, as many of the same parts Tata uses
in other vehicles are included in the Nano. Third, the Tata CEO has said that the Nano plant in India has
been designed for customizing Nanos for sale in the European and US markets. The current Nano factory
is located in Sanand, Gujarat State, India, along the country‘s Western coast. It has capacity to produce
250,000 vehicles annually. Demand for the Nano in India is currently far below this figure, and an
efficient supply chain delivery Nano parts to the factory is already in place. These facts reveal that
building    another     Nano     plant    in    North     America     would      be    largely    redundant.


Another issue to consider is Tata‘s current supply chain which brings parts from across Asia to the Nano
plant in Sanand. Were a new factory in North America to be setup, this supply chain would need to be
expanded to bring all the same parts to the new factory, located on the opposite side of the world. With
hardly any North American parts suppliers at present, setting up a factory in the US or Mexico would
require establishing an expensive new supply chain to ship nearly all the separate Nano parts overseas.
When further considering that labor costs in North America are far higher than those in India, it appears
that myriad new costs would result from this additional supply chain. Exhibit 7 details the difference in
pay rates among skilled auto workers in various countries. The bottom-line impact, should Tata move
production to a US location, would be an additional $49 million in labor costs. This is an outrageous
figure   which    would    boost   the   retail   price   of   the   Nano    more    than    $500    higher.
The wage rates for auto workers in Mexico and India are actually nearly the same. Mexican production
facilities would only incur an additional half-million dollars in labor cost, an amount that would be more
than accounted for by savings in finished-car shipping costs and NAFTA tariff reductions. Conversely,
the added inefficiencies of establishing a redundant supply chain (one leading to the plant in India and
one leading to a plant in Mexico) would result in costs that far outweigh the potential savings from
localized finished-car shipping. For this reason, it is clear that importing finished Nano cars from India is
the best fiscal choice for Tata. Only later, once the company has an established foothold in the US market
and is ready to introduce new products to it, should Tata consider constructing an auto manufacturing
plant somewhere in North America. The risk of US consumers rejecting the Nano is relatively low,
though its presence makes the notion of building a plant in North America premature at this time.




Tata in South America

The Tata group has had a presence in South America since the 1990s, principally through Tata
Consultancy Services (TCS), which started its first project in Brazil. Since then the company has
expanded its reach to 14 countries in the region and today serves more than 150 clients. TCS employs
more than 5,000 people across the South American continent, which is a strategic base in the company‘s
operations to service customers in the US and Europe.

Among the other Tata companies that have businesses in the region are Tata Motors and Rallis.
Additionally, Tata Steel Europe, Tata Chemicals, Tata Communications and Tata International have a
sales presence in the region.

Tata Motors unveils Assembly Plant in South Africa

Tata Motors (SA) (Proprietary) Ltd., Tata Motors' joint venture with Tata Africa Holding (Pty) Ltd.,
today formally opened its assembly plant in South Africa at Rosslyn, north of Pretoria, in the Gauteng
province of South Africa. The establishment of the plant is a major step towards bolstering the operations
and presence of the Tata Group in South Africa.
The plant was inaugurated by South Africa's Minister of Trade & Industry, Dr. Rob Davies, in the
presence of top dignitaries from South Africa and India. Among them were Mr. Noel N. Tata, Managing
Director, Tata International, Mr. Carl-Peter Forster, Group CEO and Managing Director, Tata Motors,
Mr. Raman Dhawan, Managing Director, Tata Africa, as well as dealers and key associates of the
company.

Established with an investment of R110 million, the plant can assemble, from semi knocked down (SKD)
kits, light, medium and heavy commercial vehicles ranging from 4 tonnes to 50 tonnes, with an
annualised capacity of 3,650 vehicles. The capacity can be further expanded as required. The plant has
been awarded with ISO 9001 accreditation by Bureau Veritas, South Africa. To begin with, it is
assembling two models, the Tata LPT 813 and Tata LPT 1518, both already popular in South Africa.

Speaking at the event, Dr. Rob Davies said that the launch of the plant can be attributed to South Africa's
investment friendly policies. He said that the project comes at a time when the department is aggressively
pursuing an industrial development strategy for the South African Medium and Heavy Commercial
Vehicle (M&HCV) sector.

"The key focus area of the MHCV strategy is based on: Support for Market Development (Local and
Regional), development of OEM Production Capabilities and the Strengthening of the Supply Chains (1st
tier Supplier base). Industry role players have and still are part of the extensive consultation process that
accompanies the development of such a strategy. This will be an opportunity for further expansion of Tata
Motors in South Africa," added Dr. Davies

Speaking on the occasion, Mr. Carl-Peter Forster said, "With a comprehensive product portfolio, Tata
Motors is now at a stage where it can consolidate its international business in its chosen markets. The
assembly plant in South Africa is an expression of that resolve. Step by step, we shall expand the
footprint of our international business matching markets and products."

Mr. P. M. Telang, Managing Director - India Operations, Tata Motors, said, "We are very proud to
commence assembly operations in South Africa, which has traditionally been among our focus countries.
It is integral to Tata Motors' international business presence and plans. The company has already carved a
niche for itself in the country and is confident of greater opportunities."

Built over a period of 18 months, the plant is spread over an area of 34,500 sq. metres. In line with latest
world-class manufacturing practices, the plant has been equipped with state-of-the-art equipment
following lean manufacturing principles. It has built-in flexibilities to assemble large numbers and
different variants in mixed mode production, to meet the requirements of the South African market.

The entire capital outlay, encompassing civil and plant engineering work for the facility, has been sourced
from and carried out by South African suppliers and companies. In addition, all major equipment, like
heavy duty cranes, inversion mechanisms and paint booth, have also been sourced from South African
vendors. The entire workforce of the plant is from South Africa.




Training, skill transfer and development of local workforce is one of the top priorities of the Tata Group
in South Africa. The Tata Group's training processes and facilities in India have been acknowledged as
among the best. Leveraging this expertise through a robust local skill transfer and apprentice programme,
Tata Motors South Africa is committed to ensuring that skill levels of individuals employed in various
industrial trades, such as auto mechanic, welder, painter etc, are further enhanced. Tata has an already
established state-of-the-art technical training centre in Germiston, Johannesburg, operating since 2006, for
skill development of dealer mechanics in South Africa and various other countries in the continent.

Tata Motors started exports to South Africa in 1998, with commercial vehicles. Exports of passenger
vehicles began in 2004. Currently there are over 20 commercial vehicle models .from pick-ups to 49
tonne prime movers and from 14-seater buses to luxury coaches -- and 5 passenger vehicle models Tata
Indica Vista, Tata Indica, Tata Indigo, Tata Indigo SW and Tata Safari in diesel & petrol variants catering
to the needs of the South African market. The company has thus far exported over 32,000 commercial
vehicles and 31,000 passenger vehicles to the country. Tata Motors' vehicles are available across 85
dealerships, through M/s Accordian Investments (Pty) Ltd., the distributor for light commercial vehicles
and passenger vehicles, and M/s Tata Automobile Corporation SA (Pty) Ltd., the distributor for medium
and heavy commercial vehicles.

Main occupation of Tata Motors

Tata Motors is India's largest automobile company, with consolidated revenues of INR. 1,23,133 crores ($
27 billion) in 2010-11. Through subsidiaries and associate companies, Tata Motors has operations in the
UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, the business comprising the
two iconic British brands. It also has an industrial joint venture with Fiat in India. With over 5.9 million
Tata vehicles plying in India, Tata Motors is the country's market leader in commercial vehicles and
among the top three in passenger vehicles. It is also the world's fourth largest truck manufacturer and the
third largest bus manufacturer. Tata cars, buses and trucks are being marketed in several countries in
Europe, Africa, the Middle East, South Asia, South East Asia and South America.




Tata motors in UK

Tata Motors is the leader in commercial vehicles and among the top three in passenger vehicles in India.
It is also the world's fourth largest truck manufacturer and the second largest bus manufacturer. Through
subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand and
Spain. It also has a strategic alliance with Fiat.

In the UK, Tata Motors has set up the Tata Motors‘ European Technical Centre in Warwick, engaged in
the business of design engineering and product development for the automotive industry.

In January 2008, Tata Motors unveiled its People‘s Car, the Tata Nano, to be launched later in the year in
India. A development that signifies a first for the global automobile industry, the Nano brings the comfort
and safety of a car within the reach of thousands of families. 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.

Tata Motors boosts UK production areas

The UK‘s technology base has been given a major boost with the announcement that Tata Motors‘
European Technical Centre is to expand its partnership with experts at Warwick University.

The TMETC plans to increase its team of highly skilled engineers by 40 per cent over the next two years.

Multinational automotive group Tata Motors has invested more than 85 million pounds in research and
development (R&D) at TMETC since it was established on the university campus in 2005.

It already has a team of 240 engineers and researchers working alongside colleagues in university
department WMG, with 60 of these hired over the last 12 months because of increased R&D investment.
The TMETC aims to increase the engineering and research force by a further 100 to 340 by 2013.

Tata Motors is India‘s largest automobile company, headquartered in Mumbai, with revenues of 20 billion
US dollars in 2009-10. The group is the leader in commercial vehicles and among the top three in
passenger vehicles.
In 2004, it bought the Daewoo Commercial Vehicles Company, South Korea‘s second largest truck
maker. Along with many other stake holdings and joint ventures in other leading automotive companies
across the world, it owns the classic UK brands Jaguar and Land Rover.

Dr Tim Leverton, head of Advanced & Product Engineering at Tata Motors Limited, said the
announcement ―represents a further demonstration of Tata‘s long-term commitment to build and develop
R&D facilities here in the UK. TMETC plays a vital role in Tata Motors‘ global R&D network.

―Tata Motors gets access to world-class thoughts, skills and technologies through the TMETC and its
collaboration with WMG. The contribution of TMETC and WMG is important to Tata Motors becoming
an international company,‖ he added.

Through this arrangement TMETC‘s engineers work alongside researchers at WMG - a university
department occupying a unique position between academia and industry, formerly known as the Warwick
Manufacturing Group - in low-carbon technology collaborative R&D programmes.

They have already started to produce tangible results, for example Tata Motors‘ Vista electric vehicle that
will be built at a nearby factory in Coventry and will be available to fleet customers in the UK later this
year.

Tata Motors‘ Pixel city car, which was unveiled at the 2011 Geneva Motor Show, has also been
developed on the WMG campus. Based on the Tata Nano, the Pixel is a concept vehicle aimed at the
European market and features a zero-turn infinitely variable transmission that gives it a turning circle
radius of 2.6 metres, making it ideal for dense urban environments.

At just over three metres in length the Pixel is claimed to be ―the most package efficient four-seater in the
world,‖ comfortably accommodating four adults.

The zero-turn toroidal traction-drive transmission assists rotation of the outer rear wheel forwards and the
inner rear wheel backwards, while the front wheels turn at acute angles to achieve its exceptionally tight
turning circle radius.

―Scissor‖ doors rotate upwards from the front to allow passengers to enter or exit the Pixel, even in the
tightest of spaces.

The vehicle is also designed to provide a high level of connectivity. Key functions are controlled by the
driver‘s smart phone, running My Tata Connect, the first integrated human-machine interface concept
from Tata Motors.
Nick Fell, Tata Motors‘ European Technical Centre‘s director, said: ―WMG and TMETC are building on
five years of successful partnership to further grow TMETC‘s presence at the University of Warwick.

―We plan to further increase our team on the campus by up to 100 over the next two years, and are
discussing establishing test and development facilities here. This shows a clear commitment to build and
develop our R&D and facilities in the UK in collaboration with WMG for the long term.‖

This was supported by WMG‘s director Professor Lord Bhattacharyya who said ―Technology businesses
such as Tata are crucial to us solving global challenges that will require new thinking energy, climate-
change related technologies.

―Tata‘s work alongside WMG will meet those challenges and will even lead the field in new low-carbon
technologies. Tata‘s Pixel concept city car is a clear symbol of Tata‘s current technological prowess and
its future aspirations.‖

The partnership announcement came shortly after research by the Council for Industry & Higher
Education that indicates that the UK‘s manufacturing sector could be re-energised by a closer
collaboration between companies and the science and technology departments at top universities.

As well as working with more than 500 UK companies, the university‘s WMG is an international unit
with collaborative centres in the UK, China, India, Malaysia, Russia, Singapore and Thailand.




Tata Motors is India's largest automobile company, with consolidated revenues of Rs 92,519 crore ($20
billion) in 2009-10. Through subsidiaries and associate companies, Tata Motors has operations in the UK,
South Korea, Thailand and Spain. Among them is Jaguar Land Rover, the business comprising the two
iconic British brands. It also has an industrial joint venture with Fiat in India.

Tata Motors is the country's market leader in commercial vehicles and among the top three in passenger
vehicles. It is also the world's fourth largest manufacturer of medium / heavy commercial vehicles, and
the second largest bus manufacturer. Tata cars, buses and trucks are being marketed in several countries
in Europe, Africa, the Middle East, South Asia, South East Asia and South America.

The company, formerly known as Tata Engineering and Locomotive Company, began manufacturing
commercial vehicles in 1954 with a 15-year collaboration agreement with Daimler Benz of Germany. It
has, since, developed Tata Ace, India's first indigenous light commercial vehicle, Tata Safari, India's first
sports utility vehicle, Tata Indica, India's first indigenously manufactured passenger car, and the Nano,
the world's cheapest car.

Areas of business
Tata Motors makes passenger cars, multi-utility vehicles and light, medium and heavy commercial
vehicles.

        Passenger cars: The company launched the compact Tata Indica in 1998, the sedan Indigo in 2002
        and the station wagon Indigo Marina in 2004. Tata Motors also distributes Fiat‘s cars in India.

        Utility vehicles: The Tata Sumo was launched in 1994 and the Tata Safari in 1998.

        Commercial vehicles: The commercial vehicle range extends from the light two-tonne truck to
        heavy dumpers and multi-axled vehicles in the above 40-tonne segment.

        Passenger buses: The company also manufactures and sells passenger buses, 12-seaters to 60-
        seaters, in the light, medium and heavy segments.




 Tata Motors in Africa

 In a period of just three years, Tata Motors has emerged as the third-largest player in South Africa's
 commercial vehicles market, and one of the fastest growing brands in the passenger vehicles segment

 Tata Motors has played a major role in Tata Africa's origins and current operations in Africa. The
 journey began in the 1970s with the marketing of Tata Motors' heavy vehicles in Zambia. In the 1990s,
 Tata Africa expanded its automotive operations to Tanzania, Zimbabwe, Malawi, Namibia,
 Mozambique, Uganda and Ghana. Today, Tata Motors' vehicles enjoy leading positions in several
 vehicle segments in South Africa and Zambia.

 Tata Motors offers a range of passenger, multi-utility and commercial vehicles:

 Passenger cars:
 The popular Indica

 Commercial vehicles:
 Telcoline, an all-terrain vehicle suitable for both commercial and private use

 Heavy commercial vehicles:
Tata Novus' new range of Tata Daewoo tippers and tractors
Tata Ubuntu and other bus models

Over the years, the company has established a strong distribution and marketing network with the help of
various country-specific Tata Africa subsidiaries. In Ghana, operations cover both vehicle sales and
after-sales. Tata Uganda, set up in 1994, conducts vehicle sales and after-sales business. In Mozambique,
Tata De Mozambique Lda (TDML) is engaged in sales and service of Tata vehicles.

South Africa has played an important role in the success of Tata Motors in Africa. Launched in South
Africa in 2004, the Indica set the record for the most successful car launched in the country. A bus-body
fabrication plant was set up in 2004 to build indigenously designed buses that are now sold in Zambia,
Ghana and Mozambique. The company enjoys a leading position in tippers, medium commercial
vehicles (MCV) and heavy vehicles. Recently, Tata Africa Holdings has acquired a Nissan
manufacturing plant in South Africa.

Sustaining its leading position in South Africa, the company recently introduced more commercial and
passenger vehicle models:

        Safari Dicor, to be available in early 2007.
        Commercial vehicles, new trucks (6 and 10 tonners), tippers (2-6 cubic metre capacity) and
        bakkies (1.3-tonne flat-bed) are being launched. These vehicles are aimed at meeting diverse
        transportation needs in South Africa.

The new models are on display at Auto Africa 2006 in Johannesburg. Exhibited along with new models
are, for the first time at the expo, two 'concept cars' — Tata Crossover, a 'crossover' vehicle concept, and
Tata Cliffrider, a multi-utility 'lifestyle' vehicle. Speaking about the new models, Ravi Kant, managing
director, Tata Motors, said, "Our endeavour now is to expand our range with improved applications, to
reach out to more customers and build a lifetime relationship."

Future plans for South Africa are upbeat. "We are looking at increasing our logistical efficiency besides
considering options to set up an assembly unit in South Africa. We are also looking at using South
Africa as a source for components," says chief financial officer Praveen Kadle. The only commercial
vehicle assembly unit the company has outside India is in Bangladesh. Tata Africa managing director,
Raman Dhawan, defines future areas of growth and says, "Towards the end of this year, we would be
entering the Nigerian and Kenyan markets with our range of commercial vehicles."

Apart from the stronghold the company has in South Africa, Tata Motors is among the top automotive
players in other countries as well.


In Zambia, the company is at the forefront in the medium commercial vehicles segment. In Ghana, the
company recently launched a range of passenger vehicles that includes the Indica hatchback, Indigo
sedan and Indigo Station Wagon, along with the multi-utility vehicle Sumo and the Safari Dicor.
According to Divyendu Kumar, head of Tata Motors' international business for the passenger car units,
the new models will offer superior value to customers in the traditionally important Ghana market.

The company is also making progress in other countries such as DR Congo, Ivory Coast, Kenya,
Madagascar, Senegal, Tanzania, and Uganda. It is looking at options such as setting up assembly lines,
re-working its price and product positioning, improving logistics and accessing local sources.

The Tata journey in Africa, which began over three decades ago, has continued uninterrupted, with more
milestones crossed and new strengths gained. Leading the way is Tata Motors, with its ever-expanding
range of luxury and utility vehicles that promise a smoother ride ahead and more milestones to be
crossed on the road to excellence.




Ventures/ Company of Tata Motors:

Jaguar Land Rover

Jaguar Land Rover Automotive Trading (Shanghai)

Jaguar Land Rover Automotive Trading (Shanghai) is the company that handles the China
operations of Jaguar Land Rover (JLR). The company's main activities are the import and
distributionof JLR's range of premium sedans and SUVs in China. Headquartered in Shanghai,
the company has a corporate office in Beijing, three distribution facilities (a fourth one to be
opened soon) and two technical training academies.

JLR China sells its exclusive range of products through a distribution network of approximately
60 dealers, providing sales and service coverage across the country. In 2010, it sold
approximately 26,000 units in the country, making it the third largest market for Jaguar Land
Rover in the world. Given its size and maturity, China has the potential to become JLR's largest
global market within the next few years.

Jaguar Land Rover is a business built around two iconic British car brands that designs,
engineers and manufactures in the UK. With investment in product creation topping £1 billion a
year, Jaguar Land Rover is at the centre of the UK automotive industry‘s drive to deliver
technical innovation in all areas of vehicle development.



The Jaguar Land Rover business directly employs more than 18,000 people and supports
approximately 130,000 jobs (through direct employment, dealers, suppliers and broader
economy). Jaguar Land Rover exports annually generate almost £6 billion for the UK economy
with 78 percent of Land Rovers exported to over 160 countries and 70 percent of Jaguars
exported to over 60 countries.

Jaguar Cars Limited, founded in 1922, is one of the world‘s premier manufacturers of luxury
saloons and sports cars. Since 1948 Land Rover has been manufacturing authentic 4x4s that
define 'breadth of capability' in their segments. The Jaguar XF, XK and XJ models are
manufactured at the company's Castle Bromwich plant in Birmingham. Land Rover's Defender,
Discovery 4, Range Rover Sport and Range Rover models are all built at the Solihull plant. The
Land Rover Freelander 2 is built at the Halewood plant in Liverpool.

Jaguar Land Rover is a business built around two great British car brands with exceptional
design and engineering capabilities. Jaguar Land Rover‘s manufacturing facilities are in the UK.




Areas of business

Jaguar Cars, founded in 1922, is one of the world‘s premier manufacturers of luxury saloons and
sports cars. Land Rover has been manufacturing 4x4s since 1948. Its products have defined the
segments in which they operate.
Jaguar Land Rover‘s manufacturing facilities are in the UK. The Jaguar Land Rover business
employs over 16,000 people, predominantly in the UK, including some 3,500 engineers at two
product development centres, in Whitley in Coventry and Gaydon in Warwickshire.

The Jaguar XF, XJ and XK models are manufactured at the company's Castle Bromwich plant in
Birmingham, UK, while the Jaguar X-TYPE is produced alongside the Land Rover Freelander 2
at the Halewood plant in Liverpool, UK. Land Rover's Defender, Discovery 3, Range Rover
Sport and Range Rover models are all built at Solihull, UK.

The business is a major wealth generator for the UK, with 78 per cent of Land Rovers exported
to 169 countries and 70 per cent of Jaguars exported to 63 countries. Sales to customers are
conducted principally through franchised dealers and importers.

Location
Jaguar Land Rover is based in the UK.


       Subsidiaries, JVs and Associates                       Websites


      Tata Daewoo Commercial Vehicle Company Ltd
                                                                  http://www.tata-daewoo.com/
      (TDCV)


      Tata Marcopolo Motors Ltd (TMML)


      Tata Hispano Motors Carrocera S. A.                         http://www.tatahispano.com/


      Tata Motors (Thailand) Limited (TMTL)                       http://www.tatamotors.co.th/


      Tata Motors(SA) Proprietary Ltd (TMSA)


      HV Axles Limited (HVAL)                                     http://www.hvaxles.com/
HV Transmissions Limited (HVTL)                            http://www.hvtransmissions.com/


      Telco Construction Equipment Co. Ltd. (Telcon)             http://www.telcon.co.in/


      TAL Manufacturing Solutions Ltd. (TAL)                     http://www.tal.co.in/


      Tata   Motors    European   Technical    Centre     plc.
      (TMETC)


      Tata Technologies Ltd. (TTL) and its subsidiaries          http://www.tatatechnologies.com/


      TML Distribution Company Limited (TDCL)


      Concorde Motors (India) Ltd. (Concorde)


      Tata Motors Finance Limited                                http://www.tmf.co.in/


      Tata Motors Insurance Broking & Advisory Services
      Ltd (TMIBASL)


      TML Holdings Pte. Ltd. (TML)


      Sheba Properties Ltd. (Sheba)




Tata Daewoo Commercial Vehicle Company

The Tata Daewoo Commercial Vehicle Company (TDCV) is South Korea's second largest
manufacturer of medium and heavy-duty trucks. Formerly part of the Daewoo Group, the
company was acquired by Tata Motors in 2004. With the acquisition of TDCV, Tata Motors has
grown to become the world's fifth largest manufacturer of heavy commercial vehicles.
Established in 1983 as the Daewoo Motor Company, the business was spun off as Daewoo
Commercial Vehicle Company in 2002. TDCV trucks are distributed locally through Daewoo
Motor Sales Company and are exported to over 60 countries worldwide, including South Africa
and China and countries in the Middle East, Southeast Asia and Eastern Europe.




Areas of business

TDCV has a product portfolio of over 75 types of trucks in the commercial vehicles segment. Its
product range includes flat beds, dumpers, mixers, tractors, arm-roll trucks, refrigeration trucks
and special-purpose trucks.

Location
The company‘s headquarters and plant are in Gunsan, South Korea. It has an office in Incheon
and sales offices across the country.




Internationalization

As a part of the company's new internationalization strategy, the company has decided to focus
on a narrow base of 14-15 countries where market conditions are similar to that of India. In these
countries, Tata Motors now has dedicated manufacturing facilities, marketing teams and sales
teams. The idea is to have self sustained operations in this narrow band of countries. The
company evaluates locations on the basis of market opportunities and labour skills. In the
framework pertaining to international expansion strategies, Tata Motors can be identified as an Extender,
and is focusing on expanding into markets similar to those of the home base, using competencies
developed at home
Where is Tata Motors now and How to Globalize?




Korean Operations

Tata Motors entered the advanced Korean Market by acquiring Daewoo, with which it has
tremendous synergies in terms of product strategy and R & D. Tata Motors has planned to use
this merger and leverage the technology for developing a World Truck for India and international
markets.

South African Operations

In the export market, Tata Motors moved from a fragmented approach to specific markets,
chosen in terms of consumer behavior, distribution networks, supply chain, etc. and identified
South Africa as one of the best markets. The sales in this region are about 15,000 units4. This is a
significant improvement over what Tata Motors was cumulatively exporting (8000 units) before
adopting its new internationalization strategy.

Thailand Operations

Tata Motors formed a joint venture with Thonburi Automotive Plant to enter Thailand. Thailand
is the second most competitive market for pickups, and the new pickup trucks developed here
will be sold in both domestic and export markets.

Latin American Operations

Tata Motors has taken its alliance with Fiat to produce a new one-tonne pick-up truck, for Latin
American markets from Fiat's facility in Argentina. This arrangement will also see Tata Motors
forming a joint venture with a subsidiary of Iveco, the commercial vehicle division on Fiat, to set
up a distribution network.

Now that Tata Motors has established a sustainable model in some countries, its main challenge
is to replicate this model in other countries as well.




How to replicate this strategy for other markets?
Sustainable competitive advantage lies not in one, but a combination of multiple resources, each
of which individually need not necessarily be the best, but in overall weighted average terms,
presents the best solution. For Tata Motors, the combination of resources providing it
competitive superiority on a weighted average basis includes (see Exhibit 3):

1. Product Reliability

2. Service Network

3. Channel Reach




                                     Three-way Resource Based View

In terms of product reliability, Tata Motors offers products of reasonably high standards. However,
foreign players like Volvo and even local competitors like Ashok Leyland arguably offer products that are
far more refined. But this is more than compensated by a dependable service network and extensive
channel reach. Tata's service and distributor network is by far the most extensive of any player in the
trucks industry. Hence in overall weighted average terms, Tata Motors still has a winning proposition.
Recommendation Matrix

   Based on a close scrutiny of the resource based view of Tata Motors and the challenges it faces, we
   propose a recommendation matrix arranged along three broad dimensions - Tangible, Intangible and
   Capabilities




                                 Three Dimensional Recommendation Matrix




     Tangible

   The strategies in this domain are primarily directed at sustaining Tata Motors' first mover
   advantage with respect to its offering in the Small Commercial Vehicle segment - ACE.

 Strategy                             Sustaining the First Mover's Advantage of ACE

             Tata Motors has an unparalleled network of dealers and service stations across the country
             for Medium and Heavy Commercial Vehicles (M and HCV). However most of these service
National
             stations are along inter-city routes. It would need to replicate this network at intra-city level
Footprint
             for its hugely successful SCV - the Tata ACE. For this Tata Motors can liaise with small
             garages, train them and certify them as 'Tata Authorized Service Station'.

Product      Tata Motors has positioned ACE as a multipurpose vehicle (MPV). This is where Tata
Portfolio     Motors can learn from the Maruti small car strategy that posits that 'there is no such thing as
              a small car buyer'. Hence Tata Motors should endeavour to move form a multi-purpose
              positioning to a mass customization positioning for ACE, wherein multiple variants are
              offered on the ACE platform, each uniquely suited for a specific application - such as
              tippers, long base trawlers, milk carriers.

   Intangible

   In intangible terms, Tata Motors needs to bolster its brand loyalty, by providing a unique
   customer experience.

  Strategy                                              Intangible Assets

                  In commercial vehicles industry, the uniqueness of customer experience is largely driven
                  by the efficacy of the 'Support' framework. If your car breaks down, you can take a taxi
                  to office. But that's not so for a transport operator. For him, his vehicle is at the heart of
                  his business and hence responsive after-sales support is critical. Minimizing downtime
  Unique          calls for a service network that is highly responsive and easily accessible. Besides, Tata
 Customer         Motors should also
Experience
                  1. Consider introducing mobile service units for Tata ACE that can respond to
                      customer calls anywhere within a given city.

                  2. Start treating "Services" as a dedicated profit center. Towards this end, the company
                      should "productize" annual maintenance contracts.

   Brand
                  Building a reputation will help sustain sales, without having to engage in discount sales.
Reputation



   Capabilities

   There are two broad capabilities that Tata Motors should seek to acquire.

   Strategy                                            Capability Acquisition

 Technology         Technology Appropriation is the key to Tata Motor's ambitions to offer products with
Appropriation    engines larger than 210 HP. As the share of ultra heavy commercial vehicles grows,
                 the company will need to face up to technologically superior players like Volvo. Here,
                 Tata will have to carefully spearhead its 'World Truck' program by carefully
                 coordinating technology appropriation from its numerous international technology
                 partners, notably Daewoo, Fiat and Hispano.

                 Tata Motors has made significant investments in IT systems to network its
                 countrywide service network. This helps them maintain very high spares parts
Robust Supply    availability at their service stations and minimize downtime. In the years to come, it
   Chain         would need to include their SCV service station within this framework. This will
                 however be a big challenge, since these service stations would largely be managed by
                 illiterate and not-so-tech-savvy repairmen.




   Contingency Plans

   1. Mass customization has its own shortcomings. Firstly, it puts a disproportionate amount of
      strain on the company's supply chain. And this is a wasted effort in case the demand patterns
      aren't properly understood. Hence we propose that the sales of the customized vehicles be
      closely tracked and in case sales achieved within a reasonable timeframe do not merit the
      additional resource outlay, then the company should revert to the original multipurpose
      positioning.

   2. In the background of rupee appreciation, exports will become costly. Hence it is prudent to
      open integrated production plants in other countries rather than just concentrating on exports.



   A few pointers on what Tata Motors ought not to do are captured below:

   1. Compete on price because proportion of individual players is low. Instead differentiate
      through service.
2. Engage in rapid capital expansion given the high debt to equity ratio. Use ring fencing
    judiciously.

3. Focus on rapid acquisitions and instead focus on consolidation in the foreign market.

4. Lose focus on the 'Value for Money' positioning, especially in the soon to be launched
    offering in the Ultra Heavy Commercial Vehicle segment




Culture over view

In the country the sustainable factor which will be highly influence the motor sectors to grow in such a
way to success is mainly the culture of the areas this is important aspects when the company want to grow
in the particular country so main objective peoples behaviors and the acceptance so they are the main
consideration when globalization take place and the political and geographical aspects also play a roal in
the company this are the main issues in the any company to be the success so they will consider the main
aspect in the international business.




Reference:

Sours: http://www.time.com/time/world/article/0,8599,1881404,00.html#ixzz1cZDSfj00

http://www.ukti.gov.uk/investintheuk/sectoropportunities/moresectors/item/157760.html

http://www.tatamotors.com/media/press-releases.php?id=693

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Tata International business mgt

  • 1. International Business Management By: Lysandra D‘silva (1016015) Kranthi (1016077) Joel Pais (1016018) Aloysius Institute of Management and Information Technology
  • 2. Tata Motors is India's largest automobile company, with consolidated revenues of Rs 92,519 crore ($20 billion) in 2009-10. Tata Motors Limited is an Indian multinational automotive corporation headquartered in Mumbai, India. Part of the Tata Group, it was formerly known as TELCO (TATA Engineering and Locomotive Company). Its products include passenger cars, trucks, vans and coaches. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, the business comprising the two iconic British brands. It also has an industrial joint venture with Fiat in India. Tata Motors is South Asia‘s largest automobile company; it is the leader in commercial vehicles and among the top three in passenger vehicles. The company is the world's fourth largest truck manufacturer, the world's second largest bus manufacturer, and employs 50,000 workers. Tata Motors has produced and sold over 4 million vehicles in India since 1954. Established in 1945, when the company began manufacturing locomotives, the company manufactured its first commercial vehicle in 1954 in collaboration with Daimler-Benz AG, which ended in 1969. Tata Motors is a dual-listed company traded on both the Bombay Stock Exchange and New York Stock Exchange. In 2010, Tata Motors surpassed Reliance to win the coveted title of 'India's most valuable brand' in an annual survey conducted by Brand Finance and The Economic Times. Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad and Pune, India, as well as in Argentina, South Africa, Thailand and the United Kingdom. Tata Motors is the country's market leader in commercial vehicles and among the top three in passenger vehicles. It is also the world's fourth largest manufacturer of medium / heavy commercial vehicles, and the second largest bus manufacturer. Tata cars, buses and trucks are being marketed in several countries in Europe, Africa, the Middle East, South Asia, South East Asia and South America. The company, formerly known as Tata Engineering and Locomotive Company, began manufacturing commercial vehicles in 1954 with a 15-year collaboration agreement with
  • 3. Daimler Benz of Germany. It has, since, developed Tata Ace, India's first indigenous light commercial vehicle, Tata Safari, India's first sports utility vehicle, Tata Indica, India's first indigenously manufactured passenger car, and the Nano, the world's cheapest car. Tata Motors has over 1,400 engineers and scientists in six R&D centers in India, South Korea, Spain and the UK. Areas of business Tata Motors makes passenger cars, multi-utility vehicles and light, medium and heavy commercial vehicles. Passenger cars: The company launched the compact Tata Indica in 1998, the sedan Indigo in 2002 and the station wagon Indigo Marina in 2004. Tata Motors also distributes Fiat‘s cars in India. Utility vehicles: The Tata Sumo was launched in 1994 and the Tata Safari in 1998. Commercial vehicles: The commercial vehicle range extends from the light two-tonne truck to heavy dumpers and multi-axled vehicles in the above 40-tonne segment. Passenger buses: The Company also manufactures and sells passenger buses, 12-seaters to 60-seaters, in the light, medium and heavy segments. History Tata Motors is a part of the Tata Group manages its share-holding through Tata Sons. The company was established in 1950 as a locomotive manufacturing unit and later expanded its operations to commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz AG of Germany. Despite the success of its commercial vehicles, Tata realized his company had to diversify and he began to look at other products. Based on consumer demand, he decided that building a small car would be the most practical new venture. So in 1998 it launched Tata Indica, India's first fully indigenous passenger car. Designed to be inexpensive and simple to build and
  • 4. maintain, the Indica became a hit in the Indian market. It was also exported to Europe, especially the UK. Tata acquired Spanish bus and coach manufacturer Hispano Carrocera in 2009. In 2006 it formed a joint venture with Marcopolo S.A. of Brazil, and introduced low-floor buses in the Indian Market under the name Tata Marcopolo Bus. Recently, it has acquired British Jaguar Land Rover (JLR), which includes the Daimler and Lanchester brand names. Acquisitions In 2004 Tata Motors acquired Daewoo's truck manufacturing unit, now known as Tata Daewoo Commercial Vehicle, in South Korea. In 2005, Tata Motors acquired 21% of Aragonese Hispano Carrocera giving it controlling rights of the company. In 2007, formed a joint venture with Marcopolo of Brazil and introduced low-floor buses in the Indian Market. In 2008, Tata Motors acquired British Jaguar Land Rover (JLR), which includes the Daimler and Lanchester brand names. In 2010, Tata Motors acquired 80% stake in Italy-based design and engineering company Trilix for a consideration of €1.85 million. The acquisition is in line with the company‘s objective to enhance its styling/design capabilities to global standards. Expansion After years of dominating the commercial vehicle market in India, Tata Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra, a multi utility vehicle. After the launch of three more vehicles, Tata Estate (1992, a station wagon design based on the earlier 'TataMobile' (1989), a light commercial vehicle), Tata Sumo (LCV, 1994) and Tata Safari (1998, India's first sports utility vehicle). Tata launched the Indica in 1998, the first fully indigenous passenger car of India. Though the car was initially panned by auto-analysts, the car's excellent fuel economy, powerful engine and aggressive marketing strategy made it one of the best selling
  • 5. cars in the history of the Indian automobile industry. A newer version of the car, named Indica V2, was a major improvement over the previous version and quickly became a mass-favorite. Tata Motors also successfully exported large quantities of the car to South Africa. The success of Indica in many ways marked the rise of Tata Motors. Products Passenger cars and utility vehicles Tata Nano Europa Tata Vista Tata Starbus Low Floor 1610 Tata Indigo Tata Marcopolo buses in the Delhi Tata Manza BRT. Tata Indigo Marina Tata Aria Tata Winger Tata Sierra (Discontinued) Tata Magic Tata Estate (Discontinued) Tata Nano Tata Sumo/Spacio Tata Xenon XT Tata Sumo Grande Tata Aria Tata Safari Tata Venture Tata Indica Tata Iris Concept vehicles 2000 Aria Roadster 2007 Tata Elegante 2001 Aria Coupe 2009 Tata Pr1ma 2002 Tata Indiva 2010 Tata Versa 2004 Tata Indigo Advent 2010 Tata Essota 2005 Tata Xover 2011 Tata Pixel 2006 Tata Cliffrider Commercial vehicles Tata Ace Tata TL/Telcoline/207 DI Pickup Truck Tata Super Ace Tata 407 Ex and Ex2
  • 6. Tata 709 Ex Tata Divo (Fully built luxury coach) Tata 809 Ex and Ex2 Tata CityRide (12 – 20 seater buses for Tata 909 Ex and Ex2 intra-city use) Tata 1109 (Intermediate truck) Tata 3015 (Heavy truck) Tata 1512 (Medium bus chassis) Tata 3118 (Heavy truck) (8×2) Tata 1612/1616 (Heavy bus chassis) Tata 3516 (Heavy truck) Tata 1618 (Semi Low Floor bus chassis) Tata 4018 (Heavy truck) Tata 1623 (Rear Engined Low Floor bus Tata 4923 (Ultra-Heavy truck) (6×4) chassis) Tata Novus (Heavy truck designed by Tata 1518C (Medium truck) Tata Daewoo) Tata 1613/1615 (Medium truck) Tata Prima (The World Truck designed Tata 2515/2516 (Medium truck) by Tata Motors and Tata Daewoo) Tata Starbus (Branded Buses for city, inter city, school bus and standard passenger transportation) Military vehicles Tata LSV (Light Specialist Vehicle) Tata LPT 709 E Tata Mine Protected Vehicle (4×4) Tata SD 1015 TC (4×4) Tata 2 Stretcher Ambulance Tata LPTA 1615 TC (4×4) Tata 407 Troop Carrier, available in Tata LPTA 1621 TC (6×6) hard top, soft top, 4×4, and 4×2 versions Tata LPTA 1615 TC (4×2) Tata LPTA 713 TC (4×4) Tata Winger Passenger Mini Bus
  • 7. Tata Motors technology and design subsidiaries Tata has dozens of technology and design subsidiaries. These include the main ones. Telco Construction Equipment (TELCON) TELCON is a joint venture between Tata Motors and Hitachi, which focuses on excavators and other construction equipment. and research work are done. HV Transmission (HVTL) and HV Axles (HVAL) HVAL and HVTL are 85% subsidiary companies of Tata Motors engaged in the business of manufacture of gear boxes and axles for heavy and medium commercial vehicles, with production facilities and infrastructure based at Jamshedpur. Tata Technologies Limited (TTL) TTL provides Engineering and Design (E&D) solutions to the Automotive Industry. Tata Motors holds 86.91% of TTL‘s share capital. TTL is based in Pune (Hinjawadi) and operates in the US and Europe through its wholly owned subsidiaries in Detroit and London respectively. It also has a presence in Thailand. Tata Technologies is a software service provider in the IT services and BPO space. Its global client list includes Ford, General Motors, Toyota and Honda, to name a few. It bought over the British engineering and design services company, Incat International Plc for Rs.4 billion in August 2005. Incat specializes in engineering & design services and product lifecycle management in the international automotive, aerospace and engineering markets. With this acquisition, Tata Motors will have closer proximity to its global customers and be able to provide a wider range of services. Tata Motor European Technical Centre Tata Motor European Technical Centre is Tata's subsidiary based in the UK. It was the joint developer of the World Truck.
  • 8. Operations Tata in India Tata Motors Limited is India‘s largest automobile company, with revenues of 35,651.48 crore (US$7.23 billion) in 2007–08. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles in India with products in the compact, midsize car and utility vehicle segments. Tata vehicles are sold primarily in India, and over 4 million Tata vehicles have been produced domestically since the first Tata vehicle was assembled in 1954. The company‘s manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, Tata set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The company is establishing a new plant at Sanand (Gujarat). Tata's dealership, sales, service and spare parts network comprises over 3500 touch points. Tata Motors also distributes and markets Fiat branded cars in India. Sales & Service Network Tata Motors has more than 250 dealerships in more than 195 cities across 27 states and 4 Union Territories of India. It has the 3rd largest Sales and Service Network after Maruti Suzuki and Hyundai. Tata's global operations Tata Motors has been in the process of acquiring foreign brands to increase its global presence. Through acquisition, Tata has operations in the UK, South Korea, Thailand and Spain. Among these acquisitions is Jaguar Land Rover, a business comprising two struggling iconic British brands that was acquired from the Ford Motor Company in 2008. In 2004, Tata acquired the Daewoo Commercial Vehicles Company, South Korea‘s second largest truck maker. The re- branded Tata Daewoo Commercial Vehicles Company has launched several new products in the
  • 9. 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% controlling stake in Hispano Carrocera, a Spanish bus and coach manufacturer. Tata Motors continued its market area expansion through the introduction of new products such as buses (Starbus & Globus, jointly developed with subsidiary Hispano Carrocera) and trucks (Novus, jointly developed with subsidiary Tata Daewoo). In May, 2009 Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo Debuting in South Korea, South Africa, the SAARC countries and the Middle-East by the end of 2009. In 2006, Tata formed a joint venture with the Brazil-based Marcopolo to manufacture fully built buses and coaches for India and other international markets. Tata Motors has expanded its production and assembly operations to several other countries including South Korea, Thailand, South Africa and Argentina and is planning to set up plants in Turkey, Indonesia and Eastern Europe. Tata also has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia and Senegal. Tata has dealerships in 26 countries across 4 continents. Though Tata is present in many countries it has only managed to create a large consumer base in the Indian Subcontinent, namely India, Bangladesh, Bhutan, Sri Lanka and Nepal. Tata has a growing consumer base in Italy, Spain and South Africa. Business excellence A key vector that has helped Tata companies grow and establish themselves on the global stage as business leaders in their respective fields is the strong business excellence movement in the group. One of the initiatives in the business excellence movement is a framework known as the Tata Business Excellence Model (TBEM), which has been adapted from the renowned Malcolm Baldrige archetype. TBEM assesses core aspects of business operations: leadership, strategic
  • 10. planning, customer focus, measurement, analysis and knowledge management, workforce focus, process management and business results. The model works under the aegis of Tata Quality Management Services (TQMS), an in-house organisation mandated to help different Tata companies achieve their business excellence and improvement goals. In recent years, the TBEM framework has been adapted to include new business and societal initiatives such as governance, safety, climate change and innovation. The other core elements of the Tata business excellence movement are the Tata Code of Conduct (TCoC), a mandatory pan-Tata policy that defines how Tata employees can conduct themselves, and the Management of Business Ethics, a programme that helps Tata companies drive ethics and values in the organisation. Since the 1990s, there is a formal arrangement that governs the relationship between individual Tata companies and the superstructure that is the Tata group. In order to use the Tata nomenclature, a group company has to sign a contract called the Brand Equity and Business Promotion (BEBP) Agreement. This places an obligation on the company signing on to adopt TBEM and TCoC as a means to attaining business leadership. As a result, the business excellence processes have come to characterise the Tata way of enhancing and conducting its business endeavours, and to a great extent, have helped define the Tata brand. The TBEM movement in Tata has a built-in reward and recognition mechanism wherein companies that have achieved a score of 600 on the TBEM framework are felicitated with the JRD QV Award. TQMS Tata Quality Management Services (TQMS), a division of Tata Sons (the principal promoter company of the Tata group of companies), is a trusted partner, working closely with Tata companies to achieve their business excellence and improvement goals.
  • 11. TQMS collaborates with group companies, through long and short-term initiatives, in the areas of innovation, climate change, business ethics, customer focus, improvement, strategy development, safety, human resource, process improvement, corporate governance, training and affirmative action. Through TBEM, TQMS helps Tata companies gain insights on their strengths and their opportunities for improvement. This is managed through an annual process of 'applications and assessments'. Each company writes an application wherein it describes, in the context of the TBEM matrix, what it does and how it does it. This submission is then gauged by trained assessors, who study the application, visit the company and interact with its people. The assessors map out the strengths and improvement opportunities existing in the company before providing their feedback to its leadership team. TQMS trains and certifies assessors, who are selected from across the group, and it designs and administers an assessment apparatus that helps them evaluate different Tata companies. The contact point person in each company is the 'corporate quality head', nominated by the CEO as the business excellence process owner. Typically, each company has a network of business excellence people from a variety of functions and locations. The commitment a company makes when it signs the BEBP contract compels it to attain explicit business excellence scores over specific time periods. A result-driven scoring mechanism enables the company to track its progress over time, and ensure that it keeps improving. There is also an annually administered, group-wide recognition system for companies that exceed a certain score, thereby reflecting excellence, industry leadership and consistent improvement. Implicit in the TQMS approach is the belief that its wide-ranging methodology will enable Tata companies to become exemplars — on business as well as ethical parameters — in their respective spheres. TBEM The TBEM methodology has been moulded to deliver strategic direction and drive business improvement. It contains elements that enable companies following its directives to capture the best of global business processes and practices. The model has retained its relevance thanks to
  • 12. the dynamism built into its core. This translates into an ability to evolve and stay in step with ever-changing business performance parameters. The TBEM matrix is used for the organisational self-assessment of Tata companies, recognition and awards, and for providing feedback to applicants. In addition, TBEM plays three important supportive roles in strengthening the competitiveness of Tata companies: It helps improve business excellence practices, capabilities and results. It facilitates communication and sharing of best practices among Tata companies. It serves as a working tool for understanding and managing performance, for providing planning guidance, and for identifying learning opportunities. The TBEM methodology comprises a set of questions that applicant Tata companies have to answer. Its main objectives are to enhance value to customers and contribute to marketplace success; maximise enterprise-wide effectiveness and capabilities; and deliver organisational and personal learning. The core values and concepts of TBEM are embodied in seven categories: leadership; strategic planning; customer focus; measurement, analysis and knowledge management; workforce focus; process management; and business results. The TBEM system focuses on certain key areas of business performance: customer-focused results; product and service results; financial and market results; human resource results; organisational effectiveness results; governance and social responsibility results. JRD QV Award While quality has always been one of the cornerstones of the Tata way of business, the need to introduce a formal system that calibrated how different group companies were faring on this scale began to be felt in the early 1990s. That led to the institution, in 1995, of the JRD Quality
  • 13. Value Awards, the forerunner to TBEM. Named after JRD Tata, the late chairman of the group and a crusader for the cause of business excellence in Tata companies, the awards have now been incorporated in TBEM. Jehangir Ratanji Dadabhoy Tata, or JRD, as he was popularly known in business circles, guided the destiny of India‘s largest business house for well over half a century. Over the years that he was at the helm of affairs of the group, JRD Tata helped establish many new enterprises. He was always conscious about the importance of quality, and ensured that this quality consciousness prevailed in all the organisations that belonged to the Tata group. He was proud that the companies within the group were known, domestically and internationally, for the quality of their products and services. As a tribute to his quest for perfection in every sphere of activity, the JRD Tata Quality Value Award was instituted in his memory. The JRD QV Award is modelled on the lines of the Malcolm Baldrige National Quality Award, integrating beneficial attributes from other national quality awards. The award recognises a company within the Tata group, which excels in quality management and has achieved the highest levels of quality. This is an annual award presented to the winning company on the 29th day of July, the birth anniversary of JRD Tata. The objectives of the award are: This award is given to group companies in order to create awareness on the importance of the value of quality and the need for total customer satisfaction in all areas of operations within the Tata group companies. To achieve and sustain continuous excellence and consequently leadership in the marketplace through perfection and the achievement of quality which will be recognised as being the best and ahead of competition.
  • 14. Evaluation process Tata companies participate in a bi-annual process of external assessments. The idea is to subject them to an assessment, based on the excellence parameters embedded in the Tata Business Excellence Model (TBEM). Each company writes an application in which it describes what job it does and how it does the job in the context of the criteria set by TBEM. This application is then 'assessed' by trained TBEM assessors who study the document, visit the company and interact with its people, draw out the strengths and the improvement opportunities, and then provide feedback to the leadership team. An in-built scoring mechanism enables the company to track its progress over time, and ensure that it keeps improving. Criteria for recognition: JRD QV Award: 600+ for the first time Leadership in Excellence: 700+ for the first time Sustained Excellence: 3 successive improvements beyond 600 Active Promotion: 500 to 600 for the first time Serious Adoption: 450 to 500 for the first time High Delta: High improvement in one year min 75 for 500- High Delta 500+: High improvement in one year min 50 High Delta 600+: High improvement in one year min 25 Addressing climate change The Tata group is facing up to the challenge of climate change and making it integral to its processes. The broad idea is to develop a common approach to the critical questions confronting the group's businesses on the environmental front, and formulate policies that can deal effectively with issues that impact climate change.
  • 15. Coordinating and directing the climate change efforts of the group's companies is Tata Quality Management Services (TQMS), a centrally administered organisation that draws on the experience and expertise of senior Tata leaders. The Tata group considers climate change to be a serious issue and is taking the following steps to increase carbon consciousness and institute mitigation strategies: A steering committee and working group have been assigned to address the climate change issue and cascade it into a group-level movement. Tata companies from five business sectors — steel, automotive, power, chemicals and IT — will participate in the first phase through the following strategies: o Intensive awareness and training programmes will be conducted for senior leadership. Climate change champions will be identified in each company. o Policies on energy efficiencies, green buildings, green data centres and green protocols will be developed. Awareness will be created amongst all stakeholders. o Individual Tata companies will measure their current carbon footprint to assess where the group stands. This will be extrapolated for future years. o Cost abatement curves will be established and mitigation strategies identified for the major companies. Other Tata companies will follow in the second phase. o The climate change initiative will be integrated with the Tata group's internal business excellence framework, the Tata Business Excellence Model, in order to further motivate and encourage companies. Climate change policy for Tata companies Tata companies will play a leadership role in climate change by being knowledgeable, responsive and trustworthy, and by adopting environment-friendly technologies, business practices and innovation, while pursuing their own growth aspirations and the enhancement of shareholder value. Tata companies will measure their carbon footprint and will strive to: Be the benchmark in their segment of industry on the carbon footprint, for their plants and operations.
  • 16. Engage actively in climate change advocacy and the shaping of regulations in different business sectors. Incorporate ‗green‘ perspective in all key organisational processes. Global Presence: Tata in Asia Pacific Asia Pacific is a key market for the Tata group as it enjoys a strong brand presence in the region — apart from the Indian sub-continent, Tata is present in Singapore, Thailand, Vietnam, Indonesia, Malaysia, the Philippines, South Korea, Australia and China. Although most Tata companies are headquartered in India, the group's growing global spread has resulted in the Asia Pacific region becoming a significant base of operations as well. Singapore is the headquarters of Tata Technologies and Tata NYK and also the regional headquarters of Tata Consultancy Services. Several Tata companies have set up manufacturing plants, sales and marketing operations and representative offices around the region. For instance, NatSteel, a Tata Steel company, is the leading provider of steel in the region with plants and bases in several Asia Pacific nations. A significant portion of Tata Communications network is located in the area. Tata Motors has two large operations — Tata Daewoo in South Korea and Thonburi Automotive Assembly Plant Company in Thailand. Indian Hotels has set up several Taj properties in the area, including its luxury getaways in Malaysia, Bhutan and the Maldives, and the Blue in Sydney. Tata in China China is a critical and growing market for the Tata group, which has a bit of history with regard to doing business with the Middle Kingdom. In 1859, a young Jamsetji Tata, the founder of the Tata group, was sent to Hong Kong to open a branch for his father's banking firm. He relocated a few months later to Shanghai, where he remained till 1863.
  • 17. Currently the Tata group has a fairly significant presence in China, with the number of companies and operations growing steadily. Tata companies employ over 2,600 employees in China, generated $3 billion worth of sales in the country and purchased goods and services worth $700 million in 2010. Recognising the potential for high growth in existing businesses and opportunities for new ones, Tata Sons, the group promoter company, has set up representation in China. Tata motors in North American Tata TTM -0.36% has received twice as many orders for the $2,000 micro car as it is set up to deliver through 2010. Some investors nevertheless expressed dismay Tuesday, disappointed that Tata didn't haul in even more orders. It's a problem anyone still holding stock in Ford F +0.68% or General Motors GM +0.04%might relish. Detroit need not fear an imminent incursion of home turf by the Nano. There are no Tata Motors distributorships in North America, creating a protective buffer zone that for the time being affords a good chuckle. Seriously. What's the likelihood that a car with a 650 cc, two-cylinder engine with a top speed of 63 mph poses a threat to anything larger than a scooter? America has a long history of making fun of little foreign cars. Back in the 1950s, it was the Volkswagen Beetle. But then it sort of caught on. In the 1960s, the jokes were aimed at those little Japanese imports from Toyota and Datsun. And who can forget those dinky Honda Civics? All were dismissed as cheap knock-offs of what we knew to be real cars. Then came the 1973 Arab oil embargo, gasoline shortages, and suddenly our precious land yachts were being swapped at par for those little foreign jobs that, despite initial skepticism, seemed to holding up pretty well after all.
  • 18. Gradually the U.S. auto industry realized it was losing home court advantage to the imports. The backlash was painful and palpable. No one in their right mind would park a Toyota on the streets of the Motor City without fearing it would be keyed by some angry patriot. Eventually we found new cars to joke about. Now it's Tata's turn. But there's a pattern here. Like earlier invaders, Tata is backed by a company much bigger and a history much older than we care to recognize. While the Nano grabs headlines, it's only the latest model in a Tata lineup of sedans, SUVs and commercial vehicles. Tata has a distributor network that spans parts of Europe, Asia and Africa. And it is in full growth mode, teamed up with Fiat IT:F +3.18% and capitalizing on some staggering production advantages when sized up against North American competitors. Given the evolution of the industry over the past 60 years, Tata is bound to face lots of jokes. But Detroit needs to take this relative newcomer deadly serious because they are going to find themselves in head-to- head competition for many of the same overseas customers and, just as importantly, the same pool of investor capital. Retail Production of tata motors in north American Tata motors is considering pooling engine production. Ratan Tata, chairman of the Indian holding group whose automotive business owns Jaguar Land Rover, has spoken of setting up joint engine production for its mass-market Indian operations and the two UK premium brands. JLR, which specialises in high-end executive saloons and four-by-fours, had in the past spoken of building engines in the UK or India, but this is the first time Tata Motors has spoken of combining the two parts of its business. ―To optimise the synergetic strengths between JLR and Tata Motors in India, an examination is also under way on a joint engine development programme which would have manufacturing facilities both in the UK and India‖, Mr Tata said in the company‘s annual report, released on Monday. JLR currently gets its engines from Ford Motor, which sold the premium carmakers to Tata for $2.3bn in 2008.
  • 19. Joint engine development with India‘s largest carmaker – best known for the tiny, cheap Nano – could be a sensitive topic for Jaguar and Land Rover on the competitive premium-car market. Tata is investing at least £5bn over the next five years to improve the quality of the car brands‘ products and designs, as it takes on Germany‘s larger premium car marques. Jaguar‘s image took a knock under Ford‘s ownership, when the brand‘s X-Type car was criticised for having too much in common with the Ford Mondeo. However, since then carmakers – including the German premium producers – have established increasingly global manufacturing operations or teamed up with mass-market rivals, as they seek to cut costs and build cars closer to where they sell them. BMW and Daimler‘s Mercedes-Benz brand make cars in the US, and rival premium brand Audi is considering a US production site. Daimler is co-operating with mass-market carmakers Renault and Nissan in areas including small cars and commercial vehicles. Chas Hallett, editor of Britain‘s WhatCar magazine, said: ―I don‘t think where things are made has any bearing on consumers any more. What‘s more important are that [JLR‘s] cars are engineered and designed in Britain. Where they‘re actually manufactured is irrelevant‖. Jaguar and Land Rover have rebounded strongly since the financial crisis, on the back of reviving global demand for premium cars and well-reviewed products such as the recently launched Range Rover Evoque. In an interview last month, Ralf Speth, JLR‘s chief executive, said that the carmakers had not yet decided on an engine strategy. Mr Speth said: ―We have a long-term contract with Ford. We don‘t need another partner.‖ However, he added that if JLR decided to produce its own engines, the company might do so ―either in the UK or in India or both‖. Industry observers widely expect the UK carmakers to develop their own capacity for what is seen as a core automotive technology. Rival UK premium carmaker Aston Martin, which Ford sold in 2007, said earlierthis month it had extended an agreement to buy engines from Ford, due to lapse in 2012, for at least four more years. Production process of Tata motors in north American 1) Build out a network of dealerships versus utilize existing distribution networks.
  • 20. 2) Import all completed cars from India versus setting up an auto manufacturing plant in the US or Mexico. Import Finished Cars from India or Build an Auto Manufacturing Plant Many large foreign auto companies import thousands, sometimes millions, of cars into the US each year. Toyota, for example, imports so many vehicles that it operates its own logistical branch, Toyota Logistics Services (TLS), which operates container ships and organizes import activities for many of Toyota‘s imports. Accordingly, economies of scale benefit these companies and make importing each vehicle relatively inexpensive when compared to the cost of setting up an auto manufacturing plant for those same cars here in the US or in Mexico. Further, the private nature of these types of logistics subsidiaries makes it difficult to determine the exact cost of importing a vehicle. While a breakdown of the complete import supply chain follows in a later section, estimating the cost to push a vehicle through Tata‘s supply chain is contained in Exhibit 6. This simple financial analysis compares the roughly $600 estimated cost of importing each Nano to the US to the prospective capital outlay that building a Nano factory would require, around $225 million on the low-end. While these figures are not directly comparable, they do play a role in determining whether importing or building in North America is the better route. The prospect of spending $225 million to build a North American factory is supported by the very low transportation cost that Tata would pay in delivering completed cars from the factory to its dealerships in the US. This is where the benefits end, however, as lengthy list of cons presents itself. First, spending this much capital is an unlikely option for Tata as intra-Asia and European expansion are the company‘s main concerns right now. The establishment of a dealer network involves many millions of dollars, however its operational and long-term strategic benefits are immediately clear. Second, the standardization of parts in Tata vehicles makes the current Nano plant‘s location in India ideal, as many of the same parts Tata uses in other vehicles are included in the Nano. Third, the Tata CEO has said that the Nano plant in India has been designed for customizing Nanos for sale in the European and US markets. The current Nano factory is located in Sanand, Gujarat State, India, along the country‘s Western coast. It has capacity to produce 250,000 vehicles annually. Demand for the Nano in India is currently far below this figure, and an efficient supply chain delivery Nano parts to the factory is already in place. These facts reveal that building another Nano plant in North America would be largely redundant. Another issue to consider is Tata‘s current supply chain which brings parts from across Asia to the Nano plant in Sanand. Were a new factory in North America to be setup, this supply chain would need to be expanded to bring all the same parts to the new factory, located on the opposite side of the world. With hardly any North American parts suppliers at present, setting up a factory in the US or Mexico would
  • 21. require establishing an expensive new supply chain to ship nearly all the separate Nano parts overseas. When further considering that labor costs in North America are far higher than those in India, it appears that myriad new costs would result from this additional supply chain. Exhibit 7 details the difference in pay rates among skilled auto workers in various countries. The bottom-line impact, should Tata move production to a US location, would be an additional $49 million in labor costs. This is an outrageous figure which would boost the retail price of the Nano more than $500 higher. The wage rates for auto workers in Mexico and India are actually nearly the same. Mexican production facilities would only incur an additional half-million dollars in labor cost, an amount that would be more than accounted for by savings in finished-car shipping costs and NAFTA tariff reductions. Conversely, the added inefficiencies of establishing a redundant supply chain (one leading to the plant in India and one leading to a plant in Mexico) would result in costs that far outweigh the potential savings from localized finished-car shipping. For this reason, it is clear that importing finished Nano cars from India is the best fiscal choice for Tata. Only later, once the company has an established foothold in the US market and is ready to introduce new products to it, should Tata consider constructing an auto manufacturing plant somewhere in North America. The risk of US consumers rejecting the Nano is relatively low, though its presence makes the notion of building a plant in North America premature at this time. Tata in South America The Tata group has had a presence in South America since the 1990s, principally through Tata Consultancy Services (TCS), which started its first project in Brazil. Since then the company has expanded its reach to 14 countries in the region and today serves more than 150 clients. TCS employs more than 5,000 people across the South American continent, which is a strategic base in the company‘s operations to service customers in the US and Europe. Among the other Tata companies that have businesses in the region are Tata Motors and Rallis. Additionally, Tata Steel Europe, Tata Chemicals, Tata Communications and Tata International have a sales presence in the region. Tata Motors unveils Assembly Plant in South Africa Tata Motors (SA) (Proprietary) Ltd., Tata Motors' joint venture with Tata Africa Holding (Pty) Ltd., today formally opened its assembly plant in South Africa at Rosslyn, north of Pretoria, in the Gauteng province of South Africa. The establishment of the plant is a major step towards bolstering the operations and presence of the Tata Group in South Africa.
  • 22. The plant was inaugurated by South Africa's Minister of Trade & Industry, Dr. Rob Davies, in the presence of top dignitaries from South Africa and India. Among them were Mr. Noel N. Tata, Managing Director, Tata International, Mr. Carl-Peter Forster, Group CEO and Managing Director, Tata Motors, Mr. Raman Dhawan, Managing Director, Tata Africa, as well as dealers and key associates of the company. Established with an investment of R110 million, the plant can assemble, from semi knocked down (SKD) kits, light, medium and heavy commercial vehicles ranging from 4 tonnes to 50 tonnes, with an annualised capacity of 3,650 vehicles. The capacity can be further expanded as required. The plant has been awarded with ISO 9001 accreditation by Bureau Veritas, South Africa. To begin with, it is assembling two models, the Tata LPT 813 and Tata LPT 1518, both already popular in South Africa. Speaking at the event, Dr. Rob Davies said that the launch of the plant can be attributed to South Africa's investment friendly policies. He said that the project comes at a time when the department is aggressively pursuing an industrial development strategy for the South African Medium and Heavy Commercial Vehicle (M&HCV) sector. "The key focus area of the MHCV strategy is based on: Support for Market Development (Local and Regional), development of OEM Production Capabilities and the Strengthening of the Supply Chains (1st tier Supplier base). Industry role players have and still are part of the extensive consultation process that accompanies the development of such a strategy. This will be an opportunity for further expansion of Tata Motors in South Africa," added Dr. Davies Speaking on the occasion, Mr. Carl-Peter Forster said, "With a comprehensive product portfolio, Tata Motors is now at a stage where it can consolidate its international business in its chosen markets. The assembly plant in South Africa is an expression of that resolve. Step by step, we shall expand the footprint of our international business matching markets and products." Mr. P. M. Telang, Managing Director - India Operations, Tata Motors, said, "We are very proud to commence assembly operations in South Africa, which has traditionally been among our focus countries. It is integral to Tata Motors' international business presence and plans. The company has already carved a niche for itself in the country and is confident of greater opportunities." Built over a period of 18 months, the plant is spread over an area of 34,500 sq. metres. In line with latest world-class manufacturing practices, the plant has been equipped with state-of-the-art equipment
  • 23. following lean manufacturing principles. It has built-in flexibilities to assemble large numbers and different variants in mixed mode production, to meet the requirements of the South African market. The entire capital outlay, encompassing civil and plant engineering work for the facility, has been sourced from and carried out by South African suppliers and companies. In addition, all major equipment, like heavy duty cranes, inversion mechanisms and paint booth, have also been sourced from South African vendors. The entire workforce of the plant is from South Africa. Training, skill transfer and development of local workforce is one of the top priorities of the Tata Group in South Africa. The Tata Group's training processes and facilities in India have been acknowledged as among the best. Leveraging this expertise through a robust local skill transfer and apprentice programme, Tata Motors South Africa is committed to ensuring that skill levels of individuals employed in various industrial trades, such as auto mechanic, welder, painter etc, are further enhanced. Tata has an already established state-of-the-art technical training centre in Germiston, Johannesburg, operating since 2006, for skill development of dealer mechanics in South Africa and various other countries in the continent. Tata Motors started exports to South Africa in 1998, with commercial vehicles. Exports of passenger vehicles began in 2004. Currently there are over 20 commercial vehicle models .from pick-ups to 49 tonne prime movers and from 14-seater buses to luxury coaches -- and 5 passenger vehicle models Tata Indica Vista, Tata Indica, Tata Indigo, Tata Indigo SW and Tata Safari in diesel & petrol variants catering to the needs of the South African market. The company has thus far exported over 32,000 commercial vehicles and 31,000 passenger vehicles to the country. Tata Motors' vehicles are available across 85 dealerships, through M/s Accordian Investments (Pty) Ltd., the distributor for light commercial vehicles and passenger vehicles, and M/s Tata Automobile Corporation SA (Pty) Ltd., the distributor for medium and heavy commercial vehicles. Main occupation of Tata Motors Tata Motors is India's largest automobile company, with consolidated revenues of INR. 1,23,133 crores ($ 27 billion) in 2010-11. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, the business comprising the two iconic British brands. It also has an industrial joint venture with Fiat in India. With over 5.9 million Tata vehicles plying in India, Tata Motors is the country's market leader in commercial vehicles and among the top three in passenger vehicles. It is also the world's fourth largest truck manufacturer and the
  • 24. third largest bus manufacturer. Tata cars, buses and trucks are being marketed in several countries in Europe, Africa, the Middle East, South Asia, South East Asia and South America. Tata motors in UK Tata Motors is the leader in commercial vehicles and among the top three in passenger vehicles in India. It is also the world's fourth largest truck manufacturer and the second largest bus manufacturer. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand and Spain. It also has a strategic alliance with Fiat. In the UK, Tata Motors has set up the Tata Motors‘ European Technical Centre in Warwick, engaged in the business of design engineering and product development for the automotive industry. In January 2008, Tata Motors unveiled its People‘s Car, the Tata Nano, to be launched later in the year in India. A development that signifies a first for the global automobile industry, the Nano brings the comfort and safety of a car within the reach of thousands of families. 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. Tata Motors boosts UK production areas The UK‘s technology base has been given a major boost with the announcement that Tata Motors‘ European Technical Centre is to expand its partnership with experts at Warwick University. The TMETC plans to increase its team of highly skilled engineers by 40 per cent over the next two years. Multinational automotive group Tata Motors has invested more than 85 million pounds in research and development (R&D) at TMETC since it was established on the university campus in 2005. It already has a team of 240 engineers and researchers working alongside colleagues in university department WMG, with 60 of these hired over the last 12 months because of increased R&D investment. The TMETC aims to increase the engineering and research force by a further 100 to 340 by 2013. Tata Motors is India‘s largest automobile company, headquartered in Mumbai, with revenues of 20 billion US dollars in 2009-10. The group is the leader in commercial vehicles and among the top three in passenger vehicles.
  • 25. In 2004, it bought the Daewoo Commercial Vehicles Company, South Korea‘s second largest truck maker. Along with many other stake holdings and joint ventures in other leading automotive companies across the world, it owns the classic UK brands Jaguar and Land Rover. Dr Tim Leverton, head of Advanced & Product Engineering at Tata Motors Limited, said the announcement ―represents a further demonstration of Tata‘s long-term commitment to build and develop R&D facilities here in the UK. TMETC plays a vital role in Tata Motors‘ global R&D network. ―Tata Motors gets access to world-class thoughts, skills and technologies through the TMETC and its collaboration with WMG. The contribution of TMETC and WMG is important to Tata Motors becoming an international company,‖ he added. Through this arrangement TMETC‘s engineers work alongside researchers at WMG - a university department occupying a unique position between academia and industry, formerly known as the Warwick Manufacturing Group - in low-carbon technology collaborative R&D programmes. They have already started to produce tangible results, for example Tata Motors‘ Vista electric vehicle that will be built at a nearby factory in Coventry and will be available to fleet customers in the UK later this year. Tata Motors‘ Pixel city car, which was unveiled at the 2011 Geneva Motor Show, has also been developed on the WMG campus. Based on the Tata Nano, the Pixel is a concept vehicle aimed at the European market and features a zero-turn infinitely variable transmission that gives it a turning circle radius of 2.6 metres, making it ideal for dense urban environments. At just over three metres in length the Pixel is claimed to be ―the most package efficient four-seater in the world,‖ comfortably accommodating four adults. The zero-turn toroidal traction-drive transmission assists rotation of the outer rear wheel forwards and the inner rear wheel backwards, while the front wheels turn at acute angles to achieve its exceptionally tight turning circle radius. ―Scissor‖ doors rotate upwards from the front to allow passengers to enter or exit the Pixel, even in the tightest of spaces. The vehicle is also designed to provide a high level of connectivity. Key functions are controlled by the driver‘s smart phone, running My Tata Connect, the first integrated human-machine interface concept from Tata Motors.
  • 26. Nick Fell, Tata Motors‘ European Technical Centre‘s director, said: ―WMG and TMETC are building on five years of successful partnership to further grow TMETC‘s presence at the University of Warwick. ―We plan to further increase our team on the campus by up to 100 over the next two years, and are discussing establishing test and development facilities here. This shows a clear commitment to build and develop our R&D and facilities in the UK in collaboration with WMG for the long term.‖ This was supported by WMG‘s director Professor Lord Bhattacharyya who said ―Technology businesses such as Tata are crucial to us solving global challenges that will require new thinking energy, climate- change related technologies. ―Tata‘s work alongside WMG will meet those challenges and will even lead the field in new low-carbon technologies. Tata‘s Pixel concept city car is a clear symbol of Tata‘s current technological prowess and its future aspirations.‖ The partnership announcement came shortly after research by the Council for Industry & Higher Education that indicates that the UK‘s manufacturing sector could be re-energised by a closer collaboration between companies and the science and technology departments at top universities. As well as working with more than 500 UK companies, the university‘s WMG is an international unit with collaborative centres in the UK, China, India, Malaysia, Russia, Singapore and Thailand. Tata Motors is India's largest automobile company, with consolidated revenues of Rs 92,519 crore ($20 billion) in 2009-10. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, the business comprising the two iconic British brands. It also has an industrial joint venture with Fiat in India. Tata Motors is the country's market leader in commercial vehicles and among the top three in passenger vehicles. It is also the world's fourth largest manufacturer of medium / heavy commercial vehicles, and the second largest bus manufacturer. Tata cars, buses and trucks are being marketed in several countries in Europe, Africa, the Middle East, South Asia, South East Asia and South America. The company, formerly known as Tata Engineering and Locomotive Company, began manufacturing commercial vehicles in 1954 with a 15-year collaboration agreement with Daimler Benz of Germany. It has, since, developed Tata Ace, India's first indigenous light commercial vehicle, Tata Safari, India's first
  • 27. sports utility vehicle, Tata Indica, India's first indigenously manufactured passenger car, and the Nano, the world's cheapest car. Areas of business Tata Motors makes passenger cars, multi-utility vehicles and light, medium and heavy commercial vehicles. Passenger cars: The company launched the compact Tata Indica in 1998, the sedan Indigo in 2002 and the station wagon Indigo Marina in 2004. Tata Motors also distributes Fiat‘s cars in India. Utility vehicles: The Tata Sumo was launched in 1994 and the Tata Safari in 1998. Commercial vehicles: The commercial vehicle range extends from the light two-tonne truck to heavy dumpers and multi-axled vehicles in the above 40-tonne segment. Passenger buses: The company also manufactures and sells passenger buses, 12-seaters to 60- seaters, in the light, medium and heavy segments. Tata Motors in Africa In a period of just three years, Tata Motors has emerged as the third-largest player in South Africa's commercial vehicles market, and one of the fastest growing brands in the passenger vehicles segment Tata Motors has played a major role in Tata Africa's origins and current operations in Africa. The journey began in the 1970s with the marketing of Tata Motors' heavy vehicles in Zambia. In the 1990s, Tata Africa expanded its automotive operations to Tanzania, Zimbabwe, Malawi, Namibia, Mozambique, Uganda and Ghana. Today, Tata Motors' vehicles enjoy leading positions in several vehicle segments in South Africa and Zambia. Tata Motors offers a range of passenger, multi-utility and commercial vehicles: Passenger cars: The popular Indica Commercial vehicles: Telcoline, an all-terrain vehicle suitable for both commercial and private use Heavy commercial vehicles:
  • 28. Tata Novus' new range of Tata Daewoo tippers and tractors Tata Ubuntu and other bus models Over the years, the company has established a strong distribution and marketing network with the help of various country-specific Tata Africa subsidiaries. In Ghana, operations cover both vehicle sales and after-sales. Tata Uganda, set up in 1994, conducts vehicle sales and after-sales business. In Mozambique, Tata De Mozambique Lda (TDML) is engaged in sales and service of Tata vehicles. South Africa has played an important role in the success of Tata Motors in Africa. Launched in South Africa in 2004, the Indica set the record for the most successful car launched in the country. A bus-body fabrication plant was set up in 2004 to build indigenously designed buses that are now sold in Zambia, Ghana and Mozambique. The company enjoys a leading position in tippers, medium commercial vehicles (MCV) and heavy vehicles. Recently, Tata Africa Holdings has acquired a Nissan manufacturing plant in South Africa. Sustaining its leading position in South Africa, the company recently introduced more commercial and passenger vehicle models: Safari Dicor, to be available in early 2007. Commercial vehicles, new trucks (6 and 10 tonners), tippers (2-6 cubic metre capacity) and bakkies (1.3-tonne flat-bed) are being launched. These vehicles are aimed at meeting diverse transportation needs in South Africa. The new models are on display at Auto Africa 2006 in Johannesburg. Exhibited along with new models are, for the first time at the expo, two 'concept cars' — Tata Crossover, a 'crossover' vehicle concept, and Tata Cliffrider, a multi-utility 'lifestyle' vehicle. Speaking about the new models, Ravi Kant, managing director, Tata Motors, said, "Our endeavour now is to expand our range with improved applications, to reach out to more customers and build a lifetime relationship." Future plans for South Africa are upbeat. "We are looking at increasing our logistical efficiency besides considering options to set up an assembly unit in South Africa. We are also looking at using South Africa as a source for components," says chief financial officer Praveen Kadle. The only commercial vehicle assembly unit the company has outside India is in Bangladesh. Tata Africa managing director, Raman Dhawan, defines future areas of growth and says, "Towards the end of this year, we would be entering the Nigerian and Kenyan markets with our range of commercial vehicles." Apart from the stronghold the company has in South Africa, Tata Motors is among the top automotive
  • 29. players in other countries as well. In Zambia, the company is at the forefront in the medium commercial vehicles segment. In Ghana, the company recently launched a range of passenger vehicles that includes the Indica hatchback, Indigo sedan and Indigo Station Wagon, along with the multi-utility vehicle Sumo and the Safari Dicor. According to Divyendu Kumar, head of Tata Motors' international business for the passenger car units, the new models will offer superior value to customers in the traditionally important Ghana market. The company is also making progress in other countries such as DR Congo, Ivory Coast, Kenya, Madagascar, Senegal, Tanzania, and Uganda. It is looking at options such as setting up assembly lines, re-working its price and product positioning, improving logistics and accessing local sources. The Tata journey in Africa, which began over three decades ago, has continued uninterrupted, with more milestones crossed and new strengths gained. Leading the way is Tata Motors, with its ever-expanding range of luxury and utility vehicles that promise a smoother ride ahead and more milestones to be crossed on the road to excellence. Ventures/ Company of Tata Motors: Jaguar Land Rover Jaguar Land Rover Automotive Trading (Shanghai) Jaguar Land Rover Automotive Trading (Shanghai) is the company that handles the China operations of Jaguar Land Rover (JLR). The company's main activities are the import and distributionof JLR's range of premium sedans and SUVs in China. Headquartered in Shanghai, the company has a corporate office in Beijing, three distribution facilities (a fourth one to be opened soon) and two technical training academies. JLR China sells its exclusive range of products through a distribution network of approximately 60 dealers, providing sales and service coverage across the country. In 2010, it sold
  • 30. approximately 26,000 units in the country, making it the third largest market for Jaguar Land Rover in the world. Given its size and maturity, China has the potential to become JLR's largest global market within the next few years. Jaguar Land Rover is a business built around two iconic British car brands that designs, engineers and manufactures in the UK. With investment in product creation topping £1 billion a year, Jaguar Land Rover is at the centre of the UK automotive industry‘s drive to deliver technical innovation in all areas of vehicle development. The Jaguar Land Rover business directly employs more than 18,000 people and supports approximately 130,000 jobs (through direct employment, dealers, suppliers and broader economy). Jaguar Land Rover exports annually generate almost £6 billion for the UK economy with 78 percent of Land Rovers exported to over 160 countries and 70 percent of Jaguars exported to over 60 countries. Jaguar Cars Limited, founded in 1922, is one of the world‘s premier manufacturers of luxury saloons and sports cars. Since 1948 Land Rover has been manufacturing authentic 4x4s that define 'breadth of capability' in their segments. The Jaguar XF, XK and XJ models are manufactured at the company's Castle Bromwich plant in Birmingham. Land Rover's Defender, Discovery 4, Range Rover Sport and Range Rover models are all built at the Solihull plant. The Land Rover Freelander 2 is built at the Halewood plant in Liverpool. Jaguar Land Rover is a business built around two great British car brands with exceptional design and engineering capabilities. Jaguar Land Rover‘s manufacturing facilities are in the UK. Areas of business Jaguar Cars, founded in 1922, is one of the world‘s premier manufacturers of luxury saloons and sports cars. Land Rover has been manufacturing 4x4s since 1948. Its products have defined the segments in which they operate.
  • 31. Jaguar Land Rover‘s manufacturing facilities are in the UK. The Jaguar Land Rover business employs over 16,000 people, predominantly in the UK, including some 3,500 engineers at two product development centres, in Whitley in Coventry and Gaydon in Warwickshire. The Jaguar XF, XJ and XK models are manufactured at the company's Castle Bromwich plant in Birmingham, UK, while the Jaguar X-TYPE is produced alongside the Land Rover Freelander 2 at the Halewood plant in Liverpool, UK. Land Rover's Defender, Discovery 3, Range Rover Sport and Range Rover models are all built at Solihull, UK. The business is a major wealth generator for the UK, with 78 per cent of Land Rovers exported to 169 countries and 70 per cent of Jaguars exported to 63 countries. Sales to customers are conducted principally through franchised dealers and importers. Location Jaguar Land Rover is based in the UK. Subsidiaries, JVs and Associates Websites Tata Daewoo Commercial Vehicle Company Ltd http://www.tata-daewoo.com/ (TDCV) Tata Marcopolo Motors Ltd (TMML) Tata Hispano Motors Carrocera S. A. http://www.tatahispano.com/ Tata Motors (Thailand) Limited (TMTL) http://www.tatamotors.co.th/ Tata Motors(SA) Proprietary Ltd (TMSA) HV Axles Limited (HVAL) http://www.hvaxles.com/
  • 32. HV Transmissions Limited (HVTL) http://www.hvtransmissions.com/ Telco Construction Equipment Co. Ltd. (Telcon) http://www.telcon.co.in/ TAL Manufacturing Solutions Ltd. (TAL) http://www.tal.co.in/ Tata Motors European Technical Centre plc. (TMETC) Tata Technologies Ltd. (TTL) and its subsidiaries http://www.tatatechnologies.com/ TML Distribution Company Limited (TDCL) Concorde Motors (India) Ltd. (Concorde) Tata Motors Finance Limited http://www.tmf.co.in/ Tata Motors Insurance Broking & Advisory Services Ltd (TMIBASL) TML Holdings Pte. Ltd. (TML) Sheba Properties Ltd. (Sheba) Tata Daewoo Commercial Vehicle Company The Tata Daewoo Commercial Vehicle Company (TDCV) is South Korea's second largest manufacturer of medium and heavy-duty trucks. Formerly part of the Daewoo Group, the company was acquired by Tata Motors in 2004. With the acquisition of TDCV, Tata Motors has grown to become the world's fifth largest manufacturer of heavy commercial vehicles.
  • 33. Established in 1983 as the Daewoo Motor Company, the business was spun off as Daewoo Commercial Vehicle Company in 2002. TDCV trucks are distributed locally through Daewoo Motor Sales Company and are exported to over 60 countries worldwide, including South Africa and China and countries in the Middle East, Southeast Asia and Eastern Europe. Areas of business TDCV has a product portfolio of over 75 types of trucks in the commercial vehicles segment. Its product range includes flat beds, dumpers, mixers, tractors, arm-roll trucks, refrigeration trucks and special-purpose trucks. Location The company‘s headquarters and plant are in Gunsan, South Korea. It has an office in Incheon and sales offices across the country. Internationalization As a part of the company's new internationalization strategy, the company has decided to focus on a narrow base of 14-15 countries where market conditions are similar to that of India. In these countries, Tata Motors now has dedicated manufacturing facilities, marketing teams and sales teams. The idea is to have self sustained operations in this narrow band of countries. The company evaluates locations on the basis of market opportunities and labour skills. In the framework pertaining to international expansion strategies, Tata Motors can be identified as an Extender, and is focusing on expanding into markets similar to those of the home base, using competencies developed at home
  • 34. Where is Tata Motors now and How to Globalize? Korean Operations Tata Motors entered the advanced Korean Market by acquiring Daewoo, with which it has tremendous synergies in terms of product strategy and R & D. Tata Motors has planned to use this merger and leverage the technology for developing a World Truck for India and international markets. South African Operations In the export market, Tata Motors moved from a fragmented approach to specific markets, chosen in terms of consumer behavior, distribution networks, supply chain, etc. and identified South Africa as one of the best markets. The sales in this region are about 15,000 units4. This is a significant improvement over what Tata Motors was cumulatively exporting (8000 units) before adopting its new internationalization strategy. Thailand Operations Tata Motors formed a joint venture with Thonburi Automotive Plant to enter Thailand. Thailand is the second most competitive market for pickups, and the new pickup trucks developed here will be sold in both domestic and export markets. Latin American Operations Tata Motors has taken its alliance with Fiat to produce a new one-tonne pick-up truck, for Latin American markets from Fiat's facility in Argentina. This arrangement will also see Tata Motors
  • 35. forming a joint venture with a subsidiary of Iveco, the commercial vehicle division on Fiat, to set up a distribution network. Now that Tata Motors has established a sustainable model in some countries, its main challenge is to replicate this model in other countries as well. How to replicate this strategy for other markets? Sustainable competitive advantage lies not in one, but a combination of multiple resources, each of which individually need not necessarily be the best, but in overall weighted average terms, presents the best solution. For Tata Motors, the combination of resources providing it competitive superiority on a weighted average basis includes (see Exhibit 3): 1. Product Reliability 2. Service Network 3. Channel Reach Three-way Resource Based View In terms of product reliability, Tata Motors offers products of reasonably high standards. However, foreign players like Volvo and even local competitors like Ashok Leyland arguably offer products that are far more refined. But this is more than compensated by a dependable service network and extensive channel reach. Tata's service and distributor network is by far the most extensive of any player in the trucks industry. Hence in overall weighted average terms, Tata Motors still has a winning proposition.
  • 36. Recommendation Matrix Based on a close scrutiny of the resource based view of Tata Motors and the challenges it faces, we propose a recommendation matrix arranged along three broad dimensions - Tangible, Intangible and Capabilities Three Dimensional Recommendation Matrix Tangible The strategies in this domain are primarily directed at sustaining Tata Motors' first mover advantage with respect to its offering in the Small Commercial Vehicle segment - ACE. Strategy Sustaining the First Mover's Advantage of ACE Tata Motors has an unparalleled network of dealers and service stations across the country for Medium and Heavy Commercial Vehicles (M and HCV). However most of these service National stations are along inter-city routes. It would need to replicate this network at intra-city level Footprint for its hugely successful SCV - the Tata ACE. For this Tata Motors can liaise with small garages, train them and certify them as 'Tata Authorized Service Station'. Product Tata Motors has positioned ACE as a multipurpose vehicle (MPV). This is where Tata
  • 37. Portfolio Motors can learn from the Maruti small car strategy that posits that 'there is no such thing as a small car buyer'. Hence Tata Motors should endeavour to move form a multi-purpose positioning to a mass customization positioning for ACE, wherein multiple variants are offered on the ACE platform, each uniquely suited for a specific application - such as tippers, long base trawlers, milk carriers. Intangible In intangible terms, Tata Motors needs to bolster its brand loyalty, by providing a unique customer experience. Strategy Intangible Assets In commercial vehicles industry, the uniqueness of customer experience is largely driven by the efficacy of the 'Support' framework. If your car breaks down, you can take a taxi to office. But that's not so for a transport operator. For him, his vehicle is at the heart of his business and hence responsive after-sales support is critical. Minimizing downtime Unique calls for a service network that is highly responsive and easily accessible. Besides, Tata Customer Motors should also Experience 1. Consider introducing mobile service units for Tata ACE that can respond to customer calls anywhere within a given city. 2. Start treating "Services" as a dedicated profit center. Towards this end, the company should "productize" annual maintenance contracts. Brand Building a reputation will help sustain sales, without having to engage in discount sales. Reputation Capabilities There are two broad capabilities that Tata Motors should seek to acquire. Strategy Capability Acquisition Technology Technology Appropriation is the key to Tata Motor's ambitions to offer products with
  • 38. Appropriation engines larger than 210 HP. As the share of ultra heavy commercial vehicles grows, the company will need to face up to technologically superior players like Volvo. Here, Tata will have to carefully spearhead its 'World Truck' program by carefully coordinating technology appropriation from its numerous international technology partners, notably Daewoo, Fiat and Hispano. Tata Motors has made significant investments in IT systems to network its countrywide service network. This helps them maintain very high spares parts Robust Supply availability at their service stations and minimize downtime. In the years to come, it Chain would need to include their SCV service station within this framework. This will however be a big challenge, since these service stations would largely be managed by illiterate and not-so-tech-savvy repairmen. Contingency Plans 1. Mass customization has its own shortcomings. Firstly, it puts a disproportionate amount of strain on the company's supply chain. And this is a wasted effort in case the demand patterns aren't properly understood. Hence we propose that the sales of the customized vehicles be closely tracked and in case sales achieved within a reasonable timeframe do not merit the additional resource outlay, then the company should revert to the original multipurpose positioning. 2. In the background of rupee appreciation, exports will become costly. Hence it is prudent to open integrated production plants in other countries rather than just concentrating on exports. A few pointers on what Tata Motors ought not to do are captured below: 1. Compete on price because proportion of individual players is low. Instead differentiate through service.
  • 39. 2. Engage in rapid capital expansion given the high debt to equity ratio. Use ring fencing judiciously. 3. Focus on rapid acquisitions and instead focus on consolidation in the foreign market. 4. Lose focus on the 'Value for Money' positioning, especially in the soon to be launched offering in the Ultra Heavy Commercial Vehicle segment Culture over view In the country the sustainable factor which will be highly influence the motor sectors to grow in such a way to success is mainly the culture of the areas this is important aspects when the company want to grow in the particular country so main objective peoples behaviors and the acceptance so they are the main consideration when globalization take place and the political and geographical aspects also play a roal in the company this are the main issues in the any company to be the success so they will consider the main aspect in the international business. Reference: Sours: http://www.time.com/time/world/article/0,8599,1881404,00.html#ixzz1cZDSfj00 http://www.ukti.gov.uk/investintheuk/sectoropportunities/moresectors/item/157760.html http://www.tatamotors.com/media/press-releases.php?id=693