TATA Motors – Inspired by people
Tata motors is one of the leading automobile companies on
India which operations spread across many countries. Their vehicles can be
found on and off-road in over 175 countries around the globe. The unique
selling point of the company is that it is one of the trusted and oldest
companies with deep penetration in the Indian market.
Year Established: 1945
Employee Strength: 60000
Company Turnover: $42 Billion
Vehicles Sold: Nearly 10 Million
Sales/ Service Points: 6500
The internal environment analysis on any company consists of
the analysis of the strengths and weeknesses on that compnay. The strengths
have to be furthered and weeknesses reduced in order to ensure healthy growth.
TATA motors hire the local populace in all the geographies
it operates out of generating employment opportunities. So TATA motors has got
good acceptance among people.
TATA motors is widely involved in Corporate Social Responsibility
(CSR) Activities in all the countries it operates in. This has helped the
company to get integrated into the local societies. A few heads under which the
Aarogya – Health
Vidyadhanam – Education
Kaushalya – Employability or Skilling
Vasundhara – Environment
Amrutdhara – Drinking Water
Aadhaar – Community Devlopment
Seva – Volunteering Programme
SkillPro program which trains talented youth on mechanic
motor vehicles. After the training the trainees are assigned for on the job
training. This programme is currently operational in 7 countries (Sri Lanka,
Bangladesh, Nepal, Bhutan, Myanmar, Nigeria and Mozambique)
TATA motors beleives that the happy employees right from the
chairman to the shop level employee are the baisis for the well beimg of the
company. So they are all well integrated into the system with better pay and
other meployee benefits.
The company beleives in fulfilling every indians dream of
owning a car, this including the middle class and the lower strata of the
society. So they introduced TATA Nano cars. However the project did not yield
the decired result as it was advertised as the cheapest card in the world and
the word “Cheap” did not conote to “affordablity” but with
the low qullity to the middle class. It failed due to Unclear targeting,
suitable only for intra city mobility, etc.
Political and Legal Factors
The politica of the statoe or the country in which the
company operates plays an important role in the success and the growth of the
company. The factor which affetcs a company are the tax regime, industrial
policy, economic reforms, export-import policies, labour laws, free trade
agreements among others.
The Singur protest dented heavily, the finances of the TATA
motors. Singur event was mainly due to political reasons. So the TATA Nano
plant was moved to Sanand in Gujarat. The company had to face many legal
hurdles in the court for many years and finally the land in Singus was returned
to the farmers.
The takeover and integration of Jaguar and Land Roved in the
United Kingdom was rather smooth due to the political cooperation the company
got for the government there and the prevailing policies.
TATA motors is knows for its uprightness in spplyong fpr
sanctions and licenses and there are no cases on it indulging in lobbying in
the corridors of power.
TATA Motors good operation also is due to the prevailing
political stability in all the geographies it is operating in like Africa,
Europe, Middle East and Australia.
The advancement in technolofy and its adoption is key to
survival and growth of the company. TATA Motors has been
With acquisition of Jaguar and Land Rover, the company got
its hands on the latest and the advanced technologies in mobility. When its
relevance was reducing in India, the company is using technology to capture
market with introduction of new varients of vehicles with latest technologies.
Examples of latest releases are Tata Nexa, Tigor, Tiago, Hexa, Bolt etc.
There is constant upgradation of design too in the TATA cars
of late which has caught the imagination of the customers in the highly
competitive markets like India.
One setback to the company was the failure of Nano as there
was sno advanced technology used to keep the cost low. AAdded to this were the
instances of Nano catching fire.
TATA Motors has a strong Research and Development(R&D)
network with 1,400 scientists and engineers to come up with new varients of
efficient engines and technologies. For example, the Indica revolutinesed the
car rental and business travel segment with affordibility and fule efficiency.
Currently the company is concentrating on development of
Electric vehicles which is the next booming thing in the automobile industry.
The company has alreadt entered into agreement with the Government of India to
provide electrical vehicles (TATA Tigor varient) for the use of government
Tata Motors follows the dual approach – Reducing Pollution
and Restoring Ecological Balance. The first part concerns with the
manufacturing while the secing part is manily concerned with the corporate
social responsibility engagements.
Tata Motors is always compliant to with the existing
regualtions in manufacturing by adhering to Bharath State 4 and Euro norms or
fuel consumption and emiission.
The company has been concentrating on bringing the new
technology and the innovation in the realm of motors by introducing electric
vehicles. The development and testing of hydroneg fuel based cars too is
TATA Motors strive to uphold ethical standards of integrity
and probity. The Company’s code of conduct sets out the behaviours that the
Company expects of its staff complying with applicable laws, including
anti-bribery, corruption and competition laws, sanctions and export controls.