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External and internal environment of TATA in India

Paper Type: Free Essay Subject: Marketing
Wordcount: 1280 words Published: 8th May 2017

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Tata Motors Limited is the biggest automobile company in India. The consolidated revenues of Tata Motors Ltd. in 2009-10 are $20 billion. . It has the largest market cap in commercial vehicle segment in India, and second largest in the passenger car segment. Tata Motors was established in 1945 and today has more than 5.9 million vehicles on Indian roads. In manufacturing truck, Tata motors ltd. has become the fourth in the world and second largest in bus manufacturing. Currently, 24000 employees are working with Tata motors Ltd. and their main vision is to be the best in manner and to distribute the best product and also to best in ethics and value system.

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Before 1990s, Tata mainly focused on the commercial vehicle sector and different kinds of vehicle like commercial trucks, military trucks, and construction vehicles was made by them. Their first movement was to introduce utility vehicles in passenger car sector with two main models, Tata Safari and Tata Sumo. After that Tata has got great success and satisfactoriness among customers with these two model car and also got big support then entered into small business car sector in India.

Tata Motors, the first Automobile company to be listed in the New York Stock Exchange (September 2004) that is from India’s engineering sector, it has also emerged as a global automobile company. Tata has also operations in different countries of the world. These are UK, South Korea, Spain and Thailand.

In 1998, Tata motors first lunched fully indigenous passenger car Tata Indica. After two years of launch, it got popularity and became India’s largest selling car in its segment. In 2005, Tata Motors has enjoyed by creating a new sector by launching the Tata Ace, India’s first indigenously developed mini-truck.

Current situation of Tata Motors:

Overview of Company:

The Tata Motors group is an established passenger and commercial vehicle manufacturer in 1945 and it was the part of larger Tata Group. Tata motors were holding their recognitions for the last ten years in the passenger car market. Currently, Tata Motors are operating on five passenger vehicles and these are pickups, trucks, tractor trailers, tippers, and buses. Tata Motors commercial contour has been recognized for a number of years in various market segments such as Europe, Africa, The Middle East, Australia, Southeast Asia, and South Asia. It has gained high market share by expanding their business around the world through a series of acquisitions. In 2004, they acquired Daewoo commercial vehicle Company in South Korea which was the second largest truck manufacturer in South Africa. This acquisition gave Tata Motors a considerable charisma in the Korean market. After that they have merged in companies as a joint venture such as Thonburi Automotive in 2006, which gave them access to manufacture and sell pickup trucks in Thailand. This is how they built their reputations which hold 80-85% of company profits with respect commercial vehicle. Their largest acquisition was with Ford and they paid to Ford $2.3 billion for taking of Jaguar and Land Rover from Ford. In January 2008, Tata Motors induced a new Car that is Tata Nano. Tata Nano has been consequently launched, as it planned before, in India in March 2009. It signifies the global automobile industry, the price of the car is affordable and it is only Rs.10 million. In May 2009, Tata Motors introduced new trucks name Prima in modern era it practices best utilization of power, speed, carrying capacity, operating economy and trims, which will bring in new benchmarks in India and match the best in the world in performance at a lower life-cycle cost.

Tata Motors is equally concentrating on environment-friendly technologies especially in emissions and substitute fuels. . There are many electric and hybrid vehicles developed by Tata motors especially for personal and public transportation. Tata also involve in many activities such as engineering and automotive solutions, construction equipment manufacturing, automotive vehicle machinery manufacturing and supply chain conduct, machine tools and factory mechanization solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations through subsidiaries.

Tata Motors is committed to improving the quality of life of communities by working on four thrust areas – employability, education, health and environment. The activities touch the lives of more than a million citizens. With the foundation of its rich heritage, Tata Motors today is etching a refulgent future

Financial Situation:

The earnings of Tata Motors are increasing day by day because of various acquisitions and joint ventures with truck manufacturers in Southeast Asia. In 2006 the Gross profit 2006 was 1,160.9 million and in 2007 it increased to 1,510.1 million. Moreover, overall Earnings also increased significantly after paying tax .It was 336.6 million in between 2006 and 2007 and 405.5 million in 2007.

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Corporate Governance

Since Tata Motors is a part of a large conglomerate company it needs to have a strong corporate governance to ensure that its employees act ethically and the business continues to run smoothly especially during the ever changing and dynamic global economy. “Tata Group’s corporate governance is founded upon a rich legacy of fair, ethical, and transparent governance practices” (tatacarsworldwide.com). One of the more important parts of this is the transparency of the company people have a right to know what the company is doing not only to ensure ethical practices, but for the insurance of their many shareholders whom have a right to know the inner workings of the company. A full list of top management is visible in Appendix B.

Tata has created some models for employees to guide themselves through everyday business practices to ensure that the corporate governance is continuously being upheld. The Tata business excellence model is upheld by Tata quality management services. Quality management is an in-house group dedicated to helping the various Tata companies achieve their business objectives through specific processes. The two main processes that the quality management services employees focus on are business excellence and business ethics. These two objectives have helped build Tata into the strong, dynamic company it is today. These models are entrenched in the company’s ethnical standards and Tata feels strongly about enforcing both throughout the company. “Tata quality management services plays the role of supporter and facilitator in the journey that Tata enterprises undertake to reach the peaks of business eminence while, at the same time, adhering to the highest ethical standards” (Tata.com).

To further prove their commitment to quality and ethical practices Tata has introduced annual quality awards for those companies conducting business with the utmost quality. These awards are called the JRD quality value awards named after the late chairmen JRD Tata. These awards are presented annually on July 29th, the birthday of JRD Tata. Tata has committed to ensuring quality and ethical standards not only within Tata Motors, but throughout their many other branches and sectors of the Tata Group. They have done so by benchmarking quality standards through the Tata business excellence model as well as providing incentives for companies to strive to improve the quality of their service, by awarding JRD quality


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