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Contents INTRODUCTION ....................................................................................................... 3CORPORATE STRATEGY .......................................................................................... 3Corporate Governance ........................................................................................ 3Enterprise Process Model (EPM) - Process Management at Tata Motors ................5Operations & Production Management ................................................................... 6Inbound Logistics ................................................................................................ 6............................................................................................................................... 6Vendor Management .......................................................................................... 6Manufacturing ..................................................................................................... 7Product development .......................................................................................... 7Cost Cutting Techniques ..................................................................................... 7Quality Management ........................................................................................... 8Operations ........................................................................................................... 8Sales & Marketing at Tata Motors .......................................................................... 8Product and Brand Strategy ................................................................................ 8Pricing ............................................................................................................... 10Promotion .......................................................................................................... 10Distribution ........................................................................................................ 10Financial Strategy of TATA MOTORS ..................................................................... 11Cost cutting and recovery strategies: ............................................................... 11 Tata Motors Finance Ltd (TMFL) ........................................................................ 12Human Resource at Tata motors .......................................................................... 14Information Technology Strategy ......................................................................... 17Enterprise Resource Planning ............................................................................ 17Customer Relationship Management ................................................................ 172

INTRODUCTION Tata Motors, leader in commercial vehicles, is India's largest automobilecompany with revenue of USD 14 billion i n 2 0 0 8 - 0 9 . T a t a M o t o r s , t h e f i r s t c o mp a n y f r o m I n d i a ' s e n g i n e e r i n g s e c t o r t o b e l i s t e d i n t h e Ne w Yo r k S t o c k Exchange and has operations in the UK, South Korea, Thailand and Spain. Tata Motors started operations in 1945 and entered commercial vehicle sector in1 9 54 a f t e r f o r mi n g a jo i n t v e n t u r e wi t h Da i m l e r - B e n z t h a t l a s t e d t i l l 1 9 6 9 . Inm o r e t h a n s i x d e c a d e s o f i t s o p e r a t i o n s , i t h a s g r o w n b o t h o r g a n i c a l l y a n d inorganically. In 2004, Tata Motors bought Daewoos truck manufacturing unit inSouth Korea followed by the acquisition of the Hispano Carrocera in South Africa.In 2008, it acquired prestigious brands Jaguar and Land Rover from Ford MotorC o mp a n y. T h i s a c q u i s i t io n wa s i mp o r t a n t s i n c e b e f o r e t h a t Ta t a M o t o r s wa s considered as a formidable global player at lower market segment only. CORPORATE STRATEGY The current strategy of the Tata Motors can best be summarized as DisruptiveI n n o v at i o n , wh e r e i n i t h a s o f f e r e d l o we r p r i c e d p r o d u c t s a n d s u r p a s s e d t h e market expectations. Its two latest offerings have further strengthened the TataMotors position as a le ading player. While Ace has been a rage in the market, Tata Nano has taken the world with awe.Much of the practices of Tata Motors, including its customer focus, attributes tothe learning and experience of over six decades. Tata Motors that started with ahuge success and market demand faced its first product failure in the launch of 1 5 1 6 . Wi t h t h e f o r e i g n p l a ye r s e n t e r i n g I n d i a , Ta t a mo t o r s t h a t wa s p r i ma r i l y focusing on High weight commercial vehicles, included LCV in its offering andcame up with Tata 407. Tata Motors in the meanwhile was also vying to developend to end in-house technical competence and thus ventured into engine designb y p a r t n e r i n g wi t h C u mmi n s . T a t a mo t o r s c o nt i n u o u s l y faced the problem of overloading by the users and responded by i n t r o d u c i n g s t r o n g e r ma c h i n e s . However, a major change came after a heavy loss of Rs 550 cr in 1999 where init re-aligned its marketing team and became more sensitized to customer needs. The revival strategy of Tata motors had three phased business plan. Firstly, it focused on the cost reduction initiatives for immediate turnaround. Secondly, it f o c u s e d ondomestic and international growth through new products a n d i mp r o v e d s a l e s a n d s e r v i c e . F i n a l l y, i t l i n k e d l o n g t e r m g r o wt h wi t h i n c r e a s e d business in LCVs, new product segments and new

geographies. The strategy andlearnings have gone a long way with Tata Motors earning net profit of more thanRs 1000 cr even in a lean FY 2008-09. Corporate Governance Tata Motors being part of the Tata conglomerate has its philosophy deeply linkedt o t h e c o r e p h i l o s o p h y o f t h e Ta t a g r o u p . I t h a s f a i r , e t h i c a l a n d t r a n s p a r e n t governance practices along with highest standards of professionalism, honesty,integrity and ethical behaviour. The company gives maximum importance to the3

value creation and sustainability of all the other stakeholders viz. customers,creditors, employees, vendors, community and the Government. Tata Motorshave implemented the Tata Business Excel lence model which is a part of Tatac o d e o f c o n d u c t a p p l i c a b l e t o a l l subsidiaries of Tata group. The companyoperates with a strong social conscience and believe in bringing benefit t o peoples lives. Tata Motors strictly follows The Whistle Blower Policy, an extension of the TataC o d e o f C o n d u c t , w h i c h r e q u i r e s v e r y employee to promptly report to the m a n a g e m e n t a n y a c t u a l o r p o s s i b l e v i o l a t i o n o f t h e C o d e o r a n e v e n t h e becomes aware of that could affect the business or reputation of the Company. the Ethics and Compliance Committee who monitors the compliance of the TataCode of Conduct for Prevention of Insider Trading by checking monthly reportson dealings in securities and also decides penal action, if necessary. This is morei mp o r t a n t s i nc e i n I n d i a n ma r k e t T a t a b r a n d i s s yn o n ymo u s w i t h Tr u s t . C S R activities of Tata Motors covers major areas like environment, energy and waterconservation, health, education and livelihood. SWOT Analysis TATA-JLR TATA Motors bought the iconic Jaguar and Land Rover operations from Ford for1.15 billion pounds in Mar-Apr08. Tata gained the rights to the Daimler,Lanchester, and Rover brand names. In addition to the brands, Tata Motors alsogained access to 2 design centres and 3 plants in UK. The key acquisition wouldbe of the intellectual property rights related to the technologies. However there isa challenge related to the technology changes in the new entity and Fordstechnology will help in the short run and looking at the emerging emissionstandards hybrid and green technology will be the need of the hour. BCG Matrix for Tata Motors SBUs 4

The Major SBUs of Tata Motors in which they have divided their business are: Commercial Vehicles (Light weight trucks to multi-axle 40 ton vehicles) Passenger Cars, economy and luxury (Indica, Nano, JLR) Utility vehicles, standard and premium (Sumo, Safari) Spare parts, components and accessories (HV Axles and transmission,High horse power engine via Tata Cummins) Financing for customers and channel partners (via Tata Motors Finance) 1 Enterprise Process Model (EPM) - Process Managementat Tata Motors When Tata Motors made a huge loss of 500 crores in the year 2000 -01, analystshad all but written off Tata Motors fortunes. But TML was determined to bounceback and hence started the process of serious introspection. Three key reasonswere identified for the massive lossa) Lack of customer focus b) lack of processmanagement c) lack of new products and variants. TML had decided the threee l e m e n t s i n a s y s t e m a t i c manner, the major emphasis being p r o c e s s management. Ta t a M o t o r s h e n c e s t a r t e d t o a d o p t t h e A P QC 1 3 ( A me r i c a n P r o d u c t i v i t y a n d Quality Center) processes and sub process and hence derive the Tata BusinessExcellence Model (TBEM, based on the Malcolm Baldrige National Quality AwardProcess), thus adopting a process oriented approach than merely people orienteda p p r o a c h . T h i s p r a c t i c e mi n i mi z e d t h e i n f l u e n c e o f i n d i v i du a l e mp l o ye e s i n running the operations. This also entailed the documentation of the processes,which brought about lot of clarity in terms of roles and responsibilities of processo w n e r s , i n p u t s a n d o u t p u t s o f t h e p r o c e s s e s , i n p r o c e s s a n d e n d p r o c e s s measures, entities involved and its linkage with the ISO and TS standard system. The Enterprise Process Model has been depicted in the figure below. 1 Hasamnis, Sudhir, ENTERPRISE PROCESS MODEL (EPM) PROCESS MANAGEMENT AT TATA MOTORS LIMITED,2008 5

Figure: Enterprise Process Model 1 Operations & Production Management Inbound LogisticsProcurement Vendor Management In the Year 1997, Tata Motors promoted a c o m p a n y c a l l e d T a t a Autocompsystems Limited (TACO) . The main objective was to serve form jointventures with international auto component manufacturers and streamlining thev e n d o r ma n a g e me n t p r o c e s s e s f o r t h e c o mp a n y. 2 Tata Motors sources from 2 ICMR case study, Operation Management at Tata Motors, excerpts. 3 www.scribd.com/tatamotors 6

vendors who focus on their own R & D to reduce cost. Most o f t h e v e n d o r s develop products with Tata Motors itself and quite a few were given designs by Tata Motors. TML also helped the vendors find international partners to makeproducts that would meet their requirements. Some of the vendors who supply to Tata Motors also did competitive buying of material from China and Thailand. 3 Manufacturing In an automotive industry, the main emphasis on quality w o u l d b e o n t h e manufacturing process. There would be about fifteen thousand accessories andc o mp o n e n t p a r t s t o a s s e mb l e a n d a c t i v a t e w h i l e we ma n u f a c t u r e a c a r . T a t a motors believes in the indigenous development of manufacturing process anddevelopment of technology. Unless many automobile companies, the strategy of t h e f i r m i s n o t t o b l i n d l y a d o p t a n y n e w s u c c e s s f u l t e c h n o l o g y. I t b e l i e v e s i n stateof-the-art technology. With reference to the product market matrix (withp r o d u c t d e v e l o p m e n t , m a r k e t d e v e l o p m e n t , m a r k e t p e n e t r a t i o n a n d diversification) which composes t h e m e r g i n g o f p r o d u c t i o n a n d m a r k e t i n g strategies Tata motors is seen to follow the diversification strategy wherein it produces new products and gets into new market to target with the product. Product development N e w P r o d u c t D e v e l o p me n t wo u l d i n v o l v e i d e a g e n e r a t i o n , p r o d u c t s c r e e n i ng ,c o n c e p t t e s t i n g, B u s i n e s s a n d f i n a n c i a l a n a l ys i s , p r o d u c t d e v e l o p me n t , t e s t marketing and commercialization. An automobile product development cycle iss a i d t o b e c o n s i s t i n g of concept stage (where the car starts), A d v a n c e engineering (where the car takes shape), product engineering (where the detailsa r e f i l l e d i n ) , p r o d u c t i o n e n g i n e e r i n g ( wh e r e t h e c a r i s w o r k e d o u t ) a n d t h e ma n u f a c t u r i n g s t a g e ( wh e r e a l l c o me s together) 3. T a t a M o t o r s En g i n e e r i n g Research Centre in Jamshedpur focuses in upgrading the components and partswith evolution of technology and also is one of the best in determining the needsof a customer and developing a new product to cater to the needs. Tata Nano iso n e s u c h p r o d u c t f r o m t h e s t a b l e o f T a t a m o t o r s . B e s i d e s t h i s c e n t r e t h e Research and development of Tata motors has become international with centresin Spain, UK and South Korea also.

Cost Cutting Techniques After a rough fiscal year in 2001, Tata Motors realized that t h e o n l y w a y t o survive this market was to cut down on costs. They started practicing an entirelyn e w w a y o f p r o c u r i n g t h e i r s u p p l i e s a n d h e n c e g a v e r i s e t o a u n i q u e w a y o f managing supplier relationship. The earlier traditional method that Tata Motorsg a v e t h e t e c h n i c a l specifications to the supplier and the supplier who w a s s u c c e s s f u l i n a c q u i r i n g t h e b i d f i l l e d u p t h e o r d e r s . Ho we v e r u n d e r t h e n e w system Tata Motors simply provided the output they expected, and allowed thes u p p l i e r s t o b e a s c r e a t i v e a n d i n n o v a t i v e w i t h t h e i r d e s i g n s , ma t e r i a l s , a n d p r i c e s . I n o t h e r w o r d s Ta t a M o t o r s wo u l d s imp l y d e s c r i b e t h e g o a l t h a t t h e y 34 http://msl1.mit.edu/TPP12399/Session01/lecture018.htm 7

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