Business policy gr.5
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Business policy gr.5

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mba 3rd sem

mba 3rd sem

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Business policy gr.5 Business policy gr.5 Presentation Transcript

  • Group No. 5 Business Policy
  • Group Members Manasi Pitale Jesal Sanghvi Anna Juno Ashish Agrawal Swati Sahane Ajay Chandel Arun Mishra Ashay Raul Sandeep Somaiya Dr. A. M. Saad Avinash Karade
  • Competitive Advantage Competitive advantage is anything that gives a business any kind of advantage over its business rivals. Types of competitive advantages: 1)Cost advantage 2)Differentiation advantage
  • A Model of Competitive Advantage Resources Distinctive Competencies Capabilities Cost Advantage or Differentiation Advantage Value Creation
  • Strategy Competitive Advantage
  •  To analyze the competitive forces in an industry, Michael Porter suggested four "generic" business strategies that could be adopted in order to gain competitive advantage.  The four strategies relate to the extent to which the scope of a business activities are narrow versus broad and the extent to which a business seeks to differentiate its products.
  • MICHAEL PORTER COMPETITIVE FORCES STRATEGY
  • Strategy - Differentiation This strategy involves selecting one or more criteria used by buyers in a market - and then positioning the business uniquely to meet those criteria. Differentiation is about charging a premium price that more than covers the additional production costs. Giving customers clear reasons to prefer the product over other, less differentiated products. Examples: Mercedes cars - Benz
  • Strategy - Cost Leadership The objective is to become the lowest-cost producer in the industry If the achieved selling price can at least equal the average for the market, then the lowest-cost producer will enjoy the best profits. Low-cost leader will also discount its product to maximize sales, if it has a significant cost advantage over the competition and thus can increase its market share. Examples: Nissan; Tesco; Dell Computers
  • Strategy - Differentiation Focus A business aims to differentiate within just one or a small number of target market segments. There are opportunities to provide products that are clearly different from competitors who may be targeting a broader group of customers. The important issue for any business adopting this strategy is to ensure that customers really demands it. e.g. The Perfume Shop; or specialist holiday
  • Strategy - Cost Focus The product will be basic - perhaps a similar product to the higher-priced and featured market leader, but acceptable to sufficient consumers. Such products are often called "metoo's". Many smaller retailers featuring ownlabel or discounted label products.
  • TATA GROUP Tata Group is a multinational conglomerate founded by Jamsedji Tata in 1868. The Tata Group has operations in more than 85 countries across six continents. Its companies export products and
  • It Comprises 98 companies in seven business sectors, 27 of which are publicly listed. 65.8% of the ownership of Tata Group is held by the charitable trust of Tata. Companies which form a major part of the group include Tata Steel, Corus Steel, Tata Motors, Tata Consultancy Services, Tata Tea, Titan Industries, Tata Power, Tata Communications and the Taj Hotels.
  • TATA MOTORS Tata Motors Limited formerly known as TELCO (TATA Engineering and Locomotive Company) was established in 1945. It is India's largest passenger automobile and commercial vehicle manufacturing company. It is also the world's 5th largest commercial vehicle manufacturer.
  • Tata Motors was first listed on the New York Stock Exchange in 2004. Tata Motors had created the wealth Rs. 320 billion during 2001-2006 and stood among top 10 wealth creators in India. Tata Motors is India's only fully integrated automobile manufacturer with a portfolio that covers trucks, buses, utility vehicles and passenger cars.
  • VISION: To be best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics. Employees: 23000 Revenue: USD 8.8 Billion (2007-2008)
  • MILESTONE S
  • 1945 TATA Engineering &Locomotive CO LTD was established 1954 -1966 Collaboration with Dainler Benz Ag,Germany Research centre was set up at Pune 1971-1977 Introduction of DI engines First commercial vehicle was rolled out from Pune
  • 1985-86 First hydraulic excavator collaboration with Hitachi First light commercial vehicle was launched 1991-1998 Joint venture agreement signed with Mercedes - Benz Joint venture agreement Cummins engines for high horsepower Tata Sumo, Tata Sierra Turbo ,Tata Safari , launched
  • 2001 Indica V2 , CNG Indica launched 2002 Tata Engineering signed a product agreement with MG Rover of the UK 2003 • Tata Engineering becomes Tata Motors Limited. 2004 completes acquisition of Daewoo Commercial Vehicle Company
  • 2006-07 Construction of Small Car plant at Singur, West Bengal 2008 Tata Motors unveils its People's Car, Nano, at the ninth Auto Expo Tata Motors completes acquisition of Jaguar & Land Rover.
  • SWOT ANALYSIS
  • STRENGTHS Brand Name. Strong Market Position. Cost Advantage. Distribution & Customer Care Networks. Human Resource & Advanced Technology Research & Development. Strong Auto Finance Operation & Revenue Growth.
  • WEAKNESS Overdependence on Indian Market.
  • OPPORTUNITIES Liberalization Policy Infrastructure Development Market Expansion Strategies like Joint Ventures, Mergers & Acquisitions Reduction in Excise Duty & Income Tax
  • THREATS Global Competition. Government Regulations. Diesel Fuel Issues & Increase in prices of raw material.
  • TATA MOTORS ACQUISITION
  • (Jaguar Land Rover) (Daimler, Lanchester and Rover)
  • TATA MOTORS JOINT VENTURES  
  • TATA MOTORS AND CUMMINS ENGINE CO. Post liberalization, in order to expand rapidly, the company adopted the route to joint ventures. In 1993, it signed with Cummins Engine Co., Inc., for the manufacture of high horsepower and emission friendly diesel engines
  • TATA MOTORS AND DAIMLER-BENZ AG. Tata Motors launched its first truck in collaboration with Mercedes-Benz commercial vehicle sector in 1954 after forming a joint venture with DaimlerBenz AG of Germany.
  • TATA MOTORS AND MARCOPOLO S.A. Tata Motors has also formed a 51:49 joint venture with Marcopolo S.A., a Brazil-based global leader in bus body building The joint venture will absorb technology and expertise in chassis and aggregates from Tata Motors. Marcopolo will provide know-how in processes and systems for bodybuilding and bus body design.
  • TATA HOLSET LTD. Furthering the trail of JVs it signed a joint venture agreement with Tata Holset Ltd., UK, for manufacturing turbochargers to be used on Cummins engines.
  • TATA MOTORS AND HITACHI TCE is a joint venture between Tata Motors and Hitachi, which focuses on excavators and other construction equipment.
  • TATA MOTORS AND LUXEMBOURG Tata Motors and Motor Development International of Luxembourg have jointly developed the world's first commercially-viable prototype of a compressed air car, named OneCAT.
  • TATA MOTORS AND HISPANO CARROCERA SA. In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motors acquired 21% stake in Hispano Carrocera SA, Aragonese bus manufacturing company and introduced its high-end inter-city buses in the country.
  • TATA MOTORS AND DAEWOO Tata Motors bought Daewoo's truck manufacturing unit, now known as Tata Daewoo Commercial Vehicle, in South Korea.
  • TATA MOTORS AND FORD. On March 26, 2008 Tata Motors agreed to purchase Jaguar Cars and Land Rover from Ford Motor in a deal worth $2.3bn (£1.15bn). Tata Motors has also acquired from Ford the rights to three other brand names: Daimler, Lanchester and Rover.
  • TATA MOTORS AND THONBURI The company has formed a joint venture with Thailand’s Thonburi Company, an independent auto assembler, in which Tata Motors will hold a 70% stake.
  • TATA MOTORS AND STAR BUS. On its journey to make an international foot print, it continued its expansion through the introduction of new products into the market range of buses (Starbus & Globus).
  • Innovations The innovations made by TATA group are:-  Tata Nano  Popularly known as People’s car going to be launched in 2008  Its safety performance exceeds regulatory requirements in India.  It has a lower pollution level than two-wheelers being manufactured in India today.  Fears created across the environmentalist is that Mass motorization in India would result adverse effects on pollution and global warming.
  • Cont…  Tata OneCAT  Tata Motors and Motor Development International of Luxembourg have jointly developed the world's first commercially-viable prototype of a compressed air car.  There are no gasoline costs and no fossil fuel emissions from the vehicle.  It is actually a dual fuel car but it is more efficient than any present Hybrid cars.
  • Case Study on Competitive Advantage of Tata Motors’ Rs. One - Lakh Car Project: Opportunities & Challenges
  • The Cheerleaders “The car is good to look at. There is a space in the market between two-wheelers and the 800cc(Maruti’s small car). It will be a success if they deliver what they promised. And I see no reason why they can’t.” --Jagdish Khattar Former M D Maruti Suzuki “With The release of the world’s cheapest car, India’s Tata Motors has entered a space no other automobile manufacturer inhabits.” --Forbes.com
  • The Indian Automobile industry Rethinks…after Nano Maruti : Probably the worst affected. But it doesn’t agree that Nano might affect its sales. Strangely, neither is it launching any ultra cheap model nor is it bringing down 800’s cost. It recently showcased two compact concept cars SPLASH & A-STAR . Bajaj : Highlighted its concept car LITE , which will be available in two forms- Passenger and commercial. The concept is a brainchild of Bajaj Auto and will be spearheading this project. But then it may partner with Renault and Nissan, if required. It can transform into four wheeler maker. Market Reaction
  • The Indian Automobile industry Rethinks…after Nano…… Honda : plans to launch a compact car, and showcased the Jazz. But launch date is yet to be finalised. It will soon be seen competing with current heavyweights in B+ segment, it will take on Swift, Getz, Skoda et al. Skoda : It launched the Fabia, a premium compact hatchback and now it is mulling over plans to launch Roomster(multi purpose vehicle) and Yeti(sports utility vehicle) Market Reaction
  • The Indian Automobile industry Rethinks…after Nano Hyundai : it has launched i10. the model, with its sibling Santro, can take its annual sales past the 200000 mark. It unveiled its SUV- santa fe. The SUV will use 2.2LCRDi engine. GM : It has plans for major product launches in India. Apart from the regular Chevrolet range of small and mid-segment cars like Aveo and U-VA, it unveiled Captiva SUV. Market Reaction
  • Possibilities for a Rs. One lakh car in India Ratan Tata has graduated in different league altogether where it is not money that’s driving him(the Nano might not make any worthwhile money for him in any case) What's driving him is a concept called as “Social Entrepreneurship” The fact that for him promise is a promise. -it is possible(Ratan Tata)
  • Speculations As many as 12.8 million households can be the buyers of Tata’s small car, Nano. “Indians are savers, they are frugal, they are cost conscious” – Mckinsey report. If Indica(diesel) changed the way an indian consumer thought, the Nano will force him/her to act(and now buy). And if the Nano becomes a big hit, it will make Tata a global super hero.
  • 1-Challenges for Tata Nano 2-Technical Specification & Opportunities for Tata Nano
  • Material Cost Has risen from 13% to 23% in last one year
  • Mass Motorization Environmentalists are opposing the project Extraordinary Low Cost – Mass Motorization
  • ental ironm Env ution poll Global
  • Singur Car Factory Land Dispute Mamta Banerjee was expecting 400 acres land for farmers from Nano plant area Vs
  • Competitors Bajaj is going to launch a car in $2500 Fuel Efficiency > 30 kmpl
  • Technical Specification Make Tata Model Tata NANO Number of Doors 4 Seating Capacity 04 (Four) Length 3.1 meters Width 1.5 meters Height 1.6 meters Engine All-Aluminum, Rear Mounted, Capacity Body AC Body Type 623cc All-Steel Only in Deluxe Model Sheet Metal Versions Standard, Deluxe Gearbox 4-speed manual Weight 600kg
  • Cont… City Mileage 20-25 kmpl Highway Mileage 26 kmpl Fuel Capacity 30 litres Fuel Type Petrol (Diesel Version will be later) Speed Top speed will be 90 Km/hour. Acceleration s 0-70 km/h : 14 Sec Colours Red, Yellow and Silver
  • Opportunities Cost In 2007 top end price for bikes Were Rs 70,000-80,000 Car priced Rs 1 lakh will be safer And perfect alternative Unsaturated car Market As of 2006, Annual size of Global Car Market was 50 mill units Asian Car Market (Except Korea & Japan) was around 3 mill units
  • FUTURE PLANS Plastic Car Production- Tata plans on producing a car that is made of nearly 100% plastic. The years to come will see the introduction of several other innovative vehicles, all rooted in emerging customer needs. Besides product development, R&D is also focusing on environment-friendly technologies in emissions and alternative fuels.
  • SUMMARY TATA Motors is trying to expand its market by using following strategies of Competitive advantage 1. Cost Advantage 2. Differentiation Advantage
  • Tata Nano:  Cost Advantage Strategy  It is the least expensive production car in the world. Tata OneCAT:  Differentiation Advantage  Compressed air car