SWOT Analysis of Tata

COMMERCE
PROJECT
TERM-1.
TOPIC:-
Conduct SWOT Analysis of a
Business Firm.

 SWOT Analysis is a strategic planning and strategic
management technique used to help a person or organization
identify Strengths, Weaknesses, Opportunities, And
Threats related to business competition or project planning. It
is also known as Situational Assessment or Situational
Analysis.

 A SWOT analysis is a compilation of your company's
Strengths, Weaknesses, Opportunities And Threats.
 The primary objective of a SWOT analysis is to help
organizations develop a full awareness of all the factors
involved in making a business decision.

 Perform a SWOT analysis before you commit to any sort of
company action, whether you are Exploring New Initiatives,
Revamping Internal Policies, Considering Opportunities To
Pivot or Altering A Plan Midway Through Its Execution.
 Use your SWOT analysis to Discover Recommendations and
strategies, with a Focus On Leveraging Strengths And
Opportunities to Overcome Weaknesses And Threats.

 The SWOT Analysis consists of following four factors:
1. STRENGTHS:
 Strengths are the Qualities that enable us to Accomplish
The Organization’s Mission. These are the basis on which
continued success can be made and continued/sustained.
 Strengths are the Beneficial Aspects Of The Organization
or the Capabilities of an organization, which includes Human
Competencies, Process Capabilities, Financial Resources,
Products And Services, Customer Goodwill and Brand
Loyalty.

2. WEAKNESSES:
 Weaknesses are the Qualities That Prevent us from
Accomplishing our Mission And Achieving our Full Potential.
These weaknesses deteriorate influences on the organizational
success and growth.
 Weaknesses in an organization may be Depreciating Machinery,
Insufficient Research And Development Facilities, Narrow
Product Range, Poor Decision-making, etc. Weaknesses are
controllable. They must be Minimized And Eliminated.

3. OPPORTUNITIES:
 Opportunities arise when an organization can take benefit
of conditions in its environment to plan and execute
strategies that enable it To Become More Profitable.
Organizations can Gain Competitive Advantage by making
use of opportunities.
 Opportunities may arise from Market, Competition,
Industry/Government And Technology.

4. THREATS:
 Threats arise when conditions in external environment
jeopardize the reliability and profitability of the
organization’s business. They compound the vulnerability
when they Relate To The Weaknesses. Threats are
Uncontrollable.
 When a threat comes, the Stability And Survival Can Be At
Stake.

Tata
Group.
1. About Tata Group.
2. Financial Analysis of Tata Group.
3. SWOT Analysis of Tata Group.

1. (a) About Tata Sons Pvt Ltd.

 Tata Sons Private Limited is the Private Entity and
the Owner Of Tata Group and Holds The Bulk Of
Shareholding In The Tata Group Of Companies Including
Their Land Holdings Across India, Tea Estates And Steel
Plants.
 It is a privately owned conglomerate of nearly 100
companies encompassing several primary business sectors
like:
Chemicals, Consumer Products, Energy, Engineering,
Information Systems, Materials, And Services.

 Tata Sons Private Limited was established as
A Trading Enterprise In 1868 by Jamsedji Tata , and
engaged primarily in the lucrative opium and tea trade
with Mongolia and China before moving from conducting
businesses directly to becoming the principal holding
company of Tata Group.

 About 66%* of the Equity Capital of Tata Sons is held by
Philanthropic Trusts endowed by members of the Tata
Family. The Biggest Two of these trusts are the Sir
Dorabji Tata Trust And Sir Ratan Tata Trust.
24%
29%
47%
EQUITY
Ratan Tata Trust Dorabji tata Trust OTHERS
*in the pie only two biggest trust [53%] are mentioned. Other
smaller trust sum up to 66% are not included.

 Tata Group is an Indian multinational conglomerate
headquartered in Mumbai. Founded in 1868 by Jamshedji Tata,
the group gained international recognition after purchasing
several global companies. It is One Of The Biggest And Oldest
industrial groups in India.
 Each Tata company operates independently under the guidance
and supervision of Its Own Board Of Directors And
Shareholders. The Tata Group is a business organisation owned
by the Tata Sons PVT LTD.

 Significant affiliates of Tata Group includes:-
i. Air India.
ii. Tata Steel.
iii. Tata Communications.
iv. Tata Chemicals.
v. Tata Consultancy Services.
vi. Tata Motors.
vii. Tanishq.
viii. Voltas .
And many more.

 Following Dorab’s death in 1932, Sir Nowroji Saklatwala
became the group’s chair.
 Six years later Jehangir Ratanji Dadabhoy Tata (J.R.D.)
took over the position. His continued expansion of the
company into new sectors—such as chemicals (1939),
technology (1945), cosmetics(1952), marketing,
engineering, and manufacturing (1954), tea (1962), and
software services (1968)—earned Tata Group international
recognition.
 In 1945 Tata Group established the Tata Engineering and
Locomotive Company (TELCO) to manufacture engineering
and locomotive products; it was renamed Tata Motors in
2003.
 In 1991 J.R.D.’s nephew, Indian business mogul Ratan Tata,
succeeded him as chairman of the Tata Group. Upon
assuming leadership of the conglomerate, Ratan
aggressively sought to expand it, and increasingly he
focused on globalizing its businesses.

 Upon assuming leadership of the conglomerate, Ratan
aggressively sought to Expand It, and increasingly he
focused on Globalizing Its Businesses. In 2000 the group
acquired London-based Tetley Tea, and in 2004 it
purchased the truck-manufacturing operations of South
Korea’s Daewoo Motors. In 2001 Tata Group partnered
with American International Group, Inc. (AIG) to create
the insurance company Tata-AIG.
 In 2007 Tata Steel completed the biggest corporate
takeover by an Indian company when it acquired the giant
Anglo-Dutch steel manufacturer Corus Group. The following
year the company made headlines worldwide when it
ventured into the automotive industry. On January 10,
2008, Tata Motors officially launched the Nano, a tiny,
rear-engine, pod-shaped vehicle that eventually sold at
a base price equivalent to $1,500 to $3,000.

 Tata Motors purchased the elite British brands Jaguar
And Land Rover From The Ford Motor Company In 2008.
Four years later Ratan Tata retired and was succeeded
by CYRUS MISTRY.
 Mistry was abruptly dismissed as chairman in October
2016—reportedly over disagreements with members of
the Tata family regarding business strategy—and Ratan
returned to the position on an interim basis. Ratan’s
second stint as chairman ended in January 2017 when
NATARAJAN CHANDRASEKARAN was appointed to the
position.

2. Financial Analysis Of
Tata Group.

Particulars Amount in
2021 [in ₹ Cr.]
Amount in
2020 [in ₹ Cr.]
Revenue From Operations:
(a.) Revenue. 46,559.39 43,485.76
(b.) Other Operating Revenue. 472.08 442.41
1. Total Revenue From Operations 47,031.47 43,928.17
2. Other Incomes. 842.96 1,383.05
TOTAL INCOME. 47,874.43 45,311.22

PARTICULARS. Amount in 2021
[in ₹ Cr.]
Amount in
2020 [in ₹ Cr.]
Expenses:
(a.) Cost of Materials Consumed. 30,010.61 26,171.85
(b.) Purchase of Goods for Sale. 5,490.667 5,679.98
(c.) Change in Inventories of Finished Goods,
Work-In-Progress and Product Sales.
69.02 722.68
(d.) Employee Benefits Expenses. 4,212.99 5,384.31
(e.) Finance Cost. 2,358.54 1,973.00
(f.) Foreign Exchange Loss (Net). 1.67 239.00
(g.) Depreciation and Amortization Expenses. 3,681.61 3,375.29
(h.) Product Development/ Engineering
Expenses.
907.64 830.24
(i.) Other Expenses. 5,801.90 7,720.75
(j.) Amount Transferred to Capital & Other
A/C.
(817.53) (1,169.46)
TOTAL EXPENSES. 51,579.08 49,927.64
PROFIT/ (LOSS) BEFORE (3,704.65) (4,616.42)

[in ₹ Cr.]
Amount in 2020
[in ₹ Cr.]
EXCEPTIONAL ITEMS:
(a.) Employee Separation Cost. 215.97 2.69
(b.) Write off/provision (reversal) for
tangible/intangible assets (including
under development).
114.00 (73.03)
(c.) Provision/(reversal) for loan given
to/investment and cost of closure in
subsidiary companies/joint venture (net).
123.36 385.62
(d.) Impairment losses/(reversal) in
passenger vehicle business.
(1,182.21) 1,419.64
(e.) Provision/(reversal) for Onerous
Contracts and related supplier claims.
(663.00) 777.00
PROFIT/ (LOSS) BEFORE TAX. (2,312.57) (7,127.34)

PARTICULARS. Amount in
2021 [in ₹ Cr.]
Amount in
2020 [in ₹ Cr.]
TAX EXPENSES [NET].
(a.) Current Tax. 82.31 33.05
(b.) Deferred Tax. 0.56 129.24
TOTAL TAX EXPENSES. 82.87 162.29
Profit/(loss) for the year from
continuing operations (VII-VIII)
(2,395.44) (7,289.63)

Profit/(loss) for the year from continuing
operations (VII-VIII)
[in ₹ Cr.]
Amount in
2020 [in ₹ Cr.]
Total other comprehensive income/ (loss),
net of taxes.
442.99 (378.72)
Total comprehensive income/ (loss) for
the year
(1,972.47) (7,668.25)
Earnings/ (loss) Per Share.
(a.) Ordinary Shares with Face Value of ₹ 2
each.
i.) Basic. (6.59) (21.06)
ii.) Diluted. (6.59) (21.06)
(b.) ‘A’ Ordinary shares with face value of
₹ 2 each.
i.) Basic. (6.59) (21.06)
ii.) Diluted. (6.59) (21.06)

PARTICULARS. Amount in
2021 [in ₹ Cr.]
Amount in
2020 [in ₹ Cr.]
ASSETS
1.) NON-CURRENT ASSETS.
1. Property, plant and Equipment. 19,153.47 18,870.67
2. Capital Work in Progress. 1,400.82 1,755.51
3. Right of use Asset. 768.59 669.58
4. Goodwill. 99.09 99.09
5. Other Intangible Assets 6,401.95 5,538.64
6. Intangible Assets under Development. 1,605.64 2,739.29
7. Investments in Subsidiaries & Joint Ventures. 15,147.26 15,182.29
8. Financial Assets.
a. Investments. 967.65 548.57
b. Loans & Advances. 126.05 138.46
c. Other Financial Assets. 1,631.83 1,512.96
9. Non-Current Tax Assets. 715.31 727.97
10. Other Non-Current Assets. 1,187.41 1,208.08
49,205.07 49,021.11

[in ₹ Cr.]
Amount in 2020
[in ₹ Cr.]
2. CURRENT ASSETS.
1. Inventories. 4,551.71 3,831.92
2. Financial Assets.
a. Investments. 1,578.26 885.31
b. Trade Receivables. 2,087.57 1,978.06
c. Cash & Cash Equivalents. 2,365.54 2,145.30
d. Bank Balance [other than(c.)] 1,953.40 1,386.89
e. Loans & Advances. 185.42 232.14
f. Other Financial Assets. 1,745.06 1,546.57
3. Assets Classified as Held for Sale. 220.80 191.07
4. Other Current Assets. 1,166.89 1,371.51
15,854.59 13,568.76
TOTAL ASSETS. 65,059.66 62,589.87

[in ₹ Cr.]
Amount in 2020
[in ₹ Cr.]
EQUITY
1.) Equity Share Capital. 765.81 719.54
2.) Other Equity. 18,290.16 17,668.11
19,752.14 18,391.40

[in ₹ Cr.]
Amount in 2020
[in ₹ Cr.]
LIABILITIES.
1.) NON-CURRENT LIABILITIES.
1.) Financial Liabilities.
a.) Borrowings. 16,326.77 14,776.51
b.) Lease Liabilities. 593.74 522.24
c.) Other Financial Liabilities. 659.64 854.74
2.) Provisions. 1,371.94 1,769.74
3.) Deferred Tax Liabilities (Net). 266.50 198.59
4.) Other Non-Current Liabilities. 533.55 269.58
19,752.19 18,391.40

[in ₹ Cr.]
Amount in 2020
[in ₹ Cr.]
2. CURRENT LIABILITIES.
1.) Financial Liabilities.
a.) Borrowings. 2,542.50 6,121.36
b.) Lease Liabilities. 96.47 83.30
c.) Trade Payables.
i.) Total outstanding dues of small
enterprises
167.23 101.56
ii.) Total outstanding dues(excluding i) 7,947.78 8,000.69
d.) Acceptances. 7,873.52 2,741.69
e.) Other Financial Liabilities. 4,255.57 5,976.35
2.) Provisions. 1,043.54 1,406.75
3.) Deferred Tax Liabilities (Net). 37.84 31.49
4.) Other Current Liabilities. 2,287.50 1,347.63
26,251.55 25,810.82
TOTAL EQUITY &
LIABILITIES
65,059.66 62,589.87

3. SWOT Analysis Of
Tata Group.

 SWOT Analysis of the Tata Group is as follows:

1. STRENGTHS
 Sublime Performance in New Markets-
Tata has constructed an ability at going to new business sectors
and making them. The augmentation has helped the relationship
with building new revenue sources and growing the monetary
cycle peril in the business areas it works in.
 Strong Distribution Network-
Over the years Tata has built a reliable distribution network
that can reach the majority of its potential market.
 Strong Dealer Community-
It has assembled a culture among wholesalers and sellers where
the vendors advance the organization’s items as well as put
resources into preparing the outreach group to reveal to the
client how he/she can discrete the most extreme advantages out
of the items.

 Reliable Suppliers-
It has a solid base of dependable providers of unrefined
substance in this way empowering the organization to
conquer any inventory network bottlenecks.
 Strong Brand Portfolio-
Over the years Tata has invested in building a strong brand
portfolio. The SWOT analysis of Tata simply underlines
this reality. This brand portfolio can be amazingly valuable
assuming the association needs to venture into new item
classifications.

2. WEAKNESSES.
● Organization Structure-
The organizational structure is only viable with the current plan
of action accordingly restricting development in contiguous item
fragments.
● Demand Forecasting-
Feeble product demand forecasting leads to a higher rate of
missed opportunities compare to its competitors. One reason
why the day’s stock is highly contrasted with its rivals is that
Tata isn’t generally excellent at request anticipation and this
winds up keeping higher inventory both in-house and in the
channel.
● Financial Planning-
Financial Planning is not done properly and efficiently. The
current asset ratio and liquid asset ratios propose that the
organization can utilize the money more efficiently than what it
is doing as of now.

 High Attrition Rate In Work Force –
Compared to other organizations in the industry Tata has a
higher attrition rate and have to spend a lot more compare
to its competitors on training and development of its
employees.
 Inefficient Demand Forecasting –
One of the reason why the days inventory is high compare
to its competitors is that Tata is not very good at demand
forecasting thus end up keeping higher inventory both in-
house and in channel.

3. OPPORTUNITIES.
 Further Development –
The market development will lead to dilution of competitors’
advantages and enable Tata to increase its competitiveness
compared to the other competitors.
 Expansion –
Economic uptick and expansion in client spending, following quite
a while of the downturn and slow development rate in the
business, is a chance for Tata to catch new clients and increment
its market share.
 Transportation Cost –
Diminishing the expense of transportation as a result of lower
delivery costs can likewise cut down the expense of Tata’s items
along these lines giving a chance to the organization – either to
support its productivity or give the advantages to the clients to
acquire a portion of the overall industry.

 New Emerging Trends –
New trends in the consumer behavior can open up new
market for the Tata . It provides a great opportunity for
the organization to build new revenue streams and diversify
into new product categories too.
 Stable & Free Cashflow:
Stable free cash flow provides opportunities to invest in
adjacent product segments. With more cash in bank the
company can invest in new technologies as well as in new
products segments. This should open a window of
opportunity for Tata in other product categories.

4. THREATS.
● Upgradation Of Competitors-
New upcoming technologies developed by their competitor or
market disruptor could be a serious threat to the different
industries in the medium to long term future.
● Expanding Patterns –
Expanding patterns toward noninterference in the American
economy can prompt comparable responses from different
state-run administrations consequently contrarily affecting
global deals.
● Off-Season-
The demand for highly profitable products is seasonal in nature
and any unlikely event during the peak season may impact the
profitability of the company in the short to medium term.

● Political Environment-
As The Organization is working in various nations it is
presented to money changes particularly given the unstable
political environment in various business sectors across the
world.
● Extraordinary Rivalry-
Stable productivity has expanded the number of players in
the business in the course of the most recent two years
which has come down on benefit as well as on overall sales.

Conclusion.
After research and analysis of this project, I conclude
that Tata Group is in an Elite Industrial League that
will prosper along with the country. It has the caliber
of achieving further successful goals having the labor
force as well as the resources are used in correct
ways. That will lead to grabbing the Opportunities
with its Strengths and having no Threats and
Weaknesses.

Presented by:
Harsh Kataria
12th Lily [Commerce]
Thank You.

SWOT Analysis of Tata

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