OUTLINE FOR CASE ANALYSIS AND REPORTS FOR TATA MOTOR 1.0 Source Problems: (MAJOR PROBLEM) can be taken from newspaper or any case study This is a general statement of the underlying, fundamental problem or core issue. It is important to distinguish between symptoms of the problem, and the problem itself. Frequently the source problem precedes the current problems in the case. (one short paragraph) (medical example: tonsillitis) 2.0 Secondary Problems: These are more specific, current and observable problems and derive from the source problem. They frequently are the problems immediately evident in the case. Do not write three sections: all problems should be listed under short or long term. (Three quarters of a page). (medical example: fever, loss of appetite, cough) etc. not generating enough profit List 3 secondary problem which leads to 1 major problem and explain Short Term: Current problems of recent origin, which can be solved within a period of months without major commitments of capital, technology, finance or managerial effort. (business example: overstocking, high prices, labour shortage) 2.1 2.2 2.3 Long Term: Problems which have existed for years, and which involve long-term trends in the internal or external environment. They will reuire solutions spread over a period longer than, say, a year, and may demand major allocations of capital, technology, finance and managerial effort. (business example: obsolete products, out-pf-date production process technology, lack of adequate plant capacity) 2.4 2.5 3.0 Analysis: (SWOT & PESTLE) Case facts which are crucial to the problems as defined are called “evidence”. They should not be mere repetition of case facts, but should rather reflect the processes of evaluation, synthesis, careful interpretation and insight. The analyst should “read between the lines”. This might involve the calculation of financial rations, trend lines, growth rates, etc. in order to reorganise data to yield not-so-obvious facts. These “new” facts can be used as case evidence in support of problem definitions and proposed solutions. Economic, financial and marketing data should be analysed. Theory, concepts, models and research evidence should be used as key to open the case. “Course language” should be integrated with “case language”. High marks require skilful integrationof concepts and case evidence. This section should comprise 50% of the report. (three pages) 4.0 Criteria of Evaluation: Goals (Objectives/Performance Targets/KPI’S/Decision Criteria), and Their Time Frames. ( Look for past financial reports) Clear, concise statement of the goals, standards, targets or objectives that the analyst will use to measure the effectiveness of alternatives considered. Alternatives are tested against these criteria to assess their effectiveness in solving the problem. This is a statement of what you want to accomplish; alternatives describe how you plan to accomplish it. These are .

1. OUTLINE FOR CASE ANALYSIS AND REPORTS FOR TATA
MOTOR
1.0 Source Problems: (MAJOR PROBLEM) can be taken from
newspaper or any case study
This is a general statement of the underlying, fundamental
problem or core issue. It is important to distinguish between
symptoms of the problem, and the problem itself. Frequently
the source problem precedes the current problems in the case.
(one short paragraph)
(medical example: tonsillitis)
2.0 Secondary Problems:
These are more specific, current and observable problems and
derive from the source problem. They frequently are the
problems immediately evident in the case. Do not write three
sections: all problems should be listed under short or long
term. (Three quarters of a page).
(medical example: fever, loss of appetite, cough)
etc. not generating enough profit
List 3 secondary problem which leads to 1 major problem and
explain
Short Term:
Current problems of recent origin, which can be solved within a
period of months without major commitments of capital,
technology, finance or managerial effort.
(business example: overstocking, high prices, labour shortage)
2.1
2.2

2. 2.3
Long Term:
Problems which have existed for years, and which involve long-
term trends in the internal or external environment. They will
reuire solutions spread over a period longer than, say, a year,
and may demand major allocations of capital, technology,
finance and managerial effort.
(business example: obsolete products, out-pf-date production
process technology, lack of adequate plant capacity)
2.4
2.5
3.0 Analysis: (SWOT & PESTLE)
Case facts which are crucial to the problems as defined are
called “evidence”. They should not be mere repetition of case
facts, but should rather reflect the processes of evaluation,
synthesis, careful interpretation and insight. The analyst should
“read between the lines”. This might involve the calculation of
financial rations, trend lines, growth rates, etc. in order to
reorganise data to yield not-so-obvious facts. These “new”
facts can be used as case evidence in support of problem
definitions and proposed solutions. Economic, financial and
marketing data should be analysed. Theory, concepts, models
and research evidence should be used as key to open the case.
“Course language” should be integrated with “case language”.
High marks require skilful integrationof concepts and case
evidence. This section should comprise 50% of the report.
(three pages)
4.0 Criteria of Evaluation: Goals (Objectives/Performance
Targets/KPI’S/Decision Criteria), and Their Time Frames. (
Look for past financial reports)
Clear, concise statement of the goals, standards, targets or

3. objectives that the analyst will use to measure the effectiveness
of alternatives considered. Alternatives are tested against these
criteria to assess their effectiveness in solving the problem.
This is a statement of what you want to accomplish; alternatives
describe how you plan to accomplish it. These are decision
rules or decision criteria. Examples: a 10%return on
investment by 2012; a 25% share of the medium car market
segment by 2011; elimination of industrial strikes for at least a
two-year period. Criteria should look like table 2.3 Some
Typical Business Objectives in Hofer’s reference at ECMS.
(half page)
Set target for 3 years, 2016,2017,2018
5.0 Alternatives:
A comprehensive listing of all major feasible courses of action
open to the decision-maker. The analyst should avoid repetition
and duplication. Usually all available options can be reduced to
five or six alternatives. Usually all available options can be
reduced to five or six alternatives. These must be viable,
practical and realistic. They need not be mutually exclusive,
i.e. the analyst may opt for two or even three of these
alternatives in her final recommendations. It is essential to
decide who the decision –maker will be, and the likelihood that
she will take the action recommended by the analyst. These
alternatives must be fully developed into one paragraph strategy
statements as per Hofer and Schendel’s (p42-44) characteristics,
explained in table 2.8 Characteristics of Effective Strategy
Statement in Hofer’s reference at ECMS. (three quarters of a
page)
6 Strategies Statement
Short Term:
5.1
5.2
5.3

4. Long Term:
5.4
5.5
6.0 Recommended Strategy: Choose 3 strategies (Copy and
paste from 5.0)
This is the action you propose to solve the problem identified in
(1.0) and (2.0) and is selected from the range of alternatives
presented. It must be restated. It is acceptable to cut and paste
from section 5.0 (one or two paragraphs)
Short Term:
6.1
6.2
Long Term:
6.3
7.0 Justification of Recommendations:
In this section, the analyst demonstrates why the alternative
selected is the most effective in attacking the problem, and why
the other alternatives were rejected. Evidence (from section
3.0) is used to support the recommendations and to reject the
actions not accepted. It should be shown how and why
recommended action will meet the criteria of evaluation, and
thus solve the problem, and how and why the rejected strategies
will fail or be less effective. Short term solutions should be
related to short term problems and long term proposals to long
term problems.
In this discussion, the analyst should describe e the risks and
opportunities, costs and benefits, and strengths and weaknesses
of each alternative, and thus build a convincing case in favour
of the decision he is recommending. Furthermore, it is essential
to scrutinise all alternatives to ascertain whether the adoption of
a particular solution to solve the problem, will create a new
problem. To earn high marks it is essential to draw on research
evidence or theory to argue for the strategic choice. (one and a
quarter pages)

5. Compare the total 6 strategies and argue why choose the 3
strategies.
8.0 Implementation, Control and Follow-up:
In this concluding section, the analysis should list the clear,
specific steps to be taken to adopt the proposed solution. What
obstacles may be expected, and how should these be overcome?
What policy or organisation changes are indicated? What
controls are needed to avoid a recurrence of the problem in the
future? For example, if the action recommended is to retrench
50 assembly line workers, what union reaction can be expected
and what contingency plans are available to deal with obstacles
that could arise during implementation of decisions? (two
paragraphs)
TATA MOtors
Student’s name
Running Head: TATA MOtors
2
TATA MOtors
Name of the Institute
Contents
1.0 Introduction/ Source Problems 3
2.0 Secondary Problems 3
Short Term 4
Long Term 4
3.0 Analysis 4

6. 3.1 SWOT analysis 5
3.2 PESTLE analysis 6
4.0 Criteria of Evaluation7
5.0 Alternatives 8
Strategy Statement 8
6.0 Recommended Strategy 10
Short Term 10
Long Term 10
7.0 Justification of Recommendations 10
8.0 Implementation, Control, and Follow up 11
References 11
Appendix 14
1.0 Introduction/ Source Problems
Tata Motors is an Indian multinational company that has its
presence in different parts of the world. The company was
established in the year 1945 and since then it has entered into
various markets. The company has various business lines within
the company. The two major LOBs (Line of Business) for Tata
Motors are commercial vehicles (trucks, buses and other large
vehicles) and passenger vehicles (cars and private vehicles).
The growth of commercial vehicles is good for the company
(Haleem, 2011). However, the major problem for company is
the decline in sales of cars and other private vehicles. Tata
Motors has found it difficult to compete with the large global
players like Toyota and Volkswagen. As a result, the company
has faced the issue of decline in sales. The 2015 annual report
of the company states that:
“The domestic sale of Tata commercial and passenger vehicles
for November 2015 were at 35,345 nos. lower by 6% over
37,427 vehicles sold in November 2014.”
Source: http://www.tatamotors.com/press/tata-motors-sales-for-
november-2015-at-38918-units/2.0 Secondary Problems
In the private vehicle market, the company is not able to
compete with the large multinational companies. The company
has large variety of cars like Tata Indica, Tata Indigo, and Tata

7. Safari. However, these cars do not get the same response in the
market as the cars of Toyota or Ford or Volkswagen (Mussatto,
2010). Some of the secondary problems are immediate for the
company and some of the problems exist in long term. The short
term and long term secondary problems for the company can be
discussed as:Short Term
2.1 The company is not able to produce a high quality Sedan
that could match the likes of Volkswagen Jetta or Skoda Rapid.
The design issue is the immediate short-term issue for the
company.
2.2 The company is not able to increase its penetration in
developed markets like Singapore and Australia.
2.3 The company is not able to market its products effectively.
Tata is still known for heavy vehicles. In the category of
‘personal cars’, the company has limited reach and penetration.
Long Term
2.4 The brand image of the company is not appropriate. It would
need to change its brand image and brand positioning to
personal cars rather than trucks and buses (Mitra, 2011).
2.5 The positioning of the company is also an issue. The
positioning of Tata Motors should be changes to reliable and
luxurious personal car manufacturers. 3.0 Analysis
Tata Motors is known for its quality products and services.
It is expected that Tata Motors would be able to overcome the
issues in both short term and long term. The company is
headquartered in India and it has a got a good hold of Indian
market. The issues are witnessed by the company in foreign
market. It is recommended that company should analyze its
strengths and based on its strength, the company shall develop
the growth and development strategies (Pavlínek, 2010). It is
also recommended that the growth plan should be based on the
combination of internal and external capabilities. Therefore,
tools like SWOT analysis and PESTLE analysis would help Tata
Motors to develop specific strategies and policies to overcome
the issues. The SWOT analysis for the company can be
discussed as:3.1 SWOT analysis

8. Strengths: The brand name and the legacy of the company is
biggest strength of the company. The company has been able to
develop a set of loyal customer base. The management of Tata
has always focused on transparent policies to develop a feeling
of self-belongingness among employees. The employees of Tata
Motors have always supported Tata Motors and this is also one
of the biggest strength of the company (Anand, 2011). Another
strength of the company is its strong financials. The financials
and key ratios of the company is shown in Appendix.
Weaknesses: The Company has emerged as a reliable brand in
global market. However, it lacks the appeal and fancy of brands
like Volkswagen (Hens, 2008). People across the world have
confidence in Tata cars. However, the design of the car is not
appreciated much and this is the biggest weakness of the
company.
Opportunities: One of the opportunities for Tata Motors is to
expand its business in the area of hybrid cars. Tata Motors also
have the opportunity to take price advantage and target
customers, which are price sensitive. It would help the company
to fight its competitors and to poach its customers who are price
sensitive.
Threats: The threat from the existing competition is the major
threat for Tata Motors. The companies like Toyota,
Volkswagen, and Ford etc. possess huge challenges for Tata
Motors in international market. Tata Motors is able to compete
with these players in Indian market. However, in foreign
market, these players are big threat for Tata Motors.
Another threat is the emergence of hybrid vehicles and focus on
environment friendly car. The companies like Tesla etc. are set
to target global automobile market with environment friendly
products.
The analysis of strengths and weaknesses would help Tata
Motors to have a better understanding of internal environment
and the analysis of opportunities and threat would help Tata
Motors to have a better understanding of external environment.
The PESTLE analysis would help Tata Motors to develop

9. strategies and policies to overcome competition. The PESTLE
analysis for Tata Motors can be discussed as:3.2 PESTLE
analysis
Political & Legal: The automobile industry is a very old
industry in different parts of the world. The political factors are
positive for the company in different nations. The political
factors are good for the company in developed nations as well
as developing nations. The government of different nations have
always supported the organizations in automobile industry. The
impact of legislation is also limited and laws does not create
any unnecessary roadblocks for operations of Tata Motors and
other companies in the market (Madsen, 2010).
Economical: The economic factors have a direct impact on the
operations of the company. The economic factors varies from
country to country. The economic factors were not good in the
period of 2008-2010. However, the economic factors have
improved after that.
Social: The social factors are good for players operating in
automobile market. People in the society have understood the
importance of cars and automobiles (Nieuwenhuis, 2010). In
recent time, cars have emerged as necessity products for people
in developed world. Therefore, it can be said that social factors
are good and positive for Tata Motors and other players in the
market.
Technological: In recent times, technological factors have
emerged as important support function for companies operating
in automobile industry. The technological factors are positive
for Tata Motors and it is expected that this factor would remain
positive (Lee, 2011).
Environmental: The environmental factors is one factor that is
negative for Tata Motors. In recent times, various
environmentalists have raised concern about the increasing level
of pollutions with the use of cars and commercial vehicles. Tata
Motors can address these concerns with the focus on hybrid cars
and focus on fuel-efficient cars. 4.0 Criteria of Evaluation
The company has the stable profit margin of 14% for the

10. last five years. It means that company can use some of its profit
and revenue to work upon the immediate and long term issues.
The specific goals and objectives for Tata Motors for 2016 to
2018 can be discussed as:
· The share of Tata Motors in personal vehicle market should
increase by at least 10% for the next three years of 2016, 2017
and 2018.
· The company shall invest on hybrid cars and the company
should have a minimum 15% share of global hybrid cars by
2018. It would help company to fight the competition.
· There should be considerable improvement in the brand image
of the company in global market. By the end of year 2018, the
company shall be able to position itself as manufacturer of
excellent sedans. The share of Tata Motors in Sedan market
should increase by 10% in the next three years. 5.0 Alternatives
There would be different alternatives for Tata Motors to
reach its goals and objectives. The key alternatives for Tata
Motors can be discussed as:
· The company can have a joint venture with other company to
improve its design and appeal of the cars. Tata Motors can
target some small-scale European company that would help
company to improve its product appeal and designing of cars
(Srivastava, 2012).
· The company should invest more on its research and
development for hybrid cars and designing of cars. The research
and development wing of Tata Motors should learn from other
large companies.
· The company should use effective pricing strategy to target
customers with its price element.
· The company can acquire some other company who is
specialized in hybrid cars or sedans.
· Tata Motors should hire some PR (Public Relation) agency to
improve its positioning in the market. Strategy Statement
With the above discussion, it can be said that the company
must take some concrete actions to improve its brand image in
the market. The company has witnesses a decline in its personal

11. car category and steps should be taken to improve this issue.
The hybrid car market is an evolving market and it would be
good if the company can target this market. In the current
environment, Tata Motors lacks the required technological
skills to manufacture a hybrid car. Therefore, the company
should have a joint venture with other company who is
specialized in hybrid cars. Another issue that surrounds Tata
Motors is design and appeal of its cars. Again, it would be a
good strategy for Tata Motors to have a joint venture with other
company to improve its design and appeal of the cars (Chandra,
2008). At the same time, the company shall also focus on its
pricing strategies to capture the market.
Short Term
5.1 The company should focus on its pricing strategy. The
pricing strategy is one such strategy that would help Tata
Motors immediately.
5.2 The internal team of the company should focus to improve
the design and look of the company. The internal design team
should use benchmarking against global brands like Volkswagen
and Ford (Song, 2010).
5.3 The investment on design, research and development should
increase.
Long Term
5.4 The company shall identify suitable partner in the global
market for hybrid cars
5.5 The company shall identify suitable partner in the global
market to improve product design and appeal 6.0 Recommended
Strategy Short Term
6.1 The company should focus on its pricing strategy. The
pricing strategy is one such strategy that would help Tata
Motors immediately.
6.2 The internal team of the company should focus to improve
the design and look of the company. The internal design team
should use benchmarking against global brands like Volkswagen
and Ford. Long Term
6.3 The company shall identify suitable partner in the global

12. market to improve product design and appeal 7.0 Justification
of Recommendations
Tata Motors has the revenue of more than $40 billion and
the cash flow of company is strong. However, in recent times,
the company has faced major problems from tough competition.
The global automobile industry is a growing industry. However,
many players operate in this market. The cash flow of the
company is good and the operating margin is also good.
Therefore, the strategy to focus on pricing strategy is short term
is a recommended strategy (Ritterspach, 2012). With this
strategy, the operating margin of the company would reduce a
bit, but it would be able to increase its sales.
In the long term, the company shall look for a strong
partner who would help company to enter and sustain in hybrid
car market. It is important that management of Tata Motors
should shortlist few companies with the focus on hybrid cars.
The company should start the joint venture talks with various
companies and then decide the best company. 8.0
Implementation, Control, and Follow up
The specific step for Tata Motors would be to focus on its
pricing strategy in short term and to focus on its branding and
positioning in long term. In the current environment,
economical factors are good for Tata Motors and other players
in automobile markets and it is expected that company should
be able to increase its sales volume.
Tata Motors would certainly face certain challenges to
implement these strategies. One of the biggest challenges for
Tata Motors would be change management challenge. The
internal employees of the company may not be willing to accept
the change that company wants to do. References
Becker-Ritterspach, F., & Bruche, G. (2012). Capability
creation and internationalization with business group
embeddedness–the case of Tata Motors in passenger
cars. European Management Journal, 30(3), 232-247.
Chandra, N. K. (2008). tata Motors in singur: a step towards
industrialisation or pauperisation?. Economic and Political

13. Weekly, 36-51.
Luthra, S., Kumar, V., Kumar, S., & Haleem, A. (2011).
Barriers to implement green supply chain management in
automobile industry using interpretive structural modeling
technique: An Indian perspective. Journal of Industrial
Engineering and Management, 4(2), 231-257.
Lee, K. H. (2011). Integrating carbon footprint into supply
chain management: the case of Hyundai Motor Company (HMC)
in the automobile industry. Journal of Cleaner
Production, 19(11), 1216-1223.
Madsen, P. M., & Desai, V. (2010). Failing to learn? The
effects of failure and success on organizational learning in the
global orbital launch vehicle industry. Academy of Management
Journal, 53(3), 451-476.
Mitra, R. (2011). Framing the corporate responsibility-
reputation linkage: The case of Tata Motors in India. Public
Relations Review, 37(4), 392-398.
Mussatto, S. I., Dragone, G., Guimarães, P. M., Silva, J. P. A.,
Carneiro, L. M., Roberto, I. C., ... & Teixeira, J. A. (2010).
Technological trends, global market, and challenges of bio-
ethanol production. Biotechnology advances,28(6), 817-830.
Palepu, K., Anand, B. N., & Tahilyani, R. (2011). Tata Nano-
The People's Car. Harvard Business School Strategy Unit Case,
(710-420).
Pavlínek, P., & Ženka, J. (2010). Upgrading in the automotive
industry: firm-level evidence from Central Europe. Journal of
Economic Geography, lbq023.
Song, Y., Yang, X., & Lu, Z. (2010, July). Integration of plug-
in hybrid and electric vehicles: experience from China.
In Power and Energy Society General Meeting, 2010 IEEE (pp.
1-6). IEEE.
Srivastava, A. K., Negi, G., Mishra, V., & Pandey, S. (2012).
Corporate social responsibility: A case study of TATA
Group. IOSR Journal of Business and Management, 3(5), 17-27.
Van den waeyenberg, S., & Hens, L. (2008). Crossing the bridge
to poverty, with low-cost cars. Journal of Consumer

14. Marketing, 25(7), 439-445.
Zapata, C., & Nieuwenhuis, P. (2010). Exploring innovation in
the automotive industry: new technologies for cleaner
cars. Journal of Cleaner Production,18(1), 14-20.
Appendix
Financial Ratios: Tata Motors
Mar '15
Mar '14
Mar '13
Mar '12
Mar '11
Investment Valuation Ratios
Face Value
2.00
2.00
2.00
2.00
10.00
Dividend Per Share
--

15. --
--
--
--
Operating Profit Per Share (Rs)
121.91
108.24
76.95
70.30
265.00
Net Operating Profit Per Share (Rs)
816.47
723.38
591.88
521.99
1,924.44
Free Reserves Per Share (Rs)
--
--
--
--

16. --
Bonus in Equity Capital
17.28
17.28
17.44
17.53
17.45
Profitability Ratios
Operating Profit Margin(%)
14.93
14.96
13.00
13.46
13.77

17. Profit Before Interest And Tax Margin(%)
9.80
10.16
8.95
10.03
9.92
Gross Profit Margin(%)
9.83
10.20
8.99
10.07
9.95
Cash Profit Margin(%)
10.47
11.19
9.51
12.04
11.13
Adjusted Cash Margin(%)

18. 10.47
11.19
9.51
12.04
11.13
Net Profit Margin(%)
5.32
6.00
5.23
8.15
7.59
Adjusted Net Profit Margin(%)
5.30
5.98
5.21
8.12
7.56
Return On Capital Employed(%)
21.32
20.39
21.87

19. 24.17
25.49
Return On Net Worth(%)
24.86
21.33
26.31
40.88
48.73
Adjusted Return on Net Worth(%)
25.32
23.00
27.83
43.57
47.24
Return on Assets Excluding Revaluations
174.73
203.75
117.86
104.16
299.82

20. Return on Assets Including Revaluations
174.80
203.82
117.98
104.46
302.10
Return on Long Term Funds(%)
23.81
22.18
25.52
28.42
34.70
Liquidity And Solvency Ratios

21. Current Ratio
0.80
0.94
0.81
0.83
0.70
Quick Ratio
0.66
0.78
0.70
0.73
0.72
Debt Equity Ratio
1.23
0.84
1.16
1.17
1.60
Long Term Debt Equity Ratio
1.00
0.69

22. 0.85
0.85
0.91
Debt Coverage Ratios
Interest Cover
5.50
5.19
5.01
5.82
5.28
Total Debt to Owners Fund
1.23
0.84
1.16
1.17
1.60

23. Financial Charges Coverage Ratio
8.26
7.53
7.14
7.70
7.23
Financial Charges Coverage Ratio Post Tax
6.63
6.30
5.91
7.42
6.84
Management Efficiency Ratios

24. Inventory Turnover Ratio
9.10
8.68
9.23
9.37
8.98
Debtors Turnover Ratio
22.70
21.64
19.69
22.44
17.81
Investments Turnover Ratio
9.10
8.68
9.23
9.37
8.98
Fixed Assets Turnover Ratio
2.43
2.44

25. 2.51
2.34
2.06
Total Assets Turnover Ratio
2.93
2.52
3.21
3.02
3.30
Asset Turnover Ratio
2.13
2.30
2.45
2.72
2.61

26. Average Raw Material Holding
--
--
--
--
--
Average Finished Goods Held
--
--
--
--
--
Number of Days In Working Capital
-16.28
-4.02
-10.00
-2.99
2.12

27. Profit & Loss Account Ratios
Material Cost Composition
62.79
63.61
66.06
68.34
67.17
Imported Composition of Raw Materials Consumed
--
--
--
--
--
Selling Distribution Cost Composition
--

28. --
--
--
--
Expenses as Composition of Total Sales
--
--
--
--
--
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit
0.43
5.47
7.64
11.01
15.97

29. Dividend Payout Ratio Cash Profit
0.21
3.05
4.33
7.77
10.63
Earning Retention Ratio
99.58
94.93
92.78
89.67
83.53
Cash Earning Retention Ratio
99.79
97.08
95.81
92.57
89.15

30. Adjusted Cash Flow Times
2.50
2.10
2.42
1.93
2.23
Source:
http://www.moneycontrol.com/stocks/company_info/print_main.
php
OUTLINE FOR CASE ANALYSIS AND REPORTS FOR TATA
MOTOR
1.0 Source Problems: (MAJOR PROBLEM) can be taken from
newspaper or any case study
This is a general statement of the underlying, fundamental
problem or core issue. It is important to distinguish between
symptoms of the problem, and the problem itself. Frequently
the source problem precedes the current problems in the case.
(one short paragraph)
(medical example: tonsillitis)
2.0 Secondary Problems:
These are more specific, current and observable problems and

31. derive from the source problem. They frequently are the
problems immediately evident in the case. Do not write three
sections: all problems should be listed under short or long
term. (Three quarters of a page).
(medical example: fever, loss of appetite, cough)
etc. not generating enough profit
List 3 secondary problem which leads to 1 major problem and
explain
Short Term:
Current problems of recent origin, which can be solved within a
period of months without major commitments of capital,
technology, finance or managerial effort.
(business example: overstocking, high prices, labour shortage)
2.1
2.2
2.3
Long Term:
Problems which have existed for years, and which involve long-
term trends in the internal or external environment. They will
reuire solutions spread over a period longer than, say, a year,
and may demand major allocations of capital, technology,
finance and managerial effort.
(business example: obsolete products, out-pf-date production
process technology, lack of adequate plant capacity)
2.4

32. 2.5
1.0 Introduction/ Source Problems
Tata Motors is an Indian multinational company that has its
presence in different parts of the world. The company was
established in the year 1945 and since then it has entered into
various markets. The company has various business lines within
the company. The two major LOBs (Line of Business) for Tata
Motors are commercial vehicles (trucks, buses and other large
vehicles) and passenger vehicles (cars and private vehicles).
The growth of commercial vehicles is good for the company
(Haleem, 2011). However, the major problem for company is
the decline in sales of cars and other private vehicles. Tata
Motors has found it difficult to compete with the large global
players like Toyota and Volkswagen. As a result, the company
has faced the issue of decline in sales. The 2015 annual report
of the company states that:
“The domestic sale of Tata commercial and passenger vehicles
for November 2015 were at 35,345 nos. lower by 6% over
37,427 vehicles sold in November 2014.”
Source: http://www.tatamotors.com/press/tata-motors-sales-for-
november-2015-at-38918-units/2.0 Secondary Problems
In the private vehicle market, the company is not able to
compete with the large multinational companies. The company
has large variety of cars like Tata Indica, Tata Indigo, and Tata
Safari. However, these cars do not get the same response in the
market as the cars of Toyota or Ford or Volkswagen (Mussatto,
2010). Some of the secondary problems are immediate for the
company and some of the problems exist in long term. The short
term and long term secondary problems for the company can be
discussed as:Short Term
2.1 The company is not able to produce a high quality Sedan
that could match the likes of Volkswagen Jetta or Skoda Rapid.
The design issue is the immediate short-term issue for the
company.

33. 2.2 The company is not able to increase its penetration in
developed markets like Singapore and Australia.
2.3 The company is not able to market its products effectively.
Tata is still known for heavy vehicles. In the category of
‘personal cars’, the company has limited reach and penetration.
Long Term
2.4 The brand image of the company is not appropriate. It would
need to change its brand image and brand positioning to
personal cars rather than trucks and buses (Mitra, 2011).
2.5 The positioning of the company is also an issue. The
positioning of Tata Motors should be changes to reliable and
luxurious personal car manufacturers.