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Nano Strategy<br />Strategic Management<br />Presented By,<br />PratikPurav P-29<br />Aditi Sabaria C-31<br />RohitMundhar...
INTRODUCTION<br /><ul><li>  Automobile industry in India
  An embryonic automotive industry emerged
  Japanese manufacturers entered
  Industry today
  Major Players in India</li></li></ul><li>
VISION<br />To develop TATA into a world class <br />Indian car brand for innovative<br /> and superior value vehicles <br />
Mission<br /><ul><li>  To be the most admired multi-national Indian</li></ul> company producing vehicles that  people love...
Idea  Generation Of Nano<br />“I saw families ridding around on scooters with <br />kids standing up and mother carrying a...
A Promise <br />is <br />A Promise <br />– Ratan Tata<br />TATA’s  NANO<br />Why <br />Nano ?<br />
SWOT Analysis<br />
Price<br />Mileage<br />Style<br />Brand Name<br />First Innovation<br />Strengths<br />Fiber Body <br />Low Suspension <b...
Opportunities<br /><ul><li> Bikers can  be motivated
 Auto rickshaw & second hand market</li></ul>Threats<br /><ul><li> Other competitors
 Traffic Congestion
 New Regualtions</li></li></ul><li>Strategy<br />Time honored International strategy<br />Effectively used parliamentary p...
Considered government as a regulator<br />Ratan Tata changed the group’s attitutde<br />Involved the state as partner<br /...
Location of Manufacturing Plant<br />TML intending to set manufacturing plant<br />Considered locating plants in various s...
Contd..<br /><ul><li>Exploited such weakness to its advantage
Incentive package in Uttarakhand/Himachal Pradesh</li></ul>         a)100% exemption from excise duty for 10 years<br />  ...
Tata enjoying the most of incentives!!!<br />A comprehensive package of incentives<br />Electricity Clause –<br />        ...
Why Tata Nano pulled out of Singur?<br />
Political Battlefield<br />
Land Controversy<br />Acquired Land<br />Compensation <br />Misunderstanding<br />Admitted Mistake<br />
“Great agitation <br />and<br />great aggression”<br />“You cannot run a plant where the wall is being broken; you cannot ...
Corporate Rivalry ?<br />
Destructive Politics...<br />     “I once mentioned that if somebody puts a gun to my head, you either pull the trigger or...
Effects on West Bengal<br /><ul><li> Brand Image
Damages to the Public property
 Losses beared
Unemployment</li></li></ul><li>Effects on Tata Motors<br />Tata Gained a Seven Crucial Months<br /> - Commodity Prices dec...
Fight for Nano Begins – Again<br />West Bengal’s loss  another State’s gain<br />Karnataka 1st to offer<br />Gujarat offer...
 Maharashtra, Andhra Pradesh, Uttarakhand also made an offer</li></li></ul><li>Winner - Gujarat <br />
“You are stupid if you are not in Gujarat” <br />  - Ratan Tata<br />Vibrant Gujrat<br />Reliable Infrastructure<br />Loca...
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Tata Nano

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Tata Nano

  1. 1. Nano Strategy<br />Strategic Management<br />Presented By,<br />PratikPurav P-29<br />Aditi Sabaria C-31<br />RohitMundhara P-21<br />SaurabhShinde P-35<br />
  2. 2. INTRODUCTION<br /><ul><li> Automobile industry in India
  3. 3. An embryonic automotive industry emerged
  4. 4. Japanese manufacturers entered
  5. 5. Industry today
  6. 6. Major Players in India</li></li></ul><li>
  7. 7. VISION<br />To develop TATA into a world class <br />Indian car brand for innovative<br /> and superior value vehicles <br />
  8. 8. Mission<br /><ul><li> To be the most admired multi-national Indian</li></ul> company producing vehicles that people love to buy <br /><ul><li> To create an organization that people enjoy </li></ul>working for doing business with and investing in <br />
  9. 9. Idea Generation Of Nano<br />“I saw families ridding around on scooters with <br />kids standing up and mother carrying a baby <br />and sitting Pillion and decided to do something about . It started as an quest for an<br /> affordable transportation solutions.”<br />.<br />Source – Business Standard<br />
  10. 10. A Promise <br />is <br />A Promise <br />– Ratan Tata<br />TATA’s NANO<br />Why <br />Nano ?<br />
  11. 11. SWOT Analysis<br />
  12. 12. Price<br />Mileage<br />Style<br />Brand Name<br />First Innovation<br />Strengths<br />Fiber Body <br />Low Suspension <br />Light Weight <br />Not Suitable for Hilly Areas <br />Delay due to Singur<br />Weakness<br />
  13. 13. Opportunities<br /><ul><li> Bikers can be motivated
  14. 14. Auto rickshaw & second hand market</li></ul>Threats<br /><ul><li> Other competitors
  15. 15. Traffic Congestion
  16. 16. New Regualtions</li></li></ul><li>Strategy<br />Time honored International strategy<br />Effectively used parliamentary politics as business strategy<br />Politics shaping Nano’s future<br />Earlier less reliance on states<br />
  17. 17. Considered government as a regulator<br />Ratan Tata changed the group’s attitutde<br />Involved the state as partner<br />Relationship between state and group improved<br />
  18. 18. Location of Manufacturing Plant<br />TML intending to set manufacturing plant<br />Considered locating plants in various states<br />Accurate understanding of :–<br /> Political interests<br /> Compulsion of State Government<br />
  19. 19. Contd..<br /><ul><li>Exploited such weakness to its advantage
  20. 20. Incentive package in Uttarakhand/Himachal Pradesh</li></ul> a)100% exemption from excise duty for 10 years<br /> b)100% exemption from Corporate Income tax<br /><ul><li>WB out of desperation walked into the trap</li></li></ul><li>Singur - Tata<br />Govt. WB keen for rapid industrialisation<br />Approached Tata Motors<br />Tata Motors showed interest in locating the plant in WB<br />Chose Singur a small town in Hoogly district of WB<br />Govt. WB provided TML a loan of 200 crores at 1% interest<br />
  21. 21. Tata enjoying the most of incentives!!!<br />A comprehensive package of incentives<br />Electricity Clause –<br /> Electricity at Rs.3kwh<br />Loan Repayment –<br /> Loan with interest repayable in annual installments<br />Lease rental<br />
  22. 22. Why Tata Nano pulled out of Singur?<br />
  23. 23. Political Battlefield<br />
  24. 24. Land Controversy<br />Acquired Land<br />Compensation <br />Misunderstanding<br />Admitted Mistake<br />
  25. 25. “Great agitation <br />and<br />great aggression”<br />“You cannot run a plant where the wall is being broken; you cannot run a plant where bombs are being thrown from all the sides; you cannot run a plant where the people have been intimidated or threatened. This is only during the construction, what happens when we actually start running the plant!”<br /><ul><li>Ratan Tata</li></ul>Chairman,Tata Motors Ltd<br />FRONT LINE ,Volume 25 - Issue 22 :: Oct. 25-Nov. 07, 2008. INDIA&apos;S NATIONAL MAGAZINE<br />
  26. 26.
  27. 27.
  28. 28.
  29. 29.
  30. 30. Corporate Rivalry ?<br />
  31. 31. Destructive Politics...<br /> “I once mentioned that if somebody puts a gun to my head, you either pull the trigger or take the gun away because I will not move my head. I think Ms.MamtaBanerjee has pulled the trigger,”<br /><ul><li>Ratan Tata</li></ul>Chairman,Tata Motors Ltd.<br />FRONT LINE ,Volume 25 - Issue 22 :: Oct. 25-Nov. 07, 2008. INDIA&apos;S NATIONAL MAGAZINE<br />
  32. 32. Effects on West Bengal<br /><ul><li> Brand Image
  33. 33. Damages to the Public property
  34. 34. Losses beared
  35. 35. Unemployment</li></li></ul><li>Effects on Tata Motors<br />Tata Gained a Seven Crucial Months<br /> - Commodity Prices declined<br /> - Advances<br /> - Mobilise the Funds<br />
  36. 36. Fight for Nano Begins – Again<br />West Bengal’s loss another State’s gain<br />Karnataka 1st to offer<br />Gujarat offered 3 strategic locations <br /> - Mundra in Kutch district<br /> - Charodi in Sanand<br /> - Surat <br /><ul><li> Orissa offered land at Gopalpur
  37. 37. Maharashtra, Andhra Pradesh, Uttarakhand also made an offer</li></li></ul><li>Winner - Gujarat <br />
  38. 38. “You are stupid if you are not in Gujarat” <br /> - Ratan Tata<br />Vibrant Gujrat<br />Reliable Infrastructure<br />Locations - Government owned land<br />Charodi and Chharal villages in Sanand the ultimate choice<br />
  39. 39. Benefits to <br />Loan of Rs 9,570 crores<br /> THE DEALRs 2,900 cr for Nano plantRs 6,670 cr for Infrastructure developmentRepayment of Rs 9,570 cr loan @ 0.1% over 20 years<br />
  40. 40. THE SWEETNERS<br />100% exemption on electricity duty<br />Concessional power tariff<br />1,100 acre land comes cheap<br />No stamp duty, Registration and transfer charges <br />Payment for land in 8 equal annual instalments<br />
  41. 41. Benefits to Gujarat <br />Benefits to Component manufacturers and Vendors<br />New Investment opportunities and positive sentiment in Gujarat <br />Benefit to Real estate market<br />Additional jobs and training opportunities<br />
  42. 42. Win-win situation<br />
  43. 43. Bibliography/Webliography<br />&quot;Specifications of Tata&apos;s Nano&quot;. indiatimes.com. 2008-01-10.<br />   <br />&quot;Nano Mania&quot;. Autocar India. February 2008.<br />&quot;Specifications of Tata&apos;s Nano&quot;. cardesignnew.<br />&quot;Review of Tata Nano&quot; TechWebToday.<br />Falling Rain Genomics, Inc - Singur<br />&quot;Census of India 2001: Data from the 2001 Census, including cities, villages and towns (Provisional)&quot;. Census Commission of India. Archived from the original on 2004-06-16. http://web.archive.org.  <br />The Hindu Business Line, 26 November 2006 <br /> The Hindu Business Line, 13 December 2006<br />
  44. 44. Questions ?<br />
  45. 45. Thank You<br />

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