Introduction Of 'SWOT Analysis'
• A tool that identifies the strengths, weaknesses, opportunities and threats
of an organization. Specifically, SWOT is a basic, straightforward model
that assesses what an organization can and cannot do as well as its
potential opportunities and threats. The method of SWOT analysis is to
take the information from an environmental analysis and separate it into
internal (strengths and weaknesses) and external issues (opportunities
and threats). Once this is completed, SWOT analysis determines what may
assist the firm in accomplishing its objectives, and what obstacles must be
overcome or minimized to achieve desired results.
• SWOT analysis is a management tool used to identify strategies for
success. It may be used to guide individual thinking, group discussion, or a
large, formal planning process. It is widely utilized by companies as part of
their strategic planning process, but it can be used by any group or
individual seeking improvement.
. Background & History of the SWOT
• The origins of the SWOT analysis technique is credited by Albert Humphrey, who led a research project at
Stanford University in the 1960s and 1970s using data from many top companies. The goal was to identify
why corporate planning failed. The resulting research identified a number of key areas and the tool used
to explore each of the critical areas was called SOFT analysis. Humphrey and the original research team
used the categories “What is good in the present is Satisfactory, good in the future is an Opportunity; bad
in the present is a Fault and bad in the future is a Threat.”
• In 1964 Urick and Orr at a conference changed the F to a W, and it has stuck as that, soFt to sWot. Some
researchers reference the 1965 publication “business Policy, text and cases” by Learned, Christensen,
Andrews and Guth (from Harvard University) in which a framework is used which closely resembles a
SWOT analysis, however these words are not used and certainly the framework is not described as
succinctly as we know it today. In this book the terms used are:
• a) Opportunities,
• b) Risks,
• c) Environment &
• d) Problems of other industries.
• In fact these authors reference a course note from K R Andrews “a concept of corporate strategy “for much
of the strategy framework. On its own, it is said that a SWOT analysis is meaningless. It works best when
part of an overall strategy or in a given context or situation
Importance of SWOT Analysis
• The importance of SWOT analysis lies in its ability to help clarify and
summarise the key issues and opportunities facing a business. Value lies in
considering the implications of the things identified and it can therefore
play a key role in helping a business to set objectives and develop new
strategies. The ideal outcome would be to maximise strengths and
minimise weaknesses in order to take advantage of external opportunities
and overcome the threats. For example, the environment may present an
opportunity for a new product but if the company does not have the
capacity to produce that product it may either decide to invest in new
plant and machinery or to just steer clear.
Benefits and limitations of SWOT
• SWOT (strengths, weaknesses, opportunities and threats) analysis can help a company identify and understand key issues
affecting their business, but it does not necessarily offer solutions. So a company should be aware of the limitations as well
as the benefits of a SWOT analysis before they decide to conduct one. Knowing what they can reasonably expect to achieve
will make the SWOT analysis more useful for their business, and will save their time. Ultimately, they must be prepared to
spend the time to review their SWOT analysis and use it to determine the best way forward in their business.
• Benefits of SWOT analysis
• a. The main advantages of conducting a SWOT analysis is that it has little or no cost - anyone who understands their
business can perform a SWOT analysis.
• b. A company can also use a SWOT analysis when it doesn't have much time to address a complex situation. This
means that a company can take steps towards improving their business without the expense of an external consultant or
• c. Another advantage of a SWOT analysis is that it concentrates on the most important factors affecting a company’s
business. Using a SWOT, one can: understand their business better address weaknesses deter threats capitalize on
opportunities take advantage of their strengths develop business goals and strategies for achieving them.
• a. While conducting a SWOT analysis, a company should keep in mind that it is only one stage of the business
planning process. For complex issues, business companies usually need to conduct more in- depth research and analysis to
make their decisions.
• b. Keep in mind that a SWOT analysis only covers issues that can definitely be considered a strength, weakness,
opportunity or threat. Because of this, it's difficult to address uncertain or two-sided factors, such as factors that could
either be a strength or a weakness or both, with a SWOT analysis (e.g. a company might have a prominent location, but the
lease may be expensive).
• c. A SWOT analysis may be limited because it doesn't prioritize issues doesn't provide solutions or offer alternative
decisions can generate too many ideas but not help you choose which one is best can produce a lot of information, but not
all of it is useful.
• Established under the parent company, Tata Group, in 1945, Tata Motors Limited
has become India‟s largest automobile company. It was the first Indian automobile
company to list on the New York Stock Exchange. Tata Motors began
manufacturing commercial vehicles in 1954 with a 15-year collaboration
agreement with Daimler Benz of Germany. This partnership has led Tata Motors to
not only become India‟s largest automobile company but also India‟s largest
commercial vehicle manufacturer; the world‟s top five manufactures of medium
and heavy trucks and the world‟s second largest medium and heavy bus
manufacturer. Having just entered the passenger vehicles market segment in 1991,
Tata Motors now ranks second in India‟s passenger vehicle market.
• Tata has enjoyed the prestige of having developed Tata Ace, India‟s first
indigenous light commercial vehicle; Tata Safari, India‟s first sports utility vehicle;
Tata Indica, India‟s first indigenously manufactured passenger car; and the Nano,
the world‟s least expensive car.
Tata Motors Limited
• Tata Motors Limited is India's largest automobile company, with revenues of Rs. 24,000 corers (USD 5.5 billion) in 2005-06. It is the leader by far in
commercial vehicles in each segment, and the second largest in the passenger vehicles market with winning products in the compact, midsize car and
utility vehicle segments. The company is the world's fifth largest medium and heavy commercial vehicle manufacturer.
• The company's 22,000 employees are guided by the 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.”
• As an enterprise under India’s largest multi holding company, Tata Motors has grown significantly in the past 60 years since its establishment in
1945.The company caters to three main market segments globally: the passenger cars, utility vehicles and commercial vehicles. A significant
breakthrough for the company was the development and commercialization of the truly Indian cars-Tata Indicia and Tata Indigo. The company
produced its first mini truck, first light and first heavy vehicle and many more fists in India ,being an innovator in their industry. It has followed a
strategy of acquisitions and joint ventures in its mid-stage and launched new products at a rapid pace in different market segments. Today, Tata
Motors enjoys the position of being India’s leading automobile manufacturer with increasing presence in Europe, South East Asia. Africa and the
Middle East with a total income of US $4 billion in 2004-05.The company focuses on providing customers the best value for their money and meets
European standards and environmentally regulations through their advanced technologies.
• Established in 1945, Tata Motors is one of the 32 publicly listed enterprises infer the Tata Group, India’s largest business conglomerate. Tata Motors
collaborated with Germany’s Daimler Benz in 1945 for 15 years to manufacture commercial vehicles .Since then, Tata Motors has grown enormously
and produces several vehicles through their main
• Divisions- Passenger Cars, Utility Vehicles and Commercial Vehicles. In 1959, they set up their first and largest R&D centre in Jamshedpur.In 1961,
exports had begun and the first truck was shipped to Sri Lanka.Another R&D Centre was started in Pune in 1966 to support automobile research
which produced the first commercial vehicle by 1983 and light commercial vehicles three years later. With increasing sales popularity, they sold their
one millionth vehicle by 1991 .Their interest in tapping the diesel engine market was evident through their joint venture with Cummins Engine Co.Inc
in 1993 for the production of high horsepower and emission friendly diesel engine.
• After the joint venture in 1993, a few others were pursued the following year. An agreement with Daimler-Benz in 1994, allowed Tata Motors to
produce high end Mercedes Benz passenger cars for the Indian market .In 1998, they launched their first sports utility vehicle, Tata Safari. This was
an important year as their sales doubled to 2 million vehicles and marked the munch of India’s first fully indigenous passenger car, Tata Indicia .The
Indicia was a success and over 115,000 bookings with full payment
SWOT analysis of TATA motors:
• SWOT analysis (alternately SLOT analysis) is a strategic planning method
used to evaluate the Strengths, Weaknesses/Limitations, Opportunities,
and Threats involved in a project or in a business venture. It involves
specifying the objective of the business venture or project and identifying
the internal and external factors that are favourable and unfavourable to
achieve that objective.
STEEPLED analysis of TATA motors
• STEEPLED is abbreviation for Social, Technological, Education, Ethnic,
Political, Legal, Economic and Demographic factors
• STEEPLED analysis is a means of conducting a scan of an organisation‟s
external environment, with particular reference to the future and any
changes that may come about. The purpose of STEEPLED is to identify
factors that may impact on the services, customers (or Patients), products,
markets, staff, profitability, etc. of the organisation.
Conclusion & Bibliography
The SWOT and STEEPLED analysis of TATA motors was done and we concluded that Tata Motors is
an overall strong company that has found strength and expansion through its parent company,
Tata Group, but also through its numerous acquisitions and mergers. Although Tata Motors stock
prices have fallen since the start of the 2008 year due to suggestions that Tata Motors is
overreaching by adding luxury brands to pair with the Nano, the world's cheapest car. Chairman
of Tata Group, Ratan Tata, rejects suggestions that, ``We're not trying to be a global player,'' he
told reporters in New Delhi Jan. 10 after unveiling the Nano, which will be built in a new plant
costing 10 billion rupees ($249 million). ``We will grow internationally in select markets''
• 1. www.googledocs.com
• 2. www.scribd.com
• 3. TATA motors global sustainability report
• 4. www.wikipedia.org
• 5. www. marketingteacher.com
• 6. www.economist.com
• 7. www.businessgrowthconsultant.com