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Swot analysis of tata motors


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Swot analysis of tata motors

  1. 1. SWOT Analysis Of Tata Motors
  2. 2. 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.
  3. 3. . Background & History of the SWOT Analysis • 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
  4. 4. 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.
  5. 5. Benefits and limitations of SWOT analysis • 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 business adviser. • 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.
  6. 6. Introduction • 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.
  7. 7. Company profile 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
  8. 8. 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.
  9. 9. 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.
  10. 10. 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'' (Krishnamoorthy). • : • 1. • 2. • 3. TATA motors global sustainability report • 4. • 5. www. • 6. • 7.