A presentation on change management at Tata motors

1. A report on
Change
Management
at
TATA
Motors
By:
Aditya Mutt(8)
Debmallya Chakraborty
Debopriya Ganguly(30)
Pramit Gupta(32)
Pritam Moitra(58)

2. Introduction
• Estd.
• TELCO
(Tata Engg.
&
Locomotive
Co.)
1945
• Commercial
Vehicles
• c/w Daimer-
Benz(1969)
1954
• Passenger
Vehicles
• TataMobile
(aka
Tata207di)
1988
• Devl. of
competitive
Indigenous
Automobiles
• Tata Sierra
1991 • Tata Indica
• Speciality?1998
• World’s
cheapest
car
• Tata Nano
2008
• HQ: Mumbai
• Revenue: $ 43.91 Billion
• #226 on Fortune Global 500,
2016
• CEO: Guenter Butschek

3. Need for Change
Losses
amounting
₹ 5
Billion
in
2001
Cyclic
business
40%
Shrinkage in
domestic
Commercial
Vehicle
market
‘You do not know
anything, why did
you start the
passenger car
division at all?’
-Ford officials
‘We will be
doing you a
favor by
buying your
passenger
car division.’
Tata
Indica
flop

4. Changes Incorporated
2yrs
2yrs
2yrs

5. Role of Top Management
In charge of Implementation
• Ratan Tata
• Ravi Kant, then MD of Tata Motors
External Consultants
• Siebel
• TCS
Action Planning Workshops and team-level interventions
•Motivation
•Commitment
•Engagement
PARIVARTAN for existing as well as new system
•For Employees
•Comment
•Feedback
•Suggestion
Performance Assessment & Training Coach
•aka PACT
•Coaching Discussions @ it’s core

6. Changes in work Culture
Initial Setbacks
• Resistance to Change
• Approach of People was inward (i.e. work, meeting targets, promotion, etc.)
Need: Building a strong, committed team high on moral & ethical values
Environmental
Inputs
Technological
Change
Product line
Improvement
Strategy
Cultural change
•Values & Myths
•Traditional Norms
Shared Values
Leadership
Commitment
Patience
Adaptability
Roles
Responsibilities
IT
Training Video
Modules
CAD/CAM

7. Phase 1: Reduction of Costs
Lower Break-Even
Point by
• Reducing
• Variable costs
• Fixed Costs
• Interest Costs
E-sourcing
• Many Bidders
• Single Portal
Introducing
• Computer Aided Design
• Computer Aided Manufacturing
Customer Dealer Management Program
•Bundled MIS
•Sales
•Finance
•Inventory
•Administration

8. Phase 2: Consolidation of dom. Position
• Concentration on the development of product.
• Positioning in the market place strengthened by:
1. New sales planning process
2. Reducing the impact of cyclic business.
3. Improving liquidity and profitability of dealers.
4. Re- orienting towards customer satisfaction.
5. Extending the reach for distribution network.
Example: TATA NANO
• Dream Project of Ratan Tata
• aka ‘The People’s Car’
• Failed Initially
• Repositioning:
• Focus on Tier 2 cities
• Special Nano Finance
• Product Re-engineering
2014: Tata introduced T1 Prima Truck
Racing Championship

9. Phase 3:Expansión Internacional
• Invest into R&D:
• Centres:
• UK
• India
• Italy
• South Korea
• Strategic Alliance:
• Brazil based Marcopolo
• Fiat
• ID countries as priority markets:
• Latin America:
* Bolivia * Chile * Ecuador * Uruguay * Paraguay
• Africa:
* Ghana * Zambia * Mozambique * Nigeria * Kenya * Senegal * South Africa * Tanzania * Tunizia * Uganda
• Middle East:
* Abu Dhabi * Dubai * Iraq * Kuwait * Oman * Quatar * Saudi Arabia * Turkey
• To Facilitate Globalization
• Tata Exports division merged into Commercial & Passenger Vehicle division
TATA Motors Manufacturing Operations
Source: Tata Motors

10. Results
M&As
• 2008: Jaguar Land Rover from ford (U.K.)
• 2005: Hispano Carrosera (Esp.)
• 2004: Daewoo’s Truck mfg Unit (South Korea)
Joint Ventures
• 2006: Tata Marcopolo Bus (w. Brazil’s Marcopolo)
• 2009: Tata World Truck Range (w. Tata Daewoo)
-10000 0 10000 20000 30000
FY2001
FY2003
FY2005
FY2007
FY2009
FY2001FY2003FY2005FY2007FY2009
Sales(Cr) 8077.8 10640.720482.5 27470 28261.5
Pre-Tax
Profit(Cr)
-500.3 510.3 1651.9 2573.2 2829.5
Standalone Results(2001-2009)
Source: Tata Motors