This document provides a strategic profile of the Tata Nano car project in West Bengal. It discusses the background of the project including Tata Motors' goal of producing a $2,000 car for the Indian market and their agreement with the West Bengal government to set up a manufacturing plant. It summarizes the key issues around land acquisition from local farmers and the resulting political opposition led by Mamata Banerjee. An internal, external, competitor and SWOT analysis is also provided. The document concludes by outlining Tata's decision to move the project to Gujarat due to delays and discusses the strategic benefits of this alternative location.

1. STRATEGIC PROFILE

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5. THESUN SHINECELEBRITY NEWS AND GOSSIPWORLD EXCLUSIVESWest Bengal welcomes TATA RATAN TATA PLANS TO COME ESTABLISH A NANO PLANT IN WEST BENGALIn librisgraecisappetere mea. At vim odioloremomnes, pri id iuvaretpartiendo. Vivendomenandri et sed. Loremvolumusblandit cu has.Sit cu alia porrofuisset. Ea pro natuminviduntrepudiandae, his et facilisisvituperatoribus. Mei euubiquealterasenserit, consul eripuitaccusata has ne. In librisgraecisappetere mea. At vim odioloremomnes, pri id iuvaretpartiendo. Vivendomenandri et sed. Loremvolumusblandit cu has.Sit cu alia porrofuisset. Ea pro natuminviduntrepudiandae, his et facilisisvituperatoribus. Mei euubiquealterasenserit, consul eripuitaccusata has ne. Ignotaverteremtenam, eucibocausaemenandri vim.

7. GENERAL ENVIRONMENT ANALYSIS

8. SITUATIONTata’s dream- Roll out Rs. 1lakh carBuddhadevBhattacharjee’s vision of an industrialized stateMarginal farmers- Rehabilitation and ResettlementIndustry, Government and Agriculture come at crossroadsEnsuing turmoil feeds political agitations spearheaded by MamtaBanerjee adding fuel to the fire

9. The PeopleSmall Farmers- 635 acres owned by 9020 farmers

10. Three groups support land transfer-Absentee landownersRegistered share-croppersThose owning a part of landThree groups oppose land transfer- Unregistered share-croppersDaily wage earners associated

11. WB Government & Tata MotorsCM BuddhadevBhattacharjiya had a vision to industrialize the state and to create jobs for youthRatan Tata promises the nation a 1lakh car for the common manAccepts a lucrative proposal by WB Govt. to set up plant in WB which will significantly help lower its cost of production and help make car at lower cost

12. IssuesTransfer Of LandQuestions Regarding The DealFarmers to companyAgriculture to industryGovernment as intermediaryVoluntary versus forcedCompensation and pricingEmploymentGovernment involvement

13. Negative AspectsPositive AspectsIndustrialization at the expense of Agriculturefertile land was transferred to co. 83% of the land is irrigated and crop density is 220%No daily income except landFails to secure children’s futureToo much involvement of Govt.Industrialization of State good employment opportunities for farmersGetting 8lakh per acre of landImprove Standard of living

14. Industrial Analysis

15. Tata was looking to bring the industrial automobile revolution in India.

16. World's cheapest car

17. Focused on the 75% of the Indian population which still travels using two-wheelers

18. The Tata Nano shows the power of vision- setting a very high bar—to create a Rs1-lakh ($2,000) "people’s car.”

19. Why Tata wanted to set up their industry in Singur..??

20. To do rapidly industrialization of West Bengal

21. To grow the economic domain of west Bengal

22. State governments were so eager to invite private playersProject gave hope to the foundry industry in West Bengal.Industrial development of west bengalIncrease in the employment of the local peoples Enhancement of the economic condition of west Bengal The effect of the issue “Mamta Vs Tata” on industrial development of west Bengal.Finally tata announced to go out side the west bengalInterrupt for state’s future industrialization and good job opportunities

23. Competitors’ Analysis

24. 17Why Tata is facing so many competitors post the Nano project

25. Major Competitors Of The Tata Motors18Hyundai was also very cheap when it entered US but, today has one of the best safety ratings of all cars in market-in India they did not launch Ultracheap Car .

26. After the launching of Tata nano, India’s top car maker maruti is planning coming into the action to give competition to nano by focusing on fuel-efficient small cars, hybrids, electric and multi-fuel cars

27. India races for the world's cheapest car as Toyota Motor Corp, Honda Motor Co, Fiat, and Volkswagen AG also plan economy cars to compete in the Indian, Chinese and Russian markets.

28. Motorbike maker Bajaj Auto Ltd is reportedly looking at a slightly higher-end compact car, while reports suggest that Ford India may enter the segment that accounts for 75% of sales in the countryInternal Analysis

29. Was It Justified To Use The Cultivable Land West Bengal seemed to have reached the carrying capacity of the farming sector. So, the obvious choice to improve the living standards was to develop the industrial and services sectors, But new ventures means land for factories, roads, bridges etc. As very little land was idle, so some had to come from the cultivable pool which meant sacrificing some farm output given that it would make economic sense. IT WAS JUSTIFIABLE BECAUSE:Though it was matter of food security but the land required would have affected the overall output marginally only.

30. Self sufficiency in food was neither necessary nor desirable if higher returns direct resources to the other sectors.

31. If the job opportunities had opened outside the farm sector , it would had definitely improved the conditions of the farmers.Continued…The problem of the overall agricultural productivity being affected by acquisition of the land by was an insignificant one, the main thing was- the farmers losing their land as well as their livelihood and also the no. of jobs created were not more than 1000 and too many of which were expected to go to outsiders which threatened the local population.

32. Compensation was important not only because the govt. was grabbing the land in the name of public interest and had the moral responsibility to compensate the loser but also because the likelihood of the loser getting a job in the unit were minimal.

33. The information regarding the packages would have been made more transparent as to keeping in mind the interest rates, inflation rates etc.. It would have been observed as to whether the price offered was enough to maintain the living standards for a reasonable no. of years.

34. On the other hand government’s opacity regarding the compensation packages and other financial matters led to the suspicion among the farmers that something vital was hidden and also the “save farmland” movement started by Ms. MamtaBanerjee provoked the farmers more and worsened the situation manifold and ultimately led to the calling off of the project.

35. Thus it was important for the govt. to understand that a minimum consensus among the citizens was essential before a path to industrializationSWOT analysis of Tata - Singur case

36. STRENGTHS:The 1 lakh car(the biggest strength of the project).Singur had low operating cost as the project was very cost effective so it was very helpful.The WB govt. gave good financial incentives to Tata motors for their project.The investors had faith that they would recover their investment fast.Logically, Singur was a good location according to the Tata group.

37. WEAKNESSES:The agreement between Tata and the govt. was not disclosed properly.The modern car factory hardly require so much of land then why did Tata.The Nandigram issue added fuel to fire to Tata Singur issue.The use of police force during land acquisation.There was no transparency between the govt. and the farmers.