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LEVELS OF
STRATEGY
LEVELS OF STRATEGY
Corporate level strategy(directional strategy)
Growth
Stability
Retrenchment
Business level strategy(competitive strategy)
Cost leadership
Functional level strategy
Marketing strategy (4 p‟s)
Financial strategy (sources of finance)
R&D strategy (technological leader, innovation)
Differentiation
(product)
GROWTH STRATEGY
Tata Group's
strategic alliance
with Japanese
telecom major NTT
DOCOMO in
November 2008.
Tata Teleservices
has received a
license to operate
GSM telecom
services in 19 of
India's 22 telecom
Circles-and has
also been allotted
spectrum in 18
telecom
circles.
Tata companyAcquired
company
Countr
y
Stake
acquired
January
2011
August
2011
Decembe
r
2010
January
2009
March
2009
June
2008
August
2008
January
2007
Tata
Communication
s
Tata Chemicals
Tata Chemicals
Tata
Communication
s
Tata Global
Beverages
Tata
Communication
s
Voltas
Tata Steel
EPM Mining
Ventures British
Salt
Neotel
Grand
Communications Limited
(CEC) Rohini Industrial
Electricals
Corus
BT Group's (BT) Mosaic
businessUK
Indi
a
UK
Canada
UK
South
Africa
Russia
100 per
cent
51 per
cent
100 per
cent
30.6 per cent
100 per cent (wholly-
owned)
30 per cent
33.2 per cent
China
Enterprise
Chin
a
50 per cent equity
interest
ACQUISITION‟
S
•Tata & Fait since 2006
•Tata & Starbucks 50/50 JV
Starbucks Coffee “A Tata
Alliance”.
•Tata Motors (SA)
Tata Motors' joint venture
with Tata Africa Holdings,
has an assembly plant in the
Gauteng province of SA.
•Tata Automobile Corporation
SA
Tata Africa Holdings through
a joint venture between
Accordian Investments and
JOINT
VENTURE
TURNAROUND
STRATEGY
Tata Power Delhi Distribution by winning
hearts and changing mindsets, and through
technology and commercial savvy
transformed a loss-making government entity
into an
efficient and profitable operation that has
become a
benchmark for public-private partnerships
DIVESTMENT
STRATEGY
Tata Oil Mill (TOMCO) was divested and sold to
Hindustan Leversas soaps and a detergent
was
not considered a core business for the Tata‟s.
The pharmaceuticals companies of the Tata‟s-
Merind and Tata Parma –were divested to
Wockhardt.
The cosmetics company Lakme was divested
and
sold to Hindustan Levers, as besides being a
BUSINESS LEVEL STRATEGY
Tata nano, the cheapest car in the
world
Swach, the cheapest water filter from
Tata Chemicals. less than Rs 1000.
Tata Motors launched the Ace truck in
May 2005 for just above Rs 200,000.
PRODUCT DIFFERENTIATION
STRATEGY
Tata Motorsnew
launches like Aria
and the new 2011
Safari to regain its
lost market share.
Tata is looking at
doubling SUV
annual volumes to
over 70,000 units
in the next 12-18
months, including
exports.
Tata Motorsis set
to offer utility
vehicles at
everypricepoint
right from Rs. 6.5
lakh to Rs. 15
BLUE OCEAN STRATEGY
place
Red Ocean
Exploit existing demand
Make the value cost trade off
Strategicchoice of differentiation or
low cost
space
Blue Ocean
Create andcapture new demand
Break the value-cost trade off
Strategicchoice of Differentiation
and Low Cost
Beat the competition
Compete inthe existing market
Make the competition irrelevant
Create unconsolidated market
VALUE
INNOVATION
Value Innovation is the
cornerstone of blue
ocean strategy.
Value innovation is the
simultaneous pursuit
of
differentiation and low
cost.
Value innovation
focuses
on making the
competition irrelevant
by
creating a leap of value
for buyers and for the
company, thereby
R&D STRATEGY
Tata Group companies cumulatively spend Rs.12,500
crore on research & development.
knowledge-based engineering application software from
Tata
Technologies that speeds up results.
An engine „start-stop‟ technology developed by Jaguar
Land
Rover that stops an engine when the vehicle isn't
moving, thus
saving on fuel;
was developed by Tata Steel Europe
High standard steel for safer and fuel efficient vehicles
from
Tata Steel Europe
The world's cheapest car, Nano, an innovation from
High performance rail steel that saved £150,000 over five
years
OPERATION‟S
STRATEGY
Jaguar Land Rover has re-hauled its supply
chain to secure cost savings as well as a
sustainability equation that gives the
company
a green edge
A re-designing of process equipment at
Tata
Chemicals' Haldia plant that cut process
downtime by 40%.
SUSTAINABILITY STRATEGY
Corporate Sustainability
(CS) is integral to value-
creation in our businesses
through the enhancement
of human, natural and social
capital complementing their
economic and financial
growth in order to give the
enterprise an enduring
future and also help create
and serve a larger
purpose, at all times.
It facilitates accountability
to all stakeholders as a
systemic practice.
“SUSTAINABILITY IN
MOTION”
The two main sustainablestrategies
at
Tata Motors:
Pollution Prevention (P2)
Resource Recovery (R2)
P2 STRATEGIES
P2 or pollution prevention is a proactive
strategy
that uses fewer or smarter resources to
beginrequiring lesser cleanup at the final
disposal.
It is done by reducing or eliminating waste at
the
source by modifying production
processes, promoting the use of non-toxic or
less-
toxic substances, implementing conservation
techniques, and re-using materials rather than
putting them into the waste stream.
Reducing packaging material by either using
sustainable packaging(replacing wood with
metal) or reusing existing packaging
(recycling
wood).
The company recycles close to 69 percent of
the wood packaging thus eliminating use of
fresh wood.
Development of Vendor Park
The company aims to source 60% of its
R2 STRATEGIES
This is a „getting more from the same‟
strategy
by way of proper disposal –recycling or
reconditioning.
Increasing life of aggregates –‘Recon’
business
In 2010-11 a total of 13,788 engines and 8,690
other parts were reconditioned.
Other resource conservation techniques like
reusing engine oil for multiple testing cycles
where otherwise wasted resources are
recovered
Reusing paint sludge and thinner
FreeTake-back network for Tata Motors’ ELVs (end-
of-life vehicles)
Last year, approximately 390 tonnes of hazardous
paint sludgewas converted to a low quality paint
suitable for floor painting.
Tata Motors has also developed a process to convert
the
incinerator ash to pavement bricks that can be used in
walkways within the plant.
This model has been very successful and has
significantly
reduced the amount of hazardous incinerated ash
sent to
landfills.
Tata Motors has contracted with a national ELV service
provider called Cartakeback.com Ltd. to provide
owners of qualifying Tata vehicles, who wish to dispose
of their vehicle at the end of its life, with access to a
Under the End-of-Life Vehicle (ELV) regulations in
the UK,
tatastrategy-121021055102-phpapp02.pdf (1).pptx

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tatastrategy-121021055102-phpapp02.pdf (1).pptx

  • 1.
  • 3. LEVELS OF STRATEGY Corporate level strategy(directional strategy) Growth Stability Retrenchment Business level strategy(competitive strategy) Cost leadership Functional level strategy Marketing strategy (4 p‟s) Financial strategy (sources of finance) R&D strategy (technological leader, innovation) Differentiation (product)
  • 4.
  • 5. GROWTH STRATEGY Tata Group's strategic alliance with Japanese telecom major NTT DOCOMO in November 2008. Tata Teleservices has received a license to operate GSM telecom services in 19 of India's 22 telecom Circles-and has also been allotted spectrum in 18 telecom circles.
  • 6. Tata companyAcquired company Countr y Stake acquired January 2011 August 2011 Decembe r 2010 January 2009 March 2009 June 2008 August 2008 January 2007 Tata Communication s Tata Chemicals Tata Chemicals Tata Communication s Tata Global Beverages Tata Communication s Voltas Tata Steel EPM Mining Ventures British Salt Neotel Grand Communications Limited (CEC) Rohini Industrial Electricals Corus BT Group's (BT) Mosaic businessUK Indi a UK Canada UK South Africa Russia 100 per cent 51 per cent 100 per cent 30.6 per cent 100 per cent (wholly- owned) 30 per cent 33.2 per cent China Enterprise Chin a 50 per cent equity interest ACQUISITION‟ S
  • 7. •Tata & Fait since 2006 •Tata & Starbucks 50/50 JV Starbucks Coffee “A Tata Alliance”. •Tata Motors (SA) Tata Motors' joint venture with Tata Africa Holdings, has an assembly plant in the Gauteng province of SA. •Tata Automobile Corporation SA Tata Africa Holdings through a joint venture between Accordian Investments and JOINT VENTURE
  • 8. TURNAROUND STRATEGY Tata Power Delhi Distribution by winning hearts and changing mindsets, and through technology and commercial savvy transformed a loss-making government entity into an efficient and profitable operation that has become a benchmark for public-private partnerships
  • 9. DIVESTMENT STRATEGY Tata Oil Mill (TOMCO) was divested and sold to Hindustan Leversas soaps and a detergent was not considered a core business for the Tata‟s. The pharmaceuticals companies of the Tata‟s- Merind and Tata Parma –were divested to Wockhardt. The cosmetics company Lakme was divested and sold to Hindustan Levers, as besides being a
  • 10. BUSINESS LEVEL STRATEGY Tata nano, the cheapest car in the world Swach, the cheapest water filter from Tata Chemicals. less than Rs 1000. Tata Motors launched the Ace truck in May 2005 for just above Rs 200,000.
  • 11. PRODUCT DIFFERENTIATION STRATEGY Tata Motorsnew launches like Aria and the new 2011 Safari to regain its lost market share. Tata is looking at doubling SUV annual volumes to over 70,000 units in the next 12-18 months, including exports. Tata Motorsis set to offer utility vehicles at everypricepoint right from Rs. 6.5 lakh to Rs. 15
  • 12. BLUE OCEAN STRATEGY place Red Ocean Exploit existing demand Make the value cost trade off Strategicchoice of differentiation or low cost space Blue Ocean Create andcapture new demand Break the value-cost trade off Strategicchoice of Differentiation and Low Cost Beat the competition Compete inthe existing market Make the competition irrelevant Create unconsolidated market
  • 13. VALUE INNOVATION Value Innovation is the cornerstone of blue ocean strategy. Value innovation is the simultaneous pursuit of differentiation and low cost. Value innovation focuses on making the competition irrelevant by creating a leap of value for buyers and for the company, thereby
  • 14. R&D STRATEGY Tata Group companies cumulatively spend Rs.12,500 crore on research & development. knowledge-based engineering application software from Tata Technologies that speeds up results. An engine „start-stop‟ technology developed by Jaguar Land Rover that stops an engine when the vehicle isn't moving, thus saving on fuel; was developed by Tata Steel Europe High standard steel for safer and fuel efficient vehicles from Tata Steel Europe The world's cheapest car, Nano, an innovation from High performance rail steel that saved £150,000 over five years
  • 15. OPERATION‟S STRATEGY Jaguar Land Rover has re-hauled its supply chain to secure cost savings as well as a sustainability equation that gives the company a green edge A re-designing of process equipment at Tata Chemicals' Haldia plant that cut process downtime by 40%.
  • 16. SUSTAINABILITY STRATEGY Corporate Sustainability (CS) is integral to value- creation in our businesses through the enhancement of human, natural and social capital complementing their economic and financial growth in order to give the enterprise an enduring future and also help create and serve a larger purpose, at all times. It facilitates accountability to all stakeholders as a systemic practice.
  • 17. “SUSTAINABILITY IN MOTION” The two main sustainablestrategies at Tata Motors: Pollution Prevention (P2) Resource Recovery (R2)
  • 18. P2 STRATEGIES P2 or pollution prevention is a proactive strategy that uses fewer or smarter resources to beginrequiring lesser cleanup at the final disposal. It is done by reducing or eliminating waste at the source by modifying production processes, promoting the use of non-toxic or less- toxic substances, implementing conservation techniques, and re-using materials rather than putting them into the waste stream.
  • 19. Reducing packaging material by either using sustainable packaging(replacing wood with metal) or reusing existing packaging (recycling wood). The company recycles close to 69 percent of the wood packaging thus eliminating use of fresh wood. Development of Vendor Park The company aims to source 60% of its
  • 20. R2 STRATEGIES This is a „getting more from the same‟ strategy by way of proper disposal –recycling or reconditioning. Increasing life of aggregates –‘Recon’ business In 2010-11 a total of 13,788 engines and 8,690 other parts were reconditioned. Other resource conservation techniques like reusing engine oil for multiple testing cycles where otherwise wasted resources are recovered
  • 21. Reusing paint sludge and thinner FreeTake-back network for Tata Motors’ ELVs (end- of-life vehicles) Last year, approximately 390 tonnes of hazardous paint sludgewas converted to a low quality paint suitable for floor painting. Tata Motors has also developed a process to convert the incinerator ash to pavement bricks that can be used in walkways within the plant. This model has been very successful and has significantly reduced the amount of hazardous incinerated ash sent to landfills. Tata Motors has contracted with a national ELV service provider called Cartakeback.com Ltd. to provide owners of qualifying Tata vehicles, who wish to dispose of their vehicle at the end of its life, with access to a Under the End-of-Life Vehicle (ELV) regulations in the UK,