Description
MARKETING ANALYSIS OF TATA MOTORS
TATA MOTORS
Global Footprint
OTHER COLLABORATIONS/M&A & JVs • Tata Daewoo Commercial Vehicle • Hispano in Spain & Marcopolo In Brazil • JV with Jardine Matheson for ConcordeMotors • Technology Tie Ups at Spain,Italy North Africa Egypt West Africa Senegal LATAM Brazil West Asia Saudi Arabia Iraq, Iran South Africa South Africa* East Africa Kenya* South East Asia Malaysia* Thailand South Asia Bangladesh * Nepal, Sri Lanka West Europe U.K. Italy Russia* Ukraine* Central Asia Afghanistan Uzbekistan
East Asia China South Korea*
* Assembly Operations also
2
Product Range
TATA Motors: Commercial Vehicles
3
Technological Resources
? R & D establishments at Jamshedpur, Pune & Lucknow – over 1400 engineers. ? India’s only certified crash test facility for cars and hemi anechoic chamber for testing of noise and vibration.
? Tata Motors European Technical Centre (TMETC) set up in 2005 –
primarily involved in design engineering and development of products, supporting Tata Motors skill sets.
? Tata Daewoo Commercial Vehicle Co. has its R&D facility in
Gunsan, South Korea. ? Hispano Carrocera has its R&D facility at Zaragoza in Spain.
Organizational Resources
? Process Approach – EPM (derived from APQC processes and TBEM model.
17
100
5
The Enterprise Process Model
6
• Sound leadership – JRD, Sumant Moolgaokar, Ratan Tata • Ethical business practices – guided by the Tata Code of Conduct • Successful handling of integration issues – Tata Daewoo, Jaguar – Land Rover • Reputation and recognition – Tata brand. • CSR initiatives
• Adaptability to the changing business dynamics.
7
Financial Resources
? Stable cash flows for the past five years
? Cash rich corporate parent – Tata Sons
? Strong reputation – access to capital markets
8
Value Chain & Value System
Transporters, Convoy Drivers Association Dealer Network, Marketing Research Firms, Vehicle Financing
SAP , VCM Inbound Operations Logistics Logistics SAP , CRM - DMS Outbound
Marketing
Service
Suppliers , Contractors
Regional Warehouses, Dealer Workshops, Distributors, TASS
Strategic Alliances
9
Inbound Logistics
? Long term contract with service provider’s – transporters and agents. ? Personnel at regional offices for over seeing the smooth transit of goods. ? Transparency and monitoring through deployment of IT – all transactions through SAP. ? DTL supplies for critical high value items. ? Efficient storage facilities – easy storage and retrieval.
10
Operations
? Capital Equipment
Manufacturing division – tooling development
capabilities of global standard. ? Apprentice Trainee Course – ensuring stable source of skilled
manpower.
? Kaizen & TPM team – continuous drive to improve efficiencies. ? Automated manufacturing processes.
? Distributed manufacturing – Assembly units at South Africa,
Thailand, Bangladesh, Brazil etc. ? Maintenance – technical competence. ? Capacity Utilization – Mercedes Benz cars make use of Tata Motors paint shop facilities.
11
Outbound Logistics
? Stockyards, all across the
country.
? Long term contracts with transporter’s – higher volume of business to transporters ensures competitive price. ? Regional Sales Office and Vehicle Dispatch Section linked through
SAP.
? Efficient security system for prevention of any kind of pilferage.
12
Marketing & Sales
? Structured approach to
understanding the requirements of individual customers – QFD’s conducted at regular intervals. ? Clear identification of product requirements, leading to development of innovative products – Tata 207 DI, Tata Ace ? Pan India presence and global footprint. ? Independent teams for addressing the requirements of institutional customers – Defense, State Transport Units ? Helping to augment the scarce resources – Fiat selling vehicles through Tata dealerships, in return Tata has access to Fiat’s technology and unutilized capacity. ? Quick assessment of the changing market dynamics and consumer preferences – Tata 407 LCV ? Large network of dealers – use of technology : DMS. 13
Service
? Easy availability of spare parts.
? Efficient collection of data from field and communication to the respective plants. ? Pan India presence, as well as global presence. ? Large network of workshops – Dealer workshops and TASS.
? Training facilities – for dealer end and TASS personnel.
14
Procurement
? E procurement initiative. ? Global Sourcing Team – China , a key destination for sourcing essential items like tires, power steering units etc., Steel procured from Belarus ? Long term relationships with a stable and loyal pool of suppliers. ? Technology driven procurement – SAP and VCM. ? Strategic subsidiaries & JV’s – TACO group of companies , Tata Cummins ? Centralized Strategic Sourcing for key components – FIP’s, Steel etc. ? Group resources – Tata Steel and Tata International . ? Localized supplier base at mfg. locations – low inventory levels.
15
Technology Development
? Approximately 2% of the annual profits of the company invested in research and development. ? Knowledge portal – helps employees keep abreast with the latest technologies.
? Extensive prototype building and testing facilities.
? Strategic partnerships – MDI (France), Fiat etc. ? Formal benchmarking process.
? “Technology Day” organized across all plant locations.
16
Human Resource
? Vast pool of technically competent engineers and managers. ? Focus on development of technical capabilities – Technical
Training Center’s, Alliance with technical Institutes
? Focus on development of managerial capabilities – MTC’s , TMTC, executive training programs at premier business schools
? Career advancement schemes – ESS, FTSS
17
Firm Infrastructure
? Multi – Location facilities
? Strong leadership – under the aegis of Tata Sons
? Best in class prototype building facilities ? Technology – SAP ? Large product portfolio
18
Dynamic Capabilities
• NPI Process – reduced time to market
19
Leveraging the resources
How did TATA create initial resource complement to overcome the disadvantage of being newcomers in passenger car business?
STRATEGY
R&D
Strategic partnerships Joint ventures Acquisitions Intensive management development Government support (10Year Plan)
New institutions for trade promotion, technology upgradation, quality enhancement (ACMA: Automotive Component Manufacturers Association, SIAM: Society of Indian Automobile Manufacturers )
20
INSTITUTIONS
Key Strategies
International strategy based on the competitive advantage:
? New product (eg. Tata Nano, the cheapest car in the World). ? Acquisitions (eg. Land Rover and Jaguar brands from Ford Motors). ? Partnership with established companies (eg. Alliance with Fiat since 2006) to enhance the product portfolio and knowledge exchange. ? Facilities for learning from other companies. ? Developing programmes for intensive management development.
Consolidate position in India by exploiting opportunities:
? New mobility of young Indians. ? Government’s substantial road-building program ? GDP growth
21
Process Benchmarking
? Optimize the value chain using distributed Manufacturing ? The power of IT has been extensively leveraged ? State-of-the-art CAD and CAM services integrated design across multiple disciplines ? IT helped the company shrink the design cycle time ? BSM tools from BMC Software played a key role
? TML decided to adopt IT service management concepts outlined in the ISO 20000:05 international standards, as well as best practices outlined in the IT Infrastructure Library® (ITIL®) Version 3
22
Process Benchmarking
? service-oriented management architecture that treated services as assets and managed them on a life cycle basis. ? In-house manufacturing capability with CNC manufacturing operations ? have implemented Six-sigma, Kaizen & TPM.
23
Strategic Benchmarking
24
Strategic Benchmarking
? Objective: Innovation across the value chain leading to
affordable products that can grow the market
? Product innovation needs to be complemented with innovation in other parts of the value chain
• • • • • Co- location of suppliers On- line bidding by suppliers Reduction in the number of suppliers Partnerships with vendors Dedicated “Suvidha” service network in small towns
25
Achievements
? The sole winner of the JRD QV Award 2005 was the commercial vehicle business unit, or CVBU, of Tata Motors ? PCBU's business excellence initiative has come into its own. • Serious Adoption Award in 2004 • Active Promotion Award in 2005 ? Tata Motors have crossed the level of 60% to win the JRD-QV award in 2001, 2004 & 2005 respectively
26
Stretch and Leverage
? Vision : “best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics” ?Engineering, construction and automotive solutions ?R&D focus on environment-friendly technologies in emissions and alternative fuels ?Maintain cost competitiveness through continuous improvements in control over key inputs and enhanced asset utilization ?Best in class human capital that are constantly in touch with the industry, competitors, customers and the suppliers
27
Stretch and Leverage contd..
? Tata – Nano: The innovative small car for the urban middle class
?Fulfill the requirements of its customer value proposition ?Deliberately created a young team with good leadership capabilities who think differently ?Excellence in outsourcing ? Reconceived its supplier strategy - 85% of the Nano’s components ?Fewer supplier (<60%)
28
Stretch and Leverage contd..
? Acquisition : Land Rover and Jaguar for $2.3 billion - Complementing Resources - Blending & Balancing
?High Replacement cost ?Complimentary to Tata Motor in the upstream business ?Access to global markets ?Transfer of knowledge, technology from high end market
29
Stretch and Leverage contd..
Overall .. ? Strong product development capability ? Manufacture products or deliver services of highest quality at lowest prices ? Sufficiently widespread distribution and service network ? working around offering more affordable, more value-oriented products
30
Technological Framework
Attribute: ? Innovation around cost ? “globally recognized” technological capabilities ? '50s and '60s technical collaboration with Mercedes Benz to design and manufacture its chosen line of projects ? Strong R&D at ERC ? Possess capability to develop and test durability, engine performance, emission, safety, design and style, noise, hydraulics, tracks, and instrumentation. ? Opportunity to experiment and learn from mistake
31
Technology Capability Hierarchy
32
Achievements
? The company has the only world-class crash facility in Asia outside Korea and Japan ? Developed an A-ECU (Electronic Control Unit) and low-cost accessories that would effectively manage critical engine and vehicle systems without calling for a full-fledged and expensive conventional ECU ? Striding towards new emission standards ? Equipping vehicles of the future with technologies for improving communication, navigation and entertainment- OneCat conceptual car with fiber glass powered by air and emission free.
33
Diversification
? 1977– First CV from Pune plant. ? 1983– First HCV rolled out. ? 1986– First LCV (Tata 407) launched followed by Tata 608. ? 1991– First passenger car Tata Sierra launched. ? 1992– Tata Estate launched. ? 1994– Launch of Tata Sumo.
34
Diversification
? 1995– Mercedes Benz car E220 launched ? 1997– Tata Sierra Turbo launched. ? 1998– India’s first SUV launched. ? 1998– India’s first indigenous Passenger Car Indica launched. ? 2001– Second Generation Indica v2 launched. ? 2008– Launch of Suma Grande ? 2008– Launch of Nano at ninth Auto Expo
35
But, the war is on…
Maruti Vs Tata Motors
36
The Preparations…
? Proper utilization of assets ? Motivating people to work hard ? Selective hiring ? Job fitting ? Training program ? Better working environment
37
To create….
Firm’s Resources
Resource Gaps
Rent Generating Potential
Strategy to best use the capabilities
38
HR Philosophy
? Caring, show respect, compassion and humanity for colleagues ? Work cohesively with colleagues across the group ? Encourages self-sufficiency ? Employees' relatives at Pune have been encouraged to form various industrial cooperatives ? The Tata Motors Grihini Social Welfare Society caters to employees' women dependents'
39
HR Policies
? Executive Selection Scheme (ESS) - fast track programme for accelerated growth ? In-house vocational training and apprenticeship programme trains the technicians ? Rotational assignments and cross-functional mobility allow employees to grow
40
All said and done…a new strategy is required…
The Blue Ocean Strategy
41
Blue Ocean Strategy
Red Ocean Compete in the existing market place
Blue Ocean Create unconsolidated market space
Beat the competition
Make the competition irrelevant
Exploit existing demand
Create and capture new demand
Make the value cost trade off Differentiation or Low cast
Break the value-cost trade off Differentiation and Low Cost
42
Focus on the non-customers
43
Corporate strategy, parenting and synergies
? To buy premium vehicle brands such as Land Rover and Jaguar bolster Tata Motors’ image as a global company and increase its global reach and scale ? Overall, the Tata group has spent around $15.5 billion in acquiring foreign companies ? The Tata name is a unique asset representing leadership with trust ? Leveraging this asset to enhance group synergy and becoming globally competitive
44
Corporate strategy, parenting and synergies contd..
? synergy developed as a result of the strengths of domestic and foreign market share, congregating under the umbrella of Tata group ? The Tata Group as a whole has over 20 publicly listed enterprises and operates in more than 80 countries world-wide - lots of experience and resources to draw from for research and development purposes ? Strong corporate governance based on “rich legacy of fair, ethical, and transparent governance practices” to ensure that its employees act ethically and the business continues to run smoothly
45
Corporate Advantages from Diversified Business
? Sharing of Activities/Resource
Tata Steel Tata Motor TCS Tata Cummins
?Sharing of Skills/Core Competence
Tata Steel
Core Competence Tata Cummins
TAML
TACO
46
Thank you
47
doc_476834004.ppt
MARKETING ANALYSIS OF TATA MOTORS
TATA MOTORS
Global Footprint
OTHER COLLABORATIONS/M&A & JVs • Tata Daewoo Commercial Vehicle • Hispano in Spain & Marcopolo In Brazil • JV with Jardine Matheson for ConcordeMotors • Technology Tie Ups at Spain,Italy North Africa Egypt West Africa Senegal LATAM Brazil West Asia Saudi Arabia Iraq, Iran South Africa South Africa* East Africa Kenya* South East Asia Malaysia* Thailand South Asia Bangladesh * Nepal, Sri Lanka West Europe U.K. Italy Russia* Ukraine* Central Asia Afghanistan Uzbekistan
East Asia China South Korea*
* Assembly Operations also
2
Product Range
TATA Motors: Commercial Vehicles
3
Technological Resources
? R & D establishments at Jamshedpur, Pune & Lucknow – over 1400 engineers. ? India’s only certified crash test facility for cars and hemi anechoic chamber for testing of noise and vibration.
? Tata Motors European Technical Centre (TMETC) set up in 2005 –
primarily involved in design engineering and development of products, supporting Tata Motors skill sets.
? Tata Daewoo Commercial Vehicle Co. has its R&D facility in
Gunsan, South Korea. ? Hispano Carrocera has its R&D facility at Zaragoza in Spain.
Organizational Resources
? Process Approach – EPM (derived from APQC processes and TBEM model.
17
100
5
The Enterprise Process Model
6
• Sound leadership – JRD, Sumant Moolgaokar, Ratan Tata • Ethical business practices – guided by the Tata Code of Conduct • Successful handling of integration issues – Tata Daewoo, Jaguar – Land Rover • Reputation and recognition – Tata brand. • CSR initiatives
• Adaptability to the changing business dynamics.
7
Financial Resources
? Stable cash flows for the past five years
? Cash rich corporate parent – Tata Sons
? Strong reputation – access to capital markets
8
Value Chain & Value System
Transporters, Convoy Drivers Association Dealer Network, Marketing Research Firms, Vehicle Financing
SAP , VCM Inbound Operations Logistics Logistics SAP , CRM - DMS Outbound
Marketing
Service
Suppliers , Contractors
Regional Warehouses, Dealer Workshops, Distributors, TASS
Strategic Alliances
9
Inbound Logistics
? Long term contract with service provider’s – transporters and agents. ? Personnel at regional offices for over seeing the smooth transit of goods. ? Transparency and monitoring through deployment of IT – all transactions through SAP. ? DTL supplies for critical high value items. ? Efficient storage facilities – easy storage and retrieval.
10
Operations
? Capital Equipment
Manufacturing division – tooling development
capabilities of global standard. ? Apprentice Trainee Course – ensuring stable source of skilled
manpower.
? Kaizen & TPM team – continuous drive to improve efficiencies. ? Automated manufacturing processes.
? Distributed manufacturing – Assembly units at South Africa,
Thailand, Bangladesh, Brazil etc. ? Maintenance – technical competence. ? Capacity Utilization – Mercedes Benz cars make use of Tata Motors paint shop facilities.
11
Outbound Logistics
? Stockyards, all across the
country.
? Long term contracts with transporter’s – higher volume of business to transporters ensures competitive price. ? Regional Sales Office and Vehicle Dispatch Section linked through
SAP.
? Efficient security system for prevention of any kind of pilferage.
12
Marketing & Sales
? Structured approach to
understanding the requirements of individual customers – QFD’s conducted at regular intervals. ? Clear identification of product requirements, leading to development of innovative products – Tata 207 DI, Tata Ace ? Pan India presence and global footprint. ? Independent teams for addressing the requirements of institutional customers – Defense, State Transport Units ? Helping to augment the scarce resources – Fiat selling vehicles through Tata dealerships, in return Tata has access to Fiat’s technology and unutilized capacity. ? Quick assessment of the changing market dynamics and consumer preferences – Tata 407 LCV ? Large network of dealers – use of technology : DMS. 13
Service
? Easy availability of spare parts.
? Efficient collection of data from field and communication to the respective plants. ? Pan India presence, as well as global presence. ? Large network of workshops – Dealer workshops and TASS.
? Training facilities – for dealer end and TASS personnel.
14
Procurement
? E procurement initiative. ? Global Sourcing Team – China , a key destination for sourcing essential items like tires, power steering units etc., Steel procured from Belarus ? Long term relationships with a stable and loyal pool of suppliers. ? Technology driven procurement – SAP and VCM. ? Strategic subsidiaries & JV’s – TACO group of companies , Tata Cummins ? Centralized Strategic Sourcing for key components – FIP’s, Steel etc. ? Group resources – Tata Steel and Tata International . ? Localized supplier base at mfg. locations – low inventory levels.
15
Technology Development
? Approximately 2% of the annual profits of the company invested in research and development. ? Knowledge portal – helps employees keep abreast with the latest technologies.
? Extensive prototype building and testing facilities.
? Strategic partnerships – MDI (France), Fiat etc. ? Formal benchmarking process.
? “Technology Day” organized across all plant locations.
16
Human Resource
? Vast pool of technically competent engineers and managers. ? Focus on development of technical capabilities – Technical
Training Center’s, Alliance with technical Institutes
? Focus on development of managerial capabilities – MTC’s , TMTC, executive training programs at premier business schools
? Career advancement schemes – ESS, FTSS
17
Firm Infrastructure
? Multi – Location facilities
? Strong leadership – under the aegis of Tata Sons
? Best in class prototype building facilities ? Technology – SAP ? Large product portfolio
18
Dynamic Capabilities
• NPI Process – reduced time to market
19
Leveraging the resources
How did TATA create initial resource complement to overcome the disadvantage of being newcomers in passenger car business?
STRATEGY
R&D
Strategic partnerships Joint ventures Acquisitions Intensive management development Government support (10Year Plan)
New institutions for trade promotion, technology upgradation, quality enhancement (ACMA: Automotive Component Manufacturers Association, SIAM: Society of Indian Automobile Manufacturers )
20
INSTITUTIONS
Key Strategies
International strategy based on the competitive advantage:
? New product (eg. Tata Nano, the cheapest car in the World). ? Acquisitions (eg. Land Rover and Jaguar brands from Ford Motors). ? Partnership with established companies (eg. Alliance with Fiat since 2006) to enhance the product portfolio and knowledge exchange. ? Facilities for learning from other companies. ? Developing programmes for intensive management development.
Consolidate position in India by exploiting opportunities:
? New mobility of young Indians. ? Government’s substantial road-building program ? GDP growth
21
Process Benchmarking
? Optimize the value chain using distributed Manufacturing ? The power of IT has been extensively leveraged ? State-of-the-art CAD and CAM services integrated design across multiple disciplines ? IT helped the company shrink the design cycle time ? BSM tools from BMC Software played a key role
? TML decided to adopt IT service management concepts outlined in the ISO 20000:05 international standards, as well as best practices outlined in the IT Infrastructure Library® (ITIL®) Version 3
22
Process Benchmarking
? service-oriented management architecture that treated services as assets and managed them on a life cycle basis. ? In-house manufacturing capability with CNC manufacturing operations ? have implemented Six-sigma, Kaizen & TPM.
23
Strategic Benchmarking
24
Strategic Benchmarking
? Objective: Innovation across the value chain leading to
affordable products that can grow the market
? Product innovation needs to be complemented with innovation in other parts of the value chain
• • • • • Co- location of suppliers On- line bidding by suppliers Reduction in the number of suppliers Partnerships with vendors Dedicated “Suvidha” service network in small towns
25
Achievements
? The sole winner of the JRD QV Award 2005 was the commercial vehicle business unit, or CVBU, of Tata Motors ? PCBU's business excellence initiative has come into its own. • Serious Adoption Award in 2004 • Active Promotion Award in 2005 ? Tata Motors have crossed the level of 60% to win the JRD-QV award in 2001, 2004 & 2005 respectively
26
Stretch and Leverage
? Vision : “best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics” ?Engineering, construction and automotive solutions ?R&D focus on environment-friendly technologies in emissions and alternative fuels ?Maintain cost competitiveness through continuous improvements in control over key inputs and enhanced asset utilization ?Best in class human capital that are constantly in touch with the industry, competitors, customers and the suppliers
27
Stretch and Leverage contd..
? Tata – Nano: The innovative small car for the urban middle class
?Fulfill the requirements of its customer value proposition ?Deliberately created a young team with good leadership capabilities who think differently ?Excellence in outsourcing ? Reconceived its supplier strategy - 85% of the Nano’s components ?Fewer supplier (<60%)
28
Stretch and Leverage contd..
? Acquisition : Land Rover and Jaguar for $2.3 billion - Complementing Resources - Blending & Balancing
?High Replacement cost ?Complimentary to Tata Motor in the upstream business ?Access to global markets ?Transfer of knowledge, technology from high end market
29
Stretch and Leverage contd..
Overall .. ? Strong product development capability ? Manufacture products or deliver services of highest quality at lowest prices ? Sufficiently widespread distribution and service network ? working around offering more affordable, more value-oriented products
30
Technological Framework
Attribute: ? Innovation around cost ? “globally recognized” technological capabilities ? '50s and '60s technical collaboration with Mercedes Benz to design and manufacture its chosen line of projects ? Strong R&D at ERC ? Possess capability to develop and test durability, engine performance, emission, safety, design and style, noise, hydraulics, tracks, and instrumentation. ? Opportunity to experiment and learn from mistake
31
Technology Capability Hierarchy
32
Achievements
? The company has the only world-class crash facility in Asia outside Korea and Japan ? Developed an A-ECU (Electronic Control Unit) and low-cost accessories that would effectively manage critical engine and vehicle systems without calling for a full-fledged and expensive conventional ECU ? Striding towards new emission standards ? Equipping vehicles of the future with technologies for improving communication, navigation and entertainment- OneCat conceptual car with fiber glass powered by air and emission free.
33
Diversification
? 1977– First CV from Pune plant. ? 1983– First HCV rolled out. ? 1986– First LCV (Tata 407) launched followed by Tata 608. ? 1991– First passenger car Tata Sierra launched. ? 1992– Tata Estate launched. ? 1994– Launch of Tata Sumo.
34
Diversification
? 1995– Mercedes Benz car E220 launched ? 1997– Tata Sierra Turbo launched. ? 1998– India’s first SUV launched. ? 1998– India’s first indigenous Passenger Car Indica launched. ? 2001– Second Generation Indica v2 launched. ? 2008– Launch of Suma Grande ? 2008– Launch of Nano at ninth Auto Expo
35
But, the war is on…
Maruti Vs Tata Motors
36
The Preparations…
? Proper utilization of assets ? Motivating people to work hard ? Selective hiring ? Job fitting ? Training program ? Better working environment
37
To create….
Firm’s Resources
Resource Gaps
Rent Generating Potential
Strategy to best use the capabilities
38
HR Philosophy
? Caring, show respect, compassion and humanity for colleagues ? Work cohesively with colleagues across the group ? Encourages self-sufficiency ? Employees' relatives at Pune have been encouraged to form various industrial cooperatives ? The Tata Motors Grihini Social Welfare Society caters to employees' women dependents'
39
HR Policies
? Executive Selection Scheme (ESS) - fast track programme for accelerated growth ? In-house vocational training and apprenticeship programme trains the technicians ? Rotational assignments and cross-functional mobility allow employees to grow
40
All said and done…a new strategy is required…
The Blue Ocean Strategy
41
Blue Ocean Strategy
Red Ocean Compete in the existing market place
Blue Ocean Create unconsolidated market space
Beat the competition
Make the competition irrelevant
Exploit existing demand
Create and capture new demand
Make the value cost trade off Differentiation or Low cast
Break the value-cost trade off Differentiation and Low Cost
42
Focus on the non-customers
43
Corporate strategy, parenting and synergies
? To buy premium vehicle brands such as Land Rover and Jaguar bolster Tata Motors’ image as a global company and increase its global reach and scale ? Overall, the Tata group has spent around $15.5 billion in acquiring foreign companies ? The Tata name is a unique asset representing leadership with trust ? Leveraging this asset to enhance group synergy and becoming globally competitive
44
Corporate strategy, parenting and synergies contd..
? synergy developed as a result of the strengths of domestic and foreign market share, congregating under the umbrella of Tata group ? The Tata Group as a whole has over 20 publicly listed enterprises and operates in more than 80 countries world-wide - lots of experience and resources to draw from for research and development purposes ? Strong corporate governance based on “rich legacy of fair, ethical, and transparent governance practices” to ensure that its employees act ethically and the business continues to run smoothly
45
Corporate Advantages from Diversified Business
? Sharing of Activities/Resource
Tata Steel Tata Motor TCS Tata Cummins
?Sharing of Skills/Core Competence
Tata Steel
Core Competence Tata Cummins
TAML
TACO
46
Thank you
47
doc_476834004.ppt