Description
This is a PPT about tata motors strategy.
Strategic Management
TATA MOTORS
TEAM
? ? ? ?
- A
- 101 - 115 - 118 - 153
PREETI SWAMY DEEPAK JETHVA DEVRAJ KHARE NILESH SONAWANE
TAMO talks
To be a global car brand / corporate of reckoning
1
2
2
4
Strategy : - Acquire / Tie up - internationally / Target BRIC countries/
Expand facilities / Develop market / Build R & D hubs
Factsheet
? ?
India’s largest AUTO company World’s 5th largest commercial vehicle, 2nd largest medium / heavy bus manufacturer
?
Listed in BSE, NSE, MPSE & CSE in India
?
Listed in NYSE, Luxembourg & Singapore Stocks internationally
?
Sales & marketing operations in more than 70 countries. Export Revenue : 7.35 %
SBU ? Commercial Vehicle Business Unit (CVBU) ? Passenger Car Business Unit (PCBU)
?
Stakeholders
Strategic INTENT & DIRECTION
?
INTENT
To improve quality of life of the communities they serve by undertaking businesses of NATIONAL ECONOMIC SIGNIFICANCE
?
DIRECTION
To be the best in the - matter in which they operate - product which they deliver - value, system & ethics they have
Ansoff’s GRID
Market Penetration Product Development
Present
sumo M A R K E T New Market Development Present PRODUCT Diversification New ace
Jlr
NANO
Environment Analysis - SWOT
S
T R E N G H T S O P W
• Goodwill of TATA brand • Owns Steel Plant •Large trustworthy / committed shareholder •Commitment towards CSR • Value engineering
• Visionary management
• Next Generation …! What after RATAN TATA ? ( shareholders’ perspective ) • Focus on domestic market?
E A
K
N E S S E S
P
O R T N I
T
I E S
• Road Development • Huge unexploited market for Car penetration • International Business • Increased Disposable income • Large two wheeler parc • Growing consumer culture • Huge defense projects
• Global competition
• Fuel Prices • Input Cost • Interest rate hardening / other inflationary trends • Government Regulation • Growing consumer awareness
T H R E
A
T S
TML – Vision, Mission
Passenger Car BU
?
Commercial Vehicle BU ? Vision :
?
Vision :
?
To evolve as world class car brand
To be a world class corporate constantly furthering the interest of all it’s stakeholders
?
Mission :
?
?
Mission :
? ? ? ? ?
To provide passenger vehicle that offers customers exceptional values and thru this build a company that provide share holders with superior returns and is seen by society and other stakeholders as a valuable contributed to their development
Shareholder : Customer : Employee : Vendor & Channel Partner : Community :
Value Chain analysis
?
Value chain includes manufacturing, selling, distribution, servicing ,financing, insurance etc. Manufacturing Selling Distribution Servicing Financing
Insurance
?
Reducing incremental taxation by integrating some of value additions at the suppliers’ end
-
Value engineering E-procurement Reducing imports
- SWOT of vendor - single source advantage - Alternate SUPPLIER
Porters 5 forces Model: Passenger CAR BU
High High
High
GE Plastics : Plastic components Bosch : Engine management systems Kinetic Engineering : Gear boxes Sona Steering : Steering systems RICO Auto : Aluminum engine blocks and heads
Low
Strategies
?
Revenue Strategy
?
Proactive Strategy
? ?
NANO Defense Vehicles / Systems
?
Reactive Strategy
? ?
JLR acquisition Indica
?
Generic Strategy
• Best Product • Customized Product : JLR : Defense vehicles • Cost Effective Product : NANO
?
?
Environment Friendly R& D Strategy Outsourcing Strategy
?
Competitive Strategy
Overall Low cost provider
Broad Differentiation
Broad Segment
TARGET MARKET
sumo
ACE
NANO
INDICA
Narrow Segment Focused Low Cost Lower Cost Focused Differentiation Differentiation
Type of Competitive Adv.
Conclusion
?
TAMO is on the correct way to make corporate vision true by following mentioned strategies in different markets / situations for diversified range of product
THANK
YOU
Balance Sheet
(Rs Crore) RESERVES INCREASES CONSTANTLY Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04 Mar ' 03
Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve
No owner’s fund.
385.41 6,458.39 382.87 5,127.81 361.79 3,749.60 353 3.83 3,236.77 319.83 2,277.33
Huge incremen t in borrowed fund 2005 to 2007
2,022.04 1,987.10 10,852.94
822.76 2,114.08 8,447.52
489.81 2,005.61 6,606.81
942.65 317.12 4,853.37
1,037.32 420.99 4,055.47
8,775.80 25.95 4,894.54 3,855.31
7,971.55 26.39 4,401.51 3,543.65 951.19 2,015.15
6,611.95 3,454.28 3,157.67 538.84 2,912.06
5,985.40 3,023.69 2,961.71 286.09 3,056.77
5,860.10 2,710.45 3,149.65 156.93 1,195.98
Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes:
WORKING CAPITAL BY 250% IN 2007 DUE to NANO
2,513.32 2,477.00
10,318.42 8,321.20 1,997.22 10.09 10,852.94
9,812.06 7,888.65 1,923.41 14.12 8,447.52
7,248.88 7,268.80 -19.92 18.16 6,606.81
3,835.78 5,309.17 -1,473.39 22.19 4,853.37
3,024.54 3,563.18 -538.64 91.55 4,055.47
P&L
(Rs crore)
Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04 Mar ' 03
Income: Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit Earnigs before appropriation Equity dividend Preference dividend 19,529.88 14,376.11 929.82 1,143.13 759.54 1,042.52 -308.85 17,942.27 2,146.36 685.18 2,831.54 350.24 520.94 73.78 1,886.58 524.93 1,361.65 167.23 1,528.88 2,094.54 497.94 12,101.28 830.45 1,039.34 598.75 911.73 -282.43 15,199.12 2,000.05 399.94 2,399.99 234.3 450.16 67.12 1,648.41 415.5 1,232.91 4.04 -1.54 1,235.41 1,601.21 452.19 8,720.10 628.73 882.49 455.56 758.9 -144.89 11,300.89 1,727.28 235.65 1,962.93 225.96 382.6 51.64 1,302.73 482.55 820.18 -6.82 -3.02 810.34 934.05 282.11 5,779.95 664.26 720.37 409.62 489.73 -156.46 7,907.47 1,049.40 144.69 1,194.09 312.55 359.51 2.62 519.41 210.58 308.83 0.38 -9.1 300.11 300.11 127.91 26,664.25 20,088.63 17,199.17 13,028.17 8,956.87
GROWN BY 300 % IN 5 YEARS
1,200.36 1,367.83 1,068.56 1,488.16 -577.05 24,077.74 2,586.51 887.23 3,473.74 455.75 586.29 85.02
NET PROFIT INCREASED 600% IN 5 YEARS
2,346.68 660.37 1,686.31 227.15 -0.07 1,913.39 2,690.15 578.07 -
Cash flow
(Rs crore)
ACQUISITION OF DAEWOO COMMERCIAL VEHICLE COMPANY IN 2004
Mar ' 07
Profit before tax Net cashflow-operating activity 1,913.46 2,210.13
Mar ' 06
1,528.88 -221.03
Mar ' 05
1,236.95 1,249.82
Mar ' 04
810.34 2,717.53
Mar ' 03
300.11 1,311.40
Net cash used in investing activity
Netcash used in fin. activity Net inc/dec in cash and equivlnt Cash and equivalnt begin of year Cash and equivalnt end of year
-2,805.10
303.58 -291.39 1,118.15 826.76
-1.06
-855.27 -1,077.36 2,196.79 1,119.43
-956.57
940.67 1,233.92 771.12 2,005.04
-2,043.19
-149.2 525.14 245.35 770.49
-183.92
-1,208.75 -81.27 326.62 245.35
FUNDS USED FOR THE PRODUCTION FACILITY AND LAUNCH OF NANO
Presentation FLOW
? ? ?
Fact-sheet Stakeholders Strategic Intents
? ?
direction ansoff’s grid
? ? ? ?
Environment Analysis Value Chain Analysis Porter’s 5 forces model Strategies
? ?
(for company & value chain)
types 6 ‘S’ framework
?
Comments
7 S Framework
doc_647705682.pptx
This is a PPT about tata motors strategy.
Strategic Management
TATA MOTORS
TEAM
? ? ? ?
- A
- 101 - 115 - 118 - 153
PREETI SWAMY DEEPAK JETHVA DEVRAJ KHARE NILESH SONAWANE
TAMO talks
To be a global car brand / corporate of reckoning
1
2
2
4
Strategy : - Acquire / Tie up - internationally / Target BRIC countries/
Expand facilities / Develop market / Build R & D hubs
Factsheet
? ?
India’s largest AUTO company World’s 5th largest commercial vehicle, 2nd largest medium / heavy bus manufacturer
?
Listed in BSE, NSE, MPSE & CSE in India
?
Listed in NYSE, Luxembourg & Singapore Stocks internationally
?
Sales & marketing operations in more than 70 countries. Export Revenue : 7.35 %
SBU ? Commercial Vehicle Business Unit (CVBU) ? Passenger Car Business Unit (PCBU)
?
Stakeholders
Strategic INTENT & DIRECTION
?
INTENT
To improve quality of life of the communities they serve by undertaking businesses of NATIONAL ECONOMIC SIGNIFICANCE
?
DIRECTION
To be the best in the - matter in which they operate - product which they deliver - value, system & ethics they have
Ansoff’s GRID
Market Penetration Product Development
Present
sumo M A R K E T New Market Development Present PRODUCT Diversification New ace
Jlr
NANO
Environment Analysis - SWOT
S
T R E N G H T S O P W
• Goodwill of TATA brand • Owns Steel Plant •Large trustworthy / committed shareholder •Commitment towards CSR • Value engineering
• Visionary management
• Next Generation …! What after RATAN TATA ? ( shareholders’ perspective ) • Focus on domestic market?
E A
K
N E S S E S
P
O R T N I
T
I E S
• Road Development • Huge unexploited market for Car penetration • International Business • Increased Disposable income • Large two wheeler parc • Growing consumer culture • Huge defense projects
• Global competition
• Fuel Prices • Input Cost • Interest rate hardening / other inflationary trends • Government Regulation • Growing consumer awareness
T H R E
A
T S
TML – Vision, Mission
Passenger Car BU
?
Commercial Vehicle BU ? Vision :
?
Vision :
?
To evolve as world class car brand
To be a world class corporate constantly furthering the interest of all it’s stakeholders
?
Mission :
?
?
Mission :
? ? ? ? ?
To provide passenger vehicle that offers customers exceptional values and thru this build a company that provide share holders with superior returns and is seen by society and other stakeholders as a valuable contributed to their development
Shareholder : Customer : Employee : Vendor & Channel Partner : Community :
Value Chain analysis
?
Value chain includes manufacturing, selling, distribution, servicing ,financing, insurance etc. Manufacturing Selling Distribution Servicing Financing
Insurance
?
Reducing incremental taxation by integrating some of value additions at the suppliers’ end
-
Value engineering E-procurement Reducing imports
- SWOT of vendor - single source advantage - Alternate SUPPLIER
Porters 5 forces Model: Passenger CAR BU
High High
High
GE Plastics : Plastic components Bosch : Engine management systems Kinetic Engineering : Gear boxes Sona Steering : Steering systems RICO Auto : Aluminum engine blocks and heads
Low
Strategies
?
Revenue Strategy
?
Proactive Strategy
? ?
NANO Defense Vehicles / Systems
?
Reactive Strategy
? ?
JLR acquisition Indica
?
Generic Strategy
• Best Product • Customized Product : JLR : Defense vehicles • Cost Effective Product : NANO
?
?
Environment Friendly R& D Strategy Outsourcing Strategy
?
Competitive Strategy
Overall Low cost provider
Broad Differentiation
Broad Segment
TARGET MARKET
sumo
ACE
NANO
INDICA
Narrow Segment Focused Low Cost Lower Cost Focused Differentiation Differentiation
Type of Competitive Adv.
Conclusion
?
TAMO is on the correct way to make corporate vision true by following mentioned strategies in different markets / situations for diversified range of product
THANK
YOU
Balance Sheet
(Rs Crore) RESERVES INCREASES CONSTANTLY Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04 Mar ' 03
Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve
No owner’s fund.
385.41 6,458.39 382.87 5,127.81 361.79 3,749.60 353 3.83 3,236.77 319.83 2,277.33
Huge incremen t in borrowed fund 2005 to 2007
2,022.04 1,987.10 10,852.94
822.76 2,114.08 8,447.52
489.81 2,005.61 6,606.81
942.65 317.12 4,853.37
1,037.32 420.99 4,055.47
8,775.80 25.95 4,894.54 3,855.31
7,971.55 26.39 4,401.51 3,543.65 951.19 2,015.15
6,611.95 3,454.28 3,157.67 538.84 2,912.06
5,985.40 3,023.69 2,961.71 286.09 3,056.77
5,860.10 2,710.45 3,149.65 156.93 1,195.98
Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes:
WORKING CAPITAL BY 250% IN 2007 DUE to NANO
2,513.32 2,477.00
10,318.42 8,321.20 1,997.22 10.09 10,852.94
9,812.06 7,888.65 1,923.41 14.12 8,447.52
7,248.88 7,268.80 -19.92 18.16 6,606.81
3,835.78 5,309.17 -1,473.39 22.19 4,853.37
3,024.54 3,563.18 -538.64 91.55 4,055.47
P&L
(Rs crore)
Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04 Mar ' 03
Income: Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit Earnigs before appropriation Equity dividend Preference dividend 19,529.88 14,376.11 929.82 1,143.13 759.54 1,042.52 -308.85 17,942.27 2,146.36 685.18 2,831.54 350.24 520.94 73.78 1,886.58 524.93 1,361.65 167.23 1,528.88 2,094.54 497.94 12,101.28 830.45 1,039.34 598.75 911.73 -282.43 15,199.12 2,000.05 399.94 2,399.99 234.3 450.16 67.12 1,648.41 415.5 1,232.91 4.04 -1.54 1,235.41 1,601.21 452.19 8,720.10 628.73 882.49 455.56 758.9 -144.89 11,300.89 1,727.28 235.65 1,962.93 225.96 382.6 51.64 1,302.73 482.55 820.18 -6.82 -3.02 810.34 934.05 282.11 5,779.95 664.26 720.37 409.62 489.73 -156.46 7,907.47 1,049.40 144.69 1,194.09 312.55 359.51 2.62 519.41 210.58 308.83 0.38 -9.1 300.11 300.11 127.91 26,664.25 20,088.63 17,199.17 13,028.17 8,956.87
GROWN BY 300 % IN 5 YEARS
1,200.36 1,367.83 1,068.56 1,488.16 -577.05 24,077.74 2,586.51 887.23 3,473.74 455.75 586.29 85.02
NET PROFIT INCREASED 600% IN 5 YEARS
2,346.68 660.37 1,686.31 227.15 -0.07 1,913.39 2,690.15 578.07 -
Cash flow
(Rs crore)
ACQUISITION OF DAEWOO COMMERCIAL VEHICLE COMPANY IN 2004
Mar ' 07
Profit before tax Net cashflow-operating activity 1,913.46 2,210.13
Mar ' 06
1,528.88 -221.03
Mar ' 05
1,236.95 1,249.82
Mar ' 04
810.34 2,717.53
Mar ' 03
300.11 1,311.40
Net cash used in investing activity
Netcash used in fin. activity Net inc/dec in cash and equivlnt Cash and equivalnt begin of year Cash and equivalnt end of year
-2,805.10
303.58 -291.39 1,118.15 826.76
-1.06
-855.27 -1,077.36 2,196.79 1,119.43
-956.57
940.67 1,233.92 771.12 2,005.04
-2,043.19
-149.2 525.14 245.35 770.49
-183.92
-1,208.75 -81.27 326.62 245.35
FUNDS USED FOR THE PRODUCTION FACILITY AND LAUNCH OF NANO
Presentation FLOW
? ? ?
Fact-sheet Stakeholders Strategic Intents
? ?
direction ansoff’s grid
? ? ? ?
Environment Analysis Value Chain Analysis Porter’s 5 forces model Strategies
? ?
(for company & value chain)
types 6 ‘S’ framework
?
Comments
7 S Framework
doc_647705682.pptx