Tata

Presented By

Alpa Jain - 24

Nitin Ojha - 37 Sukhdeep Singh - 53

Prashant Salvi - 41 Sudhir khare- 28

Nupur Harode - 23

ROADMAP Introduction  Pest Ananlysis Swot Analysis  5 force porters model Generic Strategy Applied List of SBU & their products  Industry Status of each SBU Recommend strategy like build, divest, harvest etc

FOUNDER AND CHAIRMAN • Established by Jamsetji Tata in 1868. • HeadquartersMumbai and Navi Mumbai, Maharastra, India • Ratan N Tata is the chairman of Tata Sons, the Tata promoter company. • RevenueUS$- 62.5 billion(Feb 2008) Employees350,000 (2008) • Brand Finance, a UK-based consultancy firm, recently valued the Tata brand at $11.4 billion and ranked it 57th among the world’s Top 100 brands. Businessweek magazine ranked Tata sixth among the ‘World’s Most Innovative Companies’ and the Reputation Institute, USA, recently rated it as the ‘World’s Sixth Most Reputed Firm.’

BUSINESS SECTORS • Tata companies operates in seven business sectors. • The total revenue of Tata companies, taken together, was $62.5 billion (around Rs251,543 crore) in 2007-08, with 61 per cent of this coming from business outside India, and they employ around 350,000 people worldwide. • The Tata name has been respected in India for 140 years for its adherence to strong values and business ethics. • There are 27 publicly listed Tata enterprises and they have a combined market capitalization of some $60 billion, and a shareholder base of 3.2 million.

PEST ANALYSIS

 Political  Economic  Social  Technology

SWOT Analysis Strengths: • resources and capabilities (People and Raw Material) • vast experience (steel and automobiles) • The business model. (TBEM is a model determining the quality movement in the group).

• • • •

Weaknesses: Distribution value chain innovation macro environment in order to serve the global markets with high quality and low price.

• • • •

Opportunities: new markets exports Acquisitions e.g jaguar and land rover

Threats • India’s recent mergers of global markets • E.g Vodafone, Reliance

 

5 force porters model

• Potential Entrants – Threat of new entrants

• Buyers – Bargaining power of buyers • Substitutes – 1.Threat of substitute products or services 2.Rivalry among existing firms • Suppliers - Bargaining Power of Suppliers • Other Stakeholders – Relative Power of Union, Governments  etc.

Cont….

Generic Strategies

Low-cost leadership

Differentiation

Focus

10

List of SBU & their products BUSINESS SECTORS • Tata companies operates in seven business sectors. • The total revenue of Tata companies, taken together, was $62.5 billion (around Rs251,543 crore) in 2007-08, with 61 per cent of this coming from business outside India, and they employ around 350,000 people worldwide. • The Tata name has been respected in India for 140 years for its adherence to strong values and business ethics. • There are 27 publicly listed Tata enterprises and they have a combined market capitalisation of some $60 billion, and a shareholder base of 3.2 million.

Information systems and communications • The Tata group has well-established enterprises in the fields of software and other information systems, telecommunications and industrial automation. E.g nelito systems, tata technologies • tata sky, virgin mobile India

Engineering • The Tata group has a robust presence in engineering, with operations in automobiles and auto components and a variety of other engineering products and services. E.g Automotive: jaguar land rover, tata motors • Engineering: voltas, TCE consulting engineers

Materials • The Tata group is among the global leaders in this business sector, with operations in steel and composites. E.g Metals: corus, natsteel asia. • Composites: tata advanced materials

Services • The Tata group has widespread interests in the hospitality business, as also in insurance, realty and financial and other services. E.g Hotels, property development: Indian hotels, tata housing development company. • Financial services: tata capital, tata financial services. • Other services: tata strategic mgt group, tata quality mgt services.

Energy • The Tata group is a significant player in power generation and is also involved in the oil and gas segment. E.g Energy: north delhi power, tata BP solar.

Consumer Products • The Tata group has a strong and longstanding business in watches and jewellery, and a growing presence in the retail industry. E.g Consumer products: titan industries, Tetley group

Chemicals • The Tata group is one of the largest producers of soda ash in the world. Additionally, it has interests in fertilizers and in the pharmaceuticals business. E.g Chemicals: Tata pigments, general chemical industrial products.

INNOVATION OVERVIEW A number of initiatives have been launched to spread the message of innovation and recognize innovators: • Tata Group Innovation Forum (TGIF) • Innovation workshops • Tata Innovation Day • Tata Innovation Mission • Thought leadership • Innovation awards • Technology and research clusters • Business excellence • Research orientation and partnerships:

The Tata Group invests in building outstanding research facilities and forging partnerships with academic and research organisations in order to encourage creative thinking and find innovative solutions that improve our quality of life.

Industry Status of each SBU

BCG Matrix of TATA

Conti… • Tata Steel, Tata Power, Tata Motors and Indian Hotels emerge as clear Stars (high market growth, high market share). Hence, they should be retained and the investment in these companies should be increased • Tata Chemicals and Tata Tea emerge as the Cash Cows (low market growth, high market share) and should be held on to for the time being. • Some of the Question Marks (high market growth, low market share) are Tata Teleservices, Voltas and Tata Communications.

where does your product stand BCG & GE matrix  Developed by McKinsey & Company in1970’s.  GE is a model to perform business portfolio analysis on the SBU’s.  GE is rated in terms of ‘Market Attractiveness & Business Strength’  It is an Enlarged & Sophisticated version of BCG.

Conti…

Business Strengths

High

Market Attractiveness

High

Low

IT Consumer Durables

Textiles

Low

BCG v/s GE BCG Market Growth Market share 4 cell Multi Products Primary tools

GE Market Attractiveness Market strength

9 cell Multi Business Units

Secondary tools

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