1. Analysis of TATA Motors
1.1 Internal Analysis
The basic premise is the Customer. So whenever a new product development plan comes into the picture, the idea is to look for ways to offer the customer the best value for his money. And the way we define value, the word covers all the possible and not so possible ways to customer satisfaction.
Internal analysis can be done by combining the internal components within the organization. This incorporates the targets and objectives, vision, mission, process, workers, assets, and initiative setups. By analysing the internal environment which is the management, marketing, finance, and operation will very much contribute to identifying the organization strength and weakness where it can be used to compare among competitors in achieving the organizations’ competitive advantage. By using the SWOT analysis we can identify the strength, weakness, the value chain analysis, and VRIO framework. These all constitute the internal analysis of TATA Motors.
1.2 Strength Analysis
By analysing the strength of TATA Motors it’s easy to distinguish the advantages and how the organization is far-far better than the others. Due to their unique strength, Tata Motors stand out from others. And one of the key strength is that they have a great financial strength. Tata Motors has shown a tremendous increase in the revenue for the past 6 consecutive years.
This shows that TATA Motors is having a great financial capability. Hence by using this financial capability company can easily grow to heights without any financial constraints. Furthermore, this will also allow them to compete with global brands effectively by following the present processes.
1.3 Weakness Analysis
Despite the fact that Tata Motors is having a great market in 175 countries and also Tata advertises the vast majority of their products in the US and in Japan. There is some weakness that is being distinguished in TATA Motors that they are not really known in the global market like Honda and Toyota does. The explanation for this is because of its absence of innovation in their products and also they are more concentrating on creating economical cars. The World market for the automobile industry is in a state of oversupply. So to achieve the entire automobile industry globally and to make more sales they need to produce cars as per the customers wish and should meet all the safety standards. In both cases Tata Motors has failed. Tata Motors is just making passenger cars for the last ten years.
1.4 Core Value Chain Analysis
The Tata Group has always given a great importance to be a value-driven organization. The five core Tata values underpinning the way it does business are
• Integrity – we should lead our business fairly, with honesty and transparency. All that we do must stand the test of public scrutiny.
• Understanding – we must be caring, show respect, compassion, and humanity for our colleagues and customers around the world and always work for the benefit of India.
• Excellence -we should constantly endeavour to achieve the highest possible norms in our everyday work and in the quality of the goods and services we provide.
• Unity – we should work firmly with our colleagues across the group and with our clients and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation.
• Responsibility – we must continue to be responsible, sensitive to the countries, communities, and environments in which we work, always ensuring that what comes from the people goes back to the people many times over.
These core values had given a great hike in growth as well as sales.
1.5 VRIO Framework
The VRIO framework is a strategic analysis tool designed to help organizations uncover and protect the resources and capabilities that give them a long-term competitive advantage (Neil Patel, 2018).
Value – Yes, Tata Motors always give more importance for values. Tata Motor has a strong financial capability however they need to keep up it with the goal that they will hold the esteem. Besides that, like India, leading automobile company gives them a temporary competitive advantage as their rivals can defeat them on the off chance that they neglect to be reasonable.
Rare – No, Tata Motors is not rare in the market as there are competitors who are more fruitful than them and the automobile industry have an exceptionally solid competition with a ton of close competitors.
Imitability – No it is very easy for competitors to imitate tata motor product and technology with reverse engineering. Automobile company closely benchmark each other to guarantee that they stay focused in the business. It is likewise simple to reproduce the process of Tata Motor.
Organization – Yes, Tata Motors have solid association culture and they hire experts to work with them to guarantee that they have the perfect individuals in the right place.
2. Organisational Purpose of Tata Motors
To be the leading provider of Tata Motors services in India and noteworthy worldwide organizations.
• Every customer should prefer Tata Motors as their first choice just by delivering high quality, world-class products, and services.
• Expand the frontiers of our business internationally.
• Play a proactive role in the full realization of Indians potential.
• Maintain a healthy financial profile and differentiate our earnings across organizations and geographies.
• Maintain high standards of governance and morals.
• Contribute positively to the different nations and markets in which we operate.
• Create esteem for our stakeholders
2.3 CSR (Corporate Social Responsibility)
CSR is defined as how companies manage their business processes to produce an overall positive impact on society. It covers sustainability, social impact and ethics (Mallen Baker, 2004). Tata Motors are focusing on how to improve the quality of life of underprivileged communities neighbouring our business operations. Our interventions focus on health, education, employability and environment, impacting over 6, 44,000 lives in India.
• Aarogya – Health
Aarogya focuses on maternal and child health by adopting a holistic approach and striking a balance between preventive healthcare and curative healthcare interventions.
• Vidyadhanam – Education
The programme focusses on the scholastic, physical and social development of students, related to esteem training. It encourages their coaching by experts who are specialists in their subjects of intrigue.
• Kaushalya – Employability or Skilling
Seeks to empower unemployed youth by giving professional training in automotive and other industrial trades.
• Vasundhara – Environment
Our projects on the environment should help and protect the long-term health of individuals and ecosystems and also build solid relationships with local communities.
• Amrutdhara – Drinking Water
The programme not only addresses the concerns of safe drinking water, yet helps in enhancing wellbeing, encouraging sexual orientation equity and advancing social equality.
• Aadhaar – Community Development
Aadhaar at Tata Motors is aimed at serving the socio-economically backward and hindered Scheduled Caste (SC) and Schedule Tribe (ST) communities.
• Seva – Volunteering
The volunteering programme of Tata Motors, Seva, is aimed at furnishing workers and their families with varied opportunities to genuinely volunteer their time for social causes.
2.4 Stakeholder Analysis
A person, group or organization that has interest or concern in an organization can be collectively called as stakeholders. Stakeholders can influence or be influenced by the association’s activities, goals, and policies.
Tata Motors is always aware of their interest and will be having a proper involvement in it. So they provide all the required data to their stakeholders. Stakeholders of Tata Motors are categorized as per their impact, effect, and influence.
• Systems and Subsystems – This includes input, process and output. This also incorporates different elements working in the organization. They are associated with one another and organization is constantly affected specifically or indirectly by them.
• ITO (Input transformational output) Modelling – Tata Motors always consider their products should be eco-friendly. For this purpose, ITO models are the best choice. Then it will be easy to make changes in assets, production, and yield.
• Input Resources – Tata Motors has introduced INDICA EV (electric) that runs on polymer lithium batteries instead of petrol or diesel. To establish their innovative engine, they need sources who can provide the same. So that they can concentrate not only on eco-friendly vehicles yet on the eco-friendly showrooms.
• Transformation Process and Output – Tata Motors is gathering environmental and vitality information over its dealer and store network to figure out their carbon impression and to identify different and innovative ways to eliminate carbon dioxide emission.
• Cause and Effect Analysis – This tool incorporates a large amount of data just by indicating the links between events and their potential or genuine causes and also gives the information about why this issue is happening and the possible effect of the reason.