Strategic Directions for Tata Motors Ltd - Essay Example

? Strategic Analysis and Direction for Tata Motors Ltd. By ________________ Emblem Submitted to (Mar Strategic Analysis and Directions for Tata Motors Ltd Section I: Macro Environment Tata Motors Ltd, the headquarters of it located in India, is the 19th largest automotive manufacture in the world (by sales volume, of a list of the 50 largest manufacturers) and is hence a significant player global automotive industry (OICA, 2010).In the year 2009, of the total 60, 499,199 vehicles produced in the world including cars, light commercial vehicles (LCV), heavy commercial vehicles (HCV) and heavy buses, Tata Motors produced, a total of 672,045 vehicles, which is about 1.11 per cent of the total world production. Tata Motors’ production in 2009 constituted all categories of vehicles and constituted significant portion of the world production. The table below illustrates Tata Motors position in global automotive industry. Table 1: Contribution of Tata motors to global automotive production Vehicle Tata Global Production Total production 672,045 60,499,159 Cars 376,514 51,075,480 Light commercial vehicle 172,487 7,817,520 Heavy commercial vehicle 103,665 1,305,755 Heavy buses 19,379 300,404 The figure below provides a comparison between Tata Motors (19th by sales volume) and Toyota Motors (1st by sales volume) in 2009. Figure 1: Comparison between Tata and Toyota by volume manufactured). In some categories, such as heavy buses and heavy commercial vehicles, Tata Motors even produces more vehicles (see Appendix 1 for full data). Going by revenue, the automotive industry, which develops, designs, manufactures, markets and sells motor vehicles a significant economic sector of the world. The industry, though very capital intensive, yet is marked by fierce competition and demand elasticity being plagued by a host of recent political, economic and social macroeconomic developments such as: credit crisis, fuel crisis and technological changes necessitated due to global climatic change. Economic developments: The automotive industry suffered significantly during the previous ensuing years as part of global financial meltdown, which affected the American, European and Asian automobile manufacturers. Canada too felt the heat due to the Automotive Products Trade Agreement. Geopolitical developments: Substantial increase in fuel prices triggered by geopolitical developments resulted weak car demand, which further weakened the automotive industry. Sports utility vehicles, pick-up trucks and other high gasoline consuming vehicles were under pressure due to fuel hike and their sales decreased substantially. Many American manufacturers such as Ford, GM and Chrysler were forced to roll out more fuel efficient vehicles. Technological changes required due to global climatic changes: Due to impact of global climatic changes and the resultant stringent emission norms increased investments in technology significantly. The tell-tale situation of the industry is marred by negative growth leading into the automotive industry crisis of 2008-2010. Table 2: Percentage change in global car manufacturing during 2007 to 2010. Year Production Change Source 22007 73,266,061 5.80% (OICA, 2007) 22008 70,520,493 -3.70% (OICA, 2008) 22009 60,986,985 -13.50% (OICA, 2010) Figure 2: Percentage change in global car production year 2007 - 2010 As a result of these macroeconomic developments, the industry is currently undergoing radical changes and is moving towards consolidation by means of mergers and acquisitions and strategic tie-ups and partnerships for joint production, and marketing and selling. Chances are that more weaker and unprofitable companies will further be taken over and acquired and in the end will leave only those strong enough to sustain the downturn. Under these circumstances, Tata Motors need to maintain economy of scale and need to invest more on R&D and innovation, and also need to explore new products and markets. All these have to be undertaken simultaneously under the constraints of the emerging geopolitical scenario; the on-going recession and its effects on car sales; the quest for green cars; and preventing technology obsolescence that is looming behind the green car development. Section II: TML’s Competitive Strategy Porter’s five forces analysis for TML’s competitive strategy Figure 3: Porter's five forces Porter’s five forces for porter’s analysis for TML’s competitive strategy revels the following: Rivalry among existing competitors Tata Motors produces vehicles in all important categories such as cars, light commercial vehicles, heavy commercial vehicles and heavy buses. The company operates from India where its headquarters and most of the manufacturing facilities are located. In addition TML has been lately resorting to mergers, acquisitions and strategic partnerships with various automobile manufacturing companies to improve its competitive offering. These mergers & acquisitions include: the iconic British luxury car and sports SUV brands Jaguar & Land Rover (UK); in 2005 acquired a 21% controlling stake in Hispano Carrocera, the Spanish bus and coach manufacturer; Daewoo Commercial Vehicle, South Korea’s second largest truck manufacturer, where nearly two-thirds of South Korea’s heavy commercial vehicles exports are rolled out. Therefore, the company has rivals in all its product categories and in all its markets across the globe. However, TML’s competitive environment can be divided into four primary competitive zones as depicted in the figure below. Figure 4: Primary competitive zones for Tata Motors Competitive rivalry scene in all these zones is depicted in the table below. Table 3: Global competitive rivalry theatre for TML Zone Competing brands Key Competitors Zone 1: North America Premium segment Cars: Jaguar, Land rover Ferrari, Lamborghini, Buick, Lexus, Porsche, Cadillac, Mercedes, Audi, BMW Non premium segment Cars: Jaguar, Land rover Ferrari, Lamborghini, Buick, Lexus, Porsche, Cadillac, Mercedes, Audi, BMW, Skoda Zone 2: Europe Premium segment Cars: Jaguar, Land rover Ferrari, Lamborghini, Buick, Lexus, Porsche, Cadillac, Mercedes, Audi, BMW Non premium segment Cars: Tata Manza, Aria, Indigo, Vista, Indica and vista Fiat, Ford, GM, Chevrolet, Toyota, Honda, Hyundai, Suzuki, Mitsubishi, Skoda Buses Buses: Hispano Carrocera Volvo, Nissan, Mazda Zone 3: Indian subcontinent Cars & LCVs Cars: Tata Manza, Aria, Indigo, Vista, Indica and vista Maruti Suzuki, Mahendra, Fiat, Ford, GM, Chevrolet, Toyota, Honda, Hyundai, Suzuki, Mitsubishi, Trucks Tata Trucks Alwen Nissan, Leyland Buses Tata buses, Star Buses, Globus Volvo, Swarj Mazda Zone 4: China and Asia Pacific China TDCV Mazda, Mitsubishi, other Chinese Buses Asia Pacific TDCV Mazda, Mitsubishi, other Chinese & Korean Buses As can be seen in most of these zones, especially in India and in the West, it faces stiff competition in all its categories of products. The market share of car brands in EU in the year 2010 is placed in the bar diagram below depicts the rivalry scene in EU market. In India, market share of Tata Motors vehicles stood at 11.3% in Q1FY10. The Company remains among the top 3 players in the domestic Passenger Vehicle market (www.tatamotors.com, 2010). Table 4 : PV Domestic Sales Volumes Q1 FY10 Q1 FY09 Change Small Car 28,858 25,673 12.4% Mid-size Car 8,923 13,053 -31.6% UV 8,065 12,365 -34.8% Fiat 4,058 1,359 198.6% Total PV 49,904 52,450 -4.9% Source: SIAM Industry Data and Company analysis; cited by www.tatamotors.com, 2010. www.tatamotors.com. [Online] Available at: http://www.tatamotors.com/investors/pdf/2009/Q1-FY10-Business-Review-Standalone.pdf [Accessed 15 March 2011]. Table 5: Passenger vehicle market shares of TML (excluding Fiat volume) Q1 FY10 Q1 FY09 Small Car 11.1% 10.8% Entry-level Mid-size Car 25.2% 38.6% UV 18.7% 24.1% Total PV 11.3% 12.9% Source: SIAM Industry Data and Company analysis; cited by www.tatamotors.com, 2010. www.tatamotors.com. [Online] Available at: http://www.tatamotors.com/investors/pdf/2009/Q1-FY10-Business-Review-Standalone.pdf [Accessed 15 March 2011]. Figure 5: Market share of car brands in Europe Threat of new entrants As TML moves swiftly to capture market share, it also faces significant threat from new entrants to capture portions of its own market. In India Competitive intensity and anticipation of new Indigo led to decline in TML’s market share in the entry midsize segment from 38.6% to 25.2%, however market share has seen revival on m-o-m basis from April to June. Also, launch of the new sedan in H2FY10 would improve performance (www.tatamotors.com, 2010). Threat of substitute of products or services Presently, there is no threat from substitute products, as it is very difficult to copy the car’s pricing model very low price tag. However, presales and post sales services to be offered by Tata Nano Europa can easily be copied by other manufacturers. Bargaining power of buyers It is unlikely that the buyers will need to bargain for Tata Nano Europa, as it is already priced very low and branded as the cheapest car. Hence, bargaining power of buyers is not likely to be competitive force for Tata Nano Europa. Bargaining power of suppliers The chances of TML facing pressures on its profit due to bargaining power of its suppliers are low, on account of several reasons. First, most of TML’s production is centred in a few countries, thus obviating the situation where TML will have to be dependent upon component suppliers who would be able to exert bargaining pressure on it. TML’s strategy is to continue to locate its production facilities and export to markets, instead of moving its manufacturing facility. This strategy also is in consistence with the contemporary shifting of manufacturing bases where production costs are low. Besides, even in India, where most of its product categories are manufactured, there are no competitors to whom the components suppliers can threaten to supply and hence can exert pressure and bargain. Porter’s generic strategy analysis The sources of TML’s competitive advantage lies in its contrast approach. For instance, for the premium segment, it fights with its competitors by differentiating its products and service delivery. With JLR it tries to take on with the best of the best competing brands in terms of quality and product design, At the same time for its low-end products it follows a cost leadership approach. Keeping tight focus on the cost, it is undoubtedly the price leader in almost all its product categories. Figure 6: Sources of competitive advantage for Tata Motors With the new mergers and acquisitions, TML is now significantly improving its low-end products in design, even improving quality to some extent. Its global know-how on transfers between the business units is also providing significant competitive advantage. Besides, TML’s corporate strategy of unrelated diversification has the advantages of easy access to capital, a balanced portfolio, synergy effects as well as the reduction of business cycle vulnerability. A list of Indian car competitors for TML is placed at Appendix ____. Section III: Evaluation of Options This section deals with the evaluation of Tata Motors’ internal competitive strength, the company’s current strategy and the options available before the company. Based on this evaluation; it would provide future direction to the company. Evaluation of the company’s internal competitive strength is placed at an appendix. 3.2. Company’s current strategy From the spate of unrelated mergers, acquisitions and strategic partnership, it is evident that TML wants to strengthen all its product categories, such as passenger vehicles (PV), light commercial vehicles (LCV), heavy commercial vehicles (HCV) and heavy buses. The purpose behind this horizontal integration may be three-fold. Firstly, the parentage of Tata Motors, the Tata Company it-self a much diversified group selling from salt to software and from cars to consulting services. Therefore, horizontal integration is very much is a company culture, of which Mr. Ratan Tata also happens to be the group chairman. Secondly, it is also apparent that by acquiring iconic and prestigious brands in each of these categories, the company intends to give an image makeover from manufacturer of cheap vehicles to manufacturer of all sorts of vehicles and by judiciously juxtaposing the expertise of both cost leadership and differentiation leadership advantage. A third purpose is to penetrate into the newer markets and newer customer segments, for which the M&A root is the best option. Figure 7: Ansoff matrix for Tata Motors A look at the Ansoff matrix for Tata Motors, indicate that after having penetrated into the Asia pacific market through TDCV, it has given strategic advantage for gaining entry into the Chinese market; similarly by acquiring JLR, the image makeover has helped to smaller and less expensive cars. Further, by acquiring controlling stake in Hispano Carrocera, it is apparent that the company wants to gain entry into the European market and also strengthen its products offering in the domestic heavy buses segment. After having achieved this objective, the strategy to be adopted by TML needs to be ascertained. The following is a discussion on the options available before the company. 3.3 Options available In its strategic objective to become a global company, with a strategy of unrelated growth to capture new markets and to serve in new customer segments, with innovative products, TML has the following strategic options available vis-a-vis its strategic objectives. The fitness of these strategic options with its objectives is evaluated in the table below. Table 6: Evaluation of strategic options for Tata Motors Ltd. Strategic option Fitness with strategic objective Poor Average Good Very good Excellent Concentration ? Product development ? Market development ? Innovation ? Horizontal integration ? Vertical integration ? Concentric diversification ? Retrenchment ? Turnaround ? Divestment ? Liquidation ? Maintaining status quo ? Source of template: (Heffernan, n.d.). 3.4 Directions for Tata Motors From the company’s internal competitive advantages, Ansoff Growth matrix, and from the past strategies adopted (be it for acquisition of JLR or location of Tata Nano manufacturing plant at Singur and subsequent relocation to Pant Nagar in Himachal Pradesh and Sanand in Gujarat), it is imperative that high risk unrelated growth strategies for TML will not be sustainable. The company now need to concentrate on its existing products and if required may opt for concentric diversification. Along the way, it also need to integrate vertically such as Moto financing so that these products and services can complement each other while driving sale further. Besides, there are two other key options (1) new market development and (2) innovation that the company need to pursue steadfastly. Section IV: Recommendations Evaluation of the macroeconomic environment, under the emerging geopolitical realities with global convergence on climatic requirements, coupled with the competitive landscape in which TML is operating vis-a-vis its own internal strength revealed a strategic course for the company. TML’s global aspirations together with its cost leadership driven largely by excellent cost efficiency, and core strategic capability with a purpose to improve the quality of life, the company no doubt is in the right direction. Located at one of the high growth regions in the world with strong human resources base, the company has a natural advantage in taping quality human resources at a lower cost than its competitors. As Moraes (2006) said, “The house of Tatas is, I think, amazingly placed. Owing to our Indian base, we have a core competitive advantage --our people. We have more high quality people available at a lower cost than most of our competitors in the international market place.” In its over 65 years of history, Tata Motors has shown perfect semblance between continuity and change, with its core values and big hairy audacious goals such as Tata Nano, acquisition of JLR and Daewoo Commercial Vehicles. With a combination of an almost cult like culture having people who feel extremely proud to be associated with the company and idiosyncratic people, it has managed to achieve much more than its competitors especially in the recent times. Maintaining consistency at the same time innovation as its key competitive advantage, the company is surprizing the market by rolling out more models than its competitors. Tata Motors’ innovations continue to surprize the market with innovative products: 1. Tata Marco polo bus, 2. Tata Star bus, 3. Tata Xover, 4. Tata Nano Europa The company has shown discipline and creativity simultaneously; as it does for systematic methods and experimental approaches. Drawing an excellent balance between meaning and achievement, the company is able to preserve the core and stimulate progress. This is well on its way to be a visionary company and is built to last. However, the company is not without errors. Catching of fire Nano has put a lot of dent into its credibility, from which the company need to learn. In addition, the following recommendations as appeared from the strategic analysis of the company are offered to the company. 1. It is imperative that high risk unrelated growth strategies are not sustainable in the long run. Therefore, the company need to be more judicious in chasing after its unrelated growth targets. 2. The company now need to concentrate on its existing products and if required may opt for concentric diversification. 3. It also needs to integrate vertically such as Moto financing so that these products and services can complement each other while driving sale further. 4. The company need to continue to explore new markets. 5. TML also need to hasten the vigour of its innovations to encompass every aspect of its service and product not just limited to a few new brands. Bibliography Anon., n.d. Top 20 Best-Selling Car Manufacturers and Brands in Europe, 2010. [Online]. AWARE, 2011. Marketing & Competitive Intelligence FAQ. [Online] (05 January, 2011) Available at: http://www.marketing-intelligence.co.uk/help/Q&A/question14.htm [Accessed 07 March 2011]. Bekker, H., 2011. Full-Year 2010 New Car Sales Statistics in Europe by Country. [Online] (Jan 18, 2011) Available at: http://www.suite101.com/content/full-year-2010-new-car-sales-statistics-in-europe-by-country-a334472 [Accessed 07 March 2011]. Chaudhuri, A., Giffi, C., Kandaswami, K. & Singh, S.K., 2011. 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[Online] Available at: http://www.tata.com/aboutus/articles/inside.aspx?artid=CKdRrD5ZDV4= [Accessed 15 March 2011]. www.tatamotors.com, 2010. 65th Annual Report 2009 - 2010. [Online] Available at: http://www.tatamotors.com/investors/annualreports-pdf/Annual-Report-2010.pdf [Accessed 15 March 2011]. www.tatamotors.com, 2010. www.tatamotors.com. [Online] Available at: http://www.tatamotors.com/investors/pdf/2009/Q1-FY10-Business-Review-Standalone.pdf [Accessed 15 March 2011]. Appendix2: Tata Motors Limited - Basic Facts ???? ?????? Type Public (BSE: 500570) (NYSE: TTM) Industry Automotive Founded 1945 Founder(s) JRD Tata Headquarters Mumbai, Maharashtra, India [1] Key people Ratan Tata, Chairman Ravi Kant, Vice Chairman Carl Peter Forster, CEO Prakash Telang, MD (India Operations) Ravi Pisharody, President (CVBU) Products Automobiles Engines Services Outsourced Engineering and Design Revenue 94,481.34 crore (US$20.97 billion) (2009) [2] Net income 2,571.06 crore (US$570.78 million) (2009)[2] Total assets $15.430 billion (2009) Total equity $763 million (2009) Employees 25,000 [3] Parent Tata Group Subsidiaries Jaguar Land Rover TDCV (Tata Daewoo Commercial Vehicle) Hispano Carrocera Website TataMotors.com Appendix 3: Tata Motors Product Categories Passenger cars and utility vehicles 1. Tata Sumo/Spacio 2. Tata Sumo Grande 3. Tata Safari 4. Tata Indica 5. Tata Vista 6. Tata Indigo 7. Tata Manza 8. Tata Indigo Marina 9. Tata Winger 10. Tata Magic 11. Tata Nano 12. Tata Xenon XT 13. Tata Aria 14. tata pratul 15. tata venture Concept vehicles 1. 2000 Aria Roadster 2. 2001 Aria Coupe 3. 2002 Tata Indiva 4. 2004 Tata Indigo Advent 5. 2005 Tata Xover 6. 2006 Tata Cliffrider 7. 2007 Tata Elegante 8. 2009 Tata Pr1ma 9. 2010 Tata Versa 10. 2010 Tata Essota 11. 2011 Tata Pixel Commercial vehicles 1. Tata Ace 2. Tata TL/Telcoline/207 DI Pickup Truck 3. Tata 407 Ex and Ex2 4. Tata 709 Ex 5. Tata 809 Ex and Ex2 6. Tata 909 Ex and Ex2 7. Tata 1109 (Intermediate truck) 8. Tata 1510/1512 (Medium bus chassis) 9. Tata 1612/1616 (Heavy bus chassis) 10. Tata 1618 (Semi Low Floor bus chassis) 11. Tata 1610/1623 (Rear Engined Low Floor bus chassis) 12. Tata 1613/1615 (Medium truck) 13. Tata 2515/2516 (Medium truck) 14. Tata Starbus (Branded Buses for city,inter city,school bus and standard passenger transportation) 15. Tata Globus (Range of fully built luxury coaches) 16. Tata Hispano Globus (Rear Engined Inter city coach) 17. Tata Marcopolo Bus (Low Floor, Semi Low Floor buses for Mass Rapid Transit and also standard passenger transportation Buses) 18. Tata 3015 (Heavy truck) 19. Tata 3118 (Heavy truck) (8X2) 20. Tata 3516 (Heavy truck) 21. Tata 4018 (Heavy truck) 22. Tata 4923 (Ultra-Heavy truck) (6X4) 23. Tata Novus (Heavy truck designed by Tata Daewoo) 24. Tata Prima (The World Truck designed by Tata Motors and Tata Daewoo) Military vehicles 1. Tata LSV (Light Specialist Vehicle) 2. Tata Mine Protected Vehicle (4x4) 3. Tata 2 Stretcher Ambulance 4. Tata 407 Troop Carrier, available in hard top, soft top, 4x4, and 4x2 versions 5. Tata LPTA 713 TC (4x4) 6. Tata LPT 709 E 7. Tata SD 1015 TC (4x4) 8. Tata LPTA 1615 TC (4x4) 9. Tata LPTA 1621 TC (6x6) 10. Tata LPTA 1615 TC (4x2) 11. Tata Winger Passenger Mini Bus Tata’s new products: 1. Tata Marco polo bus, 2. Tata Star bus, 3. Tata Xover, 4. Tata Nano Europa Appendix ___: Standalone Q1FY10 Financials (Audited) Tata Motor’s Net Revenue for Q1FY10 was Rs. 64 bn; decline of 7.6% Y-o-Y. Reduction of raw material prices and company’s continued focus on cost efficiencies yielded considerable benefit as operating margin expanded to 11.4% for the quarter, an expansion of 430 basis points from 7.1% of Q1 FY09. PBT for the quarter was Rs 5.5 bn, up 59% y-o-y. The Company posted a PAT of Rs. 5.1 bn in Q1 FY10, up 58% y-o-y. Table 1: Volume Summary Q1 FY10 Q1 FY09 Change Total CVs 72,216 71,409 1.1% Total PVs* 49,904 52,450 -4.9% Total domestic Sales 122,120 123,859 -1.4% Exports 5,220 9,220 -43.4% Total Volumes 127,340 133,079 -4.3% * include sales of FIAT vehicles Volume growth of the Company in the domestic market was influenced by: • 28.0% light commercial vehicles segment, driven mainly by growth in ACE Truck and success of ACE Magic and Winger • 12.4% growth in small car segment, due to an exciting customer response to the Indica Vista. Competitive intensity and anticipation of new Indigo led to decline in TML’s market share in the entry midsize segment from 38.6% to 25.2%, however market share has seen revival on m-o-m basis from April to June. Also, launch of the new sedan in H2FY10 would improve performance. The export volumes of the Company registered a decline of 43.4% during Q1FY09, due to market contraction in most of the prime export markets. Appendix___: TML’s Competitors In India (Cars Segment) Indian automotive companies Chinkara Motors: Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, Sailster Hindustan Motors: Ambassador ICML: Rhino Rx Mahindra: Major, Xylo, Scorpio, Bolero, Thar, Genio Premier Automobiles Limited: Sigma, RiO San Motors: Storm Tata Motors: Nano, Indica, Indica Vista, Indigo, Indigo Manza, Indigo CS, Sumo, Venture, Safari, Xenon, Aria Joint Venture automotive companies in India Maruti Suzuki: 800, Alto, WagonR, Estilo, A-star, Ritz, Swift, Swift DZire, SX4, Omni, Versa, Eeco, Gypsy, Grand Vitara Foreign automotive companies in India Vehicles manufactured or assembled in India Manufactured only in Chennai, India, the i10 is one of Hyundai's bestselling globally exported cars. Maruti Swift. Maruti Suzuki, a subsidiary of Japan's Suzuki Motor, is the largest automobile manufacturer in India.[68] BMW India: 1 Series, 3 Series, 5 Series, X1. Fiat India (in collaboration with Tata Motors): Grande Punto, Linea, Palio Stile. Ford India: Ford Figo, Ikon, Fiesta, Endeavour. General Motors India Chevrolet (CSPIL): Spark, Beat, Aveo U-VA, Aveo, Optra, Cruze, Tavera. Honda Siel: Jazz, City, Civic, Accord. Hyundai Motor India: Santro, i10, i20, Accent, Verna Transform, Sonata Transform. Mahindra Renault: Logan Mercedes-Benz India: C-Class, E-Class. Mitsubishi (in collaboration with Hindustan Motors): Lancer, Lancer Cedia, Pajero Nissan Motor India: Micra. Toyota Kirloskar: Etios, Corolla, Innova, Camry. Volkswagen India: Polo, Vento, Jetta, Passat. Audi India: A4, A6. Skoda Auto India: Fabia, Octavia, Laura, Superb, Yeti. Source: Compiled from various sources Appendix ______: Evaluation of internal competitive strength of TML Leadership Basic fact on Tata Motors is placed at Appendix ___. The company is headed by the Group Chairman Mr. Ratan Tata, a highly revered and acclaimed industrialist both in India and abroad as well. Tata is instrumental for transforming the erstwhile Tata Electric and Locomotive Company (TELCO) and giving it the new global identity as Tata Motors and raising the company from a truck manufacturing company into a group strategy think tank with signatures in all categories of the automotive industry and in all regions of the global market. Mr. Tata is currently part of 203 board members in 20 different organizations across 23 different industries. He is assisted by a strong and competent management team with excellent global management exposure. See Appendix ____ on key facts of Tata Motors Ltd. Company Values and Purpose Guided by strong purpose, committing to improving the quality of life the communities the company serves, with its five pronged core values: integrity, understanding, excellence, unity, and responsibility, the company is able to preserve its core values and is being constantly guided on its strategic path with. Tata Group’ values and purpose, is placed at Appendix ___. Tata Motor’s vision is to vision is to be the: “Best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics.” Company culture As is true with all Tata companies, Tata Motors too displays strong sense of belongingness and spirit-de-corpse and portrays an almost cult-like company culture. All stakeholders associated with Tata Motors feel proud to be associated with the company. Company financial strength Tata Motors’ robust financial strength is another strong point in its competitive advantage. For instance, for the year ended March 31, 2010, TML’s gross revenue was at Rs. 38, 364 crore, while, its profit after tax was at Rs. 2,240 crores. Further details on the company’s financial and sales statistics are placed at Appendix___. These robust strengths, coupled with a global mission, as it exudes from the Chairman’s message, “Globalisation is the way to go for us," Tata said recently. "A global footprint is very important for the group to remain competitive," adds J J Irani, the erstwhile managing director of Tata Steel, it is imperative that the company is steering a course towards becoming a truly world-class company multi-national company. Annexure to I Appendix - ___: Tata Motors Financial Statistics www.tatamotors.com, 2010. 65th Annual Report 2009 - 2010. [Online] Available at: http://www.tatamotors.com/investors/annualreports-pdf/Annual-Report-2010.pdf [Accessed 15 March 2011]. www.tatamotors.com, 2010. 65th Annual Report 2009 - 2010. [Online] Available at: http://www.tatamotors.com/investors/annualreports-pdf/Annual-Report-2010.pdf [Accessed 15 March 2011]. Source: www.tatamotors.com, 2010. 65th Annual Report 2009 - 2010. [Online] Available at: http://www.tatamotors.com/investors/annualreports-pdf/Annual-Report-2010.pdf [Accessed 15 March 2011]. Source: www.tatamotors.com, 2010. 65th Annual Report 2009 - 2010. [Online] Available at: http://www.tatamotors.com/investors/annualreports-pdf/Annual-Report-2010.pdf [Accessed 15 March 2011]. Source: www.tatamotors.com, 2010. 65th Annual Report 2009 - 2010. [Online] Available at: http://www.tatamotors.com/investors/annualreports-pdf/Annual-Report-2010.pdf [Accessed 15 March 2011]. Annexure II to Appendix ____: Tata Motors Ltd. Values and purpose Purpose At the Tata group we are committed to improving the quality of life of the communities we serve. We do this by striving for leadership and global competitiveness in the business sectors in which we operate. Our practice of returning to society what we earn evokes trust among consumers, employees, shareholders and the community. We are committed to protecting this heritage of leadership with trust through the manner in which we conduct our business. Core values Tata has always been values-driven. These values continue to direct the growth and business of Tata companies. The five core Tata values underpinning the way we do business are: Integrity: We must conduct our business fairly, with honesty and transparency. Everything 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 the communities we serve. Excellence: We must constantly strive to achieve the highest possible standards in our day-to-day work and in the quality of the goods and services we provide. Unity: We must work cohesively with our colleagues across the group and with our customers 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. Source: www.tata.com, 2011. Values and purpose. [Online] Available at: http://www.tata.com/aboutus/articles/inside.aspx?artid=CKdRrD5ZDV4= [Accessed 15 March 2011]. Read More