The car culture has spread from the United States, which is regarded as the birthplace of cars, to the whole world. People desire personal vehicles, a desire that has grown more pervasive and powerful. The modern car bestows…
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To respond to the market needs, automotive manufacturers have expanded their range of products through extensive research and development (Ireland, Hokisson & Hitt, 2011).
According to the law of demand, when all factors are held constant a good that is highly priced will attract less demand. As such, sales are fewer when the products are highly priced. The automotive market has exploited this law of demand to its advantage (Harrison, 1993). The industry has in the recent past increased capacity to develop and produce affordable cars. Brands such as Tata Motors have invested in research and development to identify ways of cutting costs. Reduction in costs leads to the production of affordable cars and as such creating demand.
A, B and C denote points on the demand curve. The points reflect the correlation between the quantities (Q) required and the particular price (P) associated with the demand. From this it clear that highly priced automotive products have over the years experienced lesser demand.
The law of supply demonstrates what quantities of automotive items are to be sold at individual prices. According to this law, a higher price leads to higher supply of automotive products. Tata Motors, like other players in the auto industry, responded to this law by producing more units when the prices are higher so as to increase revenues. Unlike to demand relationship, relationship of supply has a component of time. As such, many players of the automotive have reviewed how their ordering processes are done. Many industry players are allowing for invoicing twice a month as compared to initial practices of invoicing once a month. The follow graph is an illustration of this law:
In the automotive industry, equilibrium of demand and supply has been in existence in the recent years. Growth of industry is attributable to the fact that the provision of the automotive matches with the
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The internationalization of Emerging Economy Multinational Corporations (EMNCs) therefore is congruent to proper management of business activities within value chains. This paper gives a critical PEST and SWOT analysis of the Tata Group. Moreover, the internalization of EMNCs has been discussed exhaustively in relation to Porter’s model of the value chain.
Hence the companies try to first understand the need of the consumers and then based on it design a product to meet their needs. But every product goes through a cycle known as product life cycle which shows the different stages that a product has to go through right from introduction to the decline phase (Horn and Faulkner, 2010, p.
The importance, effects on business operations and the relationship between the functions in an organisational structure are explained. It uses the example of Tata Motors to explain the functionality of its several departments. Quality control in an engineering company, JIT and SPC impacts on specifications and quality standards are addressed.
The author states that the organizational structure of Tata group is rather complicated, due to its expansion abroad and company affiliates dealing in a particular industry. Nevertheless, the structure has remained quite the same on the top ranks of the company, since the centralization strategy brought about by Ratan Tata.
The company’s venture into commercial vehicles began in 1954, after an agreed fifteen years collaboration with Daimler-Benz of Germany. Although over four million Tata vehicles ply the Indian roads, products are marketed in several European, Asian, Australian and African segments. Its products are winners because of their convenience, affordability, and utility.
Tata Motors has a wide range of products including multi-utility vehicles, passengers, and goods commercial transport.
It has also emerged as a powerful international company. One of the most important steps of the company towards expanding itself in the international market was its acquisition of Daewoo. The subsidiary companies operate from South Korea,
I immediately went to the company’s website and ordered a Dell computer for myself with the exact features that I wanted. The company seems to have concentrated on The Marketing Concept. This concept holds the view that success in achieving
In addition, small business plan rating also depends on the amount of taxes that they pay within a given financial year, as well as the total amount of their assets.
A small scale business enterprise, is an
This essay will focus on the impacts of globalisation on Tata Motors. “Tata Motors Limited is India’s largest automobile company, with consolidated revenues of Rs.1, 23,133 crores (USD 27 billion) in 2010-11. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments.” (Tata Motors, 2011) Established under the banner of Tata Group of India in 1945, Tata Motors is now a multinational company with a clear global ambition.
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