MAN7078 Organisational Strategy for TATA Motors

Introduction and Company

  • Organisational strategy is the whole activities and actions of an organisation to reach with desired goals and objectives.
  • It helps in developing and making a company to achieve their targets by determining the corporate culture.
  • It enables an organisation to distribute required resources to address the priorities.
  • Tata Motors is an international automobile manufacturing company.
  • There are various products of an organisation which includes passengers, cars, sports cars, construction equipments and so more.
  • It is the biggest automobile company which provide variety of products to their customers.

Organisational Strategy

  • Tata motors develops strategy to increase the capacity of company by developing trust and loyalty among all staff members.
  • It also helps in developing its strategy to capture whole market place. The main motive of this company is to satisfying and fulfilling customers needs and requirements.


Porter’s five forces

Porter’s five forces




Political: It affects the company performance.
Economic: This factor analyse the economic condition and it affects on business growth.
Social: It helps in evaluate customers needs and wants.
Technological: New methods and equipments assist in increasing profits.
Legal: Laws and regulations affects the business environment.
Environmental: Need to use only friendly products and services.


SWOT Analysis:


Strength Weakness
•Strong parent base

•Brand equity

•Global presence

•Provides variety of equipments and cars

•Poor technical base

•Lack of uniqueness and creativity

Opportunities Threats
•Huge investment

•Expand business operations in different areas

•Intense competition

•Increasing in income and profitability


MC Kinsey 7S

  • Strategic model allows an organization to deal with competitive market place.
  • MC Kinsey model involves seven elements that help company in achieving goals.
  • There are 7 elements that are divided into soft and hard components as under:
Hard Elements Soft Elements
Strategy Shared Values
Structure Skills
System Style



  • Vision: Provide best cars at reasonable rate.
  • Mission: Tata Motors focus on offering standard and high tech cars.
  • Objectives: Offers best technological and unique cars to customers.
  • Strategy: Focus on competitive pricing tactics.
  • Tactics: Limited range with price change policy.

Value chain

Manufactures Distribution Store sales Marketing
•Local suppliers

•National suppliers

•Global level suppliers

•Use accurate channel for distribution

•Distribution centers

•Tata motors established in different areas

•Well trained employees to sales

•Social media

•Develop relationship with customers




Suitability, feasibility and acceptability of Tata Motors is describe as follow:

Option 1

Market development (Asian)

Option 2

New range of product

Option 3

New area for expansion

Suitability 6 6 6
Feasibility 7 7 5
Acceptability 7 6 5
Total 20 19 16



Hyundai Motors Tesla   Audi
2019 2018 2017 2019 2018 2017 2019 2018 2017
Total Revenue 4000 4055 3300 7000 4000 3340 25454 23434 234
Cost of sales 1343 1565 1654 6000 3450 2900 15656 16767 14545
Gross Profit 2657 2401 1646 1000 550 440 9798 6667 14311
Net Income 450 480 1123 1345 765 3342 2434 1565 1232

Risk Assessment

The risk assessment of Tata Motors propose as follow:

Recommendation Risk level Likelihood Rating Project Impact
Enter into Asian market 3: Moderate risk level Less likely as automobile market growth can be increase. 5: Need high cost and financial stability 4: Less impact due to low cost
New range of product 4: High risk Likely due to original capability 6: Require huge investment on R&D 4: Less impact



  • It can be recommended that Tata Motors should develop mission and decision making which is taken on allocating resources in entire company.
  • Tata motors leaders determines and evaluate the way of growth that should be taken to increase the business operations.
  • Tata motors goals is to provide variety of products and services to desired clients.


  • Tata Motors focus on taking higher position in the large market place.
  • The company is competing with other local automobiles as it also provides great quality of goods and services at reasonable rate.
  • An organisation focus on maintaining and increasing success level of the firm.
  • Tata Motors is successful in the automobile sector with the helps of using cost saving policy and strategy.
  • The company maintaining business operations and develop effective strategy to achieve higher goals.
  • It assist in managing whole business and attract large number of customers.

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