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

 

PESTLE:

 

PESTLE
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 ElementsSoft Elements
StrategyShared Values
StructureSkills
SystemStyle
Staff

 

VMOST

  • 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

•Websites

 

SFA ANALYSIS

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

Suitability666
Feasibility775
Acceptability765
Total201916

 

FIMO ANALYSIS

Hyundai Motors Tesla  Audi
201920182017201920182017201920182017
Total Revenue4000405533007000400033402545423434234
Cost of sales134315651654600034502900156561676714545
Gross Profit26572401164610005504409798666714311
Net Income450480112313457653342243415651232

Risk Assessment

The risk assessment of Tata Motors propose as follow:

RecommendationRisk levelLikelihoodRatingProject Impact
Enter into Asian market3: Moderate risk levelLess likely as automobile market growth can be increase.5: Need high cost and financial stability4: Less impact due to low cost
New range of product4: High riskLikely due to original capability6: Require huge investment on R&D4: Less impact

 

Recommendation

  • 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.

Reflection

  • 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.
Conclusion
  • 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.
References

Williams, D.J., Faiz, M.A., Abela-Ridder, B., Ainsworth, S., Bulfone, T.C., Nickerson, A.D., Habib, A.G., Junghanss, T., Fan, H.W., Turner, M. and Harrison, R.A., 2019. Strategy for a globally coordinated response to a priority neglected tropical disease: Snakebite envenoming. PLoS neglected tropical diseases13(2), p.e0007059.

Vinod, V., 2020. A study on Human Resource’s Business Partner Strategy within the Organisation (Doctoral dissertation, Savitribai Phule Pune University).

Candido, C. and Santos, S.P.D., 2015. Strategy implementation: What is the failure rate?. Journal of Management & Organization21(02), pp.237-262.

Nasab, S.S., Jaryani, F., Selamat, H.B. and Masrom, M., 2017. Critical success factors for business intelligence system implementation in public sector organisation. International Journal of Information Systems and Change Management9(1), pp.22-43.

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