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Published byJohn Phelps Modified over 9 years ago
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GROUP-5 Rocquel Carrecter Amanda Richardson Joshua Standifer Sugam Rijal Yashikiya Harley Edwina Russaw
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History Founded as a Trading firm in 1868. Family business: Current CEO: Ratan Tata From Textiles to Commercial Vehicles:
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House of Tata: Tata Company as a Conglomerate:
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Acquiring a Global Footprint: Tata Tea:Tetley Tea from U.K. Tata Steel: Corus Steels from U.K Indian Hotel:Ritz-Carlton-Boston from USA Tata Chemicals:Brunner Mond from U.K. Tata Coffee:8 o’clock coffee from U.S.A Tata Sons: Energy Brands from U.S.A And………………..
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World’s Smallest Car
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Tata Motors: Flag ship Company of Passenger’s Car and Commercial Truck Daewoo Commercial Vehicle from South Korea. Tata Nano: Smallest Car in the world. Dilemma: Jaguar and Land Rover???
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Daewood Commercial Vehicles
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Should Tata Motors contemplate for bidding for Land Rover and Jaguar? o 1. Foreign Competition o 2. Market and Product Range o 3. Losses o 4. Expenditures
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PEST Analysis VALS-Survivor Category Advanced Products Economic Downtown Regulations
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Perspectives Don’t put all of your eggs in one Indian basket!
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Porter’s Five Forces
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Perspectives From Porter’s View Barriers of EntryBuyers Time and Cost of Entry Cost advantages Technology Differentiation Buying Volumes Price Elasticity Differentiation Buying Volumes Price Elasticity
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Perspectives From Porter’s View Competitive Rivalries Number of Competitors Switching Costs Diversity of Competitors Industry Concentration Substitutes Substitute Performance Cost of Switching Buyer Willingness Suppliers Number of Suppliers Size of Suppliers Unique Product
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The Competition looks good
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McKinsey 7s Framework: Organization not just a structure; Fit between all these seven elements; An effective tool in initiating change process in the organization: From point A to point B. GDP
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McKinsey’s 7s Framework: Strategy: Focus Strategy Acquisition Philosophy Target Bottom of the Pyramid Market Brand Positioning Combination of Ansoff’s Product Development and Diversification Strategy Offset A for B Corporate Social Responsibility Structure Mechanistic-Organic Mixed Organizational Structure Decentralization- Autonomous MBO New Corporate Culture
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McKinsey 7s Framework Systems: lean manufacturing Flexible Mass Production Waste Minimization Continuous Improvement Assets, Operations and Systems platforms
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McKinsey 7s Framework: Skills: Technical Skills Innovation Shared Values: Core Values, Pride, Corporate Culture Style: Management participation Effective Leadership Staffs: Mutual Trust, Communication Respect for People Continuous Improvement
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Acquisition Philosophy: Target Characteristics Research Risk Assessment Funding Disposal to reduce debts Elimination of excess overhead Creation of incentives
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Tata Global Focus Tata had to create complements of resources to overcome some of the disadvantages of being newcomers into the automotive car business.
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Assess the Possibilities: Newcomer in automotive car market Extreme risk-Ratan Tata-had a global mindset CEO, Global Brand will give entrance into North America market Joint Ventures Acquisitions Intense Management Development
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Impact of the Decision Jaguar and Range Rover will bring well known global brand and to the Tata Portfolio Research and Development new technology advanced market distribution channels Strategic Partnerships
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Tata Group Expands The first emerging market auto maker to purchase a western brand to upgrade its product range Parent Group could support expansion Decentralize Tata Group to reduce overlap “Project Prune” Be market leader in low, middle and high income class Increase domestic market share
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Consequences $850 million debt on the purchase contributed to a credit-rating downgrade Downgraded the company's credit rating from B+ to B. The luxury-car market idles Depressed revenues Invested nearly $400 million in the Nano launch Struggled to pay off the expensive $3 billion loans for the Jaguar/Land Rover Jaguar/Land Rover lost an additional $510 million in the 10 months Faces a huge R&D bill as high as $1.1 billion
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Consequences U.S. and European economies pick up Jaguar sales could increase Jaguar XJ has already received good reviews Land Rover remains a more complicated issue invest in a new line of smaller, more economical cars Cut 300 jobs at a plant in Britain in mid-July
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Consequences Paying down debt on the Jaguar/Land Rover Aggressively, listing a $1.16 billion payment $840 million Negotiated to extend the end date on the remaining $850 million to the end of 2010. Stock up more than 150% in 2009 More than 30% in 30 days Commercial Vehicles Sales
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Updates:
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Market Share of Luxury Cars in America
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