Analysis on TATA group Essay

IntroductionTata Group is an Indian multinational conglomerate friendship headquartered in Mumbai, India. It encompasses seven business sectors communications and instruction technology, engineering, materials, services, energy, consumer products and chemicals. Tata Group was founded in 1868 by Jamsetji Tata as a trading company. It has operations in more than 80 countries across six continents. Tata Group has over cytosine operating companies with each of them operating independently. Out of them 32 atomic number 18 publicly listed. The major Tata companies are Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan Industries, Tata Communications and Taj Hotels. The combined market capitalisation of all the 32 listed Tata companies was INR 8.2 Trillion ($ 138 billion) as of July 2014. Tata receives more than 58% of its revenue from outside India.Tata companies and details their business ChemicalsTata ChemicalsRallis IndiaTata Pigments LimitedGeneral Chemical industrial ProductsBrunner MondAdvinus TherapeuticsMagadi Soda CompanyConsumer productsTata SaltI-shaktiCasa DcorTata SwachTata Global BeveragesTata Tea Limited is the worlds second largest manufacturer of packaged tea and tea products. Tata Starbucks, is a 5050 joint venture company, owned by Starbucks Corporation and Tata Global Beverages Eight OClock CoffeeTetleyTata CoffeeHimalayan, Mount Everest mineral Waters natural mineral water filth Tata CeramicsInfiniti Retail (Crom)Tata IndustriesTitan IndustriesTrent (Westside) acresmark BookstoresTata SkyVoltas, consumer electronics companyTata International Ltd.TanishqFastrack, Largest & Trendiest Youth Fashion punctuate in IndiaTitan Eye+, World class Optical Stores from Titan Industries Tata RefractoriesWestlandEngineeringTAL Manufacturing SolutionsTata AutoComp Systems Limited (TACO)Hispano CarroceraTata Motors, manufacturer of commercial vehicles (largest in India) and passenger cars Jaguar bolt down Rover (Manager of Tatas British brands Jaguar cars and Land Rover)Tata Daewoo Commercial VehicleTata ProjectsTata Technologies LimitedTata Consulting Engineers LimitedTata CumminsTelco Construction EquipmentTRFVoltas Global Engineering marrow squashTata Advanced MaterialsTata Advanced SystemsTata Motors European Technical CentreTata PetrodyneTata Precision IndustriesTelcon Construction EquipmentSteelTata SteelTata Steel EuropeTata Steel KZNTata Steel Processing and scatteringJAMIPOLNatSteel HoldingsTata BlueScope SteelTata MetaliksTata Sponge IronTayo RollsLiterature reviewWhat is SWOT synopsisA SWOT summary (alternatively SWOT intercellular substance) is a structured planning manner used to evaluate the strengths, weaknesses, opportunities, and threats involved in a determine or in a business venture. A SWOT analysis john be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to compass that objective. Strengths characteristics of the business or project that give it an advantage over others. Weaknesses characteristics that place the business or project at a disadvantage relative to others Opportunities elements that the project could exploit to its advantage Threats elements in the environment that could cause trouble for the business or projectHow SWOT affects strategic decisionsThe main advantages of conducting a SWOT analysis is that it has little or no cost anyone who understands your business poop perform a SWOT analysis. You can also use a SWOT analysis when you dont have much time to address a complex situation. This means that you can take steps towards improving your business without the write down of an external consultant or business adviser.Another advantage of a SWOT analysis is that it concentrates on the most important factors affecting your b usiness. Using a SWOT, you canunderstand your business betteraddress weaknessesdeter threatscapitalise on opportunitiestake advantage of your strengthsdevelop business goals and strategies for achieving them.BCG matrixThe growthshare matrix (aka the product portfolio, BCG-matrix, Boston matrix, Boston Consulting Group analysis, portfolio diagram) is a chart that was created by Bruce D. Henderson for the Boston Consulting Group in 1970 to help corporations to analyze their business units, that is, their product lines. This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis. Analysis of market performance by firms using its principles has of late called its usefulness into question. Cash cows is where a company has high market share in a slow-growing industry. These units typically generate cash in additional of the amount of cash needed to maintain the business. They are regarde d as staid and boring, in a mature market, yet corporations value owning them due to their cash generating qualities.They are to be milked continuously with as little investment as possible, since such investment would be wasted in an industry with low growth. Dogs, more charitably called pets, are units with low market share in a mature, slow-growing industry. These units typically break even, generating barely enough cash to maintain the businesss market share. Though owning a break-even unit provides the social benefit of providing jobs and possible synergies that assist other business units, from an accounting point of view such a unit is worthless, not generating cash for the company. They depress a profitable companys return on assets ratio, used by many investors to judge how easily a company is being managed. Dogs, it is thought, should be sold off. Question attach (also known as problem children) are business operating in a high market growth, but having a low market shar e. They are a starting point for most businesses. Question marks have a potential to gain market share and become stars, and eventually cash cows when market growth slows.If question marks do not ensue in becominga market leader, then after perhaps years of cash consumption, they will degenerate into dogs when market growth declines. Question marks must be analyzed carefully in order to determine whether they are worth the investment required to grow market share. Stars are units with a high market share in a fast-growing industry. They are graduated question marks with a market or niche star(p) trajectory, for example amongst market share front-runners in a high-growth sector, and/or having a monopolistic or increasingly dominant USP with burgeoning/fortuitous proposition drive(s) from novelty (e.g. Last.FM upon CBS synergetics due diligence), fashion/promotion (e.g. newly prestigious celebrity branded fragrances), customer loyalty (e.g. greenfield or military/gang enforcement b acked, and/or innovative, grey-market/ extramarital retail of addictive drugs, for instance the British East India Companys, late-1700s opium-based Qianlong Emperor embargo-busting, Canton System), goodwill (e.g. monopsonies) and/or gearing (e.g. oligopolies, for instance Portland cement producers near boomtowns),citation needed and so on The hope is that stars become next cash cows.Porter five forces analysisPorter five forces analysis is a framework to analyze level of contender within an industry and business strategy development. It draws upon industrial memorial tablet (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An unattractive industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching pure competition, in which available profi ts for all firms are driven to frequent profit. This analysis is associated with its principal innovator Michael E. Porter of Harvard University (as of 2014).1. Threat of new entrants2. Threat of substitute products or services3. Bargaining power of customers (buyers)4. Bargaining power of suppliers5. inspiration of competitive rivalryOrganizational StructureAn organizational structure defines how activities such as task allocation, coordination and supervision are directed towards the achievement of organizational aims. It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment. Organizations are a variant of clustered entities. An organization can be structured in many different ways, depending on their objectives. The structure of an organization will determine the modes in which it operates and performs. Organizational structure allows the evince allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup and individual. Organizational structure affects organizational action in two big ways. First, it provides the foundation on which standardised operating procedures and routines rest. Second, it determines which individuals get to participate in which decision-making processes, and thus to what extent their views shape the organizations actions.Findings & AnalysisStrengths The internationalization strategy so far has been to nurture local managers in new attainments, and to only transplant a couple of senior managers from India into the new market. The benefit is that Tata has been able to exchange expertise. For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product right first time. The company has had a successful alliance with Italian skunk producer Fiat since 2006. This has enhanced the product portfolio for Tata and Fiat in terms of production and knowledge exchange. For example, the Fiat Palio Style was launched by Tata in 2007, and the companies have an harmony to build a pick-up targeted at Central and South America. Weaknesses The companys passenger car products are based upon 3rd and 4th generation platforms, which straightaway Tata Motors Limited at a disadvantage with competing car manufacturers.Despite buying the Jaguar and Land Rover brands (see opportunities below) Tata has not got a foothold in the sumptuosity car segment in its domestic, Indian market. One weakness which is often not recognised is that in English the word tat means rubbish. Would the brand sensitive British consumer ever buy into such a brand? Maybe not. Opportunities In the summer of 2008 Tata Motors announced that it had successfully purchased the Land Rover and Jaguar brands from Ford Motors forUK 2.3 million. Two of the Worlds luxury car brand have been added to its portfolio of brands. Tata Motors Limited acquired Daewoo Motors Commer cial vehicle business in 2004 for around USD $16 million. Nano is the cheapest car in the World retailing at little more than a motorbike.Whilst the World is getting ready for greener alternatives to gas-guzzlers, is the Nano the answer in terms of concept or brand? Threats Other competing car manufacturers have been in the passenger car business for 40, 50 or more years. Therefore Tata Motors Limited has to catch up in terms of quality and lean production. Sustainability and environmentalism could mean extra costs for this low-cost producer. Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts. The price of steel and aluminium is increasing putting constrict on the costs of production.