Warren (2008) asserts that strategic management is a systematic approach to identification of environment of the company, need for change and then initiating the necessary change in the organization. The discipline of strategic management goes beyond the development of strategic plan for the organization and it includes pre planning and strategic planning processes. This report has analyzed the strategic management strategies of Tata Motors which is a part of Tata Group. The company is the largest automobile company in the India and is regarded as market leader in commercial vehicle segment (Tata Motors 2014a). The company is functioning in compact, midsize and utility vehicle segment.
The report initially has dealt with the introduction of the company along with description of segments in which the company is operating. The mission and vision of the company has also been discussed. The later part of the report has dealt with the external and internal environment analysis for Tata Motors through the use of PEST analysis and Competitors analysis. The internal environment has been studied by employing tools like SWOT analysis, core competence analysis and key factors for success analysis. The analysis of financial resources of Tata Motors has been undertaken and review of strategic options for Tata Motors have been analyzed using Ansoff and Generic strategies matrix. Analysis of strategic choice and cost reduction and quality improvement recommendations has also been given.
1. Tata Introduction & Mission and Vision
Tata Motors Limited is an Indian multinational company that is headquartered in India and a subsidiary of Tata Group. The products of the company include passenger cars, trucks, vans, coaches, buses, construction equipment and military vehicles (Tata Motors 2014c). The company is the world’s sixteenth largest motor vehicle manufacturing company and has auto manufacturing and assembly plants in different parts of India. The foundation of the growth of the company over the last 68 years is a deep understanding of economic stimuli and customer needs and the ability to translate them into offerings designed for the customers through leading edge research and development (Tata Motors 2014a).
An analysis of mission and vision of Tata shows that the company is concerned about building a good brand image among the customers. The mission statement of Company shows that “Tata is passionate in anticipating customer needs and providing best vehicles and experiences to them”. The vision statement of Tata Motors show that the company aims to be the most admired company by its customers, employees, business partners and shareholders for experience and value they enjoy from it (Tata Motors 2014b).
Figure 1 – Mission and Vision of Tata Motors
(Source: Tata Motors 2014b)
The mission and vision analysis of Tata Motors showed that the company is following the culture of having accountability and product...