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SWOT ANALYSIS OF A COMPANY
Objective n The objective of this activity is to analyze internal & external environment of the company. n To gain the in depth knowledge of the company & Sector n To develop an entire overview about the company like strategies, competitors, challenges, list of products and services, business structure.
Introduction n In this activity every student will be assigned a company to which he/she has to analyze on different parameters as discussed further
Contents n n n Company Profile SWOT Analysis Recommendations/ Suggestions Conclusion References & Sources Working Material
Company Profile n n n Define The Business Promoters : Who started/run the business Current Top Management Vision/Mission of the Company Current Goals & Objectives If Possible All Product lines, Manufacturing Units Capacity, Various types & Medium of Point of Sales
Strengths 1. Strong financial conditionn Owner’s Capital n No of shareholders n Foreign Investment n Institutional Investment n Profitability of last 4 Quarters 2. Market share and standing in market 3. Patents and Trademarks
4. Successful New Products launched in last 5 years 5. Successful Advertisement Campaigns 6. Strong Customer Service- any Award won for customer service. 7. Joint ventures, Strategic Alliances, Takeovers and Mergers 8. Managerial Expertise – Experience of CEO, CMO & CFO 9. Distribution System: No. of Dealers, C&F agents and distributors in the country. 10. Comparatively Comparison on Prices for various Product line with Competitor
Weaknesses 1. 2. 3. 4. 5. 6. 7. 8. Human Resource Lack of Working Capital No Technical Expertise of Company/Division No Control over Raw Material No clear Strategic Direction Competitive Capabilities. Weak balance sheet; excess debt. Poor Product Design
9. low level of stocks in times of peak sales 10. Falling behind in R&D 11. Higher overall costs than rivals 12. Missing some key skills/competencies 13. Internal operating problems. . . 14. Weak marketing skills
Opportunities 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Few and Weak competitors Favourable Government Policy Expanding to New Geographic Areas Expanding Product Line Transferring Skills to New Products Increase market share from Rivals Acquisition of rivals Alliances or JVs to Expand coverage Openings to Exploit new technologies Openings to Extend brand name/image
12. 13. 14. Adequate training opportunities Serving additional customer groups Vertical integration
Threats 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Restive Labour Force Rising Raw Materials Costs Entry of Potential New Competitors Loss of Sales to Substitutes Slow Market Growth Adverse shifts in Exchange Rates & Trade Policies Government Bureaucracy Natural Disasters Costly New Regulations Vulnerability to Business Cycle
11. Growing Leverage of customers or suppliers 12. Reduced Buyer Needs for product 13. Demographic Changes
Recommendations & Suggestions
Recommendations & Suggestions External Opportunities (O) 1. 2. 3. 4. External Threats (T) 1. 2. 3. 4. Internal Strengths(S) 1. 2. 3. 4. SO "Maxi-Maxi" Strategy ST "Maxi-Mini" Strategy Strategies that use strengths to maximize opportunities Strategies that use strengths to minimize threats. Internal Weaknesses (W) 1. 2. 3. 4. WO "Mini-Maxi" Strategy Strategies that minimize weaknesses by taking advantage of opportunities WT "Mini-Mini" Strategy Strategies that minimize weaknesses and avoid threats.
Cont… n Strengths and Opportunities (SO) - How can you use your strengths to take advantage of the opportunities? n Strengths and Threats (ST) - How can you take advantage of your strengths to avoid real and potential threats? n Weaknesses and Opportunities (WO) - How can you use your opportunities to overcome the weaknesses you are experiencing? n Weaknesses and Threats (WT) - How can you minimize your weaknesses and avoid threats?
Conclusion n Conclusion about the Strengths & weaknesses associated with the company. n Conclusion about the strategies to be taken.
References & Sources n n n Company’s Website Journals News Papers
SWOT ANALYSIS OF TATA MOTORS
Company Profile n The company was established in 1935 as a locomotive manufacturing unit and later expanded its operations to commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz AG of Germany. n Ratan N Tata is the chairman of Tata Sons, the Tata promoter company. n Tata Motors Ltd is a multinational corporation headquartered in Mumbai, India. Part of the Tata Group, it was formerly known as TELCO (TATA Engineering and Locomotive Company). Tata Motors has a consolidated revenue of USD 16 billion after the acquisition of British automotive brands Jaguar and Land Rover in 2008.
Cont… n It is India's largest company in the automobile and commercial vehicle sector with upwards of 70% cumulative market share in the domestic commercial vehicle segment, and had a 0. 81% share of the world market in 2007. n Second largest manufacturer of commercial vehicles in the world. The company is the world’s fourth largest truck manufacturer, and the world’s second largest bus manufacturer. In India Tata ranks as the leader in every commercial vehicle segment, and is in the top 3 makers of passenger cars
Cont… n The company is the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer. n The company's 24, 000 employees are guided by the vision to be "best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics. “ n Tata Motors is also expanding its international footprint, established through exports since 1961. n Tata Motors is committed to improving the quality of life of communities by working on four thrust areas – employability, education, health and environment.
TATA Motors In India n Tata Motors Limited is India’s largest automobile company, with revenues of 35, 651. 48 crore (US$ 7. 74 billion) in 2007 -08. n The company’s manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). n Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The company is establishing a new plant at Sanand (Gujarat).
Cont…. n The company’s dealership, sales, services and spare parts network comprises over 3500 touch points. n Tata has been actively acquiring and joint venturing with other companies during the past five years. The purchase of Daewoo Commercial Vehicles (2004), a minority investment in Spanish bus and coach manufacturer Hispano Carrocera (2005), an alliance with Fiat, a joint venture with Brazilian bus and coach manufacturer Marcopolo and with Thailand’s Thonburi Automotive Assembly Plant Company (2006).
Cont…. n 2008 heralded two major events: the purchase of Britain’s icons Jaguar Land Rover and the launch of the Tata Nano, the “People’s Car” for 100, 000 rupees or approximately $2, 100. Seating 4, the Nano is a mere 10 feet long and has a 4 gallon fuel tank. n Tata’s competitive price advantage will be under pressure as environmental regulations are tightened, n There is a trending rise in diesel fuel costs which will hurt Tata’s line of products
Tata's Global Operations n Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008. n Tata Motors has also acquired from Ford the rights of Rover. n In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea’s second largest truck maker. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo.
Cont… n In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a Spanish bus and coach. n Tata Motors has expanded its production and assembly operations to several other countries including South Korea, Thailand, South Africa and Argentina and is planning to set up plants in Turkey, Indonesia and Eastern Europe. n Tata also has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia and Senegal.
Cont…. n Tata has dealerships in 26 countries across 4 continents. n Tata Motors continued its product line expansion through the introduction of new products into the market range of buses (Starbus & Globus) as well as trucks (Novus). n Though Tata is present in many countries it has only managed to create a large consumer base in the Indian Subcontinent namely India, Bangladesh, Bhutan, Sri Lanka and Nepal and has a growing consumer base in Italy, Spain and South Africa
Passenger Cars and Utility vehicles n n n Tata Sumo/Spacio Tata Safari Tata Indica Tata Vista Tata Indigo Tata Manza Tata Indigo Marina Tata Winger Tata Magic Tata Nano Tata Xenon XT Tata Aria
Commercial vehicles n n n n Tata Ace Tata TL/Telcoline/207 DI Pickup Truck Tata 407 Ex and Ex 2 Tata 709 Ex Tata 809 Ex and Ex 2 Tata 909 Ex and Ex 2 Tata 1109 (Intermediate truck) Tata 1510/1512 (Medium bus chassis) Tata 1612/1616 (Heavy bus chassis) Tata 1618 (Semi Low Floor bus chassis) Tata 1610/1623 (Rear Engined Low Floor bus chassis) Tata 1613/1615 (Medium truck) Tata 2515/2516 (Medium truck)
Cont… n n n n Tata Starbus (Branded Buses for city, inter city, school bus and standard passenger transportation) Tata Globus (Range of fully built luxury coaches) Tata Hispano Globus (Rear Engined Inter city coach) Tata Marcopolo Bus (Low Floor, Semi Low Floor buses for Mass Rapid Transit and also standard passenger transportation Buses) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8 X 2) Tata 3516 (Heavy truck)
Cont… n n Tata 4018 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6 X 4) Tata Novus (Heavy truck designed by Tata Daewoo) Tata Prima (The World Truck designed by Tata Motors and Tata Daewoo)
Military Vehicles n n n n n Tata LSV (Light Specialist Vehicle) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier, available in hard top, soft top, 4 x 4, and 4 x 2 versions Tata LPTA 713 TC (4 x 4) Tata LPT 709 E Tata SD 1015 TC (4 x 4) Tata LPTA 1621 TC (6 x 6) Tata LPTA 1615 TC (4 x 2) Tata Winger Passenger Mini Bus
Strengths n TATA motors is market leader in Automobile Industry with high market share. n TATA Motors Company have huge employee base. n TATA motors employee productivity percentage is higher. n TATA motors produce low price car with low fuel consumption. n TATA motors is the reputable brand in Indian Industry. n TATA Motors Limited is India’s largest automobile company, with revenues of Rs. 92, 519 crores (USD 20 billion) in 2009 -10.
Cont… n The research and development department of TATA motors is very strong. n TATA’s management is strengthened by the collective experience of its partners and acquired companies – this includes general management, marketing, sales and operations. n TATA Motors has been aggressively acquiring foreign brands to increase its global presence. n TATA motors posses High corporate responsibility.
Weaknesses n 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, but they would buy into Fiat, Jaguar and Land Rover. n The company's passenger car products are based upon 3 rd and 4 th generation platforms, which put Tata Motors Limited at a disadvantage with competing car manufacturers. n Return on Investment on TATA motors shares in low.
Cont…. n Tata has not got a foothold in the luxury car segment in its domestic market. n The Company’s manufacturing practices trail competitors. n Most of the automobiles Tata manufactures are based on older platforms.
Opportunities n TATA motors can take the advantage of their low cost car by entering into third world countries where people have low purchasing power. n Joint ventures in other countries allow TATA motors to easily enter into new market. n TATA motors should focus in developing luxury cards. n Nano is the cheapest car in the World - retailing at little more than a motorbike.
Cont…. n The range of Super Milo fuel efficient buses are powered by super-efficient, eco-friendly engines. n Emerging industrial nations such as India, South Korea and China will have a thirst for low-cost, environmentally friendly passenger and commercial vehicles. n The company has put in place a very proactive Corporate Social Responsibility (CSR) committee to address potential strategies that will make is operations more sustainable.
Cont…. n Increase its product line in light & heavy vehicle. So that it can encash on its Brand image. n The Company can work on its big product range with environment friendly Technology. n The Company should focus on both Passenger & Commercial Vehicle for improving its Design (interior & exterior) & Quality of Fiber.
Threats n 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. n Since the company has focused upon the commercial and small vehicle segments, it has left itself open to competition from overseas companies for the emerging Indian luxury segments. n Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts. The price of steel and aluminum is increasing putting pressure on the costs of production.
Cont. . n TATA motors have low cost advantage over its competitors, once the competitors find out the low cost production methodology then there will no competitive advantage. n Pakistan’s Transmission Motor Company has built a basic fourwheeler for only $2, 100. This car is considerably cheap and the Pakistan Transmission Motor company started exporting them to Sudan, Qatar, and Chile. n The low safety standards can impact the sales. n Powerful competitors for the luxury market including Honda, Toyota, Ford and Mercedes-Benz are beginning to push into the Indian market
Conclusion n TATA motors is market leader in Automobile Industry with high market share. And manufacturing low price car with low fuel consumption But they have few weaknesses in domestic market. TATA Motors should come in Luxury segment with new strategies in domestic market. Safety standards should also be taken.
References & Sources n n Tata Motors' Official Website Wiki - Tata Motors Ltd. Usiness Today - Pick and Choose Business Today - Tata Motors to bring Jaguar, Land Rover to India
Do’s n n n n You have to complete Presentation within 30 Minutes. Data should be relevant and updated. Analysis and compare the competitor’s strategies. Need to explain each and every point of SWOT analysis. Need to give working material. Try to complete company profile within 2 minutes. You have to suggest some strategies based on the SWOT analysis.
Don’t n Don't try to cover too much or garbage material. Remember you only have 30 minutes. n Don’t try to copy the content of your friend’s study.
Presentation Evaluation Criteria n n n CONTENT CONFIDENCE TIMING/MODE OF DELIVERY COMMUNICATION SKILL QUESTION RESPONSIVENESS