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GROUP-5 Rocquel Carrecter Amanda Richardson Joshua Standifer Sugam Rijal Yashikiya Harley Edwina Russaw.

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Presentation on theme: "GROUP-5 Rocquel Carrecter Amanda Richardson Joshua Standifer Sugam Rijal Yashikiya Harley Edwina Russaw."— Presentation transcript:

1 GROUP-5 Rocquel Carrecter Amanda Richardson Joshua Standifer Sugam Rijal Yashikiya Harley Edwina Russaw

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3 History  Founded as a Trading firm in 1868.  Family business:  Current CEO: Ratan Tata  From Textiles to Commercial Vehicles:

4 House of Tata: Tata Company as a Conglomerate:

5 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………………..

6 World’s Smallest Car

7 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???

8 Daewood Commercial Vehicles

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10 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

11 PEST Analysis VALS-Survivor Category Advanced Products Economic Downtown Regulations

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13 Perspectives  Don’t put all of your eggs in one Indian basket!

14 Porter’s Five Forces

15 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

16 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

17 The Competition looks good

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20 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

21 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

22 McKinsey 7s Framework  Systems:  lean manufacturing  Flexible Mass Production  Waste Minimization  Continuous Improvement  Assets, Operations and Systems platforms

23 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

24 Acquisition Philosophy:  Target Characteristics  Research  Risk Assessment  Funding  Disposal to reduce debts  Elimination of excess overhead  Creation of incentives

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27 Tata Global Focus  Tata had to create complements of resources to overcome some of the disadvantages of being newcomers into the automotive car business.

28 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

29 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

30 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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32 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

33 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

34 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

35 Updates:

36 Market Share of Luxury Cars in America


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