Strategy and Structure of Tata Motors

Topics: Tata Group, Ford Motor Company, Companies based in Mumbai Pages: 6 (1800 words) Published: June 5, 2013
Introduction
As we all know, strategy and structure is one of the most fundamental and significant part of an organization. Strategy and structure is come up by planning process during processes of management in organization, therefore, it is not possible to ignore how well an organization in determining its mission and goal, planning appropriate strategies and structures of organization and implementing these strategies. Strategy is the direct result of decision making and structure is the indirect result. Nevertheless, both strategy and structure is the result of decision making by managers through analyzing the organization and market, segmenting markets, selecting market, positioning themselves and using resources to implement the process. In this article, I will firstly) identify the mission and goals of Tata Motors, secondly) use SWOT analysis and the Five Forces Model to evaluate how well Tata Motors in strategy formulating and thirdly) evaluate the process of implementing these strategies.

Company’s mission and structure
Tata Motors is a multinational manufacturing company in Mumbai, India. It has operated firms in the UK, South Korea, Thailand and Spain, moreover, it also has expanded its operations since 1961 to other countries. The Mission of Tata Motors is “best in the manner in which we operate, best in the products we deliver and best in our value system and ethics”. Through this mission, 24,000 employees are guided to produce high effective and useful automobiles to satisfy customers’ needs for maximum profits. Otherwise, Tata Motors is in a group of companies called “Tata Group”. Tata Group was established by Jamsetji Tata in 1868, which is the largest corporate group in India and has the biggest capitalization and revenues. Tata Group has several major companies, which are Tata Motors, Tata Steel, Tata Consultancy Services, Tata Power, Tata Chemicals, Tata Global Beverages, India Hotels and Tata Communications(Shown on graph below). This group has concentrated on seven areas: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. Tata Group has two main decision-making managers who are the Group Executive Office(GEO) and the Group Corporate Centre(GCC). The GEO consider about implementing strategies in corporate governance, micro-environment and macro-environment, human resources, etc, which ensures the companies in Tata Group effectively and efficiently expands their business. The GCC guides future adjustments and strategies to Tata Group. Therefore, Tata Motors are guided by the Tata Group and supported by all the companies in Tata Group, which ensures that Tata Motors being always in right direction and appropriate strategies to be implemented. (Omid, N and Patrica, A.N, 2012)

(source from Tata Motors, 67th Annual Report 2011-2012)
SWOT Analysis on Tata Motors
Strengths(Strategies with different time horizons):
Long-term Strategies
Three-pronged strategy:
Tata Motors concentrates on better communication and recognition of innovative ideas and efforts(Omid, N and Patrica, A.N, 2012). That means, Tata Motors pays more attention on innovation and decides to put innovation in significant role in R&D. What Tata Motors have done is to improve the communication and recognition tools for exchanging ideas of innovation, and this improvement can increase frequency of information exchange. Therefore, managers acquire innovative ideas quickly and give feedback to employees quickly, which significantly improves effectiveness in company and highly develops innovation level. Tata Motors purchases some facilities for learning from other companies. Actually, Tata Motors is always on the way learning from its competitors to improve itself through purchasing their facilities or even part of their firms and brands. It will be shown below in short-term strategies. Tata Motors supports collaborative research and partnerships with academic...

References: Omid, N and Patrica, A.N (2012), ‘Strategy and Structure: The case of Tata Group’, CF, Vol.10, No.1, 2012
Richard, L (2009), ‘Business Strategy Case Study: Tricky Time for Tata Motors’, 2009
Tata Motors, 67th Annual Report 2011-2012.
Waddell, D, J. Devine, G. Jones and J. George (2011), Contemporary management (2nd edition), North Ryde, NSW: McGraw-Hill, Australia.
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