Tata Motors Case

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Q1. What were the key challenges facing Tata Motors in the process of moving to produce passenger cars from successfully producing commercial vehicles? The major challenge for the company was the market competition which is a part of Industry Environment that plays a important role in strategy formulation. At the beginning Tata motors had mostly focused on the domestic market mostly demand driven and there was a lack of competency. But when Indica was launched there were three dominant players who have launched their models at the same time. The competitors had a existing structure with a very wide vendor base and customer base. With more fuel efficient and new generation cars in the entry levels coming up in the market led to a situation where…show more content…
Tata Motors were also lacking in the competencies in skills which fits the interior design specifications. Tata Motors were only into diesel engines they were not able to enter into the segment of petrol engines for cars. Engine fuel efficiency is increased by fuel injection ie for the same output less fuel is required so multi point fuel injection system is preferred over Carburetor based systems ,but Tata motors was not possessing this technology. There was also major challenge in the manufacturing sector as they had resources for large engine manufacturing but lagging behind in small engine manufacturing. The activities on the value chain was not coordinated and a proper configuration of the supply chain was required. There assembly line was not integrated for bulk production of passenger cars so they were not able to produce large volumes. The availability of machine tools for manufacturing of machine tools was…show more content…
Involvement of the top management in shaping up the vision into mission was another turning factor. The commitment and dedication of Ratan Tata in the Indica project was commendable which helped the project to rise and shine. Personal involvement at every step of the project helped in achieving joint ventures and focus. Efforts were given on integration of different activities on the value chain with one another. First an ambitious task which was very clear and precise was set followed by a sequence of actions through which the specific task can be performed was set. Then he tried to translate these operating practices into capabilities i.e the capability of building small cars. Assessing of capabilities was done to bring value to the customers by looking at the benchmarks or best practices. The resources were linked with the capabilities so that if any resource gap if existing doesn’t act as a discouraging

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