Tata Nano Strategic Management

MURDOCH UNIVERSITY

BACHELOR OF COMMERCE

BUS317 STRATEGIC MANAGEMENT

RESEARCH TOPIC

Megafactories: Tata Nano

Name: Lewis Tan Yong Yu

Student No : 32180758

Lecturer: Mr Frankie Yee

Declaration:

Except where I have indicated, the work I am submitting in this assignment is my own work and has not been submitted for assessment in another course.

Lewis Tan

Table of Contents

1. Introduction 2

2. Value Chain 2

2.1 Procurement 2

2.2 Logistics 2

2.3 Human Resource Management 2

2.4 Marketing and Sales 3

3.0 Core Competencies 3

4.0 Recommendations 4

5.0 References 5

1. Introduction

The Tata Nano is the cheapest car in the world. The starting price in India was around Rs 1 lakh, which is approximately USD 2000. Unveiled in January 2008, it was dubbed the 'People's Car' and was subsequently launched in India on April 2009 by Tata Motors.

Tata Motors is India's largest automobile company, with consolidated revenues of INR 1,88,818 crores (USD 34.7 billion) in 2012-13 (Motors, 2013), being listed among the top 5 commercial vehicle manufacturer in the entire world. It is a subsidiary of Tata Group which has a history of more than 140 years in India, with operations in over 80 countries and a total revenue of $100.09 billion (around Rs475,721 crore) in 2011-12.

A key success factor behind the Tata Nano was the excellent human resources and the backing of a mother company in 7 different business sectors, leading it to have expertise in fields of technology, engineering and innovation.

2. Value Chain

2.1 Procurement

With a mother company comprising over 100 operating companies in seven business sectors like materials, services, engineering and information technology, Tata Motors uses this to their advantage (Ramakrishnan, 2009).

A sister company, Tata Steel provides resources like steel to produce the Tata Nano. As such, Tata Motors would be able to produce large quantities of Tata Nanos at a much...