Developing Enterprise: Case study on TATA MOTORS

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Developing Enterprise: Case study on TATA MOTORS

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Table of Contents
Introduction......................................................................................................................................3
Principles and practice of strategic enterprise management and new venture entrepreneurship.....3
Finance and investment models.......................................................................................................6
Skills in communicating entrepreneurial planning and decision-making........................................8
Impact of market on business’s objectives......................................................................................9
Enterprise tools and theories in business environment....................................................................9
Conclusion.......................................................................................................................................9
Reference List................................................................................................................................11

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Introduction
Tata Motors, a global leading manufacturer of commercial motor vehicles, is the largest
automobile firm of India with annual revenue of $14 billion, which was recorded for the
financial years 2008-2009 [10]. It is currently a $45 billion organization [13]. Tata Motors was
the first company of India from the engineering sector which was listed in the Stock exchange of
New York. The company also has global operation in various countries such as South Korea,
Spain, the United Kingdom, Thailand, etc. [3]. The operations of Tata started back in 1945. It
started manufacturing commercial vehicles in 1954 after it formed a joint venture with Daimler-
Benz. The joint venture lasted till 1969. The company has grown both inorganically as well as
organically in its more than six decades of operations. In the year 2004, Daewoo’s unit for
manufacturing trucks was bought by the firm in South Korea which was followed by taking over
the company Hispano Carrocera in South Africa. The prestigious brands of Land Rover and
Jaguar were also acquired from the Ford Motor Company in 2008. This was a vital acquisition
because before this the company was considered to be an intimidating global leader but at the
lower segment of market only. This assignment is primarily focused on enterprise development.
The various principles and practices of strategically managing enterprises and new ventures have
been provided. The various investment and finance models that assist in analyzing the
relationship between investment, business and finance models have been explained. The relevant
research, investigative and evaluative skills of communication have also been demonstrated
which are used for entrepreneurial decision-making and planning. Finally, the impact of market
on the objectives of business and how enterprise tools, techniques and theories are applied to a
business environment have been explained.
Principles and practice of strategic enterprise management and new venture
entrepreneurship
Strategic enterprise management refers to the metrics, techniques and the related tools like
computer software that are designed and developed for helping companies and business
enterprises to make strategic business decisions [11]. Usually, a business which uses strategic
enterprise management would need to incorporate a strategic information system for managing
information and assisting in strategic decision making. An information system that supports or
changes and alters the strategies of a company is known as strategic information system. These

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systems have three classifications, which are namely, cooperative system, competitive system
and the change in the operation of an organization by the system. There are several concepts in
strategic enterprise management. These are - setting specific strategic objectives that would help
in improving a company’s position instead of setting general and obvious objectives like profit
increase or cost reduction, measurement of performance in terms of specifically defined
objectives and enabling data availability to the ones who make the strategic decisions. The
concepts also include management and measurement of intellectual capital, knowledge base and
skill of the workforce of the company. Finally, the SEM concepts include activity based
management which aims at evaluating projects and customers in terms of their total benefit and
cost to the company; instead of have the assumption that the projects which bring high revenue
are the most significant ones.
Tata Motors’ current strategy can be best described as ‘disruptive innovation’ where it has been
offering low priced products and services and surpassing the expectations of the market [2]. One
of the two latest offerings of the Tata Motors has helped in strengthening the position of the
company as a global leader. Main practices of the company, including its focus on customers,
attributes to the experience and learning of more than six decades. The company which started
with a huge market demand and success had to undergo its first product failure during the launch
of its product known as 1516 [1]. The company was primarily focused on heavyweight
commercial vehicles, and included Tata 407 and LCV in its offerings, wild foreign marketers
continued to enter the Indian market [1]. Meanwhile, the company was vying for developing in-
house technical competence which was the primary reason for venturing into engine design and
committing partnership with Cummins. It consistently had to face the problem of overloading by
its users to which it responded by coming up with stronger machineries. In the year 1999, the
company faced a heavy loss of rupees 550 crores (Sultana and Sinha, 2017). This in forced a
major change within the company where the marketing team was re-aligned and became more
customer centric. Tata Motors three faced business plan within its revival strategy. Firstly, the
focus was provided to initiatives of cost reduction for immediate turn around. Secondly, the
focus was put on International and domestic growth by the means of new products and services
as well as improved services and sales. Finally, the long term growth is linked by the company
with increased operations in the LCVs, new geographies and new segments of products. With
their strategy, the company was able to earn a net profit more than rupees thousand crores. The