This report analyzes the strategic position of the Tata group, evaluating the internal and external environment. It identifies issues and provides recommendations for the company. The report also discusses the implementation of these recommendations.
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RUNNING HEAD: Global professional development0 tata Global Professional Development
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Global professional development1 Contents Introduction...........................................................................................................................................2 Analysis of Tata’s strategic position......................................................................................................2 Identification of the appropriate tools and techniques.......................................................................2 Internal environment......................................................................................................................2 External environment....................................................................................................................3 Critical evaluation of the company....................................................................................................4 Identification of the issues.................................................................................................................5 Recommendations to Tata.....................................................................................................................6 Implementations of the recommendations.............................................................................................7 Critical reflection...................................................................................................................................8 Conclusion.............................................................................................................................................8 References...........................................................................................................................................10
Global professional development2 Introduction The professional development states to the inclusive variety of specialized training, education or advanced professional learning intended to help administrators to improve their skills and professional knowledge. It secures a long-lasting partnership. Richard Rose has been appointed as the chief executive officer in the Tata Group. He is required to consult with the Tata Group. This report comprises the analysis of the strategic position of the Tata group. The strategic position can be assessed by the evaluations of the internal and external environment. The issues are identified from the strategic position of the company. The report also includes the recommendations to be addressed to the company. Further, the way is suggested to implement the recommendations in order to support changes in the strategic direction. Tata Motors Limited is the leading automobile company in India. The company has the largest market cap in the segment of a commercial vehicle in India. The company was formed in 1945 and had become fourth in manufacturing trucks and second biggest in bus manufacturing in all over the world. At present, the company is having 24,000 employees to fulfill the dream to be best in carriage, ethics and value system along with distributing best products. Analysis of Tata’s strategic position Identification of the appropriate tools and techniques Internal environment The internal environment of Tata can be assessed with the SWOT analysis. Strengths: Tata Motors Limited is a dominating part of the automobile industry and holds high market share. The company has attained strength in producing the cheapest car in the world history identified as ‘Tata Nano’. This model is having low fuel consumption (Schuster and Holtbrügge, 2011). Tata motors have gained a competitive advantage which keeps it ahead of the competitors. The company has even attained capability in capturing huge market along with the customers. The company has even attained potentiality in possessing corporate responsibility. The company is consistently acquiring foreign brands to boost its global presence. The company is even very strong in research and development (Antony, 2012).
Global professional development3 Weaknesses: The weakness faced by the Tata motor is a low yield on the share investment. The vehicles of the company are not capable of maintaining safety standards as that much is required paralleled to the rivals. The sale of the company is also not up to the scale in the domestic market. It is considered that the sales of cars are fewer than one million annually in India. It generates a problem for the company when people do not prefer to buy cars. The technological development is also not up to the mark in the Tata Motors (Saxena, Srivastava and Asthana, 2015). As the new innovation of the company One CAT has quite rough spots and required to work on the problems such as exhaust contaminant releases and greenhouse gas emissions. Opportunities: The company can get benefited by the low-cost car and can move in into the third world countries where people could afford this car. The low-cost car is oil competent and economical so it can effortlessly seizure the market. Tata motors can even avail opportunity by exporting to other countries. The company can concentrate on evolving luxury cars. The company can even add safety measures in the vehicles to attain customer satisfaction. Tata motors can even gain accessibility in the new markets by joint ventures with many countries (Shamir and Howell, 2018). Threats: Tata motors have a low cost benefit over the rivalries. If the rivalries search out the production methods of low costs than there will be no more competitive advantage over the rivalries. The company also faces threat by the increased price of the raw materials like aluminum, steel, and plastic (Ray, 2012). The low standards adopted by the company in the safety can reduce the sale of the cars. External environment Political factors: Tata motors need to focus on the factors like laws, regulations, tax and political motivations. The company is conducting functions in different countries like Africa, Europe, Australia, and the Middle East. The countries where the company is going to conduct activities should focus on the political climate along with the provincial prominent bodies. The profession, expansion, and business should be dependent on the laws and regulations enforced by the local government. The company even made a contract with Ford for obtaining jaguar and Land Rover in 2008. Tata needs to consider the laws and guidelines of the host country (Dale, Hess, Best and Lennox, 2015). The governments of the host country also offer exciting tax benefits in order to attract investors from other countries.
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Global professional development4 Economic factors: The company focuses on the individual markets along with seeing the global economic viewpoint. The company is even expanding itself by establishing joint ventures with the various countries across the world. The company has attained experience about the changes occurring in the market. It can even easily familiarize by using the resources it has around the world. For instance, if the company requires raw material for the production of engine masses but the raw material is quite expensive in South Africa. In this situation, it can easily attain raw material from the suppliers in Russia as they are operating internationally. The currency rate of the company is one of the important things to be considered (Chandra Shukla, Deshmukh, and Kanda, 2009). The variations in the rate of currency influences the company to make the investment. Social factors: Tata Group is greatly affected by the ideas, opinions, and attitude of the shareholders. The future of the company also relies on the stakeholder’s mores and attitudes. For such causes the company inclines to use integration and panel technique with the overseas companies they get a grasp of. On the other side, there are also some fiscal issues which the company is required to consider the origin of domestic outlook. Tata group also has to undertake the effect on demographics and the standard revenue of every market. The citizens of Indians have a lesser average per capita income in comparison to the Italians who like to drive fancier and luxury cars. When Tata purchased Jaguar and Land Rover at that time it was careful about the way of holding it. Technological factors: Tata is developed in the field of technology. The Tata group have excessive publicity more than twenty listed enterprises and functions in more than 80 nations all over the world. The experiences and resources attained by the company help in accomplishing success in the research and development. The research and development activities carried out by the company help to create and offer the necessities required by the customers (Obloj, 2013). Tata Indica and Tata nano is the inexpensive car produced by the company to date. But nowadays, it has become precarious for the manufacturing companies to sustain growth in the business. The arising problems have made difficult to maintain the technology. Such difficulties comprise gas piece hikes and pollution glitches. Tata spent huge capitals and time on the research and development with the aim of staying on the top with the changes taking place in the economy (Perez-Foguet, et. al. 2018).
Global professional development5 Critical evaluation of the company The founder of Tata Motors, Ratan Tata is one of the supreme influential business leaders in India. The company has long-standing leadership program in its system. The leadership program of the company is based on the British administrative service model. The leadership program of Tata motors purposes at mentoring the executives of today into the leaders of tomorrow. The idea behind the leadership program is to select and groom young managers and offer the the opportunity for the professional growth which can help them in making leaders of tomorrow. The goal of the company is to offer training to the high performers and develop leadership qualities. The companies of the Tata group are run by the groomed leaders. Add on, the company believes in the application of the McGregor theory Y and motivates managers to be innovative and share ideas actively. The managers are given more responsibility to enhance communication and encourage team-working. The culture of the Tata Motors aims to improve knowledge. It formulates the environmental uncertainties as the main part to be handled. The estimation of power and coordination is the important function of Tata Motors. It frequently interacts with the employees to share the knowledge. It helps in the product customization and organization. The company is known for its valued business ethics along with corporate governance (Derrick and Wighting, 2019). Tata motors have maintained the third position in the Indian car market. Tata motor is followed by the Maruti Suzuki and Hyundai. The company has attained strength highest market share. Tata motors have even successfully weeded out the non-performing models and condensed the number of platforms being used. Add on, it has worked to control costs and improve overall quality. Tata motors have even streamlined its supplier network. The company has even focused upon the model lines feature younger and newer vehicles (Liu, 2017). The innovation of the Tata known as One CAT has some rough spots which necessitate functioning on certain complications. It is because of the innovation exhaust pollution releases and greenhouse releases from the electricity used to compress the air. The needs of the clients include the functionality, price along with the convenience. Different customers have different budgets for purchasing vehicles. They want a convenient solution in order to solve their desire. Identification of the issues After the analysis made on the Tata motor’s strategic position, the issue identified are:
Global professional development6 The company faces an issue with the type of leadership used in the organization. As per Richard, there is not one particular leadership which fits all. There is a requirement of the different type of leadership at the time of emergency. Whereas, there is a requirement of some other leadership at the executive level. The company also face issues in learning opportunities presented by the internationalism. Tata motors confront issues when it comes to resisting change. The company faces a great challenge when it comes to the introduction of autonomous vehicles and emission protocols (Markan, 2015). Recommendations to Tata The identified issues of the company can be suggested by the recommendations given below. Ratan Tata is engaged in applying more of a democratic style of leadership. It is the reason behind his encouragement to the team members by making possible good communication and participation. The future strategy is well addressed in order to include them in the decision making process. Tata group is recommended to make more use of contextual leadership as there is not a one size fits all. It helps leaders to bring into line resources with the objectives. This leadership is helpful to the company as it will allow adjusting style to the situation and as per the needs of the followers (Havermans, Den Hartog, Keegan and Uhl‐Bien, 2015). It just necessitates creating a method for the flow of information which can guide hunches. It requires to understand position and strengths of several stakeholders so as to adopt when and how the transactional and inspirational skills. It can also be used to train personnel in order to develop circumstantial intelligence. Such leadership has the capability to see through complexity and finds a clear direction. Add on, these leaders seek information and differentiate the appropriate information and discards the inappropriate (Mohanty and Kotak, 2017). Tata group is even recommended by Richard to learn the opportunities presented by internationalism. The international community is made up of diverse cultures, languages, civilizations and aspirations. The company can learn from various backgrounds and create opportunities for new levels of understanding. The internationalism is helpful to the company in attaining positive outcomes. It breaks down barriers and partialities as incorporation. It even opens lines of communication and takes steps towards shortening skills gap. In order to internationalize, the company needs to stress its value and ethics. The understanding the
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Global professional development7 culture of the different countries is helpful to the company in attaining various opportunities. It can open the door for the company (Meuser, et. Al. 2016). The take over of the Incat engineering by Tata technologies is one of the examples of internationalism by the company. The internationalism has even become the measure of leadership and prestige. With the process of internationalism, the company can enhance a number of external stakeholders in the form of investors. Tata group is recommended by Richard to adapt to change. While it is natural to resist change and is a persistent situation specifically for the future. The way to lead is to comprise people in architecting the change themselves (Hilliard, 2015). In the case of the automotive industry, a lot of changes occur with the introduction of autonomous vehicles and the emission regulations. The changes are also about the provision of movement and the concept of car ownership (Albers, et. Al. 2015). The changes are made to keep in mind the internal stakeholders of the company which is its employees. The employees of the company are trained in order to adopt the changes. Implementations of the recommendations Tata can implement the recommendations by supporting the changes taking place in the strategic direction. The company is recommended to use suitable leadership in order to avoid such issues faced. Such issues can be resolved by using transactional leadership in times of urgency. The order and structure are followed by the transactional leadership (Judge and Piccolo, 2004). It is effective in large corporations like Tata (Torrisi-Steele, 2018). This leadership has a role in accomplishing objectives on the time and supplies in an organized way. It has even a role in measuring success as per the reward and penalties system of the company. As there is no particular type of leadership which fits all the situations. So, contextual leadership is the ability to understand the evolving environment. It gives a sense of direction to the company (Scheepers, Oosthuizen and Retief, 2017). It helps leaders to line up resources with the purposes. Such leaders have even though sense to understand the distribution of power resources with the moves. It even enables leaders to adjust their style as per the situation and the need of the followers. It has even ability to comprise political skill and indulging position and strengths of the several stakeholders. Such leaders have even aptitude to see through density. It is also helpful to the company in arranging (Miller and Cunha, 2017).
Global professional development8 The issues faced by the company in learning opportunities can be resolved with the process of the internationalism. Tata motors confront issues when it comes to resisting change. The employees of the company should be trained in such a way that they are friendly with the changes taking place in the company. They should be made known to the technology implementing in the organization. The communication should be established with the key stakeholders that are employees to accomplish the objectives (Kark, Van Dijk and Vashdi, 2018). The company faces a great challenge when it comes to the introduction of autonomous vehicles and the emission protocols. In such a scenario, the employees should be made know how before launching such vehicles and broadcasting emission regulations. Critical reflection The Gibbs reflective cycle is used to critically reflect the organization. The Gibbs reflective cycle is used to make intellect of situations at work. It helps to identify what organization did well in the past and what it can do better in the future. It helps people to learn from the situations which are experienced by them on the regular basis. Tata can be assessed with five stages of the cycle. Description: Tata group faced the issue in the changes taking place in the organization. Such changes are accompanied by the leadership style in the organization. The company confronts issues in learning opportunities accessible by the internationalism. The challenges are also confronted at the time of launching autonomous vehicles and the emission regulations (Shende, 2014). Feelings: In this process, the company revealed what it felt during the issues confronted. Such issues can be easily overcome by the adoption of the various leadership styles. The employees of the organization sometimes feel conscious about the changes taking place. The organization tried to view things from their outlook. Evaluation: The positive about the situation was that the company came to know the factors, employees are used to. The negative aspect was just that the employees who were not capable enough to update with the technology left the organization. The leadership implemented by Rose helped to overcome the issues faced by the Tata.
Global professional development9 Conclusions: It was the positive experience for the Tata along with the involved employees. The employees can easily develop the skills by adopting a suitable leadership style and copping up with the changes taking place in the organization (Muchiri and McMurray, 2015). Actions: Tata has come up with the plan of the contextual leadership in which employees can adopt the leadership style as per the condition. It can certainly help in reviewing progress. Conclusion This report has successfully analyzed the strategic position of the Tata Motors. The internal and external environment of the company is assessed with the help of the SWOT and Pest analysis. The recommendations are given to the Tata on the basis of the analysis. The recommendations take into account both internal and external stakeholders. Finally, the recommendations are implemented assisting to the changes in the strategic direction.
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