Customer Relationship Management in Tata Motors: Strategies and Impact

This study aims to analyze how Tata Motors has been able to maintain and strengthen their customer relationship management with its clients over the world. It covers a comprehensive view of general organizational strategies in managing customers and the impact of customer relationship management in the performance and survival of a business entity. The study also aims to ascertain the possible ways in which business owners can adopt and integrate technology for the improvement of customer relationship.

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Executive summary
There has been consistent and persistent attention being geared towards the improvement of customer
relationship management and is due to the impact it has in the long term survival of a business entity.
This makes it important to conduct a critical study so as to establish the prevailing changes and how
businesses are adopting it. Moreover, there has been increasing invention and innovation of new
technology.
The research study is therefore intended to empirically analyze how business organizations especially
Tata motors have been able to create, maintain, and strengthen their customer relationship management
with its clients over the world. The study covers a comprehensive view of general organizational
strategies in managing customers
Contents
Introduction.................................................................................................................................................1
Problem statement......................................................................................................................................2
Aims and objectives of the study.................................................................................................................3
Research questions......................................................................................................................................3
Justification and potential output...............................................................................................................4
Conceptual framework................................................................................................................................5
Hypothesis;..................................................................................................................................................8
Methodology...............................................................................................................................................8
Research approach and sources of data......................................................................................................8
Proposed data collection.............................................................................................................................9
Data analysis techniques.............................................................................................................................9
Organization of the study............................................................................................................................9
Budget.........................................................................................................................................................9
Project activities........................................................................................................................................10
Gantt chat..................................................................................................................................................10
References.................................................................................................................................................12

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Introduction
Tata motors is a multi-national company that for over years been recognized as one of the most reputable
and best motor companies in the world. It was established way back in 1945 and has since then been able
to maintain a good and reputable customer relationship with its clients. This is witnessed by the reports
which indicated Tata motors have had high customer retention rates.
In the new world error, there has been persistent dynamic changes in all contexts of life, including how
business organizations are conducted. This brings about a change in how customers behave and
consequently affecting business organizations on the other hand. It has been identified that customer
relation management plays an important role in determining how well a business performs in the market.
Much as a business organization is have well set business operational strategies, they are unable to
achieve their goals without the help of the customers. This therefore implies that customers are the main
stakeholders in the business organization (Kumar, & Singh, 2014, p.127)
This explains why some businesses perform better than others even when they have the same amount of
resources and using the same business approach. According to the theory of demand, customers/
consumers aim at utility/ satisfaction maximization and on the other hand, producers aim at profit
maximization. Applying this theory into practice, firms have to consider the customer satisfaction before
profit maximization. In other words, the variables are inversely related and for a business to succeed in
the market, it has to strike a balance between the two. Failure to satisfy the customers will imply a fall in
revenue, sales and consequently profits which may drive the firm out of business. Contrary, increased
customer satisfaction as a result of reducing prices and improving quality will imply a high operational
cost and failure to cover all the expenses which again may drive out the business entity (Mohammed et
al., 2014, p.185).
From the preceding insight, we develop a deeper understanding of the importance of customer
relationship management in ensuing the survival of a business.

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Problem statement
It has been empirically proven by different researchers that the success of any organization or business is
solely dependent on the relationship that exist between it and its customers. Before a business initiator
thinks of establishing an enterprise, there has always been market research. The research studies
conducted as a pre-business establishment is mostly related to the analysis of the potential customers. In
this essence, it makes customer relation relationship management an important issue to focus on. Much as
there may be ready market for a particular, the relationship that exist between the customers and the client
still determine the quantity purchased. This brings in the theory of customer loyalty in business. In
today’s dynamic and competitive world, businesses aim at maintaining their market share as well as
widening it further. With the preceding intuition there is a bold reason to conduct a research on how the
company has been able to manage and withhold its relationship with the customers all over the world.
This therefore implies that the research will be streamlined toward establishing the criterion on how Tata
motors have been able to boost their customer relationship (Emor, 2016).
Aims and objectives of the study
The research study was intended to clearly point out ways in which Tata motors have been able to
competitively survive in the market by effectively managing and maintaining their customer relationship.
As highlighted earlier, one of the basic determinants of business success is the marketing criteria,
accompanied by effective customer relationship management. The study fundamentally aimed at
capturing the different variables available that affect the effective operation of the business model.
Precisely, the objectives of the study was listed below;
 To establish the core strategies being adopted by Tata motors in the maintaining customer
relationship
 To understand the impact of customer relationship management in the performance and survival
of a business entity

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 To ascertain the possible ways in which business owners can adopt and integrate technology for
the improvement of customer relationship
Research questions
In an attempt to fulfill the objectives of the study, research questions were formulated so as to guide the
research study. In other words, by the end of the research study, the following questions are expected to
be fully answered and justifies.
 RQ 1: What are the importance of customer relationship management in the performance and
survival of a business entity (Tata Motors)?
 RQ 2: What are the strategies being adopted by business organization (Tata motors) for the
maintenance of good and reputable customer relationship
 RQ 3: How can organizations and business owners adopt and integrate modern technology for the
improvement of customer relationship management?
From the preceding, the research questions have been formulated in such a way that it will allow the
adaptation/ use of the study findings in other contexts/ related business. Precisely, the study is
comprehensive and applicable to related business contexts (Lai et al., 2016, p.34)
Justification and potential output
From the basis of the research problem, we already have an insight of the end result expected of the
research output. The researcher aims to build a comprehensive finding relating to the impact of customer
relation management. The study intend to have a basis of the influence of customer relationship
management in the performance of a given company. In reference to the reports, it was empirically found
that Tata motors have developed a good and reputable business relationship with its customers. Basing on
the fact that the company is one of the best and highly reputable in the market, there is an anticipation that
the reason for their success is anchored on their ability to maintain a good customer relationship.

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For this reason, the findings of the research will be relevant in giving absolute answers to the hypothetical
and theoretical statements being made. This is because, there are a number of research reports that hold
different findings in regard to the impact of customer relationship management and a business success. It
is substantially true that empirically reliable research studies are vital and very important for better
running of contextual activities. Thus, the study findings will be used by business organizations and
enterprises in evaluating their performance and making appropriate adjustments for their success in the
industry (Ravi, Ravi, & Prasad, 2017, p.807)
Since the research covers a comprehensive perspective including marketing research, business initiators
(those who are just planning to implement their business plans) will also find this literature important.
This is due to the fact they will need to have a basis of how the business context operates
Conceptual framework
Different research studies have been conducted regarding the importance and impact of customer relation
management in a business organization and have a series finding, some having correlation in findings
while others are divergent.
According to Wan, Paris, & Georgakopoulos (2015), customer relation management was invented due to
the fact that customers have varying demands, preferences and purchasing habits. In other words, they
perceive that if all customers had he behavior and character, there would be no or little attention to
customer relationship management as it would not be a variable. Due to the differences, understanding the
behavior of different customer can help firms in ascertain their performance in accordance to the
customers’ needs so as to maximize the overall value of the customer needs and portfolio. The increasing
attention by driven to the customer relation management is due to the high saturation of the market which
has led to high level of competition with in the market. There has been increasing numbers of businesses
being set setup and all intended to gain a market share. Furthermore, as new firms enter the market, the
early entrants are threatened of losing market which lures them into paying more attention to customer

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relationship management thus the increasing importance of CRM to the business firms and organizations
(Rahmawaty, 2015).
The modern customer relationship perceptions is highly based and impacted on by the theories and
models of development of technology. Recent reports have had divergences and difference to the previous
findings. This is due to the dynamic and continuous changes in technological paradigms. However, there
is no certainly and generally accepted definition of customer relationship management although there are
close relationship among the various definitions put forth by different scholars and researchers. This
brings the reasons as to why customer relationship management is has been handled and understood in
different ways. Also business have adopted different ways of handling this which all zeros down to the
research findings and definitions put up by different researchers. Based on different studies related to
CRM, there is a question of whether marketing strategy, customer relationship, customer retention and
customer management imply the same thing (Arthur-Mends, 2016)
From the academic perspective, practitioners have comprehensively widened the concept of customer
relationship management in an attempt to complete their education for the award of a particular education
certificate. It is in this context that a lot of literature have been related to come up new definitions of
CRM. Wide research has been conducted to ascertain the challenges that face CRM, the possible
solutions and the opportunities that business organizations can take up in order to best implement or
succeed in the context of customer relationship management (TAYE, 2014).
Söderlund et al (2017) asserted that customer relationship management is a an enterprise initiative that
requires the attention of all department of an organization. in his assertion, he maintains the argument that
the managing of customer relationship is the sole responsibility of the whole business organization. He
bases this on the assumption that production is anchored on chain line, rite from the raw material
suppliers to the final polishers of the final products. The mess by a subunit of the production linage will
subsequently affect the quality of the final product o service. Reflecting this in on Tata Motors,
compromising quality of wheels and tire would affect the final reputation of the company as a whole.

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With this reflection, his argument becomes is rendered vital and thus important to have a comprehensive
organizational awareness of the customers’ relationship and satisfaction (Budiono, 2016).
Sadiq Sohail & Al-Otaibi (2017) clearly indicated that the competitive advantage help by some firms are
a result of observing maximum customer relation with their clients. Indeed, some clients will always use a
particular product due to the fact that they can get support services whenever required.
Looking at the invention/ introduction of giving product warrantee, after sale services and discounts was
as a result of promoting a fair/ good customer relationship. Research has indicated that customers will
always prefer to buy from firms/ business that provide product warrantee, even when they charge a higher
price as compared to those who do not give warrantee. This is an implication of the fear of the customers
to buy counterfeit products. A critical analysis of the concepts brings about trust between the customer
and the business entity.
Amerta, Prasetyo & Rahmad (2017) analyzed customer relationship management from a technological
perspective and defined it as the process of integrating technology enterprise operations, internet and
mobile applications with an attempt of bring the customers closer to the business management. Through
this, the customers are able to directly order for the goods that they need, make reviews of the products
purchased previously, rate services and make recommendations for a positive adjustment of the business.
In recent years, there has been introduction of live chat that supports instant customer complaints and
inquiries, all geared towards promoting a better business relationship among the involved parties. Due to
the adaptation of the current technology, studies have indicated that the business which are rigid/ non-
compliant with technological changes are being driven out as a result of being outcompeted. On the other
hand however,
Osei (2017) believes that customer relationship management is not merely the use of technology but
rather going deep into understanding the strategies in which it is implemented to make it successful in the
competitive context. This encompasses having a cross functional and customer driven goals and

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management practices that optimizes end to end relationship within the context of technology.
Furthermore, the use of technology in customer management may be a destruction and a disguise to a
business enterprise. This comes in as a result of continued use of automations, where chatbots are used. It
is important to note in this case that artificial intelligence has limits and tend to be ineffective when it
comes to handling highly specific and personalized queries.
From the preceding review of relevant literature, it is solid and vivid that there is an accelerating effort
being dedicated towards promoting customer relationship among business. It was typical that business are
infinitely integrating technology in promoting a better customer relationship. Precisely, there has been
positive relationship reflected in the literature regarding the business performance and customer
relationship management
Hypothesis;
Hypothesis can primarily be understood as a tentative statement which has no empical proff or findings.
From the preceding literature review, the study will formulate hypothetical answers in relations to the
findings of the literature review.
Hypothesi
s 1
H0; customer relationship management is positively related to a firms
performance
H1 customer relationship management is negatively related to a firm’s
performance
Hypothesi
s 2
H0 technology has positively contributed to the improvement of CRM
H1 technology has negatively impacted on customer relationship management
Methodology
Research approach and sources of data
Qualitative research methodology will be adopted for the study. According to the recommendations made
by most researchers, qualitative methodology has proved to be one of the best as it allows both
subjectivity and objectivity in a study. In this way, an evaluation can be conducted to find out why a
phenomenon is the way it is, rather than just taking a quantitative finding without digging deep into the

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causes. However, it is important to note that the study will also make use of basic quantitative data in
making comparisons, correlating and grouping of the information gathered (Rafiee et al., 2016, p.292).
For purposes of collecting the best, reliable and dependable data, earlier research findings of the previous
researcher were evaluated to provide a hypothetical and precise insight about the prevailing research
study. With a basic understanding developed from the literature review, different reputable organizations
were contacted including Tata motors, government bureau of statistics, relevant academic books and
organizational reports (Qatawneh, Aldhmour, & Aldmour, 2016, p.137).
Proposed data collection
Population; the population of the study are the reputable companies who have been in the business for a
long time. New entrants will also be included to ascertain the differences in the method being adopted by
the two different groups of firms/ business
Sampling method; the study makes use of systematic sampling in which firms will be chosen. This is
because the research is streamlined towards ascertaining a specific measureable goals according the
research questions
Data analysis techniques
Based on the principles of qualitative research, the collected data will be put into comparison to determine
the level of correlation among the various information sources reported. This will involve the use of
subjectivity and objectivity in making the conclusion (Ali Kazmi, 2017).
Organization of the study
Chapter four will repot findings and analysis of the proposed research. This chapter will give a clear
picture of what the world of work is, explaining whether there is a significant impact of customer
relationship management in the performance of a business entity
Chapter five will give a summary of the relevant findings and discuss their implications in the business
context All research questions as identified will be answered based on the data that will be collected. The

CUSTOMER RELATIONSHIP MANAGEMENT 11
findings of the study will be used by other learners as references. Furthermore, the study will be of
relevance to the general business world as it will clearly reflect the perspective in which customer
relationship management is based
Budget
Activity/ item Estimated price/budget
The cost for purchasing secondary data from different sources $ 550
The review of different literature requires use of text books, online
resources thus hiring internet accessing equipment
$ 450.
Structuring, assembling and analyzing of data will cost $800
In summary the estimated budget will be about $ 1800.
Project activities
Task Name Duration Start Finish Predecessors
identifying the research
problem
5 days Thu 7/12/18 Wed 7/18/18
review of relevant
literature related to the
study
4 days Tue 7/17/18 Fri 7/20/18 1
collecting raw data from
different sources
5 days Tue 7/24/18 Mon 7/30/18 2
analysis and evaluation of
the findings
4 days Wed 8/1/18 Mon 8/6/18 3,2
submission of the relevant
finding
9 days Mon 8/6/18 Thu 8/16/18 4

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Gantt chat

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References
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K. (2017). 3 From the Editors Gary Klein, College of Business and Administration, University of
Colorado Colorado Springs, Colorado, USA Monique Aubry, Professor, School of Business and
Management, Université du Québec à Montréal, Canada. 5 The Past and Present of Megaprojects
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Stock Market in an Emerging Country. Amity Global Business Review, 12.
Amerta, L., Prasetyo, Y., & Rahmad, B. (2017). Analysis And Design Of Enterprise Architecture Using
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Research in Marketing, 8(1), 600-616.
Kumar, A., & Singh, Y. (2014). A Study of Key Factor Affecting Customer Relationship Towards
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Management Research, 1(4), 118-127.

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Ali Kazmi, S. (2017). Impact of Natural, Man-made Risks and Stakeholders Relationship on effectiveness
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Rafiee, V. B., Shen, K. N., & Arab, U. (2016, June). The Impact of Corporate response Strategies to
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