Tata Motors' Business Canvas Model: Evaluation, Issues, and Strategy

This presentation provides an evaluation of Tata Motors' business canvas model, highlighting the business proposition, key partners, activities, resources, value propositions, customer relationships, channels, customer segments, cost structure, and revenue streams. It includes a critical evaluation using PEST analysis, identifying political, economic, social, and technological factors impacting the company. The analysis reveals challenges such as consolidated net losses, declining sales in key markets, and the need to adapt to changing customer preferences for hybrid and electric vehicles. The presentation suggests improvements through mergers and acquisitions, collaborative relations, and promotional campaigns for Jaguar Land Rover. It concludes with recommendations for overcoming losses and maintaining operational efficacy through sustainable practices. The presentation offers a comprehensive overview of Tata Motors' strategic position and potential pathways for future growth and stability, and is available for review and download on Desklib, a platform providing study tools for students.

TATA Motors
Business canvas model evaluation

 The assessment of the issues that are faced by
the organization assists the same in enhancing
the processes as per the objectives.
 The presentation aims at undertaking an
assessment of the business proposition made
by the organization TATA Motors and the relative
issues that are encountered by the same.
 The presentation also aims at identifying the
different mitigation strategies that might be
implemented by the concerned organization for
overcoming the issues.
Introduction

 The different aspects of the value
propositions of the business are dependent
on the trusted brand name and quality
assurance of the automotive vehicles
provided by the venture (Hurn 2012).
 The organization also provides the
customers with superior service quality and
invests on the R&D initiatives for enhancing
the technological factors of the same (Van
der Voet 2014).
Business Proposition

Key partners Key activities Value proposition Customer relationships Customer segments
 Partnership with
different automotive
companies for the
spare parts of the
vehicles
 Partnership with
glass manufacturers
 Promotional
partner: Samsung
Electronics
 Development of the
R&D departments
 Networking and
collaborating with
different automotive
developers
 Marketing the
products
 Supplying their
vehicles to the end
level customers
 One stop solution
for the issues that
are faced by the
customers
 Frequent
technological
innovations for
adhering to the
interests of the
consumers
 Good customer
services
 Car shows
 Trusted brand
 Involvement in
different events
through
sponsorships
 Provides technical
support to the
customers
 Acts as the supplier
for their own
vehicles
 Performance driven
customers
 People having a
fascination in
different types of
vehicles
 Customers
interested in low
cost vehicles
Business Canvas model of the
company

Key resources Channels Cost structure Revenue streams
 R&D department of the
organization
 Infrastructure and human
workforce
 OEM’s in the organization
 Process engineers
 Quality assurance teams
 Social media platforms
 Online booking through
website
 3rd party brokers
 Labor
 Taxes
 Building expenses
 Equipment
 Advertising
 Energy sources
 Technological innovations
 Online sales
 Online subscriptions
 Service sales
Business Canvas model of the
company

Political Economic
 Political stability and free trade policies in most of the
economies has helped the organization in facilitating the
expansion
 The impact of BREXIT on Jaguar Land Rover operations has
affected the profitability of the business in Britain and European
Union. (Sivri and Krallmann 2015)
 As per a report, Tata Motors encountered a consolidated net loss
of INR. 1902.4 crore in the first quarter of financial year 2019.
On the other hand, the lower margins and declining prices in the
Chinese markets has also added to the loss relating to the sales
of the Jaguar Land Rover. The import tariff cuts of the economy
affected the smooth functioning of the organization as per the
concerns faced by the same.
 The diminishing rate of sales for Nano has affected the
organizational revenues drastically
Social Technological
 The inclination of customers towards buying hybrid and
electronic cars will be helping the organization in enhancing the
situation as per the customer demand
 Affordability of the Indian customers might affect the sales
volume through minimization of potentiality
 Investments in the R&D department of the organization has
helped the same in upgrading the propositions as per the
preferences of the customers
 CNG and electronic cars are growing in the market. Therefore,
effective utilization of technologies will help the organization in
enhancing the sales volume
Critical Evaluation through
PEST analysis

 The need for improvements in the
organizational model is dependent on the
enhancement of the market prospects while
operating in diverse international markets
(Ruff 2015).
 The improvements will be helping the
organization in enhancing the processes as
per the concerns of the customers.
 The organization encountered a loss, which
affected the smooth functioning of the
venture.
Improvement

The transformation that is being undertaken
by the organization are:
 Increasing the activities relating to merger
and acquisitions.
 Undertaking collaborative relations with
different other companies in the automotive
industry (Gülke et al. 2012)
 The utilization of extensive promotional
campaigns for Jaguar Land Rover
Transformation

 The transformational strategies will be
helping the concerned organization in
overcoming the loss related to their venture
of Jaguar Land Rover.
 The promotional campaigns will be
helping the organization in maintaining
the efficacy of the operations as per the
sustainability needs of the same (Sujova
and Rajnoha 2012).
Justification

 Therefore, the analysis in the presentation
helped in identifying the business canvas of
Tata motors and the different steps that
might be undertaken by the same for
ensuring the smooth functioning of the
venture.
Conclusion and
Recommendation


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References