CHAPTER 1

INTRODUCTION
IS SWOT? It is a planning tool used to identify Strengths, Weaknesses, Opportunities and Threats involved in a business. It is used as part of Strategic Planning Process

STRATEGIC PLANNING Strategic Planning helps an organisation to answer some basic and critical questions like: a) Where we stand? b) What is our goal? c) How to reach the desired goal? d) How to evaluate performance? Firstly, what does SWOT stand for? It is an acronym for

S W O T

stands for Strengths stands for Weaknesses stands for Opportunities stands for Threats

SWOT analysis is an important tool for rapidly establishing the overall strategic position of a business and its environment. It is an important step in helping determine your business strategy and so lead you to your business intelligence strategy. Once key issues have been identified, they feed into business objectives, particularly marketing objectives and goals. Sometimes you can apply it to projects and other ventures. It is a very popular tool with business and marketing professionals because it is quick and easy to learn. It is subjective though and is best done by involving a good cross section of staff and external people, so that you get as complete and objective set of SWOTs.

Strengths and weaknesses are Internal factors. For example, cash rich or the opposite - large bank overdraft. For example,

People - Skills, Attitude, Training, Knowledge Products - Quality, Price, Life Cycle Operations/Production - Capacity, Flexibility Organisation - Structure, Relationships Systems - Computer, Databases, Monitoring Dashboards Finance - Balance sheet, Cash Flow Reputation - Customer opinion

Opportunities and Threats are External factors. For example,

Economy - Strength of Currency Market - Growth/Decline, Fashion Trend Legislation - Pollution, Product Liability, Energy, Healthcare Technology - Substitutes, New Tools, Artificial Intelligence Society - Ageing Population Environment - Recycling, Increased Testing, Protection

Opportunities should be grasped and Strengths built upon and maximised. Threats and Weaknesses should be eliminated or minimised.

An important step in situational analysis, which access your companys strengths, weaknesses, opportunities, and threats, is known as SWOT analysis. Strategic situation analysis is divided into two types Internal analysis (strengths and weaknesses) and external analysis (opportunities and threats). Internal analyses are those factors that are internal to the organization; you can easily control these factors, while external factors are the factors that are outside the organization and affecting you business directly or indirectly.

SWOT analysis is used to analyze: Attributes of the company that are helpful to accomplishing the goals and objectives, attributes of the company that are harmful in achieving the goals, external environment that is useful in accomplishing your companys goals and objectives and upcoming external condition, which are harmful in achieving your goals and objectives. SWOT analysis is a powerful tool that helps investors to judge, whether, the company is capable enough to achieve different objectives or not. While writing SWOT analysis makes sure, the data you are writing must contain relevant material.

Strengths: Strengths are defined as the positive attributes of the organization, which are within the organizations control. Such as, specialist marketing and advertising skills, patents, introduction of new and innovative product or service, site of your business, cost benefit through proprietary knowledge, strong reputation, exclusive access to natural resources, quality development and procedures, etc.

Weaknesses: Factors that are within the organization control and can easily be improved. It is necessary to take care of your weaknesses because these factors can detract you in achieving your goals and objectives. These factors are: lack or advertising and marketing skills, site of your business, poor quality of your product and service (i.e. in relation to your competitors), damage reputation, distribution channel, limited resources, etc.

Opportunities: Opportunities are the external factors that are providing benefit your business directly or indirectly. Such as, market growth, careful research about market, market size, etc.

Threats: These are also the external factors, which are not in organizations control, but they can seriously damage your organization mission. Threats include: competition, economic crises, earthquakes, competition, price war, new regulations, tax policy, etc.

SWOT ANALYSIS MEANING AND DEFINITION

SWOT ANALYSIS is one of the most used forms of business analysis. A SWOT examines and assesses the impacts of internal strengths and weaknesses, and external opportunities and threats, on the success of the "subject" of analysis. An important part of a SWOT analysis involves listing and evaluating the firms strengths, weaknesses, opportunities, and threats. Each of these elements is described: 1. Strengths: Strengths are those factors that make an organization more competitive than its marketplace peers. Strengths are what the company has a distinctive advantage at doing or what resources it has that is strategic to the competition. Strengths are, in effect, resources, capabilities and core competencies that the organization holds that can be used effectively to achieve its performance objectives. 2. Weaknesses: A weakness is a limitation, fault, or defect within the organization that will keep it from achieving its objectives; it is what an organization does poorly or where it has inferior capabilities or resources as compared to the competition. 3. Opportunities: Opportunities include any favorable current prospective situation in the organizations environment, such as a trend, market, change or overlooked need that supports the demand for a product or service and permits the organization to enhance its competitive position. 4. Threats: A threat includes any unfavorable situation, trend or impending change in an organizations environment that is currently or potentially damaging or threatening to its ability to compete. It may be a barrier, constraint, or anything that might inflict problems, damages, harm or injury to the organization. A firms strengths and weaknesses (i.e., its internal environment) are made up of factors over which it has greater relative control. These factors include the firms resources; culture; systems; staffing practices; and the personal values of the firms managers. Meanwhile, an organizations opportunities and threats (i.e., its external environment) are made up of those factors over which the organization has lesser relative control. These factors include, among others, overall demand, the degree of market saturation, government policies, economic condition, social, cultural, and ethical developments; technological developments; ecological developments, and the factors making up Porters Five Forces (i.e., intensity of rivalry, threat of new entrants, threat of substitute products, bargaining power of buyers, and bargaining power of suppliers.)

THREE STAGES OF SWOT ANALYSIS

SWOT ANALYSIS HISTORY - THE ORIGINS OF THE SWOT ANALYSIS MODEL

This remarkable piece of history as to the origins of SWOT analysis was provided by Albert S Humphrey, one of the founding fathers of what we know today as SWOT analysis. I am indebted to him for sharing this fascinating contribution. Albert Humphrey died on 31 October 2005. He was one of the good guys. SWOT analysis came from the research conducted at Stanford Research Institute from 1960-1970. The background to SWOT stemmed from the need to find out why corporate planning failed. The research was funded by the fortune 500 companies to find out what could be done about this failure. The Research Team were Marion Dosher, Dr Otis Benepe, Albert Humphrey, Robert Stewart, Birger Lie. It all began with the corporate planning trend, which seemed to appear first at Du Pont in 1949. By 1960 every Fortune 500 company had a 'corporate planning manager' (or equivalent) and 'associations of long range corporate planners' had sprung up in both the USA and the UK. However a unanimous opinion developed in all of these companies that corporate planning in the shape of long range planning was not working, did not pay off, and was an expensive investment in futility. It was widely held that managing change and setting realistic objectives which carry the conviction of those responsible was difficult and often resulted in questionable compromises. The fact remained, despite the corporate and long range planners, that the one and only missing link was how to get the management team agreed and committed to a comprehensive set of action programmes. To create this link, starting in 1960, Robert F Stewart at SRI in Menlo Park California lead a research team to discover what was going wrong with corporate planning, and then to find some sort of solution, or to create a system for enabling management teams agreed and committed to development work, which today we call 'managing change'.

The research carried on from 1960 through 1969. 1100 companies and organizations were interviewed and a 250-item questionnaire was designed and completed by over 5,000 executives. Seven key findings lead to the conclusion that in corporations chief executive should be the chief planner and that his immediate functional directors should be the planning team. Dr Otis Benepe defined the 'Chain of Logic' which became the core of system designed to fix the link for obtaining agreement and commitment. 1. 2. 3. 4. 5. 6. 7. 8. Values Appraise Motivation Search Select Program Act Monitor and repeat steps 1 2 and 3

We discovered that we could not change the values of the team nor set the objectives for the team so we started as the first step by asking the appraisal question, for example, what's good and bad about the operation. We began the system by asking what is good and bad about the present and the future. What is good in the present is Satisfactory, good in the future is an Opportunity; bad in the present is a Fault and bad in the future is a Threat. This was called the SOFT analysis. When this was presented to Urick and Orr in 1964 at the Seminar in Long Range Planning at the Dolder Grand in Zurich Switzerland they changed the F to a W and called it SWOT Analysis. SWOT was then promoted in Britain by Urick and Orr as an exercise in and of itself. As such it has no benefit. What was necessary was the sorting of the issues into the programme planning categories of: 1. 2. 3. 4. 5. 6. Product (what are we selling?) Process (how are we selling it?) Customer (to whom are we selling it?) Distribution (how does it reach them?) Finance (what are the prices, costs and investments?) Administration (and how do we manage all this?)

The second step then becomes 'what shall the team do' about the issues in each of these categories. The planning process was then designed through trial and error and resulted

finally in a 17 step process beginning with SOFT/SWOT with each issue recorded separately on a single called a planning issue.

The first prototype was tested and published in 1966 based on the work done at 'Erie Technological Corp' in Erie Pa. In 1970 the prototype was brought to the UK, under the sponsorship of W H Smith & Sons plc, and completed by 1973. The operational programme was used to merge the CWS milling and baking operations with those of J W French Ltd. The process has been used successfully ever since. By 2004, now, this system has been fully developed, and proven to cope with today's problems of setting and agreeing realistic annual objectives without depending on outside consultants or expensive staff resources. SIMPLE RULES FOR SUCCESSFUL SWOT ANALYSIS:

Be realistic about the strengths and weaknesses of your organization when conducting SWOT analysis. SWOT analysis should distinguish between where your organization is today, and where it could be in the future. SWOT should always be specific. Avoid grey areas. Always apply SWOT in relation to your competition i.e. better than or worse than your competition. Keep your SWOT short and simple. Avoid complexity and over analysis SWOT analysis is subjective.

Once key issues have been identified with your SWOT analysis, they feed into marketing objectives. SWOT can be used in conjunction with other tools for audit and analysis, such as PEST analysis and Porter's Five-Forces analysis. So SWOT is a very popular tool with marketing students because it is quick and easy to learn. During the SWOT exercise, list factors in the relevant boxes. It's that simple.

THE REAL SWOT: SWOT as taught is todays business schools is little more than Scientific Wild Ass Guess (SWAGs) according to Cranfields Professor Malcolm McDonald. He makes the point that many threats are the same regardless of the business environment that is being audited. For example, common-all-garden threats would include the weather, competitors, changes in technology, regulation and deregulation, and the impacts of competing countries. In strengths youll get good products but that could mean anything. Under weaknesses you get equally general and vacuous points such as the price is too high. This type of SWOT analysis is too general and is not much use to marketing managers. SWOT needs to be segment specific. SWOT should look at groups of customers and their perception of your brand, what price they will pay, the place where they buy it, the products that they buy and so on. Otherwise your SWOT analysis is averaged and not specific. SWOT analysis should be focused upon a segment of the market. Then you can ask what are the Critical Success Factors(CSFs) that are pivotal to the buyer decision process in that segment? Then you need to weight the CSFs so that you can separate those drivers that are most important. When considering strengths and weaknesses, in true marketing fashion you need to take the consumers perspective when completing the SWOT. You also must factor in the customers view of your business in relation to the competition i.e. relative to competitors. So you can match key CSFs to opportunities. You can rank those opportunities that are most profitable or sustainable. Then you need to factor in the impact of threats. Finally you should dovetail SWOT with the rest of your strategic thinking.

ADVANTAGES AND DISADVANTAGES

The small business owner's challenge is to create products and services the customer values and the means to produce and deliver those products and services in ways that are exceptional compared to the competition. To address these challenges, a company must define business objectives and address operational issues based on its current situation and the factors that impact its financial and operational goals. Such decision-making processes are frequently supported by structured brainstorming, which, in turn, can be supported by a Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis.

The advantages of the SWOT methodology, such as its appropriateness to address a variety of business issues, make it a desirable tool to support some brainstorming sessions. However, the tool's disadvantages, such as the subjective analysis of an issue, make it less desirable for others. SWOT Analysis Application

The SWOT method is not a process in itself, such as strategic planning, opportunity analysis or competitive analysis. Instead it's a tool used to structure a particular brainstorming session. As a result, a problem or process that's addressed using the SWOT tool may itself be thought of in terms of phases or a life cycle. For example, strategic planning is a process consisting of multiple steps or phases. However, the SWOT analysis, like a brainstorming session, is simply a tool that may be used one or more times to gain a collection of ideas regarding a particular issue or problem. For example, a business determines on each occasion, if a brainstorming session is appropriate to address a strategic plan or competitive analysis. If so, the business then decides if it will use the SWOT method or an alternative tool to facilitate the session. Advantage: Problem Domain

SWOT analysis can be applied to an organization, organizational unit, individual or team. In addition, the analysis can support a number of project objectives. For example, the SWOT method can be used to evaluate a product or brand, an acquisition or partnership, or the outsourcing of a business function. In addition, SWOT analysis can be beneficial in evaluating a particular supply source, a business process, a product market or the implementation of a particular technology.

Advantage: Application Neutrality

SWOT analysis is conducted by specifying an objective and conducting a brainstorming session to identify internal and external factors that are favorable and unfavorable to the objective's achievement. This approach remains the same whether the analysis is used to support strategic planning, opportunity analysis, competitive analysis, business development or product development processes.

Advantage: Multi-Level Analysis

Valuable information about your objective's chances can be gained by viewing each of the four elements of the SWOT analysis -- strengths, weaknesses, opportunities and threats -- independently or in combination. For example, identified threats in the business environment, such as new government regulations regarding a product design or the introduction of competing products, might alert the business owner that a proposed investment in a new manufacturing production line should be more carefully evaluated. In addition, an awareness of a company weakness such as a lack of qualified employees might suggest a need to consider outsourcing particular functions. In turn, opportunities such as the availability of low-interest loans for startups might encourage the entrepreneur to pursue the development of a new product to meet a rising customer demand. In contrast, identified strengths, such as extensive experience in an industry experiencing rapid international growth, might suggest the need to partner with foreign companies. Advantage: Data Integration

SWOT analysis requires that quantitative and qualitative information from a number of sources be combined. Access to a range of data from multiple sources improves enterprise-level planning and policy-making, enhances decision-making, improves communication and helps to coordinate operations. Advantage: Simplicity SWOT analysis requires neither technical skills nor training. Instead, it can be performed by anyone with knowledge about the business in question and the industry in which it operates. The process involves a facilitated brainstorming session during which the four dimensions of the SWOT analysis are discussed. As a result, individual participants beliefs and judgments are aggregated into collective judgments endorsed by the group as a whole. In this way, the knowledge of each individual becomes the knowledge of the group.

Advantage: Cost Because SWOT analysis requires neither technical skills nor training, a company can select a staff member to conduct the analysis rather than hire an external consultant. In addition, SWOT is a somewhat simple method that can be performed in a fairly short time. SWOT Analysis is instrumental in strategy formulation and selection. It is a strong tool, but it involves a great subjective element. It is best when used as a guide, and not as a

prescription. Successful businesses build on their strengths, correct their weakness and protect against internal weaknesses and external threats. They also keep a watch on their overall business environment and recognize and exploit new opportunities faster than its competitors. SWOT Analysis helps in strategic planning in following mannera. b. c. d. e. f. g. h. It is a source of information for strategic planning. Builds organizations strengths. Reverse its weaknesses. Maximize its response to opportunities. Overcome organizations threats. It helps in identifying core competencies of the firm. It helps in setting of objectives for strategic planning. It helps in knowing past, present and future so that by using past and current data, future plans can be chalked out.

SWOT Analysis provide information that helps in synchronizing the firms resources and capabilities with the competitive environment in which the firm operates. . Disadvantage: No Weighting Factors

SWOT analysis leads to four individual lists of strengths, weaknesses, opportunities and threats. However, the tool provides no mechanism to rank the significance of one factor versus another within any list. As a result, any one factor's true impact on the objective can't be determined.

Disadvantage: Ambiguity SWOT analysis creates a one-dimensional model in which each problem attribute is viewed as a strength, weakness, opportunity or threat. As a result, each attribute is seen to have only one influence on the problem being analyzed. However, one factor might be both a strength and a weakness. For example, locating a chain of stores on welltraveled streets that grant easy access to customers might be reflected in increased sales. However, the costs of operating high-visibility facilities can make it difficult to compete on price without a large sales volume.

Disadvantage: Subjective Analysis

To significantly impact company performance, business decisions must be based on reliable, relevant and comparable data. However, SWOT data collection and analysis entail a subjective process that reflects the bias of the individuals who collect the data and participate in the brainstorming session. In addition, the data input to the SWOT analysis can become outdated fairly quickly. SWOT Analysis is not free from its limitations. It may cause organizations to view circumstances as very simple because of which the organizations might overlook certain key strategic contact which may occur. Moreover, categorizing aspects as strengths, weaknesses, opportunities and threats might be very subjective as there is great degree of uncertainty in market. SWOT Analysis does stress upon the significance of these four aspects, but it does not tell how an organization can identify these aspects for itself. There are certain limitations of SWOT Analysis which are not in control of management. These includea. b. c. d. e. Price increase; Inputs/raw materials; Government legislation; Economic environment; Searching a new market for the product which is not having overseas market due to import restrictions; etc.

Internal limitations may includea. Insufficient research and development facilities; b. Faulty products due to poor quality control; c. Poor industrial relations; d. Lack of skilled and efficient labour; etc

CHAPTER 2
INTRODUCTION OF TATA MOTORS Established under the parent company, Tata Group, in 1945, Tata Motors Limited has become India s largest automobile company. It was the first Indian automobile company to list on the New York Stock Exchange. Tata Motors began manufacturing commercial vehicles in 1954 with a 15-year collaboration agreement with Daimler Benz of Germany. This partnership has led Tata Motors to not only become Indias largest automobile company but also India s largest commercial vehicle manufacturer; the worlds top five manufactures of medium and heavy trucks and the worlds second largest medium and heavy bus manufacturer. Having just entered the passenger vehicles market segment in 1991, Tata Motors now ranks second in India s passenger vehicle market. Tata has enjoyed the prestige of having developed Tata Ace, India s first indigenous light commercial vehicle; Tata Safari, India s first sports utility vehicle; Tata Indica, Indias first indigenously manufactured passenger car; and the Nano, the world s least expensive car. Tata Motors Limited (Tata Motors or the company) is an automotive vehicle manufacturing company based in India. The company is engaged in the development, design, manufacture and assembly, sale, and financing of vehicles, as well as sale of auto parts and accessories. The company primarily operates in India, South Korea, South Africa, Thailand, Bangladesh, Singapore, Spain, and the UK. The company is headquartered in Mumbai, India and employs about 52,244 people, including approximately 26,030 permanent employees. The company recorded revenues of INR1,232,134.1 million ($26,860.5 million) during the financial year ended March 2011 (FY2011), an increase of 33% over FY2010. The operating profit of the company was INR48,998.6 million ($1,068.2 million) during FY2011, as compared to an operating loss of INR7,175 million ($156.4 million) in FY2010. The net profit was INR73,401.8 million ($1,600.2 million) in FY2011, an increase of 93% over FY2010

CHAPTER 3
SWOT ANALYSIS OF TATA MOTORS:

SWOT analysis (alternately SLOT analysis) is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favourable and unfavourable to achieve that objective.

14

STRENGTHS:
1. Strong Domestic player (Indian market): Tata has a strong presence in India and is a key manufacturer of commercial vehicles. It is a market share of ~64% which has almost remained constant. Also, Tata Motors is Indias largest automobile manufacturer by revenue .Tata Motors Limited is Indias largest automobile company, with revenues of `1,23,133.30 crore in 201011. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles in India with products in the compact, midsize car and utility vehicle segments. Tata vehicles are sold primarily in India, and over 4 million Tata vehicles have been produced domestically since the first Tata vehicle was assembled in 1954.

It is a demand driven, and customer-oriented, taking care of customers preferences and taste.

Long list of portfolios: Its products include passenger cars, trucks, vans and coaches. It is worlds 4th biggest truck producer, it is also worlds second biggest bus producer. The internationalisation strategy so far has been to keep local managers in new acquisitions, and to only transplant a couple of senior managers from India into the new market. The benefit is that Tata has been able to exchange expertise. For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product 'right first time.' The company has a strategy in place for the next stage of its expansion. Not only is it focusing upon new products and acquisitions, but it also has a programme of intensive management development in place in order to establish its leaders for tomorrow.

The company has had a successful alliance with Italian mass producer Fiat since 2006. This has enhanced the product portfolio for Tata and Fiat in terms of production and knowledge exchange. For example, the Fiat Palio Style was launched by Tata in 2007, and the companies have an agreement to build a pickup targeted at Central and South America

Global Presence :Tata Motors has been in the process of acquiring foreign brands to increase its global presence. Through acquisition, Tata has operations in the UK, South Korea, Thailand and Spain. Among these acquisitions is Jaguar Land Rover, a business comprising two strugglingiconic British brands that was acquired from the Ford Motor Company in 2008. In 2004, Tata acquired the Daewoo Commercial Vehicles Company, South Koreas second largest truck maker. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. Tata Motors has expanded its production and assembly operations to several other countries including South Korea, Thailand, South Africa and Argentina and is planning to set up plant sin Turkey, Indonesia and Eastern Europe.Tata also has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine,Russia and Senegal. Tata has dealerships in 26 countries across 4 continents. Dealership, Sales and Service Access: The Companys dealership, sales, services and spareparts network comprises over 3500 touch points.

Research and Development Activities: Tata motors is known as an innovative global leader. The company has a very strong R&D having over 3000 engineers and scientists. The Engineering Research Centre (ERC) in Pune was setup in 1966 and is among the finest in the country. It has been honoured with two prestigious awards - 'The DSIR National Award for R&D Effort in Industry 1999' and'National Award for Successful Commercialisation of Indigenous Technology by an IndustrialConcern - 2000.' Tata Nano was a recent outcome from the ERC . The Nano is Tatas iPod. Great engineering and design in a rules-breaking product that has generated global awareness and admiration The brand is very well established in the economy segment

Tatas management is strengthened by the collective experience of its partners and acquired companies this includes general management, marketing, sales and operations Tatas buying power is enhanced and leveraged through its size

Tata is making smart acquisition and partnering decisions so far. Local management teams remain in place vs. installing Tata leaders from afar. 1+1 = 3 seems to be working so far

International strategy - about new acquisitions, Tata added some of senior managers in the new companies or market. The benefit is that Tata Motors is able to exchange the expertise. Also by doing that the new company will dot need to se tup new managerial post and company can run as per the old settings.

Brand Name-Tata Motors has a strategy to work with the old name of the company which Tata bought or acquires that does not effect the brand value. Tata is doing this because tata is new in International market and people outside india do not know about Tata Motors. For example:- Tata acquired Land Rover and Jaguar from Ford and now Tata is running these companies but Tata did not add Tata Name in to These luxury brand, that is giving more stability of these brands in the market.

Globalization- The company has a strategy to expand its network in world wide and company already started by expanding its networks to South Africa, China, UK, South Korea,Brazil and many others countries.

Domestic Strategy- Strategy for local market customers and new costumers - Tata Motors is most trusted vehicle brand in India, and Tata is putting effort to be in same position by fulfilling the commitment done by company.

R&D-Tata Motors put emphasize on R&D, and developed some of the very useful machine for indian market for example- Tata Safari- India first sport utility vehicle,Tata Nano- World cheapest car, Tata Ace- Indias first mini transport utility vehicle, Tata Indica V2- Car that is most fuel efficient in Indian Market. Tata is also working for Compressed air car- Motor Development International of France has developed the worlds first prototype of Compressed air car Named OneCat.

Financial-Tata Motors is a part of Tata groups of companies that has vey strong financial position.

Employment-Tata Motors is a big company that provides jobs to the unemployed people.Tata Motors is known for good employee management that make it some of the best choice for work. That attracts the people and also increases the popularity of company.

WEAKNESS:
1. Return on Investment on TATA motors shares in low. 2. Tata motors products are not considered as luxurious. 3. The products are generally targeted for economy class 4. rather than for luxury. Hence, the company lacks a 5. strong footprint in the sector of luxury products. 6. Safety standards are not maintained/ often ignored. 7. This has led to diminish of public image of the TATA 8. automobiles (eg Tata Nano) 9. Limited consumer base. 10. Though Tata is present in many countries it has only managed to create a large consumer 11. base in the Indian Subcontinent, namely India, Bangladesh, Bhutan, Sri Lanka and Nepal. 12. Tata has a growing consumer base in Italy, Spain and South Africa. 13. Relatively smaller proportion of market share in Passenger vehicles in India. 14. Tata Motors is not well positioned in the luxury segment. This is not a problem during recessionary times but a lack of diversification can hurt during better times Most of the automobiles Tata manufactures are based on older platforms The Companys manufacturing practices trail competitors. 15. One weakness which is often not recognized is that in English the word 'tat' means rubbish. 16. Would the brand sensitive British consumer ever buy into such a brand? 17. The company's passenger car products are based upon 3rd and 4th generation platforms, 18. which put Tata Motors Limited at a disadvantage with competing car manufacturer.

19. The company's passenger car products are based upon 3rd and 4th generation platforms, which put Tata Motors Limited at a disadvantage with competing car manufacturers. 20. Despite buying the Jaguar and Land Rover brands (see opportunities below); Tata has not got a foothold in the luxury car segment in its domestic, Indian market. Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India? 21. One weakness which is often not recognised is that in English the word 'tat' means rubbish. Would the brand sensitive British consumer ever buy into such a brand? Maybe not, but they would buy into Fiat, Jaguar and Land Rover (see opportunities and strengths). Less Luxury-Tata as a international brand, do not produce luxury vehicles for domestic market. That is a disadvantage for company to competing with other Car makers in domestic market. Safety-Tata Motors do not provide standerd safety features in their vehicles in domestic market. Sells -Tata Nano the peoples cars sells in continue decreasing that is also world cheapest car. The main reason behind this is lack of security features in car as well as car is not made to drive in Highway. This car is made to attract for those people who wants to use it in city. Wrong Advertisement-Company is lacking in advertisement of their brand and Media is focusing companies failures about Tata Nano now days. Company also started monthly payment system for Tata Nano that is 99rupee (14 SEK) per month that is cheaper then the mobile subscription per mont. That is developing negative phycology about Nano in people.

OPPORTUNITY:
1. In the summer of 2008 Tata Motor's announced that it had successfully purchased the Land Rover and Jaguar brands from Ford Motors for UK 2.3 million. Two of the World's luxury car brand have been added to its portfolio of brands, and will undoubtedly off the company the chance to market vehicles in the luxury segments. 2. Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004 for around USD $16 million.

3. Nano is the cheapest car in the World - retailing at little more than a motorbike. Whilst the World is getting ready for greener alternatives to gas-guzzlers, is the Nano the answer in terms of concept or brand? Incidentally, the new Land Rover and Jaguar models will cost up to 85 times more than a standard Nano! 4. The new global track platform is about to be launched from its Korean (previously Daewoo) plant. Again, at a time when the World is looking for environmentally friendly transport alternatives, is now the right time to move into this segment? The answer to this question (and the one above) is that new and emerging industrial nations such as India, South Korea and China will have a thirst for low-cost passenger and commercial vehicles. These are the opportunities. However the company has put in place a very proactive Corporate Social Responsibility (CSR) committee to address potential strategies that will make is operations more sustainable.

5. The range of Super Milo fuel efficient buses are powered by super-efficient, ecofriendly engines. The bus has optional organic clutch with booster assist and better air intakes that will reduce fuel consumption by up to 10%. 6. The Nano could sell well in other geographic markets. Expanding markets such as China may find the Nano just the answer 7. Jaguar and Land Rover provide Tata with an opportunity to establish itself in the luxury segment

8. In the summer of 2008 Tata Motor's announced that it had successfully purchased the Land Rover and Jaguar brands from Ford Motors for UK 2.3 million. Two of the World's luxury car brand have been added to its portfolio of brands, and will undoubtedly off the company the chance to market vehicles in the luxury segments.

9. Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004 for around USD $16 million.

10. Nano is the cheapest car in the World - retailing at little more than a motorbike. Whilst the World is getting ready for greener alternatives to gas-guzzlers, is the Nano the answer in terms of concept or brand? Incidentally, the new Land Rover and Jaguar models will cost up to 85 times more than a standard Nano!

11. The new global track platform is about to be launched from its Korean (previously Daewoo) plant. Again, at a time when the World is looking for environmentally friendly transport alternatives, is now the right time to move into this segment? The answer to this question (and the one above) is that new and emerging industrial nations such as India, South Korea and China will have a thirst for low-cost passenger and commercial vehicles. These are the opportunities. However the company has put in place a very proactive Corporate Social Responsibility (CSR) committee to address potential strategies that will make is operations more sustainable.

12. The range of Super Milo fuel efficient buses are powered by super-efficient, ecofriendly engines. The bus has optional organic clutch with booster assist and better air intakes that will reduce fuel consumption by up to 10%.

13. Demography - According to indexmundi.com, 64.9% of the India population is between 15 and 64 years which, in other words, states that over 700 million are legal candidates to have a car. This number is growing.

14. Political - According to The Economic Times the government is aiming to spend $1 trillion on infrastructure development by 2017. This can only be interpreted as a political willpower to help the countrys wellbeing. A healthy country is a low-riskto-invest country.

15. Technology - Sustainable and environmental-friendly technology use in the manufacturing can help the company fit into the social media trends.

16. Social - Times of India published the following on September 15th, 2010: Indian women demonstrate stratospheric levels of aspiration 76 per cent aspire to a top job 85 per cent of Indian women consider themselves very ambitious,. This boosts the number of potential clients. Environmental trends are also an opportunity on which the company is already taking advantage.

THREATS:
1. Other competing car manufacturers have been in the passenger car business for 40, 50 or more years. Therefore Tata Motors Limited has to catch up in terms of quality and lean production 2. Environmental Regulation: Sustainability and environmentalism could mean extra costs for this low-cost producer. This could impact its underpinning competitive advantage. Obviously, as Tata globalizes and buys into other brands this problem could be alleviated.

3. Intense competition: Since the company has focused upon the commercial and small vehicle segments, it has left itself open to competition from overseas companies for the emerging Indian luxury segments. For example ICICI bank and DaimlerChrysler have invested in a new Pune-based plant which will build 5000 new Mercedes-Benz per annum. Other players developing luxury cars targeted at the Indian market include Ford, Honda and Toyota. In fact the entire Indian market has become a target for other global competitors including Maruti Udyog, General Motors, Ford and others. Presently, Tata Motors face intense competition from its domestic as well as foreign competitors including General Motors, Honda Motor, Maruti Udyog, Mitsubishi Motors, Fiat, Ford and so on. Competition is expected to intensify further as Indian automobile manufacturers obtain greater access to debt and equity financing in the international capital markets or gain access to more advanced technology through alliances. Additionally, in recent years, the government of India has permitted automatic approvals for foreign equity ownership of up to 100% in entities manufacturing vehicles and components in India Rising cost of manufacturing: Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts. The price of steel and aluminum is increasing putting pressure on the costs of production. Many of Tata's products run on Diesel fuel which is becoming expensive globally and within its traditional home market.

4. Low safety standards can hamper the public trusts it has already attained which may prove fatal to its domestic market. 5. Powerful competitors for the luxury market including Honda, Toyota, Ford and MercedesBenz are beginning to push into the Indian market

6. Tatas competitive price advantage will be under pressure as environmental regulations are

tightened 7. Rising material costs will create pressure to increase prices

8. There is a trending rise in diesel fuel costs which will hurt Tatas line of products One of the conclusions Ive reached in my SWOT analysis of Tata Motors is that the company has done of a very good job in the past five years of strengthening its position in the market. It appears to have an excellent opportunity for future success but like all businesses, faces significant challenges. 9. Other competing car manufacturers have been in the passenger car business for 40, 50 or more years. Therefore Tata Motors Limited has to catch up in terms of quality and lean production. Sustainability and environmentalism could mean extra costs for this low-cost producer. This could impact its underpinning competitive advantage. Obviously, as Tata globalises and buys into other brands this problem could be alleviated. 10. Since the company has focused upon the commercial and small vehicle segments, it has left itself open to competition from overseas companies for the emerging Indian luxury segments. For example ICICI bank and DaimlerChrysler have invested in a new Pune-based plant which will build 5000 new Mercedes-Benz per annum. Other players developing luxury cars targeted at the Indian market include Ford, Honda and Toyota. In fact the entire Indian market has become a target for other global competitors including Maruti Udyog, General Motors, Ford and others. Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts. The price of steel and aluminium is increasing putting pressure on the costs of production. Many of Tata's products run on Diesel fuel which is becoming expensive globally and within its traditional home market. 11. Demography - The population increase rate might cause problems such as

unemployment and emigration. This could affect the number potential customers. 12. Economy A fast growing economy could mean more competitors. At the same time, high demand of products could bring inflation that affects the companys potential clients budged. The following statement was taken from bbc.co.uk: Raging inflation and a gradual increase in borrowing costs has dampened domestic demand, alongside lackluster investment sentiment, said Radhika Rao of Forecast Pte

13. Political - Some projects for public transportation are been develop. Projects such as

Sustainable Urban Transport (see web.worldbank.org) include cities like Pune and Pimpri-Chinchwad (in Maharashtra), Naya Raipur (in Chhattisgarh), Jalandhar (in Punjab), Indore (in Madhya Pradesh), and Mysore (in Karnataka).
Technology - Technology research and usage always involves investment which might not always give the desired outcome.

14. Social - Times of India (timesofindia.com) states the following: more than half of Indian women experience pressure from their spouses and in-laws to quit working when they get married 52 per cent of Indian women were criticized for continuing their career. This on the other hand decreases the number of potential clients.

CHAPTER 4 RESEARCH METHODOLOGY

MORE ON THE DIFFERENCE AND RELATIONSHIP BETWEEN PEST AND SWOT:

There is some overlap between PEST and SWOT. Similar factors appear in each. That said, PEST and SWOT are certainly two different perspectives: PEST tends to assess a market, including competitors, from the standpoint of a particular proposition or a business. SWOT in business and marketing tends to be an assessment of a business or a proposition, whether it is your own business or (less commonly) a competitor s business or proposition. Strategic planning is not a precise science - no tool is mandatory - its a matter of pragmatic choice as to what helps best to identify and explain the issues. PEST analysis may useful before SWOT analysis where it helps to identify SWOT factors. Alternatively PEST analysis may be incorporated within a SWOT analysis, to achieve the same effect. PEST becomes more useful and relevant the larger and more complex the business or proposition, but even for a very small local businesses a PEST analysis can still throw up one or two very significant issues that might otherwise be missed. The four quadrants in PEST vary in significance depending on the type of business, for example, social factors are more obviously relevant to consumer businesses or a B2B (business-to-business) organization close to the consumer-end of the supply chain, whereas political factors are more obviously relevant to a global munitions supplier or aerosol propellant manufacturer. All businesses benefit from a SWOT analysis, and all businesses benefit from completing a SWOT analysis of their main competitors, which interestingly can then provide useful points back into the economic aspects of the PEST analysis.

CHAPTER 5

SWOT ANALYSIS MATRIX - IN BUSINESS/MARKETING - INTERNAL V EXTERNAL FACTORS: Modern SWOT analysis in business and marketing situations is normally structured so that a 2x2 matrix grid can be produced, according to two pairs of dimensions.Strengths and Weaknesses, are 'mapped' or 'graphed' against Opportunities and Threats. To enable this to happen cleanly and clearly, and from a logical point of view anyway when completing a SWOT analysis in most business and marketing situations, Strengths and Weaknesses are regarded distinctly as internal factors, whereas Opportunities and Threats are regarded distinctly as external factors.

Strengths and the internal environment for example, factors relating factors tend - the situation inside the to products, pricing, costs, to be in the Weaknesses company or organization profitability, performance, present quality, people, skills, adaptability, brands, services, reputation, processes, infrastructure, etc.

Opportunities and Threats

the external environment - the situation outside the company or organization

for example, factors relating factors tend to markets, sectors, audience, to be in the fashion, seasonality, trends, future competition, economics, politics, society, culture, technology, environmental, media, law, etc.

SWOT ANALYSIS - DIFFERENT APPLICATIONS: SWOT analysis is a powerful model for many different situations. The SWOT tool is not just for business and marketing. Here are some examples of what a SWOT analysis can be used to assess:

a company (its position in the market, commercial viability, etc) a method of sales distribution a product or brand a business idea a strategic option, such as entering a new market or launching a new product a opportunity to make an acquisition a potential partnership changing a supplier outsourcing a service, activity or resource project planning and project management an investment opportunity personal financial planning personal career development - direction, choice, change, etc. education and qualifications planning and decision-making life-change - downshifting, relocation, relationships, perhaps even family planning?..

Whatever the application, be sure to describe the subject (or purpose or question) for the SWOT analysis clearly so you remain focused on the central issue. This is especially crucial when others are involved in the process. People contributing to the analysis and seeing the finished SWOT analysis must be able to understand properly the purpose of the SWOT assessment and the implications arising.

Subject of SWOT analysis: (define the subject of the analysis here) strengths

weaknesses

Advantages of proposition? Capabilities? Competitive advantages? USP's (unique selling points)? Resources, Assets, People? Experience, knowledge, data? Financial reserves, likely returns? Marketing - reach, distribution, awareness? Innovative aspects? Location and geographical? Price, value, quality? Accreditations, qualifications, certifications? Processes, systems, IT, communications? Cultural, attitudinal, behavioural? Management cover, succession?

Disadvantages of proposition? Gaps in capabilities? Lack of competitive strength? Reputation, presence and reach? Financials? Own known vulnerabilities? Timescales, deadlines and pressures? Cashflow, start-up cash-drain? Continuity, supply chain robustness? Effects on core activities, distraction? Reliability of data, plan predictability? Morale, commitment, leadership? Accreditations, etc? Processes and systems, etc? Management cover, succession?

Opportunities Market developments?

threats

Competitors' vulnerabilities? Industry or lifestyle trends? Technology development and innovation? Global influences? New markets, vertical, horizontal? Niche target markets? Geographical, export, import? Market need for new USP's? Market response to tactics, e.g., surprise? Major contracts, tenders?

Political effects? Legislative effects? Environmental effects? IT developments? Competitor intentions - various? Market demand? New technologies, services, ideas? Vital contracts and partners? Obstacles faced? Insurmountable weaknesses? Employment market? Financial and credit pressures? Economy - home, abroad?

Business and product development? Information and research? Partnerships, agencies, distribution? Market volume demand trends? Seasonal, weather, fashion influences?

Seasonality, weather effects?

CHAPTER 6
CONCLUSION

Strengths

End-user sales control and direction. Right products, quality and reliability. Superior product performance vs competitors. Better product life and durability. Spare manufacturing capacity. Some staff have experience of enduser sector. Have customer lists. Direct delivery capability. Product innovations ongoing. Can serve from existing sites. Products have required accreditations. Processes and IT should cope. Management is committed and confident.

weaknesses

Customer lists not tested. Some gaps in range for certain sectors. We would be a small player. No direct marketing experience. We cannot supply end-users abroad. Need more sales people. Limited budget. No pilot or trial done yet. Don't have a detailed plan yet. Delivery-staff need training. Customer service staff need training. Processes and systems, etc Management cover insufficient.

Opportunities

threats

Could develop new products. Local competitors have poor products. Profit margins will be good. End-users respond to new ideas. Could extend to overseas. New specialist applications. Can surprise competitors. Support core business economies. Could seek better supplier deals.

Legislation could impact. Environmental effects would favour larger competitors. Existing core business distribution risk. Market demand very seasonal. Retention of key staff critical. Could distract from core business. Possible negative publicity. Vulnerable to reactive attack by major competitors.

ABBREVIATIONS

SWOT: strengths weaknesses opportunities threats. SOFT: fault and bad in the future is a threat.
SWAGs: scientific wild ass guess.

CSFs :critical success factors. SLOT: strengths limitations opportunities and threats. ERC: engineering research centre. CSR: corporate social responsibility. GDP: gross domestic product. PEST: political economic social technological.

REFERENCES

GOOGLE.COM