LEVELS OF STRATEGY

LEVELS OF STRATEGY
Corporate level strategy (directional strategy)
Growth
Stability
Retrenchment
Business level strategy (competitive strategy)
Cost leadership
Differentiation (product)

Functional level strategy

Marketing strategy (4 ps)
Financial strategy (sources of finance)
R&D strategy (technological leader, innovation)
Operation strategy (production strategy)

BCG MATRIX OF TATA

GROUP

SUCCESSION PLANNING
STRATEGY

GROWTH STRATEGY

Tata Group's
strategic alliance
with Japanese
telecom major NTT
DOCOMO in
November 2008.
Tata Teleservices
has received a
license to operate
GSM telecom
services in 19 of
India's 22 telecom
Circles-and has
also been allotted
spectrum in 18
telecom circles.

ACQUISITIONS
Tata company Acquired company

Country

Stake acquired

January
2011

Tata
Communications

BT Group's (BT) Mosaic business UK

100 per cent

August
2011

Tata Chemicals

EPM Mining Ventures

Canada

30.6 per cent

December
2010

Tata Chemicals

British Salt

UK

100 per cent (wholly-owned)

January
2009

Tata
Communications

Neotel

South Africa

30 per cent

March
2009

Tata Global
Beverages

Grand

Russia

33.2 per cent

June
2008

Tata
Communications

China Enterprise
Communications Limited (CEC)

China

50 per cent equity interest

August
2008

Voltas

Rohini Industrial Electricals

India

51 per cent

January
2007

Tata Steel

Corus

UK

100 per cent

JOINT VENTURE
Tata & Fait since 2006
Tata & Starbucks 50/50 JV
Starbucks Coffee A Tata
Alliance.
Tata Motors (SA)
Tata Motors' joint venture with
Tata Africa Holdings, has an
assembly plant in the Gauteng
province of SA.
Tata Automobile Corporation
SA
Tata Africa Holdings through a
joint venture between Accordian
Investments and the Imperial

TURNAROUND STRATEGY

Tata Power Delhi Distribution by winning hearts and

changing mindsets, and through technology and
commercial savvy
transformed a loss-making government entity into an
efficient and profitable operation that has become a
benchmark for public-private partnerships

DIVESTMENT STRATEGY

Tata Oil Mill (TOMCO) was divested and sold to

Hindustan Levers as soaps and a detergent was
not considered a core business for the Tatas.
The pharmaceuticals companies of the TatasMerind and Tata Parma were divested to
Wockhardt.
The cosmetics company Lakme was divested and
sold to Hindustan Levers, as besides being a non
core business, it was found to be a noncompetitive and would have required substantial
investment to be sustained.

BUSINESS LEVEL STRATEGY

Tata nano, the cheapest car in the

world
Swach, the cheapest water filter from
Tata Chemicals. less than Rs 1000.
Tata Motors launched the Ace truck in
May 2005 for just above Rs 200,000.

PRODUCT DIFFERENTIATION
STRATEGY

Tata Motors new

launches like Aria
and the new 2011
Safari to regain its
lost market share.
Tata is looking at
doubling SUV
annual volumes to
over 70,000 units
in the next 12-18
months, including
exports.
Tata Motors is set
to offer utility
vehicles at
every price point
right from Rs. 6.5
lakh to Rs. 15

BLUE OCEAN STRATEGY

Red Ocean

Blue Ocean

Compete in the existing market

place

Create unconsolidated market

space

Beat the competition

Make the competition irrelevant

Exploit existing demand

Create and capture new demand

Make the value cost trade off

Break the value-cost trade off

Strategic choice of differentiation or

low cost

Strategic choice of Differentiation

and Low Cost

VALUE INNOVATION

Value Innovation is the

cornerstone of blue
ocean strategy.
Value innovation is the
simultaneous pursuit of
differentiation and low
cost.
Value innovation focuses
on making the
competition irrelevant by
creating a leap of value
for buyers and for the
company, thereby
opening up new and
uncontested market
space.

R&D STRATEGY

Tata Group companies cumulatively spend Rs.12,500 crore on

research & development.
knowledge-based engineering application software from Tata
Technologies that speeds up results.
An engine start-stop technology developed by Jaguar Land
Rover that stops an engine when the vehicle isn't moving, thus
saving on fuel;
High performance rail steel that saved 150,000 over five years
was developed by Tata Steel Europe
High standard steel for safer and fuel efficient vehicles from
Tata Steel Europe
The world's cheapest car, Nano, an innovation from Group
company Tata Motors, launched in April 2009, has 37 patents,
Swach, the cheapest water filter from Tata Chemicals, has 14.
Tata Steel, which acquired British company Corus in 2007,
meanwhile, files around 50 patents each year.

OPERATIONS STRATEGY

Jaguar Land Rover has re-hauled its supply

chain to secure cost savings as well as a
sustainability equation that gives the company
a green edge
A re-designing of process equipment at Tata
Chemicals' Haldia plant that cut process
downtime by 40%.

SUSTAINABILITY STRATEGY

Corporate Sustainability
(CS) is integral to valuecreation in our businesses
through the enhancement
of human, natural and social
capital complementing their
economic and financial
growth in order to give the
enterprise an enduring
future and also help create
and serve a larger purpose,
at all times.
It facilitates accountability
to all stakeholders as a
systemic practice.

SUSTAINABILITY IN MOTION

The two main sustainable strategies at

Tata Motors:
Pollution Prevention (P2)
Resource Recovery (R2)

P2 STRATEGIES

P2 or pollution prevention is a proactive strategy

that uses fewer or smarter resources to
begin requiring lesser cleanup at the final
disposal.
It is done by reducing or eliminating waste at the
source by modifying production processes,
promoting the use of non-toxic or less-toxic
substances, implementing conservation
techniques, and re-using materials rather than
putting them into the waste stream.
It assumes no waste will occur. It is an effective
getting more from less strategy.

Reducing packaging material by either using

sustainable packaging (replacing wood with
metal) or reusing existing packaging (recycling
wood).
The company recycles close to 69 percent of
the wood packaging thus eliminating use of
fresh wood.
Development of Vendor Park
The company aims to source 60% of its
components from the park thereby increasing
its resource efficiency and reducing its
emissions due to reduction in logistics and

R2 STRATEGIES

This is a getting more from the same strategy

where otherwise wasted resources are recovered
by way of proper disposal recycling or
reconditioning.
Increasing life of aggregates Recon
business
In 2010-11 a total of 13,788 engines and 8,690
other parts were reconditioned.
Other resource conservation techniques like
reusing engine oil for multiple testing cycles has
been employed.
A 200 litre engine oil barrel can now be used to
test 170 engines instead of 85.

Reusing paint sludge and thinner

Last year, approximately 390 tonnes of hazardous paint

sludge was converted to a low quality paint suitable for floor
painting.
Tata Motors has also developed a process to convert the
incinerator ash to pavement bricks that can be used in
walkways within the plant.
This model has been very successful and has significantly
reduced the amount of hazardous incinerated ash sent to
landfills.

Free Take-back network for Tata Motors ELVs (endof-life vehicles)

Under the End-of-Life Vehicle (ELV) regulations in the UK,
Tata Motors has contracted with a national ELV service
provider called Cartakeback.com Ltd. to provide owners of
qualifying Tata vehicles, who wish to dispose of their vehicle
at the end of its life, with access to a network of Authorised