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CASE STUDY:

TATA, The Name Speaks

Being the part of such a large TATA group is itself a competitive advantage. This affiliation provides the company with the

needed knowledge and technology resources for taking their business to various parts of the world.

Geographic Location

Being active and dynamic, TATA motors has competitive advantage for being located in India for the low cost labor base.

The company fully understands not only the Indian market but many emerging markets as well. The products are

manufactured at lower costs and sold to the new markets earning huge profits. India is known for least expensive

automobile parts which gives TATA a direct access. Moreover the policies and regulations in India are very favorable for

TATA for business expansion.

Innovation and R&D

The excellent innovation and research and development at TATA motors have created examples for the rivals. The company

has come up with the least expensive car model NANO which is one of its own kind and no other car manufacturer has ever

created such. This automobile has astonished the industry for its low cost and material and technology. The main

competitive advantage came from their remarkable innovation and development. TATA has various research centers

throughout the India working on the improvement of the engine efficiency, design, style and instrumentation of vehicles.

Mergers and Acquisitions:

Continuous growth and expansion is the company goal. TATA has successfully acquired various companies for breaking

into the foreign markets. While the company has delivered amazing results in domestic market, its subsidiary Jaguar land

rover has broken all the records of competitors as a top luxury automobile manufacturer. This mega expansion mode calls

for major product development, capacity capitalization and various national and international mergers.

Effective HR Management

The people strategy is lean and strong since ever. TATA has a very strong workforce base however it has cut off the surplus

staff recently in June 2017 as a part of organization restructuring and gaining a competitive advantage. The organization is

refreshed by changing the functions and locations of various employees. The staff is also provided necessary training and

skill development courses. The company gives utmost importance to dealer training as well to improve their productivity.

Few outsourcing activities like logistics and facilities management has also called up for downsizing of the workforce at

TATA.

Product Development

TATA aims to fulfill the emerging needs of the automobile industry by coming up with new range of products. These products

are manufactured with purpose of providing comfort, reliability, safety, capacity and value to the end customers. In order to

stay ahead of the competition, the company is going for huge investments in the area of product development. TATA Ace is

being introduced in commercial vehicle market for snatching the market share of its rivals. Another sporty vehicle Nexon

with both diesel and petrol engine is also attracting customers already.

Questions:

1. As the HR manager of Tata motors, explain how you would address the challenges faced by Tata motors.

2. Using both external and internal analysis evaluate the implications thereof on Human Resource Management.