Ratan Tata Case Study

1599 Words 7 Pages
ANS 1. Following are the challengers face by the Tata Motors-
1. Ratan Tata proposed the idea of delivering the car for the people in the year 1994. The total estimated time is for five years and planned to contact with more than fifty dealer for the distribution of the car all over the India. And also planned to book for 10000 car in the first slot and the 50000 car booking in the second slot. There were market competition prevailing at that time.
2. In the year when Ratan Tata announced about the launching of the first passenger car that is Indica, at that time there were three international car manufacturer competitor in the Indian market.
3. These were Maruti 800 that seems to occupy a very dominant place in the Indian market at that period
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Methods of overcoming these challenges
1. Ratan Tata mainly stressed on the fact of having the more coordination of activities on the value chain. He told to keep the aim on becoming the world class car manufactures rather than focussing on the area of improvement.
2. Ratan Tata gave the freedom to the engineers and designers so that they can produce a best car for their customer through the process of self-learning.
3. To develop the new technologies Tata Motors set up the engineering research centre in Pune.
4. In these centres the professionals do the work of development of design and vehicles and there is also the availability of tools, fixture and other capital equipment, which was not earlier available.
5. This led to the opportunity to reduce the price of the car. There was the establishment of machine tool division for the first time in the country by the Tata Motors. And also developed a computerized numerically controlled machine for the manufacturing purposes.
6. Tata Motors took the help from the well know car designer IDEA for manufacturing and designing the car.
7. They also designed the two version engine one for diesel and other for the petrol. They also added the feature of multi point fuel injection technology for the petrol passenger
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Tata Motor established the supplier quality improvement team this involves a thirteen step quality improvement programme which helps in evaluating the suppliers at the beginning and also keep check on the design of the passenger car.
12. The skill of the all the working professional were converged which results in the low procurement cost and in the effective value chain configuration.
13. The vendors were divided into two tier for the purpose of supplying the quality components at the reasonable cost. Different vendors were fixed for the different assembly line. In the year 1997 Tata Auto Comp Systems was established to to encourage the entry of the international auto manufacturer in India so that they can get the component at the low price which will help in the reduction in the cost of the inputs.
With the time Tata Auto Comp Systems formed many joint ventures which helps in supplying the parts to the Tata Indica car. It also purchased the Australian plant firm Nissan which helps in getting the more technological parts to the Tata Motor.
14. Tata Motor focussed on the establishment of the strong supply chain network for the sales, service and to provide the spare part for the commercial vehicle in the India. There was the increment in the number of the authorized dealer of the spare parts across the

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