Essay on Strategy and Structure of Tata Motors

1786 Words Jun 15th, 2013 8 Pages
Introduction
As we all know, strategy and structure is one of the most fundamental and significant part of an organization. Strategy and structure is come up by planning process during processes of management in organization, therefore, it is not possible to ignore how well an organization in determining its mission and goal, planning appropriate strategies and structures of organization and implementing these strategies.
Strategy is the direct result of decision making and structure is the indirect result. Nevertheless, both strategy and structure is the result of decision making by managers through analyzing the organization and market, segmenting markets, selecting market, positioning themselves and using resources to implement the
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Tata Motors concentrates on most customers’ needs, that means, Tata Motors is going to produce more products to satisfy low and middle classes’ needs, such as providing low price products.
Low-end level: Tata Motors is a fast leaner in globalizing, absorbing lessons from other companies in innovation. Benchmarking is one of the effective method to learn from other companies, for example, when purchasing brand of JLR from Ford, Tata Motors not only purchase the authority of usage of JLR but also acquire the product line of JLR so Tata Motors learn how to produce SUV cars from this investment.

(source from Tata Motors, 67th Annual Report 2011-2012)

Short-term strategies
In 2008, Tata Motors purchased two world car brands- Jaguar and Land Rover from Ford Motors for US$2.3 billion and started to make JLR to be the main business of Tata Motors(Richard, L, 2009). As JLR is one of the most famous brands in the world, the investment made by Tata Motors gained both advanced products and high reputation all over the world.
In 2008, there was one car called “Nano” to be produced by Tata Motors, which only costs US$2000. This product turned to be the main products to large and low-price car market both in India and other developing countries. Obviously, Tata Motors’ targeting market is mainly low-price markets in developing

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