Tata Motors was established in 1945 with one-year grosss in surplus of USD 10 Billion. and they are known to establish the first $ 2000 auto of the universe ( Tata Nano ) which has been in universe intelligence really late. They are the first Engineering Sector Company from India to be listed on the New York Stock Exchange. They are the no. 1 vehicle makers ( particularly autos and trucks ) of India and have impressive export records every bit good. In footings of size. they are much smaller compared to
This thesis is dedicated to Strategic Analysis techniques of Tata Motors. the strategic ratings like Michael Porter’s Diamond Model. SWOT Analysis. Balanced Score Carding. etc. are of great involvement to both internal and external investors.
The Tata Group was founded in 1868 when India was under British Empire. The group formed their fabric concern in 1874 and Steel fabrication in 1907. In 1945. Tata Sons Limited started the automotive concern with fabrication steam engine boilers after buying the stores of East Indian Railways from Government of India. which was under the British Government in that twelvemonth. After buying these stores. the Tata boies decided to set up Tata Engineering and Locomotive Company Limited ( TELCO Limited ) and set up the primary fabrication installation in Jamshedpur ( an industrial metropolis in Eastern India ) . This company was managed by J. R. D.
Tata from 1945 to 1973 and by Sumand Moolgaokar from 1973 to 1988. Sumand established the 2nd fabrication installation in Pune India looking into the roar in the car market. In 1991 Ratan Tata took over the Tata Empire from his uncle and moved the Tata group out of the sectors where they were non really competitory – like Cement and Textiles. Today. Tata’s largest fabrication concerns are Steel and Motors after the consolidation carried out by Ratan Tata. As on terminal of fiscal twelvemonth 2008. the Tata Group has an one-year turnover in surplus of $ 30 Billion out of which more than $ 9 Billion is contributed by Tata Motors. TELCO Limited is now widely known as Tata Motors that is among the world’s top five makers of medium and heavy trucks and world’s 2nd largest maker of medium and heavy coachs.
Tata possess a strategic battle with Mercedes Benz for piecing and selling Mercedes Benz commercial vehicles and rider autos in India. Another strategic tie up that they possess is with Cummins refering to their Diesel engines through Tata Holset Limited. In fact. Tata Motors contributed to the Cummins Diesel engines by adding turbo coursers on them vide their joint fabrication operations with Tata Holset Limited.
The lone partnership of Tata that didn’t go good was with Rover Group of Britain that went insolvents in twelvemonth 2005. Tata tried come ining the European markets through a theoretical account named City Rover that faired ill due to its negative promotion. higher monetary value and hapless quality compared to the competition.
Ratan Tata is now 70 old ages old but still presents the image of a dynamic. advanced and radical enterpriser. He is known for high aggressive moves for the benefits of Tata Motors clients. In 1997. Tata Motors launched its first indigenously developed auto named Indica that presently possesses more than 15 % of the auto market portion in India.
The other auto theoretical accounts of Tata Motors that are popular in India and some markets of Asia are Tata Indigo. Tata Sierra. Tata Sumo and Tata Safari. In 2008. Tata achieved a planetary promotion due to two major activities that made headlines worldwide. In the Geneva Motor show they presented their four-seater little auto named “Nano” priced about $ 2500 which is expected to be the cheapest auto of the universe.
In March 2008. Tata Motors acquired the two globally esteemed companies – Jaguar and Land Rover from Ford Motor Company. It is assessed that Tata Motors did so to accomplish a new image of a planetary automotive company like Ford Motor Company given that their concern span has mostly remained autochthonal within India for a long clip.
Strategic Framework of Tata Motors:
Tata Motors is certified as ISO 9001:2000 compliant in Quality Management System and as ISO 14001:1996 compliant in Environmental Management System. Hence. they possess planetary acknowledgment in best patterns that strengthens their stigmatization at a planetary degree ( hypertext transfer protocol: //www. tatamotors. com/our_world/awards. php ) . They are known to be really much client focused and are really witting about the fitment of their merchandises for client demands. They believe in uninterrupted inventions as they keep on let go ofing new inventions in their existing theoretical accounts. Although the autochthonal autos of Tata Motors do non compare with the technology excellence of a planetary participant like Ford Motor Company. they are good suited for Asiatic conditions where the comfort factor is more of import than cruising at high velocities.
Reappraisals by Indian Motor sites reveal that the Tata Motors Indica & A ; Indigo theoretical accounts possess sulky public presentation of engine in footings of velocity and public presentation but are good in footings of fuel efficiency. maintainability. internal infinite that are more of import factors given the route and traffic conditions in India. This reveals that Tata Motors have focused on the local conditions of the state and have designed autos that are more suited for client demands instead than enforcing extra but useless technology on them. Example. there is no point planing a auto that can run at 100 stat mis per hr if the maximal velocities that can be achieved even at best roads is 70 stat mis an hr.
One of the major success factors of Tata Motors are their supply concatenation excellence. The full universe is surprised by the launch of Tata Nano that shall be priced at 1 hundred thousand about. An analysis by Fogarty. Justin ( 2009 ) reveals that Tata Motors could perpetrate this monetary value to the industry due to their first-class backend supply concatenation web. Tata Motors worked really early with their providers in geting at the cost estimation of the auto – to the extent that even the functional specifications of the parts were completed much before even speaking about the auto to the markets. Tata Motors uses Ariba spend direction solution as reported by Business Wire in 2005. Ariba is a package based platform that helps in cut downing bottom line costs well. Tata Motors is a modest company when it comes to disbursement because one of their primary aims has been accomplishing highest operational efficiencies at lowest costs. Tata Motors extensively uses Information Technology to back up their concern aims.
They possess Computer Aided Design and Computer Aided Modeling engineerings. Siebel for Customer web direction. SAP for supplier relationships and supply concatenation direction. concern logistics direction. client relationship direction. human resources direction and Finance direction. They besides use BMC Software for concern services direction under the ITIL and ISO 20000:2005 model. The IT systems of Tata Motors limited are outsourced to their group company named Tata Technologies Limited. The BMC tools help them to pull off IT services direction. IT alteration direction and besides to follow with critical statutory Torahs and best patterns like Sarbanes Oxley Act. ITIL. and ISO 20000:2005.
Tata Motors do hold the basicss to play the function of alteration agent for some of the major alterations in the planetary car industry. Historically. Tata Motors have non done good in come ining the motor markets in western states and hence this acquisition presents an first-class chance for Tata Motors to set up their presence in UK and European auto markets. Jaguar and Land Rover may non hold done good in the recent yesteryear but they have remained the pride and heritage of Great Britain and are really near to bosom of the native British citizens. Tata Motors may merely hold to use some proficient inventions in these autos and re-price them harmonizing to the modern economic sciences and these theoretical accounts for certain will once more make admirations in the UK markets. One good thing about this acquisition is that the heritages of India and Britain have many common links including the really constitution of Tata Group that was done during the British regulation in India.
The basicss of Tata Motors possess many best patterns of the British industries and hence the employees of Jaguar and Land Rover will be able to easy correlate the civilization of Tata Motors with the original British heritage although these organisations have remained under American influence for so long. The biggest gamble that Tata Motors is presently playing is the Tata Nano targeted at urban in-between category that are yet to afford a auto and have been traveling on Motorcycles. Tata Motors have priced this auto at $ 2500 about which itself is a challenge for them to carry through. They have already made a loss of more than 300 Million Dollars because they had to switch their full works for Tata Nano fabrication from a location called “Singur” in the eastern portion of India amidst local perturbations and security jobs
The current fabrication capacity of Tata Nano is 50. 000 autos per twelvemonth whereas Brown. Robin ( 2009 ) of motortorque. com expects a engagement of 500. 000 units in the first batch itself. This means that in the current capacity Tata Motors will take 10 old ages to carry through the orders of first batch itself. After the Singur crisis. they are in the procedure of puting up a new mill such that the combined end product of Tata Motors can be 250000 autos per twelvemonth which once more will take two old ages to carry through the engagements of the first batch itself. Hence. Tata Nano is traveling to be a major challenge for Tata Motors whereby they would necessitate to sharply deploy new workss although they are staggering under hard currency crunch due to their acquisition of Jaguar and Land Rover in 2008. Hence. overall it is a “do or die” state of affairs for Tata Motors – if they win they will achieve the position of no. 1 little auto maker of the universe ; but if they fail they would lose repute in the planetary markets for good.
Tata motors one of India’s largest private sector companies with a turnover of over Rs 80 billion. is the country’s taking commercial vehicle maker and has important presence in the multi-utility and rider auto sections.
Tata motors were established on September 1. 1945. originally for the industry of Steam Locomotives at Jamshedpur. By 1954. the company had diversified into the industry of commercial vehicles in coaction with Daimler Benz. Germany. By the clip their coaction ended in 1969. Tata motors had become an independent manufacturer of Medium Commercial Vehicles with a great grade of indigenization. It had besides developed the capableness of planing. proving and fabricating such vehicles.
The widely successful Tata Indica. an Euro 2 compliant vehicle. is the country’s foremost indigenously designed. developed and manufactured rider auto. Tata Motors followed that up with the Tata Indigo. a saloon that was launched in December 2002. The company besides makes several other riders vehicles. including the Safari. Sumo and Sierra.
The company’s merchandises have received broad credence non merely in India but besides in the Middle East. Asia. Africa. Australia. Latin America and Europe.
Telephone company is into the concern of fabrication and merchandising medium. heavy and light commercial vehicles. multi public-service corporation vehicles and rider autos.
Its major merchandise line can be fundamentally classified into three wide classs. There are assorted sub-brands and merchandises in these classs:
1. Passenger Cars
2. Utility Vehicles
3. Commercial Vehicles
OBJECTIVES OF THE RESEARCH
Research Methodology: –
In the modern concern universe. company rating is non merely needed for amalgamations & A ; acquisitions but besides to show the strengths and basicss of the company to the interest holders and investors. The stock markets in many companies use such rating informations to delegate evaluations to a company – get downing from “very risky to invest” to “very safe to invest” . These analytics are published after transporting out structured mechanisms of company analysis as would be presented theoretically in the Literature Review. These mechanisms can be demonstrated by analysing practical scenarios which shall be carried out by showing the instance surveies of Tata Motors based on the published rating studies of by these companies every bit good as multiple 3rd parties.
The studies of the instance surveies shall be analyzed to show decisions about the strengths of the company and the hazard factor from the position of prospective investors in the stocks of the company or possible purchasers of the full company.
However the position shall be academic and may non be applicable for professional intents. The mentality of the following five old ages for the chosen companies shall be done based on academic apprehension of Strategic and Financial rating techniques. It is assumed that all the analytics techniques shall be applicable in excel sheets and no particular package tools shall be required. Not all ratings are of involvement to everyone. We assume that Internal Investors may be interested more in DuPont Analysis. Book Value. Replacement Value. Liquidation Value. Replacement Value. etc. while the External Investors may be interested more in Economic Value Addition. Weighted Average Cost of Capital. Discounted Cash Flow. Market Multiplications. etc. Besides. Balanced Score Carding and Michael Porter’s Diamond Modeling may be of involvement of Internal Investors while external investors are interested in SWOT analysis.
The proposed information beginnings are:
( a ) Websites of Tata Motors( B ) Parquets UMI( degree Celsius ) Academic Papers written by Students and Professors( vitamin D ) Books by Michael Porter and Kaplan & A ; Norton( vitamin E ) Motor Industry Analytics web sites( degree Fahrenheit ) And other CBS Library resources
Analysis and Interpretation:
5. 1 SWOT Analysis of Tata Motors:
Having presented the SWOT analysis of Ford Motor Company. we now analyze the SWOT model of Tata Motors. As mentioned above. Tata Motors prioritizes chances and physiques their competences around them. Their proclamation of Tata Nano is an first-class illustration where they have launched the theoretical account and opened engagements much in front of constructing their fabrication competences to run into the demand non caring about the issue that they will stop up roll uping a immense backlog of client orders [ Brown. Robin ( 2009 ) ] .
5. 1. 1 – Tata Motors Strengths:
??Excellent trade name equity and strengths in Indian Market??Legacy and Dignity of Tata trade name heritage which is about every bit old as Ford Motor Company??Sound planetary acknowledgment in light trucks and coachs??Sound basicss in turbo Diesel engines that they developed in joint venture with Cummins??Sound presence in Asiatic Markets?Ownership of the heritage of British motor trade names – Land Rover and Jaguar
?Strategic tie up with Mercedes Benz which is one of the hottest autos in premium auto market section in India?World category quality accreditations ( ISO 9001. ISO 20000. ISO 14001 )?Excellent cost direction model ( Ariba Spend Management )?Excellent Supply Chain Management utilizing the SAP model?Experienced. high quality. productive and low cost work force
??Ownership of some of the largest car fabrication workss of the universe??Diversification strengths due to other big concerns of Tata Group??Excellent fiscal strengths – near to $ 10 Billion of one-year grosss
?Sound Parent Group support – Tata Group one-year turnover is in surplus of $ 30 Billion
5. 1. 2 – Tata Motors Weaknesses:
?Never done good in US. UK and European auto markets ( although done moderately good in light trucks and coachs ) – as presented earlier. they failed miserably in their City Rover launch in Europe ?Not yet prepared basically to manage the planetary markets of Land Rover and Jaguar ?Weak proficient competences when compared to companies like Ford Motor Company ?Current Manufacturing capacities non adequate to run into the demands of Nano – already taken a hazard of over committedness and under bringing pertaining to the Tata Nano economy-car. ?Perceived as excessively Indianized – it will take them a long clip to set up a planetary stigmatization ?Do non possess localisation accomplishments outside India markets – this is one of the primary grounds for their failure in the City Rover venture ?Focus is more on cost – therefore their auto theoretical accounts lack advanced characteristics that are common in western markets
5. 1. 3 – Opportunities for Tata Motors:
??Gain control over UK and Europe markets by re-enforcing the heritage of Jaguar and Land Rover??Deep roots of British manner fabrication procedures given their ain heritage of the British regulation in India – can assist them make better with Jaguar and Land Rover ??Introduce Asiatic discrepancies of Jaguar and Land Rover by advancing their “Power Icon” stigmatization – this may work really good with Asiatic politicians. Capitalists and Bureaucrats ??Develop more joint ventures like Tata – Mercedes Benz and present their autos in the Asiatic markets ??Tata Nano has taken the universe by surprise whereby many economic system auto makers of the universe are yet to even believe of such a inexpensive auto ?Excellent trial thrusts and experience studies of Tata Nano can ask for attending of urban in-between category at planetary degree – if they build their fabrication and supply concatenation efficaciously. they have the chance to virtually capture the market section which doesn’t even exist in the universe – a market of $ 2500 autos ( many motorcycles are more expensive than this auto which is broad plenty to suit four six pess tall people )
5. 1. 4 – Menaces for Tata Motors:
?Jaguar and Land Rover requires batch of financess ab initio which may deprive down the company to cashless degrees.
?The Singur crisis has already hit their fabrication anchor for Tata Nano autos –the company has non yet come out of the run outing down of hard currency in surplus of $ 300Million. ?Urgency in switching the Singur works to jump topographic point has hit their supply concatenation really severely – a big figure of providers had established workss in Singur to back up Tata Motors – many of them may non be holding adequate hard currency to switch to new location of Tata Motors Nano works. ?Many companies across the universe are busy developing their ain theoretical accounts of Economy Cars – they may establish in competition with Tata Motors giving them tough clip in the market that presently seem to be monopolistic in favour of Tata Motors.
5. 3- Analysis of Tata Motors as per Michael Porter’s Five Forces
Model that form Industry Competition.
In 1980. Michael Porter presented the five forces that shape competition in the industry for any concern organisation as – Rivalry among bing rivals. menaces of new entrants. dickering power of providers. dickering power of purchasers. and menace of replacement merchandises or services. These forces determine the competitory place of organisations in the markets of their operations. We hereby present a brief debut about this theoretical account and so find the competitory placement of Ford Motor Company and Tata Motors with the aid of this theoretical account.
Figure 4: Porter’s Five Forces Strategy that Shape Competition
One of import observation that Michael E Porter made about these forces is that if these forces are intense so about no company additions distinguishable competitory advantages and earns attractive returns on investings. The menaces of new entrants and replacement merchandises and services are prevailing in industries where major inventions are afoot that can potentially do originative devastation of the bing merchandises and services. New entrants ever enter the markets with a desire to capture market portions rapidly and therefore be given to set batch of force per unit area on merchandise pricing therefore cresting the net income potency of the market.
Hence. the bing participants in the market profit out of the barriers to entry of new participants that basically comprise of – supply and demand economic systems of graduated table. provider exchanging costs to clients ( particularly when the clients have invested to a great extent in solutions compliant with supplier’s engineering or are really much used to the same ) . capital demands. entree to distribution channels. restrictive authorities policies. etc. The other two reconciliation forces are dickering power of providers and purchasers. The dickering power of purchasers shall be lesser if competition is less given that clients will non hold many picks for buying merchandises. However. the dickering power of providers is higher in instance of lesser competition given that lesser competition will non develop the provider web ( and their common competition ) and hence they will be given to hold more bargaining power.
Ferrier and Smith et Al ( 1999 ) stated that companies that pose complacence in their attack tend to lose market portions to their more aggressive and active opposite numbers. They observed that some industry leaders tend to gnaw their ain market portions through new inventions that carry out a typical Schumpeter’s originative devastation of their bing merchandise market portions. This is carried out to guarantee that they reinforce their market portions with new inventions and improved client value before new entrants tend to make so.
Maping the planetary market landscape of motor industry. the menace of new entrants is highly high because there are a big figure of high quality regional motor makers across the universe that are working towards come ining new markets across the Earth. The phenomenon of Nipponese companies come ining US markets and giving tough times to native participants like Ford Motor Company is witnessed by people all across the universe. The Nipponese companies like Toyota have introduced replacement merchandises in the US. UK and European markets and have eroded market portions of Ford Motor Company given that they ( likely ) were more aggressive and advanced than Ford Motor Company in these markets. Tata Motors is one such company that is all set to come in planetary markets and pose menaces to the local market participants with their new inventions ( like Tata Nano ) . Their Nano theoretical accounts can kill local competition of low cost autos in many states if they are able to keep the technology excellence that they have been able to show in the trial thrusts.
They have mostly been able to command the bargaining power of providers by virtuousness of first-class supply concatenation direction in the backend and hence are able to offer incredible monetary values to their clients non allowing any room for them to dicker. Currently. Tata Motors are confronting some barriers to their entry in many markets – like the emanation norms of European Union – but they are bit by bit working on the redresss without consisting much on their local cost advantages
5. 4 – Ansoff Analysis of Tata Motors.
Ansoff. H I ( 1958 ) developed a matrix to analyse the merchandise selling scheme of an organisation when planing a theoretical account for variegation. Following is the image of original study of the matrix drawn by Ansoff himself:
A simpler signifier of Ansoff merchandise selling scheme is presented below:
Simplified position of Ansoff theoretical account
Each of these quarter-circles describes a specific merchandise selling scheme as detailed below:
?Existing merchandises to be marketed in bing markets – market incursion scheme ?New merchandises to be marketed in bing markets – merchandise development scheme ?Existing merchandises to be marketed in new markets – market development scheme ?New merchandises to be marketed in new markets – variegation scheme
In order of hazards. the scheme based on bing value ironss of organisations possesses lowest hazards while the scheme necessitating deployment of wholly new value ironss by organisations possesses highest hazard.
Therefore marketpenetration strategiespossesslowestrisksassociatedwith the execution but variegation possesses highest hazards associated with the execution. If we take a closer expression at the schemes of Ford Motor Company and Tata Motors and map with Ansoff matrix. we can easy reason that the Ford Motor Company is using schemes holding lowest hazard although they are paying highest monetary value for the same whereas Tata Motors is using schemes with highest hazards and hence is in a brand or interrupt manner. We present the undermentioned analysis for warranting this decision:
Tata Motors is presently implementing high hazard schemes given that they have attempted to come in two new markets where they do non possess any expertness – UK and European premium auto markets with the aid of Jaguar and Land Rover and the $ 2500 Nano auto that may wholly develop a new auto market globally. If things favor them. they have the potency to go the following Ford of the universe but if the occurrences do non prefer them ( like the Singur crisis witnessed by them ) . so they can endure losingss that will take decennaries for them to mend.
5. 5 – Balanced Score Card Analysis of Tata Motors.
Kaplan and Norton ( 1996 ) developed the balanced mark card scheme to measure the public presentation of concerns by virtuousness of their internal competences measured through cardinal public presentation indexs ( KPIs ) . The balanced scorecard is presented in the figure below:
The Balanced Score Card System for Vision and Strategy
The scheme is based on four primary factors that balance each other in a strategic model – Customer. Financial. Internal Business Process and Learning and Growth. The Customer and Financial position is the manner the company appears to the clients and the Stake Holders whereas the Internal Business Processes and Learning and Growth position is the manner the company appears to the internal employees and directors.
This thesis will ensue in elaborate fiscal position of Financials and Customers and hence we will revisit the Balanced Score Card subsequently in the thesis.
The internal concern procedures and larning and growing position has been rather sound in both Ford Motor Company and Tata Motors but the positions have been wholly different. Ford Motor Company has focused on localisation of merchandises at a planetary platter whereby they keep their parts supply concatenation centralized and assemble autos as per the local demands of a part after analyzing the demands. This has resulted in they able to present different discrepancies of autos as per the demands of different states utilizing the same spares supplied by their centralised supply concatenation seller. Hence. the internal acquisition and growing of Ford Motors has been really comprehensive with localised cognition captured from assorted states and the benefits of planetary cognition and experience efficaciously assorted with the localised cognition.
Tata Motors appear to be far behind this scheme as compared to Ford Motors but they appear to be taking the same way towards globalisation. They have developed Nano as per Indian conditions to get down with but are ready to fit the localised conditions required at the planetary degree – like the rigorous emanation norms of Europe. They already have their little trucks ( Tata Sierra ) operating in UK which must hold developed their cognition on UK and European market demands. Furthermore. after the acquisition of Jaguar and Land Rover their cognition will be strengthened further. They already have the rudimentss in topographic point to use the cognition in Nano and it may be merely a affair of clip that they will be able to accomplish conformity for Nano against the ordinances of Europe and other states that they are aiming.
Tata Motors is comparatively new to vehicle fabrication concern and besides has been late listed on NYSE. They are non yet known for planetary inventions but possess a strong autochthonal market in India that they are seeking to utilize as a foundation to set up themselves into the planetary markets. They possess a strong. efficient & A ; low cost supply concatenation web localized in India but practically no supply concatenation at planetary degrees. Just like For Motor Company. Tata Motors besides possess trade name heritage in the signifier of Tata Group which is one of the oldest & A ; most successful industrial house in India. Very late. Tata Motors made headlines by geting Jaguar and Land Rover from Ford Motor Company and establishing the world’s cheapest auto called Tata Nano. However. in their local Indian market they faced a major reverse due to political perturbations when their Tata Nano fabrication works at Singur ( a topographic point in West Bengal which is an eastern province of India ) was shut down. This reverse has raised inquiries on the bringing Commitments of Tata Motors against the orders that they have booked indigenously and globally.
Presently they are at least one twelvemonth tardily in run intoing committedness of bringing of Tata Nano and therefore have already opened room for new entrants in this concern which may turn out to be black for them. Their fiscal mentality is looking to be strong with net incomes made every twelvemonth and dividend payments made on a regular basis. However. their hard currency flow prognosis places them at somewhat riskier place even at nominal price reduction rates although they are bound to be discounted at higher rates for clip being due to lesser information available on their market beta analysis. Overall. they are mostly equity financed but 2009 demands to be watched closely to analyse alterations in their Capital Structure. One of their major challenges is to run into European safety & A ; emanation criterions on Tata Nano because they have already failed one time in the European market and are non yet known for developing planetary autos and therefore have non yet built a sound planetary trade name equity. Hence. presently they appear to be an overambitious company whereby an effectual market candidacy of Tata Nano has brought them at a planetary platter but it appears that terminal of the twenty-four hours they may merely stop up capturing their local Indian market.
After a long enchantment of analysis. it is now clip to reason the thesis. As indicated in the beginning. the aim of this thesis was to measure assorted strategic analysis techniques and company rating techniques and so use them on the instance surveies of Ford Motor Company and Tata Motors.
The analysis started with history of the company and thenceforth the strategic analytics based on SWOT analysis. Ansoff matrix. Michael Porter’s Five Forces Model. Michael Porter’s Diamond Model. and Balanced Scorecard Strategic model have been carried out. The strategic model helped in sing in-depth strategic & A ; direction model of the company. This analysis helped in geting at an analytics that presented the wide position of their internal and external factors in the company.
Thereafter. the assorted rating techniques have been presented in this thesis. First the rating prosodies have been presented without traveling in deepness into the rating techniques and so an analysis of assorted theoretical analysis based on empirical generalisations have been carried out. The theoretical analytics have been carried out to get at statements on the capital construction of both the companies. their fiscal ratio ratings. their net present value analytics and some decisions on the hard currency related challenges of both the companies in the following few old ages.
After these analytics. the assorted rating techniques have been introduced and a general statement presented on which technique is suited for both the companies given their current scenarios. their standing in the market and the market kineticss. The theoretical literature aid well in set uping a sound theoretical foundation of a thesis which can be subsequently used to ticket melody the though procedure in the information aggregation. analysis of instance surveies. presentation of consequences. critical treatments and decisions. Furthermore. the empirical generalisations apply really good in theoretical foundation of the full analysis.
They have been simple in making logical decisions against the strategic analysis every bit good as ratings. In this research. the choice of the two companies was done based on some headlines that had rocked the UK and the full universe mostly – the sale of Jaguar & A ; Land Rover by Ford Motor Company to Tata Motors. This intelligence really gave us a hint that there shall be multiple links between these two organisations which shall be apparent once the strategic analytics are carried out efficaciously.
Strategic Analysis and Company Valuation are non easy undertakings for a pupil given that they are really complex even for seasoned practicians. The undertaking became even more complex as the two companies chosen are wholly from different geographicss with wholly different concern theoretical accounts and mark markets. Tata Motors have mostly developed merchandises as per Indian conditions and have non done really good in their effort to come in European markets although they have been making good in little sized trucks ( Tata Sierra ) in the UK markets.
Comparisons of strategic analysis and ratings of these two companies faired to be really hard given that multiple informations beginnings needed to be consolidated to make standardised information model. It eventually has been successful merely because of support from databases. money sites. 3rd party independent analytics and past scholarly articles. researches & A ; thesiss from the university library.
Aaker. David A & A ; Jacobson. Robert. The Role of Risk in Explaining Differences in Profitability. The Academy of Management Journal. 1987. Vol. 30. No. 2. pp278-279.
Allen. Terry and Rigby. Jim. Every Software Company Owner wants to cognize – How much is my company worth? . Southern California Software Council’s Scribe Newsletter. 2003. pp1-4
Ankli. Robert. E. Michael Porter’s Competitive Advantages and Business History. Business and Economic History. 2nd Series. Volume 21. 1992. pp230.
Anonymous Author. ( 2008 ) . Fair Value Accounting works good but is non perfect. The CPA Journal. Vol. 78. No. 7. ABI/INFORM Global. pp9.
Ansoff. H. Igor. A Model for Diversification. Management Science. Vol. 4. No. 4. INFORMS. 1958. pp394-395.
Ansoff. H. Igor. Strategic Issue Management. Strategic Management Journal. Vol. 1. No. 2. John Wiley and Sons. 1980. pp137-139.
Barry. Sion. ‘Extraordinary slowdown’ in gross revenues brings lbs 10. 2bn loss ; But Ford ‘is set to interrupt even in 2011’ . Western Mail. Cardiff UK. 2009. pp31-32.
Barth. Mary. E. and Cram. Donald P. et Al. Accumulations and the Prediction ofFuture Cash Flows. The Accounting Review. 2001. Vol. 76. No. 1. pp54-57.
Bedell. Denise. Ford Counters Global Risk. Corporate Finance. London. Iss. 197. 2001. pp1-2
Beranek. William. The Cost of Capital. Capital Budgeting. and the Maximization of Shareholder Wealth. The Journal of Financial and Quantitative Analysis. 1975. Vol. 10. No. 1. pp2-3. 17.
Beranek. William. The AB Procedure and Capital Budgeting. The Journal of Financial and
Quantitative Analysis. 1980. Vol. 15. No. 2. pp404-405.
Bodenhorn. Diran. A Cash-Flow construct of net income. The Journal of Finance. 1964. Vol. 19. No. 1. pp18-28.
Brown. Robin. Half a million orders predicted as Tata Nano eventually launches. MotorTorque. com UK. 2009.
Bunkley. Nick. Record Loss at Ford but no petition for assistance. International Herald Tribune. Paris. 2009. pp14.
Business: A Hard Lesson in Globalization – Lord Trotman and Ford. The Economist. London. Vol. 375. Iss. 8424. 2005. pp1-4
Chappell. Lindsay. Engineering Issues Vary by Global Market. Automotive News. Detroit. Vol. 79. Iss. 6141. 2005. pp1-2
Chatterjee. Sayan & A ; Lubatkin. Michael et al. Vertical Schemes and Market Structure: A Systematic Hazard Analysis. Organization Science. 1992. Vol. 3. No. 1. pp139.
Campbell. John Y. and Mei. Jianping. Where do Betas Come From? Asset Price Dynamics and the Beginnings of Systematic Risk. The Review of FinancialSurveies. 1993 Vol. 6. No. 3. pp571.
Connelly. Mary. Ford’s Formula to cut inducements: Make autos that people want to purchase. Automotive intelligence. Detroit. Vol. 75. Iss. 5912. 2001.
Dagiliene. Lina and Kovaliov. Ruslan et Al. The Applications of Financial Valuation Methods in Investment Decisions. Vadyba Management Journal. Vol. 2 Issue 11. 2006. pp1-8
Donelly. Tom and Morris. David. Restructuring Ford Europe. European Business Review. Vol. 15. Iss. 2. ABI/INFORM Global. 2003.
Dulman. Scott P. The Development of Discounted Cash Flow Techniques in U. S. Industry. The Business History Review. Vol. 63. No. 3. 1989. pp555-557.
Ferrier. Walter J. and Smith. Ken G. et Al. The function of competitory action in market Share Erosion and Industry Dethronement: A Study of Industry Leaders and Challengers. The
Academy of Management Journal. Vol. 42. No. 4. Academy of Management. pp384-386.
Fogarty. Justin. Tata Motor’s Nano – Its Real. Supply Chain Excellence. 2009. Retrieved on 4 April 2009. Available at hypertext transfer protocol: //www. supplyexcellence. com/blog/2009/03/24/tata-motors-nano- its-realso-how-did-they-do-it/
Preparing your concern for sale. Vantis Corporate Finance Limited. 2007. pp1-3.
History of Ford. Luxury On-Line. Duttondirect. com International. Retrieved on 23 March 2009. Available at hypertext transfer protocol: //www. duttondirect. com/history/view/make: Ford.
History of Ford in Britain – 1900 to World War II. Ford Motor Company. UK.Retrieved on 23 March 2009. Available at hypertext transfer protocol: //www. Ford. co. United Kingdom.
Hull. Robert M. and Avey. Nicholas. The Big Three of the Auto Industry – Analyzing and Predicting Performance. Mountain Plains Journal of Business and Economics. Pedagogy. Vol. 8. 2007. pp1-8
Kaplan. Robert S. and Norton. David. P. Associating the Balanced Scorecard to Strategy. California Management Review. Vol. 39. No. 1. reprinted by permission of Harvard Business School Press. 1996. pp54
Kaplan. Steven N. and Ruback. Richard S. The Valuation of Cash Flow Prognosiss: An Empirical Analysis. The Journal of Finance. 1995. Vol. 50. No. 4. pp1063. 1067.
Kranacher. Mary-Jo and Morris. Tom. ( 2007 ) . An Exclusive Interview with FASB Chairman Robert H Herz. The CPA Journal. Vol. 77. No. 11. ABI/INFORM Global. pp20-26.
Lamb. David F. Private Company Valuation and the Prospect Researcher. Blackbaud Analytics. Blackbaud Inc. 2007. pp1-2.
Ma. Sindi and MacNamara. Andrew. ( 2009 ) . When Fair Value is Not Fair. The CPA Journal. Vol. 79. No. 1. ABI/INFORM Global. pp10-11.
New auto gross revenues plunged 38 % last month. Daily Mail ( 2008 ) . Thisismoney. co. United Kingdom. portion of the Part of the Daily Mail. The Mail on Sunday. Evening Standard & A ; Metro Media Group. UK.
Owen. Geoffrey Sir. Don’t Shed excessively many Cryings when the last Ford rolls out of Dagenham. The Independent. 2002.
Palley. Thomas I. The Economics of Globalization: A Labour View. 24th Annual AAAS Colloquium on Science and Technology Policy. Washington D. C. 1999.
Crowbars. Ludger. The dialectics of car assembly programs and providersrestructuring and globalisation of the German “Big Three” . Universitat Des Saarlangdes. Allemagne. 2001.
Puting a value on Business. The Center for Financial. legal and Tax Planning. Inc. Retrieved on 13 February 2009. Available at hypertext transfer protocol: //www. allbusiness. com/print/6254992-1-22eeq. hypertext markup language. 2004.
Porter. Michael E. The Competitive Advantages of Nations. Harvard Business Review. 1990.
Tata Motors extends outsourcing partnership with Ariba. Business Publications. Business Wire. 2006. Retrieved on 4 April 2009.
Tata Motors Transforms IT Organization with BMC Software and Business Service Management. Ogilvy Public Relations Worldwide. PRLog. org. 2008.
Thomson. Donald J. Beginnings of Systematic Risk in Common Stocks. The Journal of Business. Vol. 49. No. 2. pp178-180.
US gross revenues decline by 36 % in December to round off tough 2008. Platinum Today ( 2009 ) . Johnson Matthey. US.