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 p’s)

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.

  Tata company Acquired company Country Stake acquiredJanuary2011

Tata Communications

BT Group's (BT) Mosaic business

UK 100 per cent

August2011 Tata Chemicals EPM Mining Ventures Canada 30.6 per cent

 December2010

Tata Chemicals British Salt UK 100 per cent (wholly-owned)

January2009

Tata Communications

Neotel South Africa 30 per cent

March2009

Tata Global Beverages

Grand Russia 33.2 per cent

June2008

Tata Communications

China Enterprise Communications Limited (CEC)

China 50 per cent equity interest

August2008

Voltas Rohini Industrial Electricals India 51 per cent

January2007

Tata Steel Corus UK 100 per cent

ACQUISITION’S

•Tata & Fait since 2006•Tata & Starbucks 50/50 JVStarbucks 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 SATata Africa Holdings through a joint venture between Accordian Investments and the Imperial Group, to market and distribute Tata vehicles in SA.

JOINT VENTURE

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 Tata’s.

The pharmaceuticals companies of the Tata’s- Merind 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 non- competitive 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 lakh.

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.

OPERATION’S 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 value-creation 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 transportation.

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 (end-of-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 Treatment Facilities (ATFs).

Akshay AggarwalDeepanshu ChaudharyPreeti MadanGaurav AnandAbhigyan Bakshi