Page 246 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Strategic Management

Notes

Caselet Tata Motors: Banking on Smart Strategies

ata Motors is an Automobile Company in India and is a very high earning company.
Its revenues, reportedly, in the year 2008-2009 was 14 billions. But its achievements
Tdo not stop there. It is among the world’s top automobile companies, reportedly
the 4th largest truck manufacturer.
The question that many may ask is, “What can we learn from such a large company, with
such great profits?” The age old statement, “Success often leaves traces” may be appropriate
to add in this junction.
With 23,000 employees what is notable in Tata Motors approach is the fact that it’s marketing
approach is novel and founded on clear cut internet marketing guidelines. One only has to
go to the Tata Motors website to find that it integrates multiple media outlets in its
marketing approach. From its use of flash to its sleek website design, the company uses
what is essential to great profits, innovation.
Innovation is simply the process by which companies increase their profitability in the
marketplace by staking out a position that other companies in the market can’t do. It clears
out space in their prospect’s mind as to what their company is able to offer them that no
other company can.
For Tata Motors- excellence in service and presentation- is the perception that comes to the
prospect’s mind, for others it may understanding a customer’s family needs for a car.
Essentially what Tata Motors has done is they’ve brought a new range of value to their
market by bringing media and technology that have not been overemphasised by their
competitors so that they could carve out an unshakable space in the minds of their customers
and thus lead to increased sales.

Source: www.prlog.org

13.3 Operational Plans and Policies

Operations management is the core function of any organisation. This function converts inputs
(raw materials, supplies, machines and people) into value added outputs. Operations management
covers all manufacturing processes in an organisation and includes raw material sourcing,
purchasing, production, distribution and logistics. This function contributes to the organisation’s
ability to add value to the goods and services.

13.3.1 Importance of Operational Strategy

The key to successful survival of an enterprise is how efficiently the production activity is
managed. The two major factors that contribute to business failures are: obsolescence of the
product line and excessive production costs. These factors themselves have been the outcome of
ineffective production Planning.
Operations strategy plays a crucial role in shaping the ultimate success of a firm. It enables an
organisation to make optimal decisions regarding product, production capacity, plant location,
choice of machinery and equipment, maintenance of existing facilities and host of other aspects
of production. Constant review of production plan aids in maintaining proper balance of capital
investment in plant, equipment and inventory; efficient operation of the production system,
product mix, Quality control; and ensures effective material handling and Planning of facilities.

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