Question

Tata motors organisational structure essay

Answer 1

2001 witnessed one of the most marked turnarounds for an Indian automobile company in the history of Indian automobile manufacturing on market. The company is Tata Motors and it was the M.D. Ravikant who played a major role in the process of change. That the turnaround process has been successful is evident in the fact that Tata Motors ranks as the fifth largest manufacturer of medium and heavy trucks in the world. In the Indian market, Tata Motors ranks second in the passenger vehicles segment. The company also has significant stakes in former Soviet Republics, the Middle East South Africa, South Asia and Turkey. There also have been takeovers such as that of Daewoo's commercial vehicle business in South Korea and a 21% stake in Hispano Corracera, the Spanish automobile producer. The commercial-vehicle market in India shrank by more than 40% for Tata Motors. The 5 billion rupee loss in 2001 triggered off a rethinking within the organization. A recovery strategy was planned upon and the path towards a better future was chalked out in three phases-each of which would last two years. Phase one looked to stop the damage. Cost reduction was on the cards. This was going to be a huge challenge as the company had been till then operating in seller's market and used a cost-plus approach to pricing. The second phase looked at consolidating the company's position in India, and the third phase would look at global markets and international expansion.