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1. Leadership Perspective Group 4 Amal Dev Alex Anjuleen Aparna
Jeby Moksha Case Study Analysis Planning Hurdles for the $2,500
Nano Car
2. Introduction The Tata Nano is a city car manufactured by
Tata Motors. 50 miles per galoon car was designed to lure India's
burgeoning middle classes away from two-wheelers, it received much
publicity. After having successfully launched the low cost Tata Ace
truck in 2005, Tata Motors began development of an affordable car
that would appeal to the many Indians who ride motorcycles. The
Poor mans Car Rs 1 lakh. Caught attention of Hyundai and Renault to
make low cost cars.
3. A car that is available for just $2,500 or a little over one
lakh Indian Rupees was under investigation by Tata Motors due to
reports of electrical fires. There are reasons for its failure. The
problems all began when there was an agitation and the plant at
Singur had to be closed down.
4. Problems Faced Cars introduction came when the companys
earnings fell in mid 2008. Stock price was hurt after acquisition
of Jaguar and Land Rover. The rise of price of Raw materials. 40000
protestors in singur complaining about abduction of farmer lands.
The company had to shift the Nano project to Sanand in Gujarat on
October 3, 2008, following intense protests against acquisition of
farrmlands, led by Mamata Banerjee's Trinamool Congress. They
demanded that the land should move back to the agriculturists and
giving the money which they had paid at
5. Contd.. The relocation lead to delay of the Nano Car.
Availability of labours in Gujrat is less when compared to Kolkata.
Postpone of the release of Nano made competitors bad mouthing the
NANO.
6. Major Drawback Crash safety In 2014 a Nano was crashed for
NCAP by ADAC in Germany. Despite Tata's claim that it was expecting
4 stars, the Nano actually achieved zero stars. Key Concerns Safety
Emissions Congestions
7. OVERCOMING THE PROBLEMS OF TATA NANO JAGUAR,LAND ROVER
ISSUE: The move was also a significant departure for Tata Motors,
which, until then, had experience mainly in making trucks and
commercial vehicles. Well, three years on, sales of Jaguar Land
Rover, under the Tata group, have made a spectacular rebound. By
the end of March 2011, 80 percent of Tata Motors' $2.04 billion
annual profit came from the JLR unit alone. NO CHALLENGE FOR NANO:
No other car manufacturer in India has come close to matching the
aggressive pricing of the Nano. UPGRADED VERSION AND NEW
ADVERTISEMENTS: They had a good marketing strategy that reached
millions of customers. CHANGE FROM PETROL TO DIESEL WHEN PRICE OF
PETROL INCREASES.
8. Conclusions and Learnings Wrong planning and demand
forecasting was a major mistake committed. Tata's business model
fits to push type model, mass production. According to this model
the sequence is: design-make-sell. Tata failed at the design stage.
We have seen that all the reasons for failure are already at this
stage (raw materials, European standardization, the use of diesel
and non matching infrastructure). Once planning fails, the sequence
is broken, causing a drastic drop in sales and the failure of Tata
Nano project.