Question

What is the risk mitigation matrix for an automotive company in India in relation to politics, economic, social, operations & Supply chain?

The answer should cover each category in Opportunities, external threats & Action for the above types.

Answer 1

Selected companies- Tata Motors

Doing business in India can be very complicated as India has passed availability of different regions and customer segment. This makes India a bit difficult place to do business in an automotive industry.

Tata Motors is one of the biggest brand in India in automotive industry. Tata has been dominating the indian marketing industry as one of the most cost effective automakers in India. Tata Motors solely manufacturers in India and export its vehicles to other countries as well. Tata Motor has been in collaboration with fee at as well as ford. Fiat and Tata share their manufacturing facility inside India and tata has purchased Jaguar as well as Land Rover which are now part of Tata Group. Tata Group is considered as one of the most ethical companies across the globe and have higher ethical standards.

PESTLE analysis of Tata Motors are as follows

• Political factors

Tata Motors has been facing extreme political opposition from the government. A fine example is tata Motors Singur plant from where it hard to be moved to Sanand. The plant was supposed to provide jobs to so many local residents but as the plan is moved to Sanand there is no development in singur. Government always promised the residents about proper development but it never happened. This is specific factor influence the overall abilities of Tata to provide jobs to the society.

Data has been widely influenced by this political factor and as move there manufacturing facility from Singur to Sanand. While building the cheapest car of India, 'tata Nano', company has also faced discrimination by its competitors as well as the read it as a publicity stunt by many of the political parties.

• Economic factors

Data has been a very stable company since last few decades. By having extreme investment in different fields and sustainable running all these fields have created Tata a better company as compared to their competitors. Tata has been very ethical towards the society as well as India. Acquired Jaguar Land Rover bring these premium companies from the least profit generating companies to the highest profit generating companies for Tata Group. After buying Jaguar, Land Rover tata invested in to reforming of the strategic and planning as well as marketing planning for these companies and have bring them to profit. This specific incident helped Tata to build a new image in the society as well as in the automotive industry with an strong economic background.

• Social factors

The most ethical companies in India as well as the world. Tata has been widely investing in social issues as well as provision of development and education to the rural areas of India. Data School of conduct directly ensures that each and every task which Tata is involved should be ethical and provide a Basic support to the society. By maintaining this ethical position in the society Tata has built its brand image as an ethical brand towards the Indian industry.

• Technological factors

Tata has been successfully set up research and development centre in United Kingdom by the name of Tata Motors European Technical Centre. Tata has been a highly efficient in terms of investing in technology and maintaining the technology for a long time. By implementing new strategies into the manufacturing facilities Tata has successfully gained an edge over its competitors and Tata is directly providing competition as the one of the most ethical companies across the globe.

• Environmental factors

Tata has been in controversies for introducing Tata Nano into the indian market. Binded using a large number of vehicles in the Indian market as projected has the cheapest vehicle available in the world. This specific vehicles will produce additional pollution and using the cheapest available material for creating a GPS vehicle is also a bigger problem has the filtering capability of those cheaper materials would be reduced. This is specific term has cashed eyes of different news channels as well as Other industries by providing them I'm better for discussion over environmental issues regarding the Tata Nano built by the company.

• Legal factors

Most of the manufacturing facilities of the Tata Motors says strike as the employees of the specific manufacturing facilities demanded add better wage as well as better facilities regarding health care and insurance. This is specification was rectified by Tata Motors by implementing your plans as well as new strategies into their work culture to provide better support to the Employees.

Operations and supply chain have water availability of different Logistic options such as per train routes as well as Road connectivity. Each and every place inside India is connected by a good network of highways and proper rail network which makes it more efficient to transport vehicles from the manufacturing facility to the customers.