Question 1: ‘Nano Tata-Logy: The People’s Car’, walks through the…

EarlComputer6558 Question 1: ‘Nano Tata-Logy: The People’s Car’, walks through the…Question 1: ‘Nano Tata-Logy: The People’s Car’, walks through the development and marketing of Tata Motor’s latest automobile, the ‘Nano’. In the article we learn (in part) about issues the company encounters as it works to bring its newest car to market.  A.   Based on the reading, apply the PESTEL analysis to this organization’s problems with the Nano. Is using this analysis a good way to examine the environment (and challenges) Tata faces in marketing the new car?   B.   What aspect(s) of the PESTEL analysis apply most to the issues this company faces?  C.   Describe briefly what Ravi Kant and the management team might have done differently (If anything) to avoid these issues?  Question 2: This Unit’s reading discusses ‘market due diligence’…the importance of understanding local needs and wants when marketing the company’s product. This is an important concern in our ‘Nano Tata-Logy’ article. Later in this reading (hint: see section ‘The Making of a Game-Changer’) company management discusses the impact that Indian culture had on the development of the Nano.   Image transcription textRichard Ivey School of Business The University of WesternOntario IVEY 9B08M074 NANO TATA-LOGY: THE PEOPLE’SCAR1,2 R. Chandrasekhar wrote this case under the s… Show more… Show moreImage transcription textPage 2 9B08M074 FEBRUARY 25, 2008 Newsweek published aspecial report titled “Small. It’s The New Big.”According to the article, “Poor countries are get… Show more… Show moreImage transcription textPage 3 9B08M074 SEPTEMBER 6, 2008 Korean Hyundai, theworld’s fifth-largest car maker since July 2008, confirmed that itwas pressing ahead with the 120, its all new challenge… Show more… Show moreImage transcription textPage 4 9B08M074 Tata Motors had successfully broken newground in India’s automotive industry (see Exhibit 2); yetcompetition in India’s passenger car segment was tigh… Show more… Show moreImage transcription textPage 5 9B08M074 Chairman Tata’s leadership over the past 12years had been tremendously important, Kant noted “Thisis a business that’s close to his heart. It’s a huge advant… Show more… Show moreImage transcription textPage 6 9B08M074 Nano’s safety record was an importantcompetitive advantage. Many cars in India, for example, were soldwithout airbags or antilock brakes, considered standar… Show more… Show moreImage transcription textPage 7 9B08M074 technology. Even eco-enthusiasts” wereeagerly awaiting the next step, although as many times before,many still doubted that the technological breakthroug… Show more… Show moreImage transcription textPage 8 9B08M074 rupees (INR 100,000) instantly made theheadlines. “It was the media that said it,” said Tata,later on, “but we decided to accept it as a challen… Show more… Show moreImage transcription textPage 9 QBOBMO74 The provincial government had acquiredanother 350 acres for suppliers’ facilities. The co-locatedcomponent manufacturers would produce specialized … Show more… Show moreImage transcription textPage 10 QBOBMO74 down or semi—knocked down componentsthat we would send to them and they would also sell theassembled vehicles and arrange for their servicing. Thi… Show more… Show moreImage transcription textPage 11 9B08M074 system: The Tata Index for SustainableHuman Development,” an Index that followed the TataBusiness Excellence Model (TBEM), an open-ended fra… Show more… Show moreImage transcription textPage 12 9B08M074 Just when the investments on the newproduct portfolio were hitting home, a crisis hit. Truck and bussales plunged in 1999. TML lost US$1 10 million in the … Show more… Show moreImage transcription textPage 13 QBOBMO74 Revenue on Rebound By 2006, the resultsof the post—2000 cost—cutting were becoming evident. It nowtook between 12 and 15 minutes to change a die on th… Show more… Show moreImage transcription textPage 14 9B08M074 a boost when we finally succeeded with theIndica. Willy-nilly, we decided to look at [the low-cost car] projectwithin Tata Motors. Soon after its unveiling in Detroit, … Show more… Show moreImage transcription textPage 15 9B08M074 Bosch developed the starter-alternator andthe injection system for the engine. A system for a diesel versionwill come later. Wolf-Henning Scheider, president of t… Show more… Show moreImage transcription textPage 16 QBOBM074 Taking the Pulse of the Project All thesuppliers have similar stories. And although none would disclosespeci?c cost savings, most stuck to Tata’s mandate to c… Show more… Show moreImage transcription textPage 17 QBOBMO74 to produce a Rle0,000 car. My immediatereaction was to issue a rebuttal, to clarify that that was notexactly what I had said. Then I thought, I did say it wou… Show more… Show moreImage transcription textPage 18 QBOBMO74 capacity creation and facing competitionfrom Chinese imports, Sitara was yet to make a dent on thePakistani middle—class consumers. Ravi Kant was pre… Show more… Show moreImage transcription textPage 19 9B08M074 which was planning to set up “autozones” as part of expanding its retail operations. Nano wasbound to be an attractive proposition to the cost-cons… Show more… Show moreImage transcription textPage 20 9B08M074 General Motors GM had announced plans touse its Korean subsidiary, GM Daewoo, to design a model sellingfor approximately $7,000. It was also planning to mak… Show more… Show moreImage transcription textPage 21 QBOBM074 reconditioned and sold to new buyers forbetween INR70,000 and INR80,000 {roughly US$1,T75 toUS$2,025}— a price lower than that of a new small car…. Show more… Show moreImage transcription textPage 22 9BOBMO74 differentiator’? Would its world—classcommitment to sustainability prevail over criticism mired in thedemise of the oil on a heating planet? Becoming a Syst… Show more… Show moreImage transcription textPage 23 9B08M074 emission models a market creation strategy?How low could or should the costs drop before the competitionshifted to luxury, not so low-cost, features? Extending … Show more… Show moreImage transcription textPage 24 9B08M074 Exhibit 1 THE NANO AND ITSCOMPETITION a) Nano and India-based Competition TATASONG Alto Credits: http://en.wikipedia.org/wiki/Imag… Show more… Show moreImage transcription textPage 25 9B08M074 Exhibit 2 TATA MOTORS’ MILESTONES’Milestones Significant events at Tata Motors in the past decade1998 manufacture fully built buses and Indica – India’s … Show more… Show moreImage transcription textPage 26 9B08M074 Exhibit 3 a) The Indian Consumer HouseholdReal Annual Segment Size Common Occupations Assets OwnedIncome Classes Household (millions of Income ($) hou… Show more… Show moreImage transcription textPage 27 9B08M074 Exhibit 4 VEHICLE PRODUCTION ANDSALES IN INDIA a) India’s Automotive Market: Major Players andSales Volumes Sales Volume in India (FY 07) Commerc… Show more… Show moreImage transcription textPage 28 9B08M074 Exhibit 5 VEHICLE EMISSIONSREGULATIONS IN INDIA a) History of Emission Regulations inIndia 1989 – Idle Emission Regulation 1991 – Mass Emi… Show more… Show moreImage transcription textPage 29 9B08M074 Exhibit 6 MAKING THE NANO Item Cost (inINR) Engine and transmission (aluminum engine block, gear box,drive-train, steering) 30,000 Body shell (steel, frame, … Show more… Show moreImage transcription textPage 30 9B08M074 Exhibit 7 SUSTAINABILITY AT TATAMOTORS “The Tata Group is guided by the Principle ofTrusteeship and the conviction that Free Enterprise, in… Show more… Show moreImage transcription textPage 31 9B08M074 Exhibit 8 TATA MOTORS LTD.CONSOLIDATED BALANCE SHEET For the year ending March31 2008 2007 2006 (in INR million SOURCES OF FUN… Show more… Show moreImage transcription textPage 32 9808M074 Exhibit 9 TATA MOTORS LTD.CONSOLIDATED INCOME STATEMENT For the year endedMarch (in INR million) 2008 2007 2006 INCOME 1. Sa… Show more… Show moreA.   Describe why this deep understanding of the company’s market due diligence was so important in the development of the Nano. B.   How successful (or unsuccessful) would the Nano have been if the company did not develop this thorough understanding of the buyer market? BusinessBusiness – Other