Using either the VRINE Model or performing a PESTEL and SWOT analysis on the pub

Question

Using either the VRINE Model or performing a PESTEL and SWOT analysis on the publicly traded company of your choice, prepare and write up your research paper.

Make sure to include the following:

[1] Use APA format for writing your paper:

Include a cover page on your paper.

Introduction to the company you have researched.

Explain your rationale for the analysis as you cover the organization.

Summary page at the end of your paper to highlight your major ideas.

References section should follow the text of your paper to show all the resources you used in analyzing your case.

You should be able to do an adequate analysis in 6-8 double spaced pages, including your cover page and references listing.

Explanation / Answer

TATA Motors is an a multinational corporation, established in 1945, situated in India, concerned with manufacturing of motor vehicles. Its headquarters are in Mumbai. Its products includes all kinds of automoblies such as cars, trucks, vans, buses,military vehicles, construction equipments, etc. It is considered as one of the world's largest automotive manufacturing company. TATA Motors operates in various countries across the globe.

PEST analysis is also referred to as PESTLE analysis. It is one of the aspects of marketing sector. It is used by organizations to trace the environment they are functioning in and planning to commence a new project or product in the market. It considers the political, economic, social and technological factors affecting any organization.

Political Factors: These determine the scope to which government influence the automotive industry. The company needs to focus on not only political factors but also on laws and regulations. TATA Motors regulates its business operations knowing all the labor laws and regulations of countries where it operates. For instance, imposing of tax by government which may bring changes the structure of revenue generating of organizations. Tax duties such as tax policies, fiscal policy, trade tariffs, etc. may be imposed around the fiscal year and it may cause affect the business environment of TATA Motors to a large extent.

Economic Factors: These factors directly impact TATA Motors' economic performance and have long term effects thereafter. For instance, increase in inflation rate impacts the pricing range of automobiles offered by the company. Change in prices of the products offered by TATA Motors impacts the purchasing power of a buyer, which affects the demand and supply in the market. Economic factors that can affect TATA Motors are as follows:

Interest rate

Inflation rate

Foreign exchange rate

Taxation levels.

Social Factors: These factors examine the social environment of the market thoroughly and measure the determinants like cultural trends, demographics, population analytics, etc. TATA Motors is offering full range of vehicles covering every community starting from high-income group to low-income group of people. The company understands the environment of every individual living in local houses as well in pent houses. Almost 60-70% of working sector comes in agricultural. Keeping that in mind, the company has introduced vehicles especially for our farmers, the producers of food grains. There is a wide collection of vehicles for the people living from urban sector to people living in rural sector.

The company focuses on quality standards from manufacturing to assembly of the automobiles and it is done by trained professionals. Assuring quality expands consumer's preferences from low to middle income groups. TATA Motors also focus on the environmental standards to be maintained.

Social-cultural factors which need to be focused are as follows:

Buyer's preferences

Changes in lifestyles of the buyers

Changes in the desires and wants of the buyers

Changing values and beliefs

Education level in the society

Technological factors: These factors are concerned to innovations in the field of technology that have an impact on the businesses and operations of the automobile industry as well as the market. These factors include:

R & D

Technological awareness

Technology used in TATA Motors focuses on the light-weight designs, durability and many other special features covering mileage, pollution control instruments. They build designs keeping in mind the rapid changing technological environment.

S.W.O.T determines the strengths, weaknesses, opportunities and threats of an organization or a company. In TATA Motors,

Strengths:

1. It is one of the leading manufacturing company in the world of automobile industry. It has manufactured numerous automobiles covering every community from high to low income groups.

2. It is the pioneer in commercial vehicles. The company understands purchasing power of every individual. It has introduced vehicles for the comfort zone of people in the society.

3. It provides diverse range of vehicles from TATA-Mercedes to TATA buses.

4. It is counted among the top 10 wealthy business tycoons in India.

5. The company has adopted the path to many joint ventures across the world.

6. Introduction of Mini trucks Ace has rapidly emerged as the most demanded product among the transporters living in city as well as in rural sectors.

7. It has got immense amount of power in its hands which is used over its competitors, suppliers and customers.

8. It is strongly interlinked with machine tools and metal sectors.

9. It is next to the competitors such as Mercedes-Benz, Volvo and Navistar.

Weaknesses:

1. TATA Motors ahs got slender consumer base.

2. It is not much competent and compatible with the other global competitors.

3. There is limited profitability as return on investment share of the company is low.

4. Lack of sustainance of safety standards.

5. The products introduced are especially for economical class of people and not for high class people living in luxury.

Opportunities:

1. Introduction of Nano car- the cheapest car across the world.

2. The company is focusing on more eco-friendly vehicles keeping in view the increasing pollution on our planet

3. Rising demand for pollution free vehicles can be a new platform to be taken into account.

Threats:

1. It is next to the competitors such as Mercedes-Benz, Volvo and Navistar

2. Rapid technological updates can emerge as a threat.

3. Slow and weak economic recovery.

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