PM206 Logistics and Operations Management- Tata Motors

Answer 

Introduction

Tata Motors is an industry which concentrates majorly in the manufacture of commercial vehicles. It is located in India and falls under the group of companies called multinationals since its operations cuts across the entire continent. It was founded in 1868. This mega-company is ranked in the fifth position globally in the manufacturing of cumbersome and medium commercial trucks. Moreover, it is pivotal to underscore that it is a leading manufacturer with the portfolio covering a broad range of defence vehicles, cars, trucks, sports vehicles and buses. The operations of this company are quite tedious given that it is vast and thus as an operations manager, a decision made should be in line with the challenges and the directions necessary in improving the company (Shepherd & Patzelt, 2017). Therefore, one must factor in all risks associated with large businesses before making any decision. Tata motors provide services to the consumers who are legacy proven in respect to their centricity and expertise. Through the operations management spectrum, the company offers products which have the lowest life cycle regarding cost so as to counteract problems in which the client can come across. This piece of work will delve upon company's effectiveness and objectives, location methods in which the company can employ conclusion and the recommendation.

Company's efficiency and objectives

Tata Motors is a corporation endowed with a large workforce with the same agenda of ensuring that the company moves forth towards achieving their targets worldwide. This company enjoys a plethora of advantages as a result of usage of its logo globally in 1961. Consequently, giving the organisation an impetus of making good sales since that international recognition played a role in the marketing of its products (Shaik & Abdul-Kader, 2014). For instance, the sales improved gradual, and in the current year, it is trading in over 50 countries. It is amazing on how one can manage such a company hosted by a large number of nations and making substantive returns while ensuring the buyers are satisfied. In spite of the myriad of problems emanating from its control, the company makes its sales without any difficulty relating to quality, dependability and so forth. Due to its relatively average prices as compared to other businesses dealing with the same products, Tata is the most preferred company. According to analysis carried out by Abdulrahman et al., (2015), Tata Motors vehicles are very powerful and consume minimal amounts of gasoline thus enabling them to have a large market for their products. Additionally, this association runs under the rule of dependability. They are always present the consumer needs goods anytime. For that reason, its objective of being the best industry dealing with the automobile products is a guaranteed initiative. Many clients have been in the forefront in marketing Tata Motors as a result of the manner at which their services are catered for any time and in any place of the Gaia. Majority ascertain that the speed at which they receive the vehicle ordered is within the time scheduled. Some even receive within twenty hours of making an order. Likewise, the Tata Motors ensures that the flexibility of their products is embraced. With due respect, most of their automobiles are delivered to their buyers all over the world no matter the distance. This ability has been aided by the fact that Tata Motors is widely distributed corporation. Nonetheless, the cost performance of Tata Motors is within the financial capability of many clients. This matter is supported by the fact that Tata Motors is located in most countries world; therefore, the consumer does not incur charges resulting from having to import a vehicle from India. Rather, one buys from the dealers directly in one's country (Seuring, 2013). This mechanism lies under the objective of the company in which they had highlighted that they want to make their consumers have their products without incurring additional charges. The distributing agents and the dealer shops found across the world have been given the mandate of reaching out to their clients anytime. The consumers can order the vehicle online, and through these agents, the company can deliver it to their doors step. This comes hand in hand with their vision of running their business using the modern day technology since the commercial establishment podiums state that those companies who are digital in their Endeavour can make more sells. Through the modern day technology, the consumers are subjected to make a broad range of requests from the sellers through an online platform (Schönsleben, 2016). This prompted Tata Motors to create the online platform through which they can communicate with their consumers. Their sites have customer service initiative mechanism which allows for the buying and selling twenty-four hours none stop (Vahabzadeh, Asiaei & Zailani, 2015). This device was created to making their sales all the time and ensuring that the customer is satisfied so as to avoid problems which come with poor integration between the company and the buyers.

Moreover, Tatar Motors is pivoted by the need to remain on the market at an equilibrium state due to the constant emerging of the new businesses dealing with the automobile industry (Babbar et al., 2017). The matter prompted them to apply equity theory in their operations. According to this theory, one is expected to work out the challenges facing its employees because they are the main players in the success of the company. The management was forced to devise mechanisms through which their employees' needs and preferences were adhered to by the owner.  Besides, Rubio & Jiménez-Parra, (2017) states that Tatar should foster ways through which it can maximise its profits while reducing the miscellaneous expenditure incurred in the firm. Therefore, they are entitled to employ qualified staff who can maintain a high profile reputation among the customers. This strategy will aid in enabling them to stay at a bar in the selling of automobiles thus working out competition menace. This agenda was realised since the budget done covers all the needs of the agents and the distributors regarding the allowances and the levies from the government. Likewise, Tata Motors was aspiring to the merger with other companies dealing the same products so as to enable it to reduce the cost incurred during production (Wang et al., 2016). This prompted them to amalgamate with Jaguar Land Rover based in the United Kingdom and the Tata Daewoo a company located in South Korea. Merging with these companies has enabled it to improve its sales and reduce the overhead costs.

Location methods

Despite that this company is already in operations in most parts of the world, it is necessary for it to have other places in those countries in which it has not yet reached out to so as to enjoy the economies of large scale in the corporate world. For this to work out well, one should ensure that a perfect location method is devised. Tata Motors should apply the use of behavioural segmentation in trying to come up with the most appropriate location method in the universe. These techniques include; usage rate, benefits sought, buying on occasion and loyalty (Mangan, Lalwani & Lalwani, 2016).

As the operations manager, the decision made on the allocation should factor in the issue of the usage rate of the product. The company should select a place in which they are assured of the clients and the sells agents who can volunteer with the information concerning the vehicles in the designated area. The consumer in the new centres should be people who can be in touch with the sales agents on matters to do with the automobiles. This mechanism will form basis through which the operations manager can either make the decision to move to the new location or rather maintain the existing sites.

Secondly, one should make decision basing on the benefits having the business in that given situation. The operations manager should ensure that the new location has the capability of buying the vehicles (Senthil, Srirangacharyulu & Ramesh, 2014). It should be in a region where the people are not living below the poverty levels rather it should be an area where it has a good layout of business activities which are profitable to an extent where one can purchase a motor vehicle to operate one's business. Moreover, the company should seek the tastes and the preferences of the consumers in that place. One should have in mind ideas such as the location having people who love new products in the industry and so forth. This dynamism in most cases is characterised by the availability of tight competition, and thus buyers run for quality and new product in the display. Likewise, Govindan et al., (2015) underscore that buying on occasion by the consumers should form part of the matters to consider before one decides on the location parameter.  The place should be one in which the users make purchases all year round, and in case it is selective; one should consider a given brand which favours seasons in the particular area. For instance, Anderson et al., (2015) reiterated that some countries consider making purchases of a particular brand during a certain season of the year and thus on making resolutions; the manager should outline such cases. The loyalty predicament is also important in the selection of the best modus operandi for the company. The company should be able to analyse whether they can retain customers in the new location projected if they offer discounts or the consumer could be just a one-time client and vanish. Such matters are crucial thus needs to be calculated in an overt way before making a judgment so as to avoid discouragement (Spring, 2017). Operations manager should come into conclusion to settle for a place in which the consumers can be retained whether in the presence or absence of the incentives. The reason is that those locations give one an assurance that the business will run out well in spite of fluctuations in neither prices nor absence of incentives.

Conclusion

Tata Corporation has been in the manufacturing industry for over a period of one hundred years, but its productivity is not that promising as compared to the companies who are new in the market. It is thus important for this enterprise to make use the new methods of advertising so as to ensure that they counter the stiff competition from the upcoming automobile manufacturing companies. Furthermore, this company should advance their online marketing strategies to clinch their logo which had gained international recognition back in 1961 (Talk, 2016). The company should work together as a team so as to be at a better place while making the decisions designed for improving the market scope of the enterprise. Tata Motors is a vast industry, and thus the operations manager cannot be left to make decisions solely since this will be very hard to be realised. The reason is that the decision involving an international company have to be raised by a group of experts among them the company's board of directors since they have the best guidelines citing that most of the have been in the corporation for more than a decade.

Recommendation

Tata Motors is a company which despite being among the great manufacturers, it still has a long way to go to reach the peak in the automobile industry. Therefore, it should diversify its brands such has to manufacture of the ambulances and the recreational vehicles since the market scope of such is not that competitive since most of the companies are only concerned with commercial vehicles (Toth & Vigo, 2014). The reason is that most manufacturers believe that commercial vehicle has a wider market as compared to the ambulance and the touring ones. Additionally, the operations manager should consult with high-profile managers from other performing companies concerning location predicament. By doing so, one is assured of the most reasonable solution to the matter at hand. Likewise, one should take into account on the market scope used in acquiring the loyalty in the existing branches estimated to be in more than fifty countries. The information received will serve as a road towards the success in the making of standardised decisions on the location. Additionally, one can study through different expert platforms in the electronic media to acquire knowledge concerning factors to consider in locating to the new site to carry out trading activities and also ensure that the decision is in line with objectives of the company.

Reference list

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