What is Bussiness Environment?

The definition of Business Environment, “The sum total of all individuals, institutions and
other forces that are outside the control of a business enterprise but the business still
depends upon them as they affect the overall performance and sustainability of the
business.”

A business can be established, but to successfully sustain a business, the business needs
resources like finance, for which it has to depend on financial institutions. Acceptance of
social norms, for which it has to depend on society. Proper market conditions, for which it
has to depend on the market. The sale of products/services, for which it has to depend on
the customers. The labour, for which it has to depend on society.

Then there are natural resources and raw material, for which it has to depend on Nature.
Also, the legal support of the government, for which it has to depend on the government.
There are many factors and dimensions that affect Business Environment. These factors
are many different components of a single concept called Business Environment.

Tata Motors Limited (TELCO)

Tata Motors Limited (formerly TELCO, short for Tata

Engineering and Locomotive Company) is an Indian
multinational automotive manufacturing company
headquartered in Mumbai. It is a subsidiary of Tata
Group, an Indian conglomerate. Its products include
passenger cars, trucks, vans, coaches, buses, sports
cars, construction equipment and military vehicles.

Tata Motors has auto manufacturing and assembly

plants in Jamshedpur, Pantnagar, Lucknow, Sanand,
Dharwad, and Pune in India, as well as in Argentina,
South Africa, Great Britain and Thailand. It has research and development centres in Pune,
Jamshedpur, Lucknow, and Dharwad, India and in South Korea, Great Britain and Spain.

History

It was founded in 1945 by J.R.D. Tata. It was founded as a manufacturer of

locomotives.The company manufactured its first commercial vehicle in 1954 in a
collaboration with Daimler-Benz AG, which ended in 1969. Tata Motors entered the
passenger vehicle market in 1988 with the launch of the Tata Mobile followed by the Tata
Sierra in 1991, becoming the first Indian manufacturer to achieve the capability of
developing a competitive indigenous automobile. In 1998, Tata launched the first fully
indigenous Indian passenger car, the Indica, and in 2008 launched the Tata Nano, the
world's cheapest car. Tata Motors acquired the South Korean truck manufacturer Daewoo
Commercial Vehicles Company in 2004 and purchased Jaguar Land Rover from Ford in
2008.

J.R.D. Tata-Founder Of Tata Motors

Jehangir Ratanji Dadabhoy Tata (29 July 1904 – 29 November 1993) was a French-born
Indian aviator, entrepreneur, chairman of Tata Group and the shareholder of Tata Sons.

Born into the Tata family of India, he was the son of noted businessman Ratanji Dadabhoy
Tata and his wife Suzanne Brière. His mother was the first woman in India to drive a car
and, in 1929, he became the first licensed pilot in India. He is also best known for being the
founder of several industries under the Tata Group, including Tata Consultancy Services,
Titan Industries, Tata Salt, Voltas and Air India. In 1983, he was awarded the French Legion
of Honour and in 1955 and 1992, he received two of India's highest civilian awards the
Padma Vibhushan and the Bharat Ratna. These honors were bestowed on him for his
contributions to Indian industry.

Tata Motors

Statement of Profit and Loss(in Rs Crores)

Mar '18 Mar '17 Mar '16 Mar '15
12 mths 12 mths 12 mths 12 mths
Income
Sales Turnover 59,624.69 49,054.49 47,383.61 39,524.34
Excise Duty 793.28 4,738.15 4,538.14 3,229.60
Net Sales 58,831.41 44,316.34 42,845.47 36,294.74
Other Income 602.91 647.47 921.14 1,477.66
Stock Adjustments -842.05 252.14 -10.05 878.82
Total Income 58,592.27 45,215.95 43,756.56 38,651.22
Expenditure
Raw Materials 42,482.21 32,251.23 29,618.74 28,367.83
Power & Fuel Cost 545.12 483.48 430.77 395.88
Employee Cost 3,966.73 3,764.35 3,188.97 3,091.46
Other Manufacturing Expenses 474.98 454.48 418.27 437.47
Selling and Admin Expenses 720.18 848.36 670.01 0.00
Miscellaneous Expenses 6,491.68 5,156.07 5,562.10 6,118.40
Total Expenses 54,680.90 42,957.97 39,888.86 38,411.04
Mar '18 Mar '17 Mar '16 Mar '15
12 mths 12 mths 12 mths 12 mths
Operating Profit 3,308.46 1,610.51 2,946.56 -1,237.48
PBDIT 3,911.37 2,257.98 3,867.70 240.18
Interest 1,744.43 1,569.01 1,592.00 1,611.68
PBDT 2,166.94 688.97 2,275.70 -1,371.50
Depreciation 3,101.89 3,037.12 2,329.22 2,603.22
Profit Before Tax -934.95 -2,348.15 -53.52 -3,974.72
PBT (Post Extra-ord Items) -934.95 -2,348.15 -53.52 -3,974.72
Tax 87.93 76.33 -4.80 764.23
Reported Net Profit -1,034.85 -2,429.60 -62.30 -4,738.95
Total Value Addition 12,198.69 10,706.74 10,270.12 10,043.21
Equity Dividend 0.00 0.00 0.00 0.00
Corporate Dividend Tax 0.00 0.00 0.00 0.00
Per share data (annualised)
Shares in issue (lakhs) 33,958.51 33,958.51 33,956.80 32,186.80
Earning Per Share (Rs) -3.05 -7.15 -0.18 -14.72
Equity Dividend (%) 0.00 0.00 0.00 0.00
Book Value (Rs) 59.40 62.32 68.51 46.10

Balance Sheet
Mar '18 Mar '17 Mar '16 Mar '15
12 mths 12 mths 12 mths 12 mths
Sources Of Funds
Total Share Capital 679.22 679.22 679.18 643.78
Equity Share Capital 679.22 679.22 679.18 643.78
Reserves 19,491.76 20,483.39 22,582.93 14,195.94
Networth 20,170.98 21,162.61 23,262.11 14,839.72
Secured Loans 2,444.36 3,124.12 3,925.63 4,803.26
Unsecured Loans 13,811.42 15,720.49 10,329.05 15,277.71
Total Debt 16,255.78 18,844.61 14,254.68 20,080.97
Total Liabilities 36,426.76 40,007.22 37,516.79 34,920.69
Mar '18 Mar '17 Mar '16 Mar '15
12 mths 12 mths 12 mths 12 mths
Application Of Funds
Gross Block 39,141.05 36,966.30 35,050.15 27,973.79
Less: Revaluation Reserves 0.00 0.00 0.00 22.87
Less: Accum. Depreciation 17,537.30 16,193.37 13,974.34 12,190.56
Net Block 21,603.75 20,772.93 21,075.81 15,760.36
Capital Work in Progress 5,196.60 7,270.99 5,686.53 6,040.79
Investments 16,763.57 17,295.81 16,963.32 16,987.17
Inventories 5,670.13 5,553.01 5,117.92 4,802.08
Sundry Debtors 3,479.81 2,128.00 2,045.58 1,114.48
Cash and Bank Balance 795.42 326.61 788.42 944.75
Total Current Assets 9,945.36 8,007.62 7,951.92 6,861.31
Loans and Advances 5,703.02 5,530.93 4,998.42 4,270.67
Total CA, Loans & Advances 15,648.38 13,538.55 12,950.34 11,131.98
Current Liabilities 20,913.14 17,501.71 17,958.05 12,282.33
Provisions 1,872.40 1,369.35 1,201.16 2,717.28
Total CL & Provisions 22,785.54 18,871.06 19,159.21 14,999.61
Net Current Assets -7,137.16 -5,332.51 -6,208.87 -3,867.63
Total Assets 36,426.76 40,007.22 37,516.79 34,920.69
Contingent Liabilities 5,269.63 4,787.17 3,931.64 9,882.65
Book Value (Rs) 59.40 62.32 68.51 46.10

SWOT Analysis

S.W.O.T. is an acronym that stands for Strengths, Weaknesses, Opportunities, and Threats.
A SWOT analysis is an organized list of your business’s greatest strengths, weaknesses,
opportunities, and threats.

Strengths and weaknesses are internal to the company (think: reputation, patents, location).
You can change them over time but not without some work. Opportunities and threats are
external (think: suppliers, competitors, prices)—they are out there in the market, happening
whether you like it or not. You can’t change them.

Elements of SWOT Analysis

 Strengths describe what an organization

excels at and separates it from the
competition: a strong brand, loyal customer
base, a strong balance sheet, unique
technology and so on.
 Weaknesses stop an organization from
performing at its optimum level. They are
areas where the business needs to improve to
remain competitive: higher-than-industry-
average turnover, high levels of debt, an
inadequate supply chain or lack of capital.
 Opportunities refer to favorable external factors that an organization can use to give
 it a competitive advantage.
 Threats refer to factors that have the potential to harm an organization. Common
threats include things like rising costs for inputs, increasing competition, tight labor
supply and so on.

SWOT analysis of tata moters

Innovation and Research and Development-TATA is very innovative company. Tata

Motors is innovative through intensive research and development activities. Tata has
enjoyed the prestige of having developed Tata Ace, India’s first indigenous light
commercial vehicle; Tata Safari, India’s first sports utility vehicle; Tata Indica, India’s first
indigenously manufactured passenger car; and the Nano, the world’s least expensive
car. They have been able to make the least expensive car on the market. This
innovation gives Tata Motors their main competitive advantage as they are the first in
the market and are able to dictate the prices. (Competitive Strategies; Michael E. Porter,
1985) Tata Motors makes everything from tractor-trailers to the world’s least expensive
car. This product diversity grants them a competitive advantage over their competitors
because they can satisfy more markets and customer needs.
If only Indian car industry is considered, it has the greatest advantages. But to go global,
it will have to be strong in technical development, procurement of raw materials, market
selection etc.

Tata Motors is an overall strong company that has found strength and expansion
through its parent company, Tata Group, but also through its numerous acquisitions and
mergers. Although Tata Motors stock prices have fallen since the start of the 2008 year
due to suggestions that Tata Motors is overreaching by adding luxury brands to pair with
the Nano, the world’s cheapest car. It is an interesting SWOT analysis is inters
exploding the current position. Tata is holding in the market. It has grown from a small
company based in India to global company. It grew a producing few products now. To
make this assignment I put my attention to all angles of Tata Company found the
Strength, Weaknesses, Opportunities and Threats.