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Transcript of anand's project on customer satisfaction
GENERAL INTRODUCTION
1) INDIAN AUTOMOBILE INDUSTRY PROFILE
In India there are 100 people per vehicle, while this figure is 82 in china. It is expected that India
automobile industry will achieve mass motorization status by 2014.
Introduction
Since the first car rolled out on the streets of Mumbai (Bombay) in 1898, the Automobile
Industry of India has come a long way. During its early stages the auto industry was overlooked
by the government and the polices were also not favorable. The Liberalization police and various
tax reliefs by the Govt. of India in recent years have made remarkable impact on Indian
Automobile industry. Indian auto industry, which is currently growing at the pace of around 18%
per annum, has become a hot destination for global auto player like Volvo, general motors and
ford.
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HISTORY
The automobile history dates back to the late 18th century. Nicolas Joseph Cugnot, a French
engineer is credited with inventing the first self-propelled automobile.
Cugnot's vehicle used steam power for locomotion. The vehicle found military application in the
French army. Cugnot's automobile was never commercially sold.
In the beginning automobile industry was dominated by steam-powered vehicles. The vehicles
were expensive and difficult to maintain. The incidence of frequent boiler explosions also kept
potential purchasers away. Commercial history of automobiles started with the invention of
gasoline powered internal combustion engines. The German inventor, Karl Benz constructed his
first gasoline powered vehicle in 1885 at Mannheim, Germany. Commercial production of Benz
cars started in 1888.
Levassor of France was the first company to exclusively build and sell motor cars from 1889.
The early 1900s saw many automobile manufacturing companies coming into existence in a
number of European countries and the United States. The first mass produced automobile in the
United States was the curved-dash Oldsmobile. It was a three-horsepower machine and sold
5,000 units by 1904. The economics of the US car market was disrupted by the arrival of Henry
Ford and his Model T car. The Model T was the world's first mass produced vehicle- a million
units were sold by 1920- a space of 10 years.
INDIAN AUTOMOBILE INDUSTRY:-
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Indi’s automobile sector consist of the passenger cars and utility vehicles, commercial vehicles,
two wheelers and tractors segment. The total market size of the auto sector in India is
approximately Rest 540 billion and has been growing at around 8 percent per annum for the last
few years. Since the last four to five years, the two wheel segment has driven the overall volume
growth on account of the spurt in the sales of the motorcycle. However, lately the passenger cars
and commercial vehicles segment has also seen a good growth due to high discount lower
financial rate and pickup in industrial activity respectively.
The automobile industry is fairly concentrate as in most of the segment two or three players has
cornered a major chunk of the total sales. For instance in passenger car segment, MUL, Tata
Motors and Hyundai motors control around 85% of the total annual sales. Similarly, in the two
wheelers segment the sales volume of Hero Honda, Bajaj auto and TVS motors constitute around
80% of the total sales and in the commercial vehicle segment the market leader Telco controls
around 56% of the total annual sales. The auto components industry on the other hand is highly
fragmented through there are dominate players in some of the critical segment.
Outlook
The expected rise in income levels, wide choice of models and easy availability of finance at low
interest rates will drive growth in passenger cars segment, which is likely to be over 12 percent
per annum for a next four to five years. Two wheelers growth is likely to marginally slow down,
but still grow at an average annual growth rate of around 10 percent.
The commercial vehicles segment is likely to grow at a rend rate of 6-8 percent driven mainly by
the increase in industrial and economic activity on account of the expected growth in the
economy, though annual growth rates may fluctuate widely with the cyclical ups and downs of
the economy. Tractor industry growth is likely to turnaround and posts a growth in volume in
2005-06. However, it will likely to turnaround and posts a moderate growth of around 4-5
percent annual growth rate over the medium term.
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Scope of Indian automobile sector
The Indian automobile industry is going through a phase of rapid change and high growth. With
the new project coming up on a regular basis the industry is undergoing technological change.
The major players are expanding their plants and focusing on mass customization, mass
production, etc…..
Nearly every automobile company is investing at a higher rate than ever before to achieve a high
growth trajectory. The overall investment in the sector has been increasing quite rapidly. It is
expected that by the end of the 2011 Indian automobile sector will be investing a huge amount
40,000 crores.
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THE KEY PLAYER IN INDIAN AUTOMOBILE INDUSTRY ARE:-
Maruti Udyog Limited
Hero motors limited
Tata groups
Bajaj Auto limited
Mahindra group
Ashok Leyland
Yamaha motors India
Hyundai motors India limited
Toyota kirloskar motors privates limited
Honda Siel cars India limited
2) Company profile
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A) Background and inception of the company
Company Profile Tata Motors Limited 2 Headquarters - Mumbai. TML is currently headed by
Ratan Tata. Tata Motors manufactures HCV, LCV, Passenger cars, MUV and Military Vehicles.
Global operations - UK, South Korea, Thailand and Spain. TML - world's fourth largest truck
manufacturer. World’s second largest bus manufacturer.
Tata Motors Limited is India's largest automobile company, with consolidated revenues of Rs.
92,519 crores (USD 20 billion) in 2009-10. It is the leader in commercial vehicles in each
segment, and among the top three in passenger vehicles with winning products in the compact,
midsize car and utility vehicle segments. The Company is the world's fourth largest truck
manufacturer, and the world's second largest bus manufacturer.
The Company's 24,000 employees are guided by the vision to be "best in the manner in which
we operate, best in the products we deliver, and best in our value system and ethics."
Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India.
Over 5.9 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The
Company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune
(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka).
Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat
Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat
powertrains. The Company is establishing a new plant at Sanand (Gujarat). The Company's
dealership, sales, services and spare parts network comprises over 3500 touch points; Tata
Motors also distributes and markets Fiat branded cars in India.
Tata Motors, the first Company from India's engineering sector to be listed in the New York
Stock Exchange (September 2004), has also emerged as an international automobile company.
Through subsidiaries and associate companies, Tata Motors has operations in the UK, South
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Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two
iconic British brands that was acquired in 2008. In 2004, it acquired the Daewoo Commercial
Vehicles Company, South Korea's second largest truck maker. The rechristened Tata Daewoo
Commercial Vehicles Company has launched several new products in the Korean market, while
also exporting these products to several international markets. Today two-thirds of heavy
commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors
acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, and
subsequently the remaining stake in 2009. Hispano's presence is being expanded in other
markets. In 2006, Tata Motors formed a joint venture with the Brazil-based Marcopolo, a global
leader in body-building for buses and coaches to manufacture fully-built buses and coaches for
India and select international markets. In 2006, Tata Motors entered into joint venture with
Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the
Company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun
production of the Xenon pickup truck, with the Xenon having been launched in Thailand in
2008.
Tata Motors is also expanding its international footprint, established through exports since 1961.
The Company's commercial and passenger vehicles are already being marketed in several
countries in Europe, Africa, the Middle East, South East Asia, South Asia and South America. It
has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia,
Senegal and South Africa.
The foundation of the Company's growth over the last 50 years is a deep understanding of
economic stimuli and customer needs, and the ability to translate them into customer-desired
offerings through leading edge R&D. With over 3,000 engineers and scientists, the Company's
Engineering Research Centre, established in 1966, has enabled pioneering technologies and
products. The Company today has R&D centres in Pune, Jamshedpur, Lucknow, Dharwad in
India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first
indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in
1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch,
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Tata Indica became India's largest selling car in its segment. In 2005, Tata Motors created a new
segment by launching the Tata Ace, India's first indigenously developed mini-truck.
In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the
world have been looking forward to. The Tata Nano has been subsequently launched, as planned,
in India in March 2009. A development, which signifies a first for the global automobile
industry, the Nano brings the comfort and safety of a car within the reach of thousands of
families. The standard version has been priced at Rs.100,000 (excluding VAT and transportation
cost).
Designed with a family in mind, it has a roomy passenger compartment with generous leg space
and head room. It can comfortably seat four persons. Its mono-volume design will set a new
benchmark among small cars. Its safety performance exceeds regulatory requirements in India.
Its tailpipe emission performance too exceeds regulatory requirements. In terms of overall
pollutants, it has a lower pollution level than two-wheelers being manufactured in India today.
The lean design strategy has helped minimise weight, which helps maximise performance per
unit of energy consumed and delivers high fuel efficiency. The high fuel efficiency also ensures
that the car has low carbon dioxide emissions, thereby providing the twin benefits of an
affordable transportation solution with a low carbon footprint.
In May 2009, Tata Motors introduced ushered in a new era in the Indian automobile industry, in
keeping with its pioneering tradition, by unveiling its new range of world standard trucks called
Prima. In their power, speed, carrying capacity, operating economy and trims, they will introduce
new benchmarks in India and match the best in the world in performance at a lower life-cycle
cost.
Tata Motors is equally focussed on environment-friendly technologies in emissions and
alternative fuels. It has developed electric and hybrid vehicles both for personal and public
transportation. It has also been implementing several environment-friendly technologies in
manufacturing processes, significantly enhancing resource conservation.
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Through its subsidiaries, the Company is engaged in engineering and automotive solutions,
construction equipment manufacturing, automotive vehicle components manufacturing and
supply chain activities, machine tools and factory automation solutions, high-precision tooling
and plastic and electronic components for automotive and computer applications, and automotive
retailing and service operations.
Tata Motors is committed to improving the quality of life of communities by working on four
thrust areas – employability, education, health and environment. The activities touch the lives of
more than a million citizens. The Company's support on education and employability is focussed
on youth and women. They range from schools to technical education institutes to actual
facilitation of income generation. In health, our intervention is in both preventive and curative
healthcare. The goal of environment protection is achieved through tree plantation, conserving
water and creating new water bodies and, last but not the least, by introducing appropriate
technologies in our vehicles and operations for constantly enhancing environment care.
With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.
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B) NATURE OF THE BUSINESS CARRIED
Tata Motors in one of the major players of the automobile manufacturing companies in
India. It has three different manufacturing units in India they are, Jamshedpur in the East,
Pune in the West and Lucknow in the North and all three manufacturing units specialize
in the manufacturing of different automobile like Jamshedpur unit produces trucks,
engines and axles, the Pune unit caters to the production of Medium Heavy Commercial
vehicles and Heavy Commercial Vehicles, utility vehicles and passenger cars and the
Lucknow unit produces MCVs, Tata Sumos along with a number of spare parts. Some of
the well known cars manufactured by Tata Motors are: Tata Indica, Tata Indigo, Tata
Indigo Marina, Tata Sumo and Tata safari.
Tata Motors is a very significant contributor to the automobile industry in India. With a
domestic sales record of 122,120 vehicles in 2009 and exports of 5220 vehicles across the
globe it has managed to bag a current market share of 67.4% in the commercial vehicles
segment and 12.5% in the passenger cars segment. The company has reported revenues
of Rs 6404.63 crores with operating profits of Rs 728.0 crores.
The company continues to upgrade its resources to leverage emerging opportunities be it
in the commercial vehicles segment or passenger cars segment. In May 2009 the
company unveiled its new range of world standard trucks comprising multi-axle trucks,
tractor-trailers, tippers, mixers and special purpose vehicles. In the passenger cars
segment the company launched the much awaited Tata Manza , opened the first Jaguar
and Land Rover showroom in Mumbai and long with the Fiat Linea, Fiat 500 and the
Palio, the company commenced the distribution of the Fiat Grande Punto in June 2009.
Diesel cars are becoming a more popular and feasible option these days due to the continuous
rise in the price of petrol. People are also becoming more aware of the myths that surrounded
diesel vehicles and are realizing that most myths are false. Tata manufactures all its cars in both
the petrol and diesel versions but the Tata Indica V2 stands out as one of the most preferred
diesel cars in the country. Intact it is among the country's top ten hottest selling diesel cars due to
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its exceptional performance of 14 kmpl and a price tag of just Rs 2.6 lakhs.
Tata Trucks are amongst the most sought-after heavy commercial vehicles (HCV) in India.
Products of Tata Motors Limited – the largest automobile companies in India with a consolidated
revenues of Rs. 70,938,85 crores (in 2008-09), Tata Trucks not only outplayed its competitors by
its qualities, but also by its services. It's also the leading player in the list of TNS TruckTrak
2006 Customer Satisfaction Study in Trucks.
Tata Motors is the fourth largest truck manufacturers in the world. Established in 1945, it first
rolled out its vehicle in 1954. Since then, more than 4 million Tata vehicles run on the Indian
roads. It has its manufacturing units located in various locations across the country including
Jamshedpur, Pantnagar, Pune, Dharwad, and Lucknow. Another plant is coming up at Sanand in
Gujarat
With 2% of annual turnover being spend on research and development activities, Tata Motors
Limited aims at delivering improved and environmentally sound technology for a better
tomorrow. The group has recently established two domestic Engineering Research Centres in
India that constitutes licensed Crash Test service.
Tata Motors is the biggest automobile firm of India with combined profits of Rs.70, 938.85
crores registered in FY 2008-09. The group has spread its operations in international markets
such as Thailand, UK, Spain and South Korea with the support of its associate firms. Among
many of its sub-ordinates, Tata Motors Limited has industrial tie-up with Jaguar Land Rover, a
joint venture between two renowned British trademarks.
In February 2010, Tata Motors Group's international sales witnessed a growth of 59% against the
figures of February 2009. The products which registered sales of 89,768 units are Tata Daewoo,
Tata passenger vehicles, Land Rover, Hispano Carrocera and Jaguar.
For the FY 2009 - 2010, the aggregate sales were higher by 17% and stood at 771,238 against the
growth registered in 2008-09.
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Commercial vehicles and passenger vehicles sales in February 2010 were 42,660 units and
47,108 units respectively. It can also be translated as 70% growth in the commercial vehicles
sales and 50% in passenger vehicles sales.
Collective Commercial vehicles and passenger vehicles sales for FY 2009-10 are 365,120 units
and 406,118 units respectively.
Jaguar Land Rover international sales witnessed 55% growth in 2010 at 17,197 units, while Land
Rover sales went 62% higher at 13,905 units. However, the collective Jaguar Land Rover sales
for 2009-10 declined by 16% and stood at 170,444 units.
Standing tall at the first position in terms of commercial vehicles and third in passenger vehicles,
Tata Motors delivers more than 4 million vehicles for its domestic customers. In terms of truck
and bus manufacturing, it is the fourth and second biggest, respectively, in the world
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C) Vision, mission and quality policy:-
Vision:-
The vision statement of Tata Motors is "Best in the manner in which we operate, best in the
product we deliver and best in our value system and ethics."
The vision statement of Tata Motors is "Best in the manner in which we operate, best in the product we
deliver and best in our value system and ethics."
The vision statement of Tata Motors Limited, India's largest automobile company, is to be "best
in the manner in which we operate, best in the products we deliver, and best in our value system
and ethics."
“To evolve into a world class Indian car brand”
Mission:-
“To provide passenger vehicles that offer customers exceptional value, and through this build a company that provide its shareholders with superior return, and is seen by society and other stakeholders as a valuable contributor to their development”
Shareholders:-
To consistently create shareholder value by generating returns in excess of weighted average cost of capital (WACC) during the upturn and atlest equal to weighted average cost of capital (WACC) during the downturn of the business cycle.
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Customer:-
To strengthen the Tata brand and create lasting relationships with the customers by working closely with business partners to provide superior value for money over the life cycle
EMPOYEES:-
To create a seamless organization that incubates and promotes innovation, excellence and the Tata core values.
VENDER AND CHANNEL PARTNERS:-
To foster a long –term relationship so as to introduce a broad range of innovative products and services that would benefit our customer and other stakeholders.
COMMUNITY:-
To proactively participate in reshaping the country’s economic growth, To take a holistic approach toward environment protection
Quality policy:-
" We shall strive to deliver products to meet and exceed Customer expectations of Quality,
Delivery and cost "
We are committed to create value for all our stakeholders by continually improving our systems
and process through innovation, involving all our employees.
This policy shall form the basis of establishing and reviewing the Quality Objectives and shall be
communicated across the organization. This policy will be reviewed to align with business
direction and to comply with all the requirements of the Quality Management Standard.
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D) Product profile:-
Product Profile Tata Motors Limited
Passenger Cars & Utility vehicles
Tata Sumo/Spacio
Tata Safari
Tata Indica
Tata Indigo
Tata Winger
Tata Magic
Tata Nano
Tata Xenon XT
Tata Xover (2009)
Tata Manza (2009)
Commercial Vehicles are
Tata Ace
Tata Starbus
Tata Globus
Tata Marco polo Bus
Tata Novus
Tata 407 EX Military Vehicles
Tata LSV
Tata 407 Troop Carrier
Tata Winger Passenger Mini Bus
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Defence Vehicles
Tata 407 (4 x 4) Soft Top Troop CarrierTata LPT 709 E Hard Top Troop CarrierTata LPTA 1621 TC (6 x6)Tata LPTA 1615 TC (4 x2)Tata SD 1015 TC (4 x4)Tata 407 / (4 x2) Hard Top Troop CarrierTata LPTA 1615 TC (4 x 4)Tata LPTA 713 TC (4 x4).
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E) AREA OF OPERATION:-
The kind of market segmentation followed by Tata motors is fully market coverage. This means
that the entire products manufactured by the company are sold in various markets.
a) Global
b) National
c) Regional
Global:-
Global operations - UK, South Korea, Thailand and Spain. TML - world's fourth largest truck
manufacturer. World’s second largest bus manufacturer.
Tata motors a growing global footprint and has established itself in market across the world as
one of the world’s most prestigious auto brands. The emphasis is now on establishing a solid
local presence in these countries as this was the key to long-term success and building trust with
the customer. With subsidiaries in south Africa, Europe and strong presence in over 15
countries , it aspire to be globally renowned in utility vehicles.
NATIONAL:-
The company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune
(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka).
Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat
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Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat
powertrains. The company is establishing a new plant at Sanand (Gujarat). The company's
dealership, sales, services and spare parts network comprises over 3500 touch points; Tata
Motors also distributes and markets Fiat branded cars in India.
REGIONAL:-
The company also operates within the local market. It has dealers within Gujarat ; here the
dealers ultimately reach the customers.
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F) Ownership pattern:-
The Board, being elected by the shareholders, is a representative of the Company’s
shareholders and is a bridge between them and the executive management. The Board
therefore has a fiduciary relationship and a corresponding duty to all its stakeholders to ensure
that their rights are protected. Through the governance mechanism in the Company, the Board
alongwith its Committees endeavors to strike the right balance with its various stakeholders.
The Company has a Non-Executive Chairman and the day-to-day operations of the Company are
overseen by the Chairman, Mr. Ratan N Tata as a member of the Committee of Directors,
comprising himself and Mr. R Gopalakrishnan. They have delegated appropriate powers to the
Managing Director and Executive Directors to look after the day to day affairs of the Company.
The role of the Chairman and the Managing Director (CEO) are distinct and separate.
The relationship between the Board, the Committees and the senior management functions is
illustrated below:
Being a global player, Tata Motors has ensured that its corporate governance practices are
compatible with the international standards. Tata Motors has adopted the Tata Business
Excellence Model (TBEM) as a means of driving excellence. In order to track process on
longterm
strategic goals, a Balanced Score Card methodology is used. This enables the Company to
go beyond financial performance to incorporate considerations of environment and society, as
well.
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Shareholders & Government
There are several means that have been established to facilitate two-way process of
communication between the stakeholders and the Board of the Company. The Quarterly/Half
Yearly/Annual results are regularly submitted to the Stock Exchanges in accordance with the
Listing Agreement and are published in the newspapers and posted on the Company’s web-site.
The information regarding the performance of the Company is shared with the shareholders
every six months through the half yearly communiqué and each year through the Annual
Report. The Company also regularly posts the information as specified under Clause 41 of the
Listing Agreement on the Electronic Data Information Filing and Retrieval System (EDIFAR)
launched by Securities and Exchange Board of India.
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G) COMPETITORS: -
COMPETITORS Tata Motors relies heavily on its sales in India. Tata Motors now faces stiff
competition from fellow compatriots like Mahindra, Maruti as well as multinational brands
like Toyota and Chevrolet. It has faced controversy over developing the a˜Nano’s. Ashok
Leyland, Tata's biggest competitor in the Indian heavy commercial vehicle market 20 Any
person or entity which is a rival against another.A company in the same or similar industry
which offers a similar product or service -LEADERSHIP WITH TRUST
H) INFRASTRUCTURAL
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I) Achievement/Award:-
Awards Tata Motors Limited 8 India's Most Trusted Car Brand.
'Golden Peacock Environment Management Award' in 2003.
Forbes Global 2000 list for the year 2005 - Tata Motors ranked at 1215.
Tata Motors bagged the prestigious 'CII-EXIM Bank Award' for business excellence in
2005.
Tata Motors bagged National Award for Excellence in Cost Management in 2006.
Tata Motors - Investor Relations, ranked first in India in 2008.
Tata Motors' Jaguar Won Asian Guild's Enterprise 2010 award.
2 Dec 2010 ... The Lucknow unit of Tata Motors Limited has won the "Best of All" awards for
2009,
9 Nov 2004 ... Tata Motors , India's leading automaker , has won the 'Golden Peacock Award' for
Corporate Social Responsibility
2 Sep 2006 ... Tata Motors' Commercial Vehicle Business Unit (CVBU) has won the CII-Exim
Bank Award for Business Excellence for the year 2005. ...
Tata Motors' today said its small car 'Nano' has received the good design award for 2010
5 May 2010 ... Their revolutionary car, Nano, has won gold prize at 2010 Edison Awards. Tata
Motors won a gold prize for the development of the low-cost ...
Milestones : -
Milestones Tata Motors Limited
Indica - India’s first fully indigenous passenger car.
Sierra - India’s first sports utility vehicle launched in 1992.
Tata Motors acquires Daewoo Commercial Vehicle Company in 2004.
Tata Motors gets listed on the NYSE in 2004. Acquisition of Jaguar and Land Rover in
2008.
Tata Motors launches ‘Nano’ - The People's Car in 200
J) WORK FLOW MODEL
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STAMPING
WELDING
PAINTING
GENERAL ASSEMBLY
ENGINE
QUALITY
PRODUCATION CONTROL
K) FUTURE GROWTH AND PROSPECTS:-
In India which are pretended to be arrival for sale to the general public in the near future the
company the company, plan, make its position stronger also in premium vehicle segment.
To attract, recruit, induct and groom young managerial talent for future leadership position in the
group.
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3) MCKENCY’S 7S MODEL
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Structure
Staff
Style
System
Shared
Value
Skill
Strategy
Explanation of each element:-
Strategy:- strategy is crated to maintain and make competitive benefit over the competition.
Structure:- structure is the way the organization is constructed and who report to whom.
System:- in system the daily activities and events that staff members join in to get the job done.
Shared value:- shared values are also called “super ordinate goals”. These values are the center
values of the company that are evidence in the corporate culture and the general work.
Style:- you have to adopt the style of leadership.
Staff:- in staff employees and their general capabilities are included.
Skills:- skills are the actual skills of the employee who are working for the company.
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MCKENCY’S 7S MODEL RELATING TO TATA MOTORS
STRUCTURE:-
Structure refers to the organization hierarchy, which provides information about who reports to
whom and how takes are divided and integrated.
A Tata motor has an organization structure that implies centralization of authority at the top
departmentalization of jobs. Hierarchy of command, narrow span and intense division of labour,
this type of structure provides a clear and well defined work setting to its employees.
RESPONSIBILTY OF TOP MANAGEMENT IN TATA MOTORS
Empowerment of people
Building excellence throughout the organization
Open and transport communication
Setting up of performance management system
Motivate the manager.
FOLLOWING ARE THE DEPARTMENTS IN TATA MOTORS
Technical department
Production department
Human resource department
Material department
Finance department
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SKILLS
One of the important attributes or capability possesses by the organization are
skills. The term skill include those characteristics or strength which most of the people
use to describe the company.
Tata motor believe that human resource is the single largest factor responsible for
more effective utilization of all the other resource.
The following are skills possessed by Tata motors.
1. Communication skill and technical skills
2. Initiative
3. Interpersonal skills
4. Analytical skills
5. People sensitivity
STYLE:-
It refer to the way of working and the reporting relationship. Style means how manager
collectively spend their time and attention and how they used symbolic behavior. How
the management act its more important then what management say. Management is a
employee oriented. The working of management is democratic in style.
Tata motors the representative of workers takes active participation in all the
managerial activities where the interest of employee are involved. Functional heads takes
the day today decisions.
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Whenever the dispute arises it will be settled at the initial stage through mutual
discussion between the management and employees.
Strategy:-
It is a coherent set of actions aimed at gaining a suitable advantage over
competition, improving positions and allocating resources.
The main strategy is to ensure maximum utilization of available resources. For this
purpose the company believes in promoting from within the organization and thereby
encourage its people to strive for higher management stability. The set up also allows
them to take the advantage of common pool of technical and marketing talent of the
highest quality.
Tata adopts the following other strategy.
1. Adopts dynamic business strategy
2. Maintaining and improving quality
3. Business intelligence
4. Create innovative solution for the future
5. Long standing client relationship
System:-
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System refer to the organization methods that are used for the flow of information from
one department to other department. Tata has an adequate system of internal control designed to
provide reasonable assurance on the achievement of the objective relating to efficiency and
effectiveness of operation, reliability of financial reporting. There is a system compliance to
follow rules and regulations and for safeguard of assets.
Staff:-
The company is accommodating various employees, they comprise of staff, workers and
trainees. The people in organization are very dedicated and work towards the improvements of
the organization.
Shared values:-
Intensity to win
Make customer successful
Team, innovate, excel
Act with sensitivity
Respect for the individual
Thoughtful and responsible
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Unyielding integrity
Delivering on commitments
Honesty and fairness in action
4) SWOT ANALYSIS
A SWOT analysis is a strategic planning tool used to evaluate the strengths,
Weaknesses, Opportunities & Threats involved in a project or in a business venture
or in any other situation requiring a decision.
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STRENGTHS
TATA motors is market leader In automobile industry with high market share.
TATA motors company have hugr employee base.
TATA motors employee productivity percentage is higher.
TATA motors produce low price car with low fuel consumption.
TATA motors is the reputable brand in Indian industry
TATA motors limited is india’s largest automobile company with revenues of Rs. 35651.48
crores(8.8 billion) in 2007-07
The company’s dealership. Sales. Service and spare parts network comprises over 3500 touch
points.
Tata motors has been aggressively acquiring foreign brands to increase its global presence.
The research and development department of tata motors is very strong.
Tata motors posses high corporate responsibility.
Weaknesses
Shareholders of TATA motors are not getting much from their investments due to low ROI on
shares.
Customer satisfaction Page 32
The thing which customer not like about TATA motors vehicles is weak safety standards.
Domestic sales are not impressive.
TATA always followed the low cost advantage strategy although the other segment such as
luxury car are still untapped.
Opportunities
As it is low cost vehicle product so it can take the advantage of this strength to exploit the
opportunity by entering into the third world countries.
Incorporate safety features in the vehicles to gain more customer satisfaction and allow the safety
cautious people to become the customer of TATA motors.
Manufacturing luxury vehicles to attract corporate segment
Joint venture and acquisition in other countries.
Threats
The prices of material such as steel, plastic, rubber is rising which also raise the total production
cost of vehicle.
TATA motors has cost advantage over its competitors.If the competitors will follow the same
strategy then it may reduce the sales of TATA motors.
Customer satisfaction Page 33
Low safety standards
Fluctuation in the economic condition
Rising prices of petrol, diesel and CNG
5) ANALYSIS OF FINANCIAL STATEMENT:-
Balance Sheet of Tata Motors
------------------- in Rs. Cr. -------------------
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10
12 mths 12 mths 12 mths 12 mths 12 mths
Customer satisfaction Page 34
Sources Of Funds
Total Share Capital 382.87 385.41 385.54 514.05 570.60
Equity Share Capital 382.87 385.41 385.54 514.05 570.60
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 5,127.81 6,458.39 7,428.45 11,855.15 14,394.87
Revaluation Reserves 26.39 25.95 25.51 25.07 0.00
Networth 5,537.07 6,869.75 7,839.50 12,394.27 14,965.47
Secured Loans 822.76 2,022.04 2,461.99 5,251.65 7,742.60
Unsecured Loans 2,114.08 1,987.10 3,818.53 7,913.91 8,883.31
Total Debt 2,936.84 4,009.14 6,280.52 13,165.56 16,625.91
Total Liabilities 8,473.91 10,878.89 14,120.02 25,559.83 31,591.38
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10
12 mths 12 mths 12 mths 12 mths 12 mths
Application Of Funds
Gross Block 7,971.55 8,775.80 10,830.83 13,905.17 18,416.81
Less: Accum. Depreciation 4,401.51 4,894.54 5,443.52 6,259.90 7,212.92
Net Block 3,570.04 3,881.26 5,387.31 7,645.27 11,203.89
Capital Work in Progress 951.19 2,513.32 5,064.96 6,954.04 5,232.15
Investments 2,015.15 2,477.00 4,910.27 12,968.13 22,336.90
Inventories 2,012.24 2,500.95 2,421.83 2,229.81 2,935.59
Sundry Debtors 715.78 782.18 1,130.73 1,555.20 2,391.92
Cash and Bank Balance 327.66 535.78 750.14 638.17 1,753.26
Total Current Assets 3,055.68 3,818.91 4,302.70 4,423.18 7,080.77
Loans and Advances 5,964.61 6,208.53 4,831.36 5,909.75 4,618.90
Fixed Deposits 791.77 290.98 1,647.17 503.65 0.00
Total CA, Loans & Advances 9,812.06 10,318.42 10,781.23 10,836.58 11,699.67
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 6,673.61 6,956.88 10,040.37 10,968.95 16,117.80
Provisions 1,215.04 1,364.32 1,989.43 1,877.26 2,763.43
Total CL & Provisions 7,888.65 8,321.20 12,029.80 12,846.21 18,881.23
Net Current Assets 1,923.41 1,997.22 -1,248.57 -2,009.63 -7,181.56
Miscellaneous Expenses 14.12 10.09 6.05 2.02 0.00
Total Assets 8,473.91 10,878.89 14,120.02 25,559.83 31,591.38
Contingent Liabilities 2,185.63 5,196.07 5,590.83 5,433.07 3,447.50
Book Value (Rs) 143.94 177.59 202.70 240.64 262.30
Customer satisfaction Page 35
6) LEARNING EXPERIENCE
Customer satisfaction Page 36
The learning experience in the company was very pleasant. The response and support I got from
the management and staff was appreciable.
The company helped me to know the practicalities. This learning about management from
practical perspective and about organization as to how it works in management aspects and the
polices and procedures. Totally it was a highly useful training for me in the company.
During the first week, it was totally a new experience into the organization. On the first day of
the training ,HR manager explained about whole working process of the organization and other
departments.
The project period was very informative and useful as it enabled us to have a corporate look over
the functioning of each and every department of the company apart from our theoretical
knowledge.
To conclude, this project has given me practical exposure in the study of organization. It was a
great experience working, the functioning of the an organization in accordance with the present
market trends. The main purpose of the organization study is to make student acquainted with the
practical knowledge about the overall functioning of the organization.
PART-B
Customer satisfaction Page 37
a) GENERAL INTRODUCTION
1) PROBLEM DEFINITION
DEFINITION:-
In order to carry out the research programmed, the researcher should know the
basic problem. A competent researcher will not accept a research, until he understands
the problem definition is the core of research process. As such it denotes the particular
most important step to be performed. According to researcher’s viewpoint problem
identification represents conversion of the management problem in to research
problem.
In the case, the topic is to know the “customer satisfaction towards TATA
MOTORS” the basic problem is to know the satisfaction of the consumer is at present
towards the TATA MOTORS. What people think about it? The main problem is to
know how many people are interested in purchasing the TATA MOTORS vehicle.
2) OBJECTIVES OF THE STUDY:-
Customer satisfaction Page 38
The main objective of the study can be explained as below:-
To know how many persons are willing to buy the TATA MOTORS CAR?
To know the different criteria that the customer undertakes while purchasing the
cars.
Through customer satisfaction, we can know the current position of TATA
MOTORS in the market.
Also the study will provide detail about the automobile sectors and the position
of the company will be known.
Customer satisfaction Page 39
3) SCOPE OF THE STUDY:-
Scope of the study is to know the customer satisfaction about TATA MOTORS
through of different areas. I.e. different areas. In Surat city.
4) RESEARCH METHODOLOGY
“Research is an organized inquiry designed and carried out to provide
information for solving problems.”
- Fred Kerlinger.
“Research is careful inquiry or examination to discover new information or
relationships and to existing knowledge.”
- Francis Rammel.
Customer satisfaction Page 40
RESEARCH COMPONENTS:-
Research design:-
Research design is the plan for collecting the information related to the study.
Research design explains the methods that are used for collecting the information. The
research design will focus attention on the different methods that are used for collection
of the data. Also it will help to solve the problem. Different forms of collecting the data
will be tasted in the research design.
In this case, survey method is used to collect the necessary data in the survey
method, the personal interview is used to collect the information from the respondents,
and questionnaires are used. The respondents are visited personally, and the detail
information is collected related to the study. The question mainly focuses attention on
the consumer behavior to fulfill the objective of the study.
DATA COLLECTION METHOD:-
Customer satisfaction Page 41
There are two types of methods used data collection i.e secondary data &
primary data.
I collect primary data.
(1) Primary Data:-
Primary data are those, which are collected for the first time and they are original
in character. The researcher he to study a particular problem collects there.
Questionnaire carrying various questions regarding research method. Researchers
personally visited to the consumer and ask the questions and sub questions to him and
recorded the answer in the questionnaire.
During the visit to consumer the researcher observe that the consumers are
frightened to disclose of information due to the income tax and sales tax authority.
For this study the researcher did not simply relied on the questionnaire but also
adopted the observation method for collecting real facts.
SAMPLING PLAN:-
Sampling plan includes.
(A) Sampling unit
(B) Sample size
(C) Sampling method
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(A) Sampling Unit:-
In my study the market survey was conducted in surat city. Conducted I have covered
different areas under my study. Different areas like pandesara & other areas of the city
are covered by reseachers during the study.
(B) Sample Size:-
One of the most important parts for the research is to decide sample size. I have taken
100 samples. The sample size explains how many consumers are covered in the study?
Customer satisfaction Page 43
5) LIMITATION OF THE STUDY:-
The time period of the survey being only two months it was not possible to conduct a
highly in depth and details study.
Different people have a different thought, process and different attitudes. As a result their
manner of answering the questions of the study differs the answers received sometimes
good while sometimes they where negative.
A census survey is not possible due to time period so I have selected sample surve
E) ANALYSIS & INTERPRETATION:-
Customer satisfaction Page 44
TABLE NO:-1
Table showing the genders of the respondents
Category Percentage
Male 85
Female 15
Total 100
ANALYSIS:
85% of the respondents are male
15% of the respondents are female.
TABLE NO:-2
Table showing distribution on the basis of the occupation
Customer satisfaction Page 45
malefemale
0102030405060708090
percentage
percentage
Occupation Percent
Professional 35
Govt. employer 15
Private employer 10
Businessman 35
Other 05
Total 100
Pro-fessi-nonal35%
Govt. Employee15%Private Employee
10%
Busi-nessman
35%
Other5%
Percent
ANALYSIS:
35% are Professionals , 15% are Govt. Employee,10% are private Employee
35% are Businessman and 05% are other.
Customer satisfaction Page 46
TABLE NO:-3
This table showing SOURCE OF FINANCE
Model Of PurchasePercentage
Loan 85
Cash 15
Total 100
Loan Cash0
102030405060708090
Percent
Percent
ANALYSIS:-
In source of finance 85% respondent are buy car by loan which is very high & then by cash which is15%, deference between this is very high.
TABLE NO:-4
Table showing the reasons of purchase from shreeji automart pvt ltd (authorized
dealer).
Customer satisfaction Page 47
Reason Of Purchase Percentage
Quick Delivery 20
Customer Care 35
After Sales service 40
All 05
Total 100
Quick Delivery20%
Customer Care35%
After Sales service40%
All5%
Percent
ANALYSIS:-
20% respondent are satisfactory with Quick delivery
30% respondent are satisfactory with Customer care
40% respondent are satisfactory with After sales service
05% respondent are satisfactory with All
TABLE NO:-5
This table showing about price of TATA CAR when compared with its facility
Customer satisfaction Page 48
Facility Percentage
High 10
Normal 80
Low 10
Total 100
High Normal Low0
10
20
30
40
50
60
70
80
90
10
80
10
Percent
Percent
ANALYSIS:-
Here we can see that 80% respondent give normal, and then second high which is 10% , so
performance of tata car is best.
TABLE NO:-6
This table showing satisfaction with Tata car
Satisfaction Percentage
Yes 60
Customer satisfaction Page 49
No 40
Total 100
Yes No0
10
20
30
40
50
60
70
Percent
Percent
ANALYSIS:-
60% respondent are satisfied with Tata car
40% respondent are unsatisfied with Tata car
TABLE NO:-7
MOST TWO FEATURES OF TATA CAR
Attribute Percentages
New model & design 30
Customer satisfaction Page 50
Mileage 40
Pick-up 20
Other 10
Total 100
New model & design
Mileage
Pick-up
Other
0 5 10 15 20 25 30 35 40
30
40
20
10
Percent
ANALYSIS:-
In most features that in first is mileage which is 40%, then on second is new model and design which is 30% & on third pick up which is 20%, out of 100 respondents. So mileage is most features selected by respondents.
TABLE NO:-8
This table showing the maintenance cost of Tata car
Maintenance Cost Percentages
Medium Cost 60
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Low Cost 35
High Cost 05
Total 100
Medium CostLow Cost
High Cost
0
10
20
30
40
50
6060
35
5
Percent
ANALYSIS:-
60% responders are satisfied because of medium maintains cost
05% responders are unsatisfied because of high cost of maintains.
TABLE NO:-9
This table showing performance of Tata car
Performance Percentages
Excellent 30
Good 55
Customer satisfaction Page 52
Poor 15
Total 100
Excellent Good Poor0
10
20
30
40
50
60
Percent
Percent
ANALYSIS:-
Out of 100 responders 30% are feel its excellent performance and 55% responders
are feel it’s good performance and remaining 15% feel its poor performance.
TABLE NO:-10
Table showing the satisfied with service provide by shreeji automart (authorized
dealer)
Service Percentages
Yes 71
No 29
Customer satisfaction Page 53
Total 100
Yes No0
1020304050607080
Percent
Percent
ANALYSIS:-
71% Are satisfied with service provide by shreeji automart and 29% not
satisfied
TABLE NO:-11
This table showing satisfaction with Tata motors responding to customers’ needs
Satisfaction with company Percentages
Yes 67
No 33
Total 100
Customer satisfaction Page 54
Yes No0
10
20
30
40
50
60
70
Percent
Percent
ANALYSIS:-
This chart shows that 33% customers are unsatisfied with car, 67% customers are
satisfied.
TABLE NO:-12
Table showing, satisfy the quality of workmanship of shreeji workshop
Quality of workmanship Percentages
Highly Satisfied 10
Satisfied 65
Not Satisfied 25
Total 100
Customer satisfaction Page 55
Highly Satisfied Satisfied Not Satisfied0
10
20
30
40
50
60
70
Percent
Percent
ANALYSIS:-
10% responders are highly satisfied with service quality provide by shreeji, 65%
responders are satisfied and 25% responders unsatisfied with service quality provide by
shreeji workshop.
TABLE NO:-13
Table showing the reasons to go for Tata car
Category Percentages
Price 00
fual efficiency 25
traveling comfort 54
brand name 17
Other 04
Customer satisfaction Page 56
Total 100
price
fual effi
ciency
trave
ling c
omfort
brand nam
e
other
0102030405060
percentage
percentage
ANALYSIS:
25% of responders prefer Tata car for fuel efficiency
54% of responders prefer Tata car for Traveling comfort
17% of responders prefer Tata car for brand name
From the above statement it is clear that maximum no of responders chose tata car for
traveling comfort.
TABLE NO:-14
Table showing opinion on the information given by sales representative
Category Percentages
Satisfactory 45
Convincing 29
Unsatisfactory 16
Bad 10
Total 100
Customer satisfaction Page 57
satisfaction convincing
unsatisfactorybad
05
1015202530354045
Percentage
Percentage
ANALYSIS:-
45% of responders are satisfactory on the information and demonstration givan by sales
representative.
29% of respondent are convincing on the information and demonstration givan by sales
representative.
Maximum no of responders are satisfactory on the information and demonstration givan
by sales representative.
TABLE NO:-15
Table showing whether TATA has to increase its services centers both in Rural and URBAN
AREAS?
Category Percentages
Yes 89
No 11
Total 100
Customer satisfaction Page 58
yesno
0102030405060708090
percentage
percentage
ANALYSIS:-
89% respondent say YES regarding whether TATA has to increase its services centers
both in rural and urban areas.
Maximum no of responders say YES regarding wther TATA has to increase its services centers
both in rural and urban areas.
B) FINDING:-
Based on the data gathered by administrating schedules to customer the following observations
are made.
Maximum number of respondent have chose Tata cars, as it is well suited for traveling
both in rural and urban areas.
The maximum no…… of people are very much satisfied with the overall performance of
Tata cars.
Customer satisfaction Page 59
Most of the customer has the opinion that looks of Tata cars leads to their satisfaction.
Customers are dissatisfied with the fuel consumption.
Some customers are extremely satisfied with safety and comfort & some are neutral in
their opinion.
Most of the customers are using the vehicle for their own purpose.
Customers are not much with the maintenance cost.
Customers are of the neutral opinion regarding the design.
Maximum no... Of customers are of the wish that not to recommend Tata cars to others.
Customers are much satisfied with the information and demo given by sales
representative.
Most of customers are of opinion that Tata should increases its service centers in rural
and urban areas.
C) SUGGESTIONS
The study is aimed at analyzing customer satisfaction with sample 100 members, which has
helped in getting an overall view of customer satisfaction toward Tata cars considering different
criteria.
Customer satisfaction Page 60
Recommendation Tata company has to implement good customer relationship
management strategy that enhances customer satisfaction level.
The company can undertake R&D to improve the existing feature which field helps
increase in the customer satisfaction.
The company should promote about the entire feature offered by it.
As majority of the customer give opinion that they are satisfied is the factors, services
and design of the product of the company should taken not only maintain the existing
standard but also enhance them.
To increase the mileage efficiency.
To provide mobile services where one should be able to reach the spot in case of any
break down.
To bring down the cost of spares and improve.
Customer care is the best way to build long term relation, because they also have
emotional and psychological needs when they purchase a car.
Customer satisfaction Page 61
D) CONCULUSION
Tata is one of the best companies because of its good environment. The experience in the
organization was great because I have learnt many practical concept and came to know
how actually an organization works.
This study is done to know the customers satisfaction towards Tata cars, with the help of
data collected from customers through questionnaires. By this study we also knew that
customers have mixed opinion about Tata cars.
Customer satisfaction Page 62
The result of the survey conducted showed that most of the customers purchase car based
on mileage followed by price. This study also shows that customers prefer looks of the
car.
F) Bibliography
- Website
www.tatamotors.com
www.google.com
Customer satisfaction Page 63
QUESTIONNAIRE
STUDY ON CUSTOMER SATISFACTION TOWARD TATA MOTORS (CARS) WITH SPECIAL SIGNIFICANCE TO SHREEJI AUROMATR. AUTHORISED DEALER
Customer name:
Address:
Vehicle number:
Model:
1. Occupation:
Customer satisfaction Page 64
a) Professional
b) Govt. employee
c) Private employee
d) student
e) Business
f) Others
2. Family income:
a) Below Rs-75000
b) Rs 75000 to Rs 125000
c) Rs 125000 to 150000
d) above Rs 150000
3. Model of purchase:
a) Loan
b) cash
4. Mention reason to purchase the vehicle from SHREEJI AUTOMATR (TATA MOTORS AUTHORISED DEALER)
a) Quick delivery
b) Customer care
c) After sales service
d) All
Customer satisfaction Page 65
5. What do you feel about the price of TATA CAR when compared with its facilities?
a) High
b) Normal
c) Low
6. Do you satisfied with your TATA CAR?
a) Yes
b) No
7. What attribute made you to purchase?
a) New model & design
b) Mileage
c) Pick-up
d) Others
8. What is the maintains cost of your TATA CAR?
a) Medium cost
b) Low cost
c) High cost
9. Please specify the overall performance of your TATA CAR?
a)Excellent
b) Good
c)poor
10. Do you satisfied with the services provide SHREEJI AUTOMATR (TATA MOTORS AUTHORISED DEALER)?
Customer satisfaction Page 66
a) Yes
b) No
11. Do you satisfied with SHREEJI AUTOMATR (TATA MOTORS AUTHORISED DEALER) responding to your needs?
a) Yes
b) No
12. Do you prior appointment for your service and maintenance?
a)All the time
b)Sometime
c)Never
13. Are you satisfied with the workshop service?
a) All the time
b) Sometime
c) Never
14. Are the opening and closing time of our workshop convenient?
a) Yes
b) No
15. Do you satisfy the quality of workmanship of our workshop?
a) Highly satisfied
b) Satisfied
c) Not satisfied
16. Do you think TATA MOTORS has to increase its services center
Customer satisfaction Page 67
both in Rural and Urban areas ?
a) YESb) NO
Customer satisfaction Page 68