Business Finance
SEU Tata Nano Manage Risk Government and Alliances Questions

Saudi electronic university

Question Description

Help me study for my Business class. I’m stuck and don’t understand.

Your assignment this week will focus on the case study Tata “Nano”: The People’s Car. We move to the country of India, home to 1.35 billion people and local car manufacturer Tata Motors. The Tata Group, a local Indian conglomerate, is important to the social fabric of India with companies in media, telecom, retail, and real estate, among other local industries. Tata Motors saw a need for an inexpensive automobile that could be built with a family in mind and came up with the Nano, dubbed “The People’s Car”.Reflecting on this week’s content focusing on ethical leadership; develop an essay making decisions for the following questions.

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Final Answer


Running Head: CASE STUDY


Case Study: Tata Nano
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What inspired Tata Motors to build the Nano?
One Rainy day, Ratan Tata observed how the average Indians suffered on the road just
trying to get where they wanted to go. He saw a family of four (father, mother, son, and daughter)
squeezed on a scooter trying to get through the heavy traffic and the rain. Ratan saw this as a very
unsafe way to travel especially given that the whole family risked their lives just to get to their
destination. He thought how the scooter offered a cheap means of transport yet it carried so much
load. The idea of most Indian families traveling together in groups of up to four on a single scooter
inspired the chairman of Tata Motors (Ratan Tata) to build the Tata Nano. The idea that Ratan got
was to build an inexpensive car with low fuel consumption capabilities while factoring in the idea
of safety. In their strategy, Tata Motors indicate economic as well as pragmatic factors. For
instance, the incomes of the middle-class households are such that they can afford the Nano,
particularly families that are interested in both comfort and safety. The idea of developing the
inexpensive car gave Tata the capabilities to attract consumers who felt like they were fed up with
riding scooters which are the most common medium of transport for most middle-class families in
India. Owning scooters is a cheaper option as opposed to owning cars based on fuel consumption
and the costs of maintenance that middle-income families and some low-income families can
afford (Luthans & Doh, 2012).
The main market would be the families that have always yearned to own cars but the nature
of their finances is not favorable enough to allow the mainten...


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