Business Finance
SFU Making Decisions to Manage Risk Government and Alliances Questions

South Florida University

Question Description

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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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Running head: MAKING DECISIONS TO MANAGE RISK GOVERNMENT AND
ALLIANCES

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Making Decisions to Manage Risk, Government, and Alliances
Student’s Name
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MAKING DECISIONS TO MANAGE RISK GOVERNMENT AND ALLIANCES
Making Decisions to Manage Risk, Government, and Alliances
Tata Motor’s Inspiration to Build the Nano
The primary reason Tata Motors was inspired to create a new design through the Nano
model stemmed from the economic condition in India. Singh and Joshi (2015) attest that at
the time, the middle-class living in India needed a cheap vehicle that could address their
immediate needs. Moreover, Farriss and Lemley (2009) maintain that there was a need to
produce a small car that would accommodate four members hence making it possible to
transport members of the same household. Tata Motors also thought it could tap into the vast
number of potential clients that were using motorcycles and scooters and convince them to
purchase the Nano model.
Innovative Steps Tata Motors too to Design the Nano in a way that would the $2500
Price Tag
The first strategy was that the company did away with crucial entities such as airbags
that would have resulted in an additional increase in Nano’s space. Farris and Lemley (2009)
maintain that the car only possessed one wiper instead of two. This further led to a reduction
in the cost of production. Moreover, the vehicle was also efficient in terms of fuel
consumption. It made it possible for consumers to buy and maintain the car at an affordable
cost. In addition, the adoption of lightweight steel, as well as obliterating the use of actuators
in headlights, further reduced the cost of producing the Nano. Its tiny engine also made it
possible to conserve space while at the same time reducing the cost of purchasing small
engines. The adoption of the innovative kit method that made it possible to assemble the
vehicle's parts from any location in the globe is also an encouraging phenomenon that
maintained the car’s price tag.

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MAKING DECISIONS TO MANAGE RISK GOVERNMENT AND ALLIANCES
Tata Motors Maintaining Quality Issues in the Nano Car
The company first ensured that even though the engine was tiny, it could use one liter
per every twenty-two kilometers while in the CBD as well as travel twenty-six kilometers per
liter on the highway. Conversely, the removal of power windows and double windshield
wipers in a manner that did not compromise its operation ability demonstrates Tata’s
commitment to maintaining quality.
Political Risk of Developing a Low Budget in India
The primary political risk of developing the Nano vehicle was when conflict arose
between the farmers and Tata Motors over a six hundred acre piece of land. Singh and Joshi
(2015) insist that the reason was that the firm purchased a piece of land that they thought
belonged to the government but instead belonged to the locals. Inadequate compensation from
the government to the farmers delayed the process leading to disputes...

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Rice University

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