ipl-logo

Tata Motors: Impact Of Losing A Foreign Market

988 Words4 Pages

Tata Motors Limited
Tata motors is an Indian multinational automobile manufacturing company headquartered in Mumbai, India, and a member of the Tata Group. Its products include passenger cars, trucks, vans, coaches, buses, construction equipment and military vehicles. Tata Motors' principal subsidiaries purchased the English premium car maker Jaguar Land Rover and the South Korean commercial vehicle manufacturer Tata Daewoo. Tata Motors entered the passenger vehicle market in 1991 with the launch of the Tata Sierra, becoming the first Indian manufacturer to achieve the capability of developing a competitive original automobile. Tata Motors acquired the South Korean truck manufacturer Daewoo Commercial Vehicles Company in 2004 and purchased Jaguar …show more content…

The exchange rate of one currency versus the other is influenced by numerous fundamental and technical factors. These include relative supply and demand of the two currencies, economic performance, outlook for inflation, interest rate differentials, capital flows, technical support and resistance levels, and so on. As these factors are generally in a state of everlasting flux, currency values fluctuate from one moment to the next. But although a currency’s level is largely supposed to be determined by the underlying economy, the tables are often turned, as huge movements in a currency can affect the economy’s fortunes.

Identify the impact of losing a foreign market on the profits of the company. According to the Hindustan Times, Tata motors’ consolidated net profit in the quarter fell to Rs.2,260.40 crore from Rs.5,254.23 crore a year ago, missing analyst estimates. Net sales rose 10% to Rs.66,101.27 crore from Rs.60,093.79 crore in the same period. Total costs rose 18% to Rs.63,993.99 crore.
Higher sales volumes both at the stand-alone business and the Jaguar Land Rover Ltd unit were more than offset by the adverse foreign exchange impact of Rs.2,296 crore and adverse commodity derivatives impact of Rs.167 crore.
Most of the forex loss stemmed from its UK luxury unit Jaguar Land Rover, where net profit fell to £304 million from £492 million in the year-ago quarter, despite a 9.17% increase in revenue to £5.461

Show More
Related

  • American Eagle Outfitters Income Statement

    515 Words  | 3 Pages

    The net income amount that is shown on three statements show $80,322 in the thousands. The three statements are operation statement, income statement, and the cash flow statement. Per all three statements the net income has decreased in the thousands over the last three fiscal years (Bethel University,

    Read More

  • Canadian Tires Mission Statement

    1188 Words  | 5 Pages

    Profit increased to $206.6 million ($2.44 per diluted share). There was a strong demand for winter tires. Canadian Tire also changed their marketing ways to attract familiars which is one reason why their sales increased. They also included a new home decor line and a bigger selection of kids today which will sell during all seasons. They have reached one of their corporate goals which is to created a new platform of growth for the company.

    Read More

  • Costco Code Of Ethics Essay

    519 Words  | 3 Pages

    This calculates to total revenue of $88.915 billion. Exhibit 1 also states that the net income for the year was $1.462 billion. By dividing the 2011 net profit by that year’s total revenue we find that Costco’s net profit margin for 2011 was only 1.64%. Note that net income was less than the membership fees. The net profit margin indicates the business itself would make little or no money.

    Read More

  • Tyson Foods Competitive Strategy

    458 Words  | 2 Pages

    As the company is operating in numerous countries it is exposed to currency fluctuations especially given the volatile political climate in number of markets across the world. Rising pay level especially movements such as $15 an hour and increasing prices in the China can lead to serious pressure on profitability of Tyson Foods. Changing consumer buying behavior from online channel could be a threat to the existing physical infrastructure driven supply chain model. No regular supply of innovative products – Over the years the company has developed numerous products but those are often respond to the development by competitors. Secondly, the supply of new products is not regular thus leading to high and low swings in the sales number over period of time.

    Read More

  • Moet Hennessy Louis Vuitton: Case Study (LVMH)

    1588 Words  | 7 Pages

    In 2011, the brand 's value was Euro 18.4 billion and had increased by 23 percent from 2010. 3 CASE SUMMARY AND PROBLEM STATEMENT Moet Hennessy Louis Vuitton (LVMH) was profitable in 2010 and 2011. This growth can be attributed to its flagship group, Louis Vuitton. In 2011, LVMH announced replacement of its CEO Yves Carcelle at the end of 2012 by Jordi Constants.

    Read More

  • Macroeconomic Factors Affecting Apple Company

    2241 Words  | 9 Pages

    For example, the sales of Apple products in US will decrease if there is a rise in the US. Because of this the purchasing power will also decrease. Hence the sales will be reduced. Hence, to reduce the rise effect, Apple has purchased itself foreign currency.

    Read More

  • Impact Of External Business Environment On Automobile Industry

    1406 Words  | 6 Pages

    SUMMARY In this report, I am explaining how the impact of External Business Environment on Automobile industry in UAE. Also, how the external environment factors are dominant on the growth of an industry including dimensions of management, human resource, marketing and IT tools used in the Industry. INTRODUCTION

    Read More

  • Case Study Of Motilal Oswal Company

    815 Words  | 4 Pages

    Motilal oswal securities Ltd The Motilal oswal ltd company was the parent company of the Motilal oswal securities ltd, it was the subsidiary company. Motilal Oswal Company was established by Motilal oswal and Raamdeo agarwal in 1987 and gets the membership from the BSE. It got it final certificate of registration approval in the year 2010 from the securities and exchange board of India regarding the setup and expansion of the business of mutual funds in the country. Motilal oswal securities ltd was incorporated in the year 1994 and its main business is stock broking and wealth management. Motilal Oswal Company has 99.95 % holdings previously which became 100 % holdings In Motilal securities ltd .It was one of the subsidiary company of the

    Read More

  • Samsung: A Case Study: Cost Structure Of Samsung

    850 Words  | 4 Pages

    Profits came in slightly above its earlier estimate, at 7.39 trillion, or $6.45 billion, up a

    Read More

  • Tata Motors Case Study

    1250 Words  | 5 Pages

    Before the deal, TATA Motors was the leading manufacturer of commercial vehicles and small cars in India. The company was established in 1945 as a family business and also owns the world’s cheapest car Nano . Prior to 2008, the company had limited global footprint and almost negligible presence in luxury car segments. Tata Motors also launched India’s first Sports Utility Vehicle (SUV) in 1991 and India’s first fully indigenous passenger car, the Tata Indica, in 1998. TATA Motors is also listed on the New York Stock Exchange (NYSE) starting September 2004.

    Read More

  • Tata Communications Case Analysis

    930 Words  | 4 Pages

    1. INTRODUCTION Tata Communications is a truly global communications provider with operations, infrastructure and partnership across established and emerging markets.. Tata Communications focuses on serving key vertical segments, including banking & financial services and media & entertainment, as well as providing catalyst Tata Communications founded in 1986 by Indian Government, The TATA communication Headquarters is in Mumbai, Maharashtra. Mainly TCL key people is Vinod Kumar (CE & MD), the revenue US$2.6 billion (2011), operating Income US$182 million (2011)

    Read More

  • Tata Motors: Innovation And Competitive Advantage And Strategies

    929 Words  | 4 Pages

    Growing customer expectations result in shorter life cycle of products and this means that companies should make their processes more and more flexible adopting modularity and product platforms in order to overcome competitors. Companies who fail to meet dynamic customer needs are doomed to fail. To illustrate this we can consider Tata Motors that designed a car selling at $2500 having identified the need for cheap vehicles and introduced market-pull innovation. Though having some negative feedbacks on its security it is affordable for many families in India.

    Read More

  • Unilever Executive Summary

    1494 Words  | 6 Pages

    Moreover, although the sales turnover of Unilever Plc has decreased, the operating profit and net profit still remain increased. The most highlighted part of this assignment is Unilever

    Read More

  • Maruti Suzuki Case Study

    2531 Words  | 11 Pages

    The full swing production of the automobiles started in 1983. Initially the Indian government had a major stake of the company with around 70%. Now, the Japanese Counterpart Suzuki holds majority stakes of the company.

    Read More

  • Tesco Malaysia Case Study

    2066 Words  | 9 Pages

    Introduction Tesco Stores (Malaysia) Sdn Bhd owns and operates hypermarkets in Malaysia. It offers fresh produce, groceries, household items, and apparel and its own food and non-food products. The company was incorporated on 29thNovember 2001, as a strategic alliance between Tesco PLC UK and local conglomerate, Sime Darby Berhad of which the latter holds 30% of the total shares. Tesco opened its first store in Malaysia in February 2002 with the opening of its first hypermarket in Puchong, Selangor. Tesco Malaysia currently operates 49 Tesco and Tesco Extra stores nationwide.

    Read More

More about Tata Motors: Impact Of Losing A Foreign Market

Open Document