Tata Nano developing international markets Essay

Tata Nano developing international markets - Essay Example The company has generated approximate revenue of US$ 96.79 billion in 2013 (Tata Group, 2014). The income of the company accounts to almost 3.2% of total GDP in India. In January 2008, vehicle manufacturing segment of the Tata group, Tata Motors has launched a new car model named Tata Nano. The chairman claimed at the launching ceremony that Tata Nano was â€Å"people’s car†. The company advocated that the car would benefit the middle and lower middle income classes of the nation, who were unable to afford expensive cars (Tata Group, 2014). In addition to that, the vehicle was said to be manufactured after considering all safety standards, generated less pollution and highly fuel efficient in nature. The car has gained high success in the Indian automobile market. However, it should be noted that the product has acquired a global recognition and is regarded as cheapest car in the world. This research paper aims to study ways through which Tata Nano can be launched in ot her international markets. The context of the paper will also present an appropriate outline of the marketing plan for introducing the car in a new international market (Abeles, 2001). The non-blue zones in the above world map are markets where Tata Motors are yet to enter. Hence, it is evident that there are numerous new markets where Tata Motors can expand its business. Some markets from the above where Tata Nano is still not traded are: The political authorities of most world nations are actively promoting their domestic automobile industries. This is because progress of automobile industry of a nation helps in enhancing domestic income by generating higher employment opportunities (Alesina and Rodrik, 1994). It also helps in accumulating productive foreign direct investment and stimulates technology transfer within country borders. The government authorities in several countries have introduced new energy conservation policies for the automobile sector. In addition, the

British Airway is a listed industrial company on the London Stock Essay

British Airway is a listed industrial company on the London Stock Exchange,obtain its published annual reports and aacounts - Essay Example The financial performance and position analysis of British Airways can be done with the help of profitability, leverage and liquidity ratios in comparison with one of its major industrial competitors i.e. Air France-KLM (banker.thomsonib.com). The analysis of Air France-KLM would serve as a benchmark for the evaluation of performance and position of British Airways plc. The profitability ratios presented in the above table highlight both the companies i.e. British Airways plc and Air France-KLM for the last 4 years 2002-05. The return on assets ratio for British Airways reveals that the company has been generating a declining return on its various assets over the last four years. This ratio has decreased by about 39% in 2005 as compared to the year 2002. For Air France, this ratio also shows that the return generated by the company on its various assets has been consistently declining over the four years. The ratio has decreased by about 50% in the year 2005 as compared to 2002. Despite this fact, Air France's return on asset ratio is about 12% higher than that of the British Airways plc for the year 2005. This suggests that Air France has been more successful in utilising its assets towards the generation of profit. The return on capital employed ratio indicates the extent to which a company generates return on the funds invested by its investors. According the above table, British Airways' return on capital employed ratio has been on the declining trend for the last four years suggesting a significant plunge in the company's net profits. The ROCE for British Airways has declined by about 30% in the year 2005 as compared to 2002. Approximately, the similar situation has been with its competitor Air France plc; its ROCE has also been declining but at a higher rate than British Airways i.e. 50% if the figures for the year 2005 are compared with 2002. Still, Air France's ROCE is much higher than that of the British Airways. The three profit margin ratios depicted in the above chart i.e. the gross profit margin, operating margin and net profit margin provide an insight into these companies' general profitability. The gross profit margin shows the revenue that is left with the company after accounting for various production and distribution costs. The operating margin reveals the extent to which a company loses its sales revenues in meeting its