It is significant to emphasize that the risk assessment will assist the company in evaluating what threats may arise in the future and how they will affect the organization’s operations. Thus, after a risk analysis, the business can strengthen the areas that need better protection and prioritize and preventively address challenges (Bundy et al., 2017). Appropriately, the possibility of crises at the individual, group, or system level should be examined. It should be determined whether a specific employee can negatively influence the company’s performance or whether customers, competitors, or other third parties can change the situation in the organization (Coombs & Laufer, 2018). Accordingly, crisis management must evaluate the general corporate system and the individual and group contributions of employees, suppliers, or clients.
It should be mentioned that Tata Motors can prevent the emergence of a crisis. Therefore, it is essential to analyze the external environment, especially the material suppliers, and to establish their prices following the company’s policy. Consequently, it is crucial to negotiate mutually beneficial cooperation or to search for new raw materials (Malagihal, 2021). Significantly, before a crisis appears, it will assist the organization in finding raw materials at advantageous rates without interruption of production.
If expensive raw materials will reduce the company’s profits and new contracts cannot be concluded, it is imperative to raise the prices of new cars. At the same time, it is significant for Tata Motors to conduct an additional advertising campaign to stimulate demand for its products despite higher costs. Another tool to help maintain car production and cover costs is a government loan (Shafiulla, 2019). Therefore, Tata Motors needs to discuss the preferential rates of its repayment with the bank. These tools will support the organization in managing the crisis and provide time to explore alternatives for raw materials.
References
Bundy, J., Pfarrer, M. D., Short, C. E., & Coombs, W. T. (2017). Crises and crisis management: Integration, interpretation, and research development. Journal of Management, 43(6), 1661-1692.
Coombs, W. T., & Laufer, D. (2018). Global crisis management–current research and future directions. Journal of International Management, 24(3), 199-203.
Malagihal, S. S. (2021). Strategic Options for Automobile OEMs of Indian Origin to have Sustained Competitive Advantage: A Case of Tata Motors. International Journal of Global Business and Competitiveness, 16(2), 139-152.
Shafiulla, B. (2019). Tata Zica to Tata Tiago: Digital marketing strategy of Tata Motors for rebranding. IUP Journal of Marketing Management, 18(3), 40-59.