Scenario

Leo has been working as a manager of Tata Motors Company in India for the last
seven years. Leo is one of the best employees of Tata. He works very hard as he loves
his job. Leo is very proud and satisfied with his company and the work he does with
Tata.
Leo and his team members have been completing the finally objectives in their 2015
Sustainability Report. The progress of developing the report was satisfied and smooth
as it has a systematic schedule. The report will be discussed in the next Senior Team
Meeting. Leo was pleased with the content of the report. The reports shows the
companys substantial achievements next year which highlights on the companys
reduction in its production of pollution, the increase level of using recycled resources
and the continue supporting and developing public facilities. However, Leo was a
little worried about the content which was not included in the report.
In August 2010 there was a Tata car caught fire and it was the sixth car incident since
launch 10 March 2009. There was a negative effect on Tata Nanos selling as the
frequently car incidents in one year, which caused the sales figures dropped in
November 2010 comparing with 2009.
Tata Motors Company was shocked with the car incidents. In addition, the safety
problem was rising from public. Customers were uncomfortable with the quality of
Tata Nano and the safety of products. In the past time, no official evidences provide
that there was a connection between car incidents and problem of products quality by
Tata Nano. However, the products quality problem was considered again as the car
incident happened in 2010. Tata Motors Company had to in the face of a large amount
of questions from products quality problem on social media. Public and customers
showed their questions and accusations with its Facebook, Twitter, newspapers and
magazines. Most of the question and accusations were focused on the failure reasons
from Tata Motors Company to provide public with products by safe quality. It is the
companys responsibility to provide customers with products in good quality.
Tata Motors Company was in trouble to provide public evidences to prove their

products in good quality situation. Tata Motors Company issued the statement to
provide that Tata Nano is one of the most popular and safety cars in the world as their
cars are followed strictly design and produce progresses. There are about 85%
customers are satisfied with the cars. The car incidents were a kind of specific events
for several outstanding reasons. However, the issued statement did not provide
enough evidences to prove their cars were in no quality problems. Customers were
still uncomfortable with their products safety as there were no other car building
companies have car incidents so frequently as Tata Nanos. Although the company
was dealing with the situation positively, Leo started considering the situation and
questioning the position.
Leo had trusted his company and he believed that the companys policies and
positions were correct and reasonable in the past, even he did not clear whether there
was a connection between car incidents and products quality. After he read a draft of
the Sustainability Report, he considered if it is a correct position. Leo did more
researches in Tata Nanos production and the car incidents situations. If there is a
possible that the company is wrong? he considered. There are a lots of customers
still feeling worried about the safety in using Tata Nano, even if the companys
statement is right and there is no connection between car incidents and products
quality.
Tata Motors Company provides their Corporate Governance Report to public with
ethical, integrity, honesty, transparent, professionalism and fail. Leo wondered why
the situation could not be included in the Sustainability Report if the companys
polices were ethical, honesty, integrity and fail.

CEO ROLE: AMIT MAHNEDRU

Thanks for your present here today and I hope everything is going in right direction. I
believe our Marketing manager wishes to start proceedings.

CEO Amit:
As we all know and hopefully clearly understand, we have fixed the price of Tata
Nano car is very affordable less than US 2500 dollars. That was dream of our
Directors. We are not getting not any major profit for selling nano cars. We have made
record in worldwide.
CEO Amit:
Our nano car is cheapest car in the world. We have spent huge money on this project
to reduce the price. We have taken care of quality products.
CRA Muhammad: I understand that we spent huge amount of money on this project,
I think there might be some defect in product quality due which this fire accident
happened. So I suggest that we should reinvestigate the product design and quality.
CEO Amit: I dont think so we should allocate additional time and money for new
search on this project. We have taken approval from government. We have very good
reputation in our other automobile cars Tata India and Buses.
CRA Muhammad:
Our company reputation is already going down by this accident because this is not
just one accident it happens, it happened frequently with the same product and design.
And I think we have to give more focus to our customers health and safety.
CEO Amit
There is no substantiated evidence of any quality of product used in Tata Nano car is
lower quality and causes fire. That are different reason what the car has caught fire.
That is not an issue we should explore.
CRA Muhammad:
But our customers and general publics is giving great concerned to this issue because
it happens frequently within couple of years, so customers and also people who wish
to buy it, both feel scare and waiting for reasons of fire. I think this is a serious threat
to their lives and we cannot compromise on their lives.
CEO Amit

I dont think so we should generate unnecessary publicity here. Because our all
products have approved from Government authorities. We know the value of our
brand and customer satisfaction.
CRA Muhammad:
Well, I think this is not the reason to make wrong as right, if there is fault in product
how we will satisfy our customers.
CEO Amit:
Our sales might be reducing slightly but there is no link between quality of product
and fir in car. This is due to induction economy is vibrating due to recession in
worldwide.
CRA Muhammad:
I am totally disagreeing, this is serious threat to company financial position,
reputation and it will affect our profitability in long run.

CEO Amit:
I think we should find other reason why the sales are decline. What customer wants in
offer? We should think about in next future prospective offer where we can make
customer satisfied more.
CRA Muhammad:
Well I suggest that we should call back our product before we lose our market share
and high production cost, and compensation cost. We might lose human life as well if
ignore it. So, it is good time to take action call back the product.
CEO Amit:
We need to be very careful here that we are not seen to be legitimising some of the
conspiracy theories or acknowledging that our product are reasons for fire in car in
future. If we go down this path. Then we have to feel guilt for that reason.

Thanks for everyone for thoughts and suggestion and comments. I have to work on
this issue very carefully. I am not ready yet how should I explain this issue. Our
quality of product is not responsible for fire. I am not giving any surety to all of you.
I think we have a little more work on this issue