BUSINESS 1

Tata Nano Context

Term: Tata Nano
Definition: Aimed to revolutionize travel as the "people’s car," but sales struggled due to poor safety record and being marketed as the cheapest car.

Term: West Bengal
Definition: Location of the Tata Nano factory.

Term: Reasons customers were put off the Tata Nano
Definition: Poor safety record and negative perception from being labeled the "cheapest car."

Term: Relaunch strategy of Tata Nano
Definition: Relaunch at a higher price with improved specifications and stronger marketing/branding.

Stakeholders

Term: Stakeholder
Definition: Any group of people affected by and with an interest in the actions of a business.

Term: Stakeholder Concept
Definition: The idea that businesses and managers have responsibilities to a wide range of groups, not just shareholders.

Term: Main Stakeholders (besides owners/shareholders)
Definition: Customers, suppliers, employees and their families, local communities, government/government agencies, special interest groups.

Customers

Term: Customer Role
Definition: Purchase goods/services and provide revenue.

Term: Customer Rights
Definition: Right to safe, quality goods and services; right to repairs; right to be treated fairly.

Term: Customer Responsibilities
Definition: Be honest, follow laws, avoid false claims, and not steal.

Suppliers

Term: Supplier Role
Definition: Provide goods and services to businesses.

Term: Supplier Rights
Definition: To be paid on time, treated fairly, and not forced to unfairly lower prices.

Term: Supplier Responsibilities
Definition: Deliver goods/services as agreed under contracts or service agreements.

Employees

Term: Employee Role
Definition: Provide manual or skilled labor to the business.

Term: Employee Rights
Definition: Fair treatment under labor laws (wages, benefits, conditions), ability to join unions.

Term: Employee Responsibilities
Definition: Honesty, meeting job requirements, following contract and ethical code of conduct.

Local Community

Term: Local Community Role
Definition: Provide infrastructure, services, and support for businesses.

Term: Local Community Rights
Definition: Be consulted on expansion or changes that affect them; fair treatment within the law.

Term: Local Community Responsibilities
Definition: Cooperate with businesses under due process.

Government

Term: Government Role
Definition: Pass laws, regulate business activity, ensure stability.

Term: Government Rights
Definition: Ensure legal compliance, collect taxes, and enforce fair competition.

Term: Government Responsibilities
Definition: Provide law and order, ensure economic stability, prevent unfair practices, and maintain trade links.

Lenders

Term: Lender Role
Definition: Provide finance to businesses in different forms.

Term: Lender Rights
Definition: To be repaid on agreed date with interest.

Term: Lender Responsibilities
Definition: Provide agreed financing under specific terms and conditions.

Corporate Social Responsibility (CSR)

Term: Corporate Social Responsibility (CSR)
Definition: A business’s responsibility toward stakeholders, ensuring its actions are genuinely focused on social responsibilities.

Term: Risk of superficial CSR
Definition: If a company only pretends to follow CSR, it may backfire and harm its reputation with stakeholders.

Stakeholder Conflicts

Term: Stakeholder Conflict
Definition: When objectives of different stakeholders clash, such as between profit goals and social responsibilities.

Term: Compromise
Definition: Often the best way to resolve stakeholder conflicts, requiring management to balance interests.

Impact of Changing Objectives

Term: Changing Business Objectives
Definition: May significantly impact stakeholders—leading to job loss, reduced customer choice, or lender concerns.

Term: Reassurance to Stakeholders
Definition: Businesses must show they can cover costs, repay lenders, and manage the benefits of new objectives.