Business Environment

Group assignment

Topic Project
: report on
TATA CONSULTANCY
SERVICES
 Table of components
1.Introduction
2.Company Background, sector & performance
3.Mission, Vision & goals of the company
4.PESTEL analysis
5.5 FORCES model
6.Swot analysis
7.Conclusion
Introduction
Tata Consultancy Services (TCS) is an Indian multinational information
technology (IT) services and consulting company with its headquarters
in Mumbai It is a part of the Tata group and operates in 150 locations across
46 countries TCS is the second largest Indian company by market
capitalization and is among the most valuable IT service brands worldwide.

We will now further see some results of tcs of various tests like PESTEL, 5
FORCES MODEL & SWOT analysis
 Company Background

1: Tata Consultancy Services (TCS) is an Indian multinational information technology (IT)

services and consulting company with its headquarters in Mumbai.

2: It is a part of the Tata Group and operates in 150 locations across 46 countries

3: TCS has over 6 lakh employees worldwide 

4: It was founded in 1968 by jahangir tata 

5: In 2015, TCS was ranked 64th overall in the Forbes

 Company sector
TCS is ranked as the #1 is the worldwide market for application service

1:TCS operates in the IT services sector, which involves providing technology

services.

2:TCS offers a wide range of services like application development

3:TCS is a major player in the global IT services market, with a strong presence in
North America, Europe, Asia, and other regions.

4:TCS is known for its innovation and cutting-edge technology solutions

 Company Performance
1: TCS was publically registered in 2004 and was started trading in shares

2: The biggest hike in share price of TCS was in 2009 with a hike of 204% after
the recession

3: Tcs was listed at a share price of 123 RS 

4:in the last decade TCS has been a company with growing share prices

5:now the current price of share is 3250 RS

Mission, Vision & Goals of the company
Mission

• In 2022, TCS solidified its position as one of the world's most profitable technology companies.
According to recent reports, the company is working to restructure its organisation to better
serve its customers as it strives to reach $50 billion in revenue by 2030.

Vision
• Company is achieving the highest standards of quality, always promoting meritocracy. They
also stated that, “We will be bold and agile, courageously taking on challenges, using deep
customer insight to develop innovative solutions.”

Goals

 Building on the customers' ambition and optimism to transform their businesses for the better
so that their contribution is, in turn, felt by their customers and the communities they serve. At
TCS, they hope to get into business and trust into the enterprise.
PESTEL ANALYSIS
 POLITICAL
• TCS'S POLITICAL ENVIRONMENT IS GOVERNMENT REGULATION.
GOVERNMENTS AROUND THE WORLD HAVE THE POWER TO REGULATE THE IT
SERVICES INDUSTRY, AND TCS MUST COMPLY WITH A RANGE OF LAWS AND
REGULATIONS IN THE COUNTRIES WHERE IT OPERATES. THIS INCLUDES DATA
PRIVACY AND SECURITY REGULATIONS, LABOR LAWS, AND TAXATION
POLICIES.
• ANOTHER IMPORTANT FACTOR IN TCS'S POLITICAL ENVIRONMENT IS
INTERNATIONAL TRADE POLICY. TCS OPERATES IN MULTIPLE COUNTRIES AND
REGIONS, AND CHANGES TO TRADE POLICIES CAN IMPACT ITS OPERATIONS
AND PROFITABILITY. FOR EXAMPLE, CHANGES TO IMMIGRATION POLICIES IN
THE UNITED STATES OR THE UNITED KINGDOM CAN IMPACT TCS'S ABILITY TO
HIRE AND DEPLOY SKILLED WORKERS IN THOSE COUNTRIES.
 ECONOMICAL
• TCS'S ECONOMIC PERFORMANCE IS LINKED WITH THE GLOBAL ECONOMIC ENVIRONMENT. THE
COMPANY'S REVENUE GROWTH IS DIRECTLY LINKED TO THE GROWTH OF THE GLOBAL
ECONOMY, PARTICULARLY IN INDUSTRIES SUCH AS FINANCE, RETAIL, AND HEALTHCARE THAT
ARE KEY CUSTOMERS OF TCS. IN ADDITION, FLUCTUATIONS IN FOREIGN EXCHANGE RATES CAN
IMPACT THE COMPANY'S PROFITABILITY, SINCE TCS OPERATES IN MULTIPLE COUNTRIES AND
GENERATES A SIGNIFICANT PORTION OF ITS REVENUE IN FOREIGN CURRENCIES.
• TCS'S ECONOMIC PERFORMANCE IS ALSO INFLUENCED BY TECHNOLOGY TRENDS AND
INNOVATION. AS THE DIGITAL TRANSFORMATION OF BUSINESSES CONTINUES, TCS MUST KEEP
PACE WITH EMERGING TECHNOLOGIES SUCH AS ARTIFICIAL INTELLIGENCE, CLOUD
COMPUTING, AND BLOCKCHAIN, AND INVEST IN DEVELOPING NEW SOLUTIONS THAT MEET THE
EVOLVING NEEDS OF ITS CLIENTS.
• FINALLY, TCS'S ECONOMIC ANALYSIS MUST ALSO TAKE INTO ACCOUNT THE COMPANY'S
FINANCIAL PERFORMANCE, INCLUDING ITS REVENUE GROWTH, PROFIT MARGINS, AND RETURN
ON INVESTMENT. TCS HAS A STRONG FINANCIAL TRACK RECORD.
 SOCIAL
• OVER THE YEARS OF ITS OPERATIONS, TATA CONSULTANCY SERVICES HAS GAINED
EXPERTISE INTO THE AREA OF ESTABLISHING NEW CLIENTS AND RETAINING THE
EXISTING CLIENTS. THEY HAVE DESIGNED CERTAIN SET OF UNIQUE FEATURES FOR THE
COMPANY WHICH HAS HELPED THEM IN GAINING POPULARITY AMONG ITS CURRENT SET
OF CLIENTS.
• ALTHOUGH THE COMPANY HAS BEEN CRITICIZED FOR MANY LEVELS OF HIERARCHY IN
THE ORGANIZATION. NEVERTHELESS, THE COMPANY HAS ESTABLISHED A VERY STRONG
FINANCIAL PRESENCE ACROSS ITS AREAS OF OPERATIONS WHICH PROVIDES ITS CLIENT
WITH A CERTAIN LEVEL OF CONFIDENCE IN THE COMPANY.
• SINCE INDIA IS THE IT HUB , TCS HIRES SKILLED WORKFORCES WHICH ARE THEN POSTED
ONSITE FOR HANDLING THE CLIENTS. THE SKILLED EMPLOYEES FURTHER SPEAK ABOUT
THE STABILITY OF THE COMPANY. TCS PROVIDES A GOOD WORK LIFE BALANCE TO IT’S
EMPLOYEES.
 Technological Factors
• Tata Consultancy Services (TCS) attributes the success of the company towards its investment
in technology and the preference given by the company to innovation.

• The company collaborated with Singapore Airline Operations Solution, in order to change the
ground operations with the help of digital technologies which would further improve
operational efficiency and provide an enriched customer experience. They further launched an
Intelligent Power Plant Solution in order to digitally transform operation with the help of
power utilities, by combining AI, IoT and Digital Twin technologies.

• The company also revealed the Machine First Delivery Model at the North America
Customer Summit as a proper channel of providing superior experiences to the customers.
 ENVIRONMENTAL
• TATA CONSULTANCY SERVICES TRULY BELIEVES THAT PROVIDING EQUITABLE
ACCESS TO FINANCIAL SERVICES TO THE POOREST OF STATES CAN ACT AS A
DIRECT BRIDGE OUT OF POVERTY. TCS LAUNCHED A FINANCIAL INCLUSION
NETWORK WHICH PLAYS A MAJOR ROLE IN ORDER TO BRING ABOUT A BANKING
REVOLUTION.
• THE IDEA IS TO CREATE A COMPLETE ECOSYSTEM WHERE PARTICIPANTS ARE
CONNECTED THROUGH AN ECOSYSTEM TO FACILITATE A SEAMLESS DELIVERY
OF BANKING SERVICES EVEN IN THE MOST REMOTE AREAS. TATA CONSULTANCY
SERVICES (TCS) HAS BEEN ABLE TO LAUNCH MORE THAN 300 MILLION + BANK
ACCOUNTS UNDER THE UMBRELLA OF THE SAME MISSION.
• TO CONCLUDE, THE ABOVE TATA CONSULTANCY SERVICES (TCS) PESTLE
ANALYSIS HIGHLIGHTS THE VARIOUS ELEMENTS WHICH IMPACT ITS BUSINESS
PERFORMANCE. THIS UNDERSTANDING HELPS TO EVALUATE THE CRITICALITY
OF EXTERNAL BUSINESS FACTORS FOR ANY BRAND.
 LEGAL
• TCS HAS BEEN HELD RESPONSIBLE FOR STEALING DATA IN THE PAST. THE CASE WAS FILED BY
COMPUTER SCIENCE CORPORATION WHERE TATA CONSULTANCY SERVICES WAS HELD
RESPONSIBLE OF FRAUDULENTLY ACCESSING CONTENT TO CONSTRUCT AN INSURANCE
PLATFORM. ACCORDING TO CSC, THE COMPANY WAS ABUSING ITS AUTHORITY WHILE
ACCESSING THE CODES.
• THE COMPANY FURTHER ALLEGED THAT SOME TCS EMPLOYEE COPIED AND THEN PASTED
SOME PART OF CSC’S INSURANCE SOURCE CODE. THEY WERE OF THE VIEW THAT THE
EMPLOYEE NOT ONLY COPIED THE CODE BUT SENT IT COLLEAGUES THROUGH E-MAIL. IN
RETURN CSC MENTIONED THAT THEY WANTED TCS TO COMPENSATE THEM FOR DAMAGES
SUFFERED.
• THE CASE IS QUITE SIMILAR TO ONE THAT WAS FILED AGAINST THE COMPANY IN THE PAST,
WHERE THEY WERE ACCUSED BY EPIC SYSTEMS. TCS HAD LOST THE CASE WHERE THE
COMPANY SUFFERED FROM HEAVY PENALTIES OF UP TO $420 MILLION.
 5 FORCES MODEL
The 5 Force Model is a strategic management tool used to analyze the competitive
environment of a company.
 1.THREAT OF NEW ENTRANTS
THIS REFERS TO THE LIKELIHOOD OF NEW COMPETITORS ENTERING
THE MARKET AND DISRUPTING THE EXISTING PLAYERS. FACTORS
THAT INCREASE THIS THREAT INCLUDE LOW BARRIERS TO ENTRY,
HIGH PROFIT MARGINS, AND A LACK OF BRAND LOYALTY AMONG
CUSTOMER.
IN THE CASE OF TCS, THE THREAT OF NEW ENTRANTS IS RELATIVELY
LOW DUE TO THE COMPANY'S STRONG POSITION IN THE IT SERVICES
INDUSTRY. TCS HAS ESTABLISHED A REPUTATION FOR QUALITY AND
RELIABILITY, WHICH MAKES IT DIFFICULT FOR NEW PLAYERS TO
ENTER THE MARKET.
 2. BARGAINING POWER OF SUPPLIERS

THIS REFERS TO THE ABILITY OF SUPPLIERS TO NEGOTIATE

PRICES AND TERMS WITH THE COMPANIES THEY SELL TO.
TCS SOURCES ITS HARDWARE AND SOFTWARE COMPONENTS
FROM MULTIPLE SUPPLIERS DUE TO WHICH THE
BARGAINING POWER OF SUPPLIERS IS RELATIVELY LOW.
3. BARGAINING POWER OF BUYERS
FACTORS THAT INCREASE THIS BARGAINING POWER INCLUDE A
LARGE NUMBER OF BUYERS, LOW SWITCHING COSTS. IN TCS, THE
BARGAINING POWER OF CUSTOMERS IS RELATIVELY HIGH DUE TO
THE LARGE NUMBER OF PLAYERS IN THE IT SERVICES INDUSTRY.
HOWEVER, TCS HAS MANAGED TO MAINTAIN ITS POSITION BY
OFFERING HIGH-QUALITY SERVICES AND BUILDING STRONG
RELATIONSHIPS WITH ITS CLIENTS.
4. RIVARLY AMONGST EXISTING COMPETITORS

Rivalry among existing competitors is often the most

conspicuous of the competitions. Firms in an industry are
“mutually dependent” – competitive moves of a firm usually
affect others and may be retaliated. Common competitive
actions include price changes, promotional measures, customer
service, warranties, product improvements, new product
introductions, channel promotion etc.

Some of the biggest competitors of TCS are HCL,

ACCENTURE, INFOSYS, IBM
 5. Threat of new substitutes
This force is especially threatening when buyers can easily find
substitute products with attractive prices or better quality and when
buyers can switch from one product or service to another with little
cost. For example, to switch from coffee to tea doesn’t cost anything,
unlike switching from car to bicycle.

In emerging era of technology it becomes very difficult for IT

companies to stay protected from new substitutes, As with every rising
day new variants go no arising
Despite of many hurdles, TCS being an older player in the market has
gained good amount of trust & goodwill
SWOT analysis
 Strengths
Strong reputed Brand Image in the market – TCS has unquestionably created its own brand,
image, and reputation; it keeps its consumers satisfied and acts as a sign of excellence.

Excellent returns on capital invested – TCS has an excellent track record of executing new
projects and generating good returns on capital expenditure by establishing new income streams.

Extensive Global Reach – TCS’s global reach, which currently extends from North America, the
United Kingdom, Africa, Europe, and the
Asia-Pacific regions, reflects the company’s efforts to obtain as much coverage as possible in
diverse areas. TCS has a strong worldwide image thanks to its presence in a variety of geographical
locations.
 Weakness
Heavy reliance on the North American market. While the company has
made efforts to expand into other regions, such as Europe and Asia, it
still generates a significant portion of its revenue from North America.

Another weakness of TCS is its relatively low margins compared to

some of its competitors. This is partly due to the company's focus on
delivering high-quality solutions at competitive prices, but it also puts
pressure on TCS to continually find ways to improve efficiency and
reduce costs.
 Opportunities
• Growing Demand for Digital Transformation: There is a growing demand for
digital transformation services, and TCS is well-positioned to take advantage of this
trend with its strong technology infrastructure and expertise.

• Expansion into Emerging Markets: TCS can explore expansion opportunities in

emerging markets, such as Asia-Pacific, Latin America, and Africa, to diversify its
revenue streams and reduce dependence on a few markets.

• Investment in Emerging Technologies: TCS can continue to invest in emerging

technologies to stay ahead of the competition and offer innovative solutions to its
customers.
 Threats

• Intense Competition: TCS faces intense competition from other major IT

services companies, which could lead to pricing pressures and reduced
profitability.

• Economic Uncertainty: The global economic uncertainty due to events like

Brexit, the trade war, and the COVID-19 pandemic could affect TCS's
business and revenue growth.

• Data Security Concerns: Data security concerns are increasing, and TCS
must ensure the security and privacy of its customers' data to maintain its
reputation and trust.
 Conclusion
TCS is unquestionably the best in its industry. It has numerous and
noteworthy strengths. For a company like TCS with such a great brand
image, brand backing, market command, portfolio, reach, and so on, it
needs just a little more work to address its weaknesses and be more alert
to threats.
 Presented by
Bhavya Shah : 7046
Virag Shinghvi : 7059
Devansh Shethia : 7055
Aksh Jain : 7016
Jainam Shah : 7047
 Harsh Mishra : 7028
Nayan Patel : 7038
THANKYOU