Being able to maintain Tata Groups core values and vision; during a time of uncertainty in the economy and in the internal organisation as well.
2.0 Secondary Problems
These problems can be identified separately as short or long term problems. Whereby the short term problems are ones that can be solved and addressed currently or instantly, whereas long term problems having to take some careful planning and analysis and require solutions that are spread out over a couple of years instead.
2.1 It is known that the current chairman of Tata Group, Ratan Tata is close to stepping down from his position and retiring. With this, comes the challenge of identifying a suitable and qualified successor. As Ratan Tata is seen as the person who has brought Tata Group into the global market by stepping out of their comfort zones and investing in new opportunities, filling his shoes could be an uphill task for any candidate that will eventually be selected for the role.
2.2 Tata Group would also lose its ability to help fund the society because of New Economy realities. With a much tighter budget due to the numerous investments and business acquisitions, Tata Group’s generosity will now be put to the test.
2.3 There is a lack of a central system in the Tata Group. All its entities have been working independently and lack a centrally focused objective. It is said that the entire Tata Group does not even have consolidated financial statements. All subsidiaries and members of Tata Group will have to learn to adapt to a more central system, in order to better appreciate the entire organizations vision.
2.4 Another long-term problem would be the overall development of India and the World economy at the moment. If the country continues to be corrupt and its people are made to live in poverty, it could prove to be a stumbling block and will result in a stunted growth for Tata Group.
2.5 Tata Group has managed to establish itself in other countries besides India as well. However, the difference in cultural values could prove to be a barrier.
Tata was founded in 1868 by Jamsedji Tata in India, Mumbai. Tata currently consists of more than 100 businesses located over 80 countries in 7 business categories: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. 65.8% of the ownership of Tata belongs to charitable trusts. Tata Group is India’s wealthiest group (BBC 2011) with their market value worth of USD$95.09 billion as of 16 February 2012 with 31 publicly listed Tata enterprises and a shareholder base of $3.6 million under Tata Sons Ltd. (Tata Group 2012) The group has over 250, 000 staff worldwide and diversified service and products exported to over 80 countries. (Tata Group 2012)
Under the leadership of Ratan Tata, Tata Group has greatly expanded and achieved growth. From 2011-2012, the group’s revenue grew above US$83 billion. (Tata Group 2012) His capability is further proven as he makes and commits to numerous big money investments. Even with all the wealth and achievements he has attained, Ratan Tata displays a strong sense of giving back to the society through his unwavering efforts to promote CSR within the Tata Group. An interesting fact to back that up is that, more than half of the shares of Tata group are owned by charitable trust. (Tata Group 2012) He has been continuing the legacy of his great-grandfather (Founder of Tata Group) as a philanthropist by doing what he can to give back to the society. (Luthans and Doh 2009)
A detailed list (Tata Group 2012) shows that Tata Group is made up of a total of 95 different companies and subsidiaries. With the many companies that Tata Group is running, it has led to them not having a speciality and lacking of a central strategy. Although they have been growing financially over the last couple of years (Tata Group 2012), a lack of...