Tata Group and Its Growth in Last Years

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|Tata Group: Transforming the Sleeping Elephant | |-- Subir Sen Faculty Member, | |IBS, | |Kolkata, India. | |E-mail: subir@ibsindia.org | |This paper revolves around the turmoil that shook the very foundations of the Tata group when Ratan Tata was alleviated as the chairman of Tata Sons in 1991. Since its | |inception in 1875, the group has consistently displayed rare strategic talent by becoming pioneers in industries such as steel, hotels, power, insurance and airlines. As of| |today, it is the largest diversified business group in India. The group is respected for its philanthropic activities and is also known for distancing itself from political| |interference. Therefore, during the days of the license raaj, when most groups were diversifying aggressively, the Tatas were hibernating. As a result, during the 1970s and| |1980s, the groups growth rate slowed down and relatively younger business groups like Reliance overtook the top position from the Tatas that they had maintained for | |decades. When Ratan Tata became the group chairman, he again expressed his intent to diversify into emerging industries given the relatively free environment of the 1990s. | |The powerful satraps vehemently protested. In fact, the entire unity of the group was at stake. However, against popular pessimism, Rata Tata displayed rare managerial | |talent in restructuring the group, regain its lost glory and took it to a higher level. | |A company does not become global by simply participating in geographical markets around the world. The objective of globalization is to become globally competitive, | |leverage global opportunities and have the required global capabilities. It implies an organization, which employs talented people without reference to nationality. We are | |in the process of acquiring such competitive position and global capabilities. | |– Ratan Tata, Chairman, Tata Sons (Hindustan Times, September 5, 2004) | |Despite popular perception Ratan Tata has more than lived up to JRD's(Jehangir Ratanji Dadabhoy Tata- July 29, 1904–November 29, 1993-- India's highest civilian award | |Bharat Ratna in 1992) vision and expectations. | |– Deepakh Parekh, Chairman, HDFC, (India Today, February 2003) | |The Unfolding of a Crisis | |After proposing the strategic plan in 1991, Ratan Tata observed: "I think we are in many more businesses than we should have been in and were perhaps not concerned about | |our market position in each of those businesses. I think the needs today are that we define our businesses much more articulately and that we...
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