Mr Cyprus Mistry should reduce the number of under-performing industries that Tata Group is investing by 10 every year. The group has in the past embarked in the acquisition of others including hotel chains, motor companies and the crowning jewel that was the Corus Group that was a giant steel maker.
It can offer the frontline staff and technical specialists with a rise in wage rate. Mistry can carry on the legacy left behind by Tata himself, it is still premature to tell at this stage. There is thus a couple of recommendations that if implemented could propel the company to such heights.
Any gaps in achieving profitability targets must be followed-up and closed. The reduction in the number of products that the company produces and which are not performing as to the envisaged standards.
They, freed from past baggage, tend to be more tolerant of competition and open. Short term problems The short term problems that any company faces while it expands into various geographies are the fundamental problems as mentioned below and same have been true for Tata group: The lack of marketing initiatives for the marketable brands.
Additionally, it should reduce its portfolio from the current companies to about 90 by The technological capital such as patents and the processes will expand. The decentralized management structure should be implemented in phased manner so as to act local and be global. The group values must be nurtured by engaging the local employees to undertake activities in Corporate Social Responsibility projects.
Long term The long term objectives can be met by overhauling the existing structure and processes.
Guarantees of jobs for workers in UK are impossible, with themselves in hot soup. Strengths Weaknesses Strong group financials: Therefore Tata Group needs to address the needs of talent at all levels of the organization.
SUVs have lost its novelty among consumers, resulting in a drastic drop in demand. The companies that compose the Tata group should have precise standards that they uphold. Build a strong relationship with the local players involved in the value chain with the help of acquired or merged business entity.
Since the market share of the company will expand, the company should build a brand that attract more clients. Ever since the global expansion strategy has been started, the Tata group has seen several phases of hardships and success. The company will get an advantage of multi-dimensional technological knowledge base once it acquires any foreign firm such as Corus.
The worry is that if he leaves, then his successor might abandon such projects and concentrate only on high-end brands in order to spin off during tougher times. Once the stabilization is complete then the optimization of resources along with other long term strategies should be implemented Penrose, Long Term problems There are problems that have dogged the company for many years and need addressing.
The current management of the group is qualified enough to handle the business activities across multiple geographies.
This strategy, or lack of it, has worked well so far for the group as it operates in a developing economy.
Although several have been dropped from the portfolio, he has added to the original number with acquisitions and buyouts. Short Term In order to grow the medium car and the trucks market, the company should seek to open more market in both the risky developing economies as well as in the developed economies.
Micro-manage instead of macro-managing by concentrating the fund usage to expand or sustain the three key holdings. At the same time, the company should try to create new markets in the new geographies.
It hence relies on a small number of companies to run it. The company should seek to develop a group of guidelines that will seek to control the activities of each company as well as spur them to grow Long Term Tata should develop a strategy that enables it to run the group in a manner that will give the group an edge in all markets it competes in.
Deployment of senior staff to train inexperienced employees to cut down on unnecessary downsizing. In most cases, an acquisition is usually less risky that the development of an entirely new brand.
Overhaul the human resource management practices and optimally restructure the human capital by including local employees at all levels with Tata group senior managers at certain strategic senior management positions. Justification of Recommendations There are a number of medium car manufacturers that have a stranglehold of the market.
The problem in the company is that it has many conglomerates that are centrally run without any organisational structure. The Tata Group is usurping global existence rapidly, with ownership of organizations in almost every major international market.
The group also relies on the individual companies to capitalize on the opportunities and threats that occur in the distinct markets that they operate in.Aug 12, · The Last Rajah. India's Ratan Tata Ratan could even be the last Tata to oversee the group.
we were a good study in demise," recalls Muthuraman. OUTLINE FOR CASE ANALYSIS AND REPORTS Case study: fresh-air-purifiers.com Focus on TATA MOTOR DIVISION Source Problems: ( words) This is a general %(1). said Ratan Naval Tata (Ratan), Case Study Pack.
Aviation; Ethical Leadership: Ratan Tata and India's Tata Group. Case study: Tata. Share on Twitter Ratan Tata, the group’s leader The same is even more strongly the case with Jaguar and Land Rover, where Tata Motors has. Brief Integrative Case 2. The Last Rajah: Ratan Tata and Tata's Global Expansion Among Asia's business titans, Ratan N.
Tata stands out for his modesty.5/5(2). Ratan Tata admitted to another imminent problem – the lack of a suitable successor for his position. Tata Group will be deprived of an able leader to help the organization in soaring greater heights (Luthans and Doh ).Download