Ratan Tata: Leading the Tata Group Into the 21st Century Essay

Decent Essays
Ratan Tata: Leading the Tata Group into the 21st Century
1. The Tata Group has been transformed from a risk-averse, slow-moving giant into a more dynamic and aggressive conglomerate. How much of such a transformation can be attributed to one individual? Discuss the role of the leader in initiating and managing change.
The Tata Group transformation can be greatly attributed to the vision and execution of Ratan Tata. He was greatly responsible for the tremendous transformation because he was able to take his vision for the group and transformed it into a reality. By enforcing a mandatory retirement age policy which removed a lot of top management, who were challenging the core functions of the group and hindering growth, Ratan
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2. The Tata Group had a presence in a wide range of businesses wince its early days. Later, rattan Tat managed to streamline the Tata Group. What advantages and disadvantages did the group gain through the streamlining of business? Do you think, as of 2009, the Group is still present in too many businesses?
There were a total of 84 companies in several industries under the Tata Group in the early days. With the vision of the new leader, he realized that there was a lot of irrelevant businesses in the group that did not contributed much to the group’s profits and as a result he streamed line and exited a lot of the industries in which the group was not doing well, in order to accomplish his vision and goal and make the group stronger. In my opinion, this was a good move as the benefits outnumbered the disadvantages. The stream lining made it possible for the group to manage the companies easier. In addition, they were able to cut costs by having a smaller workforce and fewer overheads. Importantly, they improved productivity in the group by eliminating some unnecessary ventures and focusing more resources in certain areas, thus improving revenue. Finally, they were able to gain profits from the sale of some companies. On the other hand however, this stream lining caused many individuals to lose their jobs, resulting in a lot of homes having decreased incomes. There were also a lot of
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