Tata Group : A Global Leader Player

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The late Jamsetiji Tata who holds nearly 100 companies with 300 subsidiaries in 40 businesses founded Tata Group. Ratan Tata who is handling all the main contracts and has been heavily investing to shape Tata Group into a global leader player. The groups comprise seven business segments specifically: engineering, materials, communications and information technology, services, energy, consumer products and chemicals. Each company and subsidiaries functions individually and are bound by Tata Sons and Tata industries where Ratan Tata and few others provide strategic vision, governing the Tata brand and to contribute a share on big deal. From the case study, several challenges are observed; Tata group will face with its widespread divergence…show more content…
Critical factors like overseeing the operations in international locations and with variations in the local regulations. Tata will faces problem in understanding the country’s background and the working nature of the country. (Luthan and Doh, 2009) Ratan Tata strongly emphasize on corporate social responsibility, he exhausted substantial sum of money to grow Jamshedpur, the home based of Tata Group and other rural-development projects. However, in the event of an economy slow-down, the Tata firm will have to weigh the importance and decide whether to sustain its businesses or to fulfill this culture. Moreover, Tata already has a liability of $7.4 billion in its accounts. As the case studies says, Ratan Tata is the chief steward handling all the main contracts himself and is vastly involved in the details of his businesses. He is also the main decision maker for most of the Tata group’s main contracts. The fact that Ratan Tata is unmarried and doesn’t have a children, it was even tougher of who to take over his positon, there wasn’t a suitable candidate to be the next successor. (Luthans and Doh, 2009) With the acquirement of Corus Mills of $13 billion, it also means that Tata group is taking the debt of $7.4 billion and which in turn poses as a challenge. And with Corus’ high operational cost, it will wane the profit margin of Tata Steels. The bidding of Jaguar and Land Rover will be a huge jump
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