Read the Tata Group case study (Beerel, 2009: 235237). Answer the following questions in a written report (approx. 25 pages). Questions 1. How would you describe the Tata Groups strategy? 2. Does this strategy respond to new realities? What evidence do you have to support your response? 3. Given the new realities at this time, where is the Tata Groups Achilles heel? ORGANIZATIONAL EXERCISE: TATA GROUP CASE STUDY The Tata Group was founded in Bombay, India, by Jamsetji Tata in 1868. Jamsetji was a nationalist and dreamed of self-sufficiency for his country. In 1886, he started Swadeshi Mills to promote the purchase of Indian textiles instead of imported British clothing. Gandhi, with his spinning wheel, became the Swadeshi movements most famous advocate. In 1902, Mr Tata opened the Taj Mahal, the first Indian-owned luxury hotel, after being denied entry to a British hotel where he wanted to entertain clients. Among other ambitions, Mr Tata set out to make India self-sufficient in steel production. His son was able to realize his dream by founding Indias first steel company, Tata Iron and Steel, in 1907. His sons successor, J.R.D. Tata, supplied the steel needed for Indias post-independence five-year plans. J.R.D. Tata was a pilot and founded Indias first airline, which became Air India. In the 1990s, as India slowly opened its country to foreign trade, efficient foreign firms entered the market and local Indian businesses were unable to compete. By 2006 foreign companies had overtaken Indian brands of many household consumables. The challenges facing the century-old Tata group again paralleled those facing the nation. When Ratan Tata took the reins during the 1991 economic crisis, many of the then conglomerates complacent companies were unable to compete outside India or even against foreign companies selling inside India. In order to survive, Ratan Tata restructured; sold factories; jettisoned more than half of its employees; and partnered with foreign brands to return to profitability. Tata Steel was one of the toughest cases to turn around. By 2007 Tata Steel became one of the

worlds most efficient steel producers. Ratan Tata is the visionary behind the development of Indias first self-developed passenger car, the Nano. The Nano is a $2,500 automobile designed to make automobiles more affordable to Indians. Ratan Tata hopes to keep families off scooters and motorbikes in the crazed Indian traffic where many place their lives in daily jeopardy. Today Tata Group is the largest private company in India. It has interests in steel, automobiles, information technology, communication, power, tea and hotels. The Tata Group has operations in more than eighty-five countries. It comprises ninety-eight companies, twenty-seven of which are publicly listed. The charitable trust of Tata holds 65.8 percent of the ownership of the Tata Group. The Tata Group is a leading buyer of foreign businesses.

The Tata Group has helped establish and finance numerous quality research, educational and cultural institutes in India. It is a leading and highly respected philanthropic corporate entity and in 2007 was awarded the Carnegie Medal for Philanthropy.