Ratan Tata free essay sample

Today, it has strength of 350,000 employees all over the world andan estimated annual turnover of $62 billion USD. Tata? s contribution to India? s GDP is nearly 5. 5% and 60% of its revenue comes from foreign countries. Tata group was always known for its business ethics and corporate governance. The Tata Group has spread its operations across six continents andmore than 80 countries. He elucidated the needs of remaining focused rather than diffused, and he insisted on more aggressive attitude towards the growth and market share . The aspiration which triggered off restructuring has been described as (a) Returns must be greater than cost of capital; (b) Each company must be the industry leader occupying one of the top three positions; and (c) The business identified must have potential for high growth and should be globally competitive (From the Internal Company Journal). Once the goal has been set, strategies were put together for exits and entries. We will write a custom essay sample on Ratan Tata or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page A new scientific and rational approach has been introduced in the company. This perfectly describes how an able entrepreneurs exercise their vision to motivate employees, inspire them to meet the challenges and to â€Å"facilitate their Attempts to achieve more than they thought possible as they strive to help the firm reach its vision† (Kuratko et al. 2001, p. 62). Ratan Tata chosen to shake off the businesses of soaps and toiletries, cosmetics, consumer electronics, pharmaceuticals, computer and telecom hardware, branded white goods, paints, oil exploration services, cement, textiles, likewise enthusiastic on his spreading out into lucrative businesses like passenger cars, auto components, retailing, telecom, power and insurance(Lala,2004). Ratan Tata free essay sample Land Rover might present an even more daunting challenge for Ratan Tata. It would be an uphill climb to restore Jaguar’s luxury cachet, which was damaged by sharing basic designs with Ford. As the organization gets bigger and more diverse, talent and retaining the value system will pose the biggest challenge in Tata Group (Engardio and Lakshman 2007) 2. 2 Long Term Succession â€Å"is a problem†. Ratan Tata is 69 years old, not married and has two dogs at his beachfront home he designed himself. He commands most Tata companies, which makes his failure to designate a successor all the more disconcerting. In Asian culture, the eldest son will take over the family business, however Tata is not married therefore he does not have any family members to take over his empire. Ratan, who is single and childless, could be the last Tata to oversee the group. His younger brother and three half-sisters aren’t involved in Tata business; his reclusive half-brother is unclear whether he’s tycoon timber (Engardio and Lakshman 2007). We will write a custom essay sample on Ratan Tata or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Ratan Tata public listed his companies, which also means his empire will still be ongoing after his departure. However, by public listing it, Tata is afraid he might lose control of his business and being so power-oriented, he dislikes his business to be controlled by others. Slimming the group down is also another problem Tata encountered. He set out to reduce scores of companies to just a dozen but have not succeeded, with nearly 100 companies with 300 subsidiaries in 40 businesses. Being a passionate promoter of CSR could also be a problem. Tata Steel spends millions annually on education, health and agricultural development projects in 800 nearby villages. Such generosity will be put to the test now that Tata owns struggling Corus, with $7. 4 billion in debt and absorbing Corus’ higher-cost operations will weaken margins. Tata were unable to give guarantees to Corus workers that they will remain competitive and jobs will not be cut. Tata were also slammed with difficulties in translating principles into the British and European context (Engardio and Lakshman 2007).