Ratan Tata Essay

1987 Words Jan 14th, 2012 8 Pages
1. SOURCE PROBLEM

Culture is the art of living. According to (Indian Mirror 1999), it means the intellectual development acquired in the course of the ages in a country that is evolved out of the physical and mental training. This could be the main source problem for India’s biggest conglomerate – Tata Group. Ratan Tata joined the company after college and took over his late uncle’s business 16 years ago. He is involved in more issues than he should be. The authoritarian Tata is the chairman of key units including Tata Motors and Tata Steel and is involved in all major deals and making all the key decision.

2. SECONDARY PROBLEMS
2.1 Short Term

A bid for Jaguar and Land Rover might present an even more daunting challenge for
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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).

3. ANALYSIS

Hoecklin, L. 1995. “Managing Cultural Differences: Strategies for Competitive Advantage”. England: Addison-Wesley.
According to Hoecklin (1995) on dimensions of corporate culture, Ratan Tata is very work-driven rather than laissez-faire. He negotiates major deals and steeps himself in the details of auto making, telecom or steel. The organization has very tight control. Tata Sons and Tata Industries which is chaired by Ratan, provide strategic vision, control the Tata brand and lend a hand on big deals. Ratan has very conventional conduct too; he is a passionate promoter of corporate social responsibility and remains firmly planted in the developing world.

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