Controversies and criticisms[ edit ] The Tata Group has also attracted some controversy during its more than years in operation, notably: The Tatas provided that they possessed 58, The Chief Minister of Kerala V. Achuthanandanwho vowed to evict all on government land in Munnar, formed a special squad for the Munnar land takeover mission and started acquiring back properties.
The company has embarked in a concerted effort that has seen it gain control of different industries in takeovers and buyouts. The problem in the company is that it has many conglomerates that are centrally run without any organisational structure.
The unorthodox structure of the company could hurt its profitability in the long term. Problem Statement Tata group of companies has stakes in the chemical industry, the auto industry, tea, telecommunications, and consultancy among many others. The group has in the past embarked in the acquisition of others including hotel chains, motor companies and the crowning jewel that was the Corus Group that was a giant steel maker.
The company now produces low cost steel in India and exports the steel to its mills in America. However, the company has not fully utilized the mills it acquired including the one in Port Talbot, Wales. The company presently takes advantage of the boom in the Indian economy and sceptics are keen to see how the company will cope once the growth in the market slows down.
Tata is currently involved in corporate social responsible initiatives. These burden the company as it struggles to ensure that the poor population in India has access to basic services. The major question for analysts is whether this manoeuvre is sustainable in the future or whether the costs will be cut once the current chief executive has retired and when the boom in the A short report on the tata company slows down.
Another indicator of the problems that surround the company is the failure in some of its investments. For example, the production of a car that would have revolutionized the motor industry did not perform as anticipated and also the development of solar energy that would have assisted the various villages off the power grid did not reach its envisaged population size.
Short Term problems There are a few problems that face the company in the short term. The underutilization of some of its assets including the steel mill in Port Talbot, Wales The identification of a suitable successor The underutilization of the vast resources including labour and raw materials in the country.
The lack of marketing initiatives for the marketable brands. Reluctance to open up new markets in developing economies as well as the lucrative markets in the West. Long Term problems There are problems that have dogged the company for many years and need addressing.
The reduction in the number of products that the company produces and which are not performing as to the envisaged standards. The lack of an organisational structure that can aid the company in management in the future The presence of business entities that are not profitable and add the least value to the Tata brand and range of products and services.
Analysis Every successful business has a source of inspiration. For the Tata group of companies, the inspiration is the chief executive. Ratan Tata has driven the business from a modest one into one of the most reputable companies in and outside India.
The decisions that he has taken in his 16 years at the helm of the company have had the most impact in the last five years.
2Write includes extensive database of Report Writing Samples explaining about Introduction Tata is a multinational company that is run by Ratan Tata. The company has embarked in a concerted effort that has seen it gain control of different industries in takeovers and buyouts. The Tata group comprises over a operating companies spread across six continents. Find out more about key Tata companies and their operations. The Tata group comprises over a operating companies spread across six continents. Find out more about key Tata companies and their operations. The Tata group is a global enterprise headquartered in India, and comprises over operating companies, with operations in more than countries across six continents, exporting products and services to over countries.
All the executives in the company despite having their own contributions to the success of the company concede that Mr.
Tata has been the brainchild behind the success that the company now enjoys. Therefore, at 70 years of age, the fact that the chief executive has not named a successor is disheartening to some. This is evidenced by the Indica project that was aimed at the production of motor vehicles that are inexpensive.
The worry is that if he leaves, then his successor might abandon such projects and concentrate only on high-end brands in order to spin off during tougher times.
Some analysts concede that the company has largely underutilized the resources at its disposal. The worry is that such a large amount of spending is not sustainable as ultimately the company gains less than it spends on the people.
The provision of services by a company to the population is part of its corporate social responsibility. However, the relationship is usually a give and take where the company supplies the community with the basic amenities and in turn employs members of that community to work for it.
Perhaps, the hasty acquisition of brands that have been underperforming is not the best way for the company to go. In most cases, an acquisition is usually less risky that the development of an entirely new brand.
However, acquisition of underperforming brands could further hurt the reputation of the company and could curtail the invention of better brands in the future.
Today, companies are looking towards the development of brands that are less harmful to the environment. One of the ways to achieve this is to reduce reliance on carbon fuels.
This is the direction that the company should take in order for it to compete with others in the global market.On 16 June , an electrical short-circuit sparked a fire at Tata Group corporate headquarters in Mumbai.
Owing to quick containment, no casualties were reported. The Tata Group is planning to cut down, by way of either mergers or stake sales, the number of companies it has listed on exchanges, according to a report by .
The Tata group comprises over a operating companies spread across six continents. Find out more about key Tata companies and their operations. The Tata group comprises over a operating companies spread across six continents. Find out more about key Tata companies and their operations.
2Write includes extensive database of Report Writing Samples explaining about Introduction Tata is a multinational company that is run by Ratan Tata. The company has embarked in a concerted effort that has seen it gain control of different industries in takeovers and buyouts.
As on 31 March , Tata Group held % shares in Tata Steel. Over 1 million individual shareholders hold approx. 21% of its shares.
Life Insurance Corporation of India is the largest non-promoter shareholder in the company with % benjaminpohle.comarters: Mumbai, Maharashtra, India.
Creating a Corporate Advantage: The Case of the Tata Group The Tate Group is one of the largest conglomerates in India, with a vast and diverse portfolio. The company generates approximately US$ billion in revenues in from 90 companies in seven main industry categories%(20).