StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Features of International Management: Tata group - Case Study Example

Cite this document
Summary
This research aims to evaluate and present various leadership theories including Great men theories, trait-based theories, contingency theories, situational theories, behavioural theories, participative theories, management theories and relationship theories…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER91.4% of users find it useful
Features of International Management: Tata group case
Read Text Preview

Extract of sample "Features of International Management: Tata group"

?International Management Table of Contents International Management Table of Contents 2 Introduction 3 Analysis of Case 4 Leadership 4 BCG Model 5SWOT Analysis 6 Strengths 6 Weakness 7 Opportunities 7 Threats 7 Ethics and Corporate Social Responsibility 7 Conclusion 8 References 10 Bibliography 11 Introduction Successful businesses organizations are often associated with a dynamic leadership. Examples of real life show how large business organizations have succeeded in the global competitive markets because of a visionary leadership1. Some notable examples can very well include legendary business leaders like Steve Jobs (Apple Inc), Bill Gates (Microsoft) as well as NR Narayana Murthy (Infosys Technologies)2. These leaders have shown very effective leadership by way of farsightedness and vision to succeed in markets and bring about large and successful business organizations. The importance of leadership can not only be analysed from success stories in the real life business world but also from cases of failure. This includes the fall of the famous energy giant Enron3 or the fallout of the Indian software major Satyam. These examples show a true authentication of the aspect and the importance of leadership and effective management as the key for success in a business organization4. The leaders should have a personality so that he/she sets up an example for the rest of the others in the organization to admire and imbibe. The leader should have vision and attitude so as to foresee opportunities and threats and overcome them with the strengths and opportunities5. The present report would analyse the case of Ratan Tata and the Tata Group as a whole with regards to various perspectives including the aspect of leadership as well as certain other organizational issues that are directly linked to it. Analysis of Case Leadership There are various leadership theories including Great men theories, trait based theories, contingency theories, situational theories, behavioural theories, participative theories, management theories and relationship theories. These theories tend to define the leadership qualities and style for a leader6. In the context of the present case Ratan Tata can be traced to great men theories. Ratan Tata is a born leader and from a very small age has taken over the reins of the company. Under his visionary leadership the company has grown from being a case study of low profits to a global giant. Ratan Tata as defined in the case is also authoritative and does not hesitate to take up bold decisions even in turbulent situations such as the handling of the crisis of disputing labour unions at the company’s Jamshedpur plant. The leadership style of the Ratan Tata is of a transformational nature as the leader is credited with making the company turnaround to growth and profitability7. Ratan Tata is said to have been credited with the conceptualisation of the creation of the world’s cheapest car the Tata Nano that is a technological marvel. He is also credited with the successful merger of the company’s steel unit (Tata Iron and Steel) with the European steel maker Corus to make the company a top notch global player in the steel industry8. Ratan Tata’s leadership style involves a situation in which even at an age of 69 the leader is well versed with even specific and minute details about the company and the large number of diversified business units. The nature of leadership has been so effective that it has become very difficult for the company to find a successor to Ratan Tata who is due to retire early. BCG Model One of the major aspects highlighted in the case goes about the company’s management of a large number of sub-units or business units. Currently the company is engaged in the business of making salt to software that makes it a very diversified and huge business. As reflected in the case Mr. Ratan Tata has acknowledged that one the fronts that needs immediate attention is the skimming up of the business units and generating greater focus areas within the business and the market segment. In order to successfully undertake this aspect the use of the Boston Consultancy Group Matrix can help the company classify and segregate its business units on the basis of market attractiveness and profitability. The BCG matrix can be effectively used in businesses that have multiple sub units9. The Tata Group is an excellence case in this regard with the company having a large number of diversified business units. The BCG matrix classifies the business units into four categories namely, Stars, Cash Cows, Question Marks and Dogs10. Figure 1: BCG Matrix (Source)11 The BCG matrix can be used by the Tata Group to segregate the business units. This would help in siphoning off business units that are branded under the dog segment. It can possibly look for investing into the other three subunits. This would help the company to generate greater focus on the profitable and potential business units that would also help in streamlining the vast scale of business operations. This has also been identified as one of the major issues before the organization as the company has highly diversified business operations and managing each of them effectively leads to loss of focus towards the potential profit generating units. Using the BCG matrix can help the company to solve this very crucial issue that has been plaguing the company and its top management over many years. SWOT Analysis SWOT is an acronym that is used to analyse the Strengths, Weakness, Opportunities and Threats prevailing in a business organization12. SWOT is frequently used to analyse the internal environment prevailing in a particular organization. The SWOT analysis of the Tata Group as summed up from the analysis of the case study is stated below: Strengths The major strength of the organization lies in its formidable brand image and the long years of association within the industry segment. Also the successful management of the organization also contributes towards some of the major strengths of the organization13. The company’s policy of having an effective policy of Corporate Social Responsibility has helped project a sociable face of the organization in the minds of the target market audience. The company is also known for its effective policy of having a good human resource planning strategy that has helped it to attract some of the best talents in the industry. The presence of a large brand portfolio also ensures that the company has a presence in all the customer segments ranging from salt to software14. Presence of an effective and visionary leadership also acts as a unique feather in the cap of the company. Apart from this the company also has many credits to its name including the ambitious launch of the world’s cheapest car Nano15. Tata Group recently through a spate of mergers and acquisitions has also acquired the steel giant Corus and luxury automobile brand Jaguar and Land Rover that has increased the group’s global presence and has also increased the overall brand image of the organization. Weakness Some of the weakness in the organization includes the aspect of having a large number of highly diversified business units and a large number of employees that pose a considerable challenge for the organization with the aspect of losing focus in the long run. Certain other areas of weakness include the aspect of acquisition of Corus and land Rover. Both these units have a large amount of debt in the balance sheets. Apart from cultural issues also exist in the effective merger of the two culturally distinct organizations with the acquired business units. Opportunities The growing opportunities in consulting, software and other areas as well as the growing global presence pose innumerable opportunities for the organization. Tata Sons also has good market opportunities in India where the nation has witnessed phenomenal growth16. Being one of the pioneers in the Indian industry the company can very well take leverage of this aspect and generate competitive advantage for itself in the market. Threats The threats to the organization emerge mainly from the aspect of having an effective leader that can succeed the great Ratan Tata as their business leader. Apart from this fluctuations in the European market where many of its clients in the software and automobile units are based can also pose threats to the organization. Ethics and Corporate Social Responsibility One of the cornerstones of the Tata group is their effective corporate social responsibility strategy. The company is reputed not only in India but also globally for its huge community and social welfare programs. The company is widely credited for having undertaken CSR activities much before the advent of this concept in the modern Western companies. This was also acknowledged by the Corus officials who came to visit the Tata Steel’s Jamshedpur steel plant where they were impressed with the social sustainability measures being undertaken by the organization. Every year the company spends huge amounts towards education, healthcare and other social needs of the entire community as a whole. The company however faces an issue particularly with the aspect of huge spending in CSR activities that has been questioned by some of the critiques. This issue has assumed importance particularly after the merger of Corus and acquisition of luxury automobile brand Jaguar and Land Rover. These expensive acquisitions and mergers have put a severe strain on the finances of the company as Corus has a huge employee base as well as a large amount of debt in the balance sheet of the company. Jaguar and Land Rover also faces considerable challenge in the recessionary market environment. The company is now under pressure from the newly merged units to undertake the same form of CSR activities in their units as well. This has posed considerable challenges before the organization. One possible solution for this can be in the form of closing down some of the unprofitable and potentially unviable business units of the conglomerate. This would help in better financial management for the organization as the funds saved can be used to fund CSR activities in the newly merged business units and to generate greater focus in the business. Conclusion The analysis of the business case of Tata group shows and also illustrates the importance of leadership and the manner in which an effective and visionary leader can create milestones and set the shape for an organization. The case study shows considerable leadership skills of Ratan Tata who has been credited for making the organization grow from a small regional level to a major business conglomerate in the global business arena. The company has a large portfolio of brand under single brand umbrella and is engaged in the business of selling salt to software based products. Ratan Tata is also accredited with taking up the most challenging aspect of manufacturing the world’s smallest car. However the company faces certain challenges in its business sustainability considering the large number of diversified units within the brand umbrella of the organization. This issue has been acknowledged by the organization as one of the most challenging areas for the top management in ensuring sustainability in the business. Certain other challenges include the aspect of finding a suitable successor for Ratan Tata who is approaching 70 years in age. The leadership qualities and the huge and magnanimous nature of the business have made it very difficult for the top management to search for a suitable successor to the legendary business tycoon. In addition to this the company also faces considerable challenges with regards to management of its CSR activities and bridging the cultural and operational gap with the newly acquired business units in Europe. The key to the solution lies in finding a suitable successor for the legendary Ratan Tata who can have the vision and the ability to propel the company towards greater profitability and long term sustainability in the turbulent business environment. References Adair, J. (2007). Leadership and motivation: the fifty-fifty rule and the eight key principles of motivating others. Kogan Page Publishers. Anderson, G.W., Nilson, C.D. & Rhodes, T. (2009). SAP implementation unleashed: a business and technical roadmap to deploying SAP. Sams Publishing. Bolden, R., Gosling, J., Marturano, A. & Dennison, P. (2003). A REVIEW OF LEADERSHIP THEORY AND COMPETENCY FRAMEWORKS. Retrieved on February 02, 2012 from http://centres.exeter.ac.uk/cls/documents/mgmt_standards.pdf. Deiser, R. & Abram, C. (2009). Designing the Smart Organization: How Breakthrough Corporate Learning Initiatives Drive Strategic Change and Innovation. United States of America, John Wiley and Sons. Freiberg, K. & Freiberg, J. (2011). Nanovation: How a Little Car Can Teach the World to Think Big. Thomas Nelson Inc. Jain, T.R., Trehan, M. & Trehan, R. (2010). Business Environment (for BBA - 1). FK Publications. Karlof, B. (1993). Key business concepts: a concise guide. Routledge. Koontz, H. & Weihrich, H. (2006). Essentials Of Management. New Delhi, Tata McGraw-Hill Education. Michael, L. (2010). Marketing: Defined, Explained, Applied. Pearson Education India. Nelson, P. & Cohen, E. (2010). Riding the Tiger: Leading Through Learning in Turbulent Times. American Society for Training and Development. Ofori, E. (2011). Guaranteed Formula for Public Speaking Success. CCB Publishing. Orcullo, N.A. (2008). Fundamentals of Strategic Management' 2007 Ed. Rex Bookstore, Inc. Sarkar, A.N. (2009). Enhancing Global Competitiveness: Advantage India. I. K. International Pvt Ltd. Saxena, M. (2009). Marketing Management 4E. Tata McGraw-Hill Education. Subramanyam, P.G. (2008). Investment Banking:Theory&Prac. Tata McGraw-Hill Education. Thomas, M.A. (2006). Gurus on leadership. Thorogood Publishing. Bibliography Ali, A. (2000). Globalization of business: practice and theory. Routledge. Besser, T.L. (2002). The conscience of capitalism: business social responsibility to communities. Greenwood Publishing Group Bradley, R.L. (2009). Capitalism at work: business, government, and energy. M & M Scrivener Press. Crane, Matten. (2007), Business ethics: managing corporate citizenship and sustainability in the age of globalization. Oxford University Press. Chandavarkar, R. (2003). The Origins of Industrial Capitalism in India: Business Strategies and the Working Classes in Bombay, 1900-1940. Cambridge University Press. Dunning, J.H. (1999). Governments, globalization, and international business. Oxford University Press. Parker, B. (2005). Introduction to globalization and business: relationships and responsibilities. SAGE. Rao, C.P. (2001), Globalization and its managerial implications. Greenwood Publishing Group. Boswell, J, Paters J. (1997). Capitalism in contention: business leaders and political economy in modern Britain. Cambridge University Press. Burke, Et. Al. (1991). Competition in theory and practice. Routledge. Daniels et al. (2002). Globalization and Business. Prentice Hall. Francis, Taylor. (2008). International business and national war interests: Unilever between Reich and empire, 1939-45. Taylor & Francis. Johns Hopkin studies in the history of technology:The Business of Civil War. JHU Press. Jones, E.D. (2008). Business Administration - Its Models in War, Statecraft, and Science . READ BOOKS. Montgomery, C.A(2004). Strategy: seeking and securing competitive advantage. Harvard Business Press. Newton, S. Poetr, D. (1988). Modernization frustrated: the politics of industrial decline in Britain since 1900. Unwin Hyman. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Features of International Management: Tata group case Study”, n.d.)
Retrieved from https://studentshare.org/management/1394908-features-of-international-management-tata-group-case
(Features of International Management: Tata Group Case Study)
https://studentshare.org/management/1394908-features-of-international-management-tata-group-case.
“Features of International Management: Tata Group Case Study”, n.d. https://studentshare.org/management/1394908-features-of-international-management-tata-group-case.
  • Cited: 0 times

CHECK THESE SAMPLES OF Features of International Management: Tata group case

Assessing Problems Experienced by Chacha Hotel Group

The paper "Assessing Problems Experienced by Chacha Hotel Group" states that in relation to the case of Chacha, a range of problems has been witnessed that are faced by the hotel chain, principally due to the lack or ineffective use of information technology.... Brief Analysis of the case and Assessing Problems Experienced by Chacha Hotel Group Brief Information about the Organisation Established in the year 1962, the Chacha Hotel Group represents a chain of hotels that served across the different growing markets including Cardiff, Berlin and Amsterdam....
9 Pages (2250 words) Case Study

The Mission of Delta Airlines

In this case, the bargaining power of customers is crucial.... In fields such as package delivery and money management, consumers are seeking indications that their risks will be minimised or eliminated.... The main factor is that airline industry operates on the international arena and a major influence on price is the currency exchange rate which fluctuates according to the state of the economy....
13 Pages (3250 words) Case Study

The Four Major Online and Mobile Banking in the UK

At the next level, the various features of the online banking provided by the financial companies are analysed.... The online banking and the mobile banking has been the need of the hour to keep pace with the changing business scenario.... The report throws light on the performance of the leading four banks of the United Kingdom namely NatWest Bank, Barclays Bank, HSBC and Lloyds Bank with respect to online banking and the perception of the customers....
16 Pages (4000 words) Case Study

International Marketing: organizations

SUBWAY today with over 25000 restaurants in more than 85 countries has withstood and reinforced all aspects and theories of international marketing.... SUBWAY was smart to recognize the needs of a good percentage of global population by providing for special category of meats as per the religious requirements and beliefs of this particular group namely, the halal meats.... Added to this is the robust SCM (Supply Chain management) of not locally available product components like olives, celery etc....
8 Pages (2000 words) Case Study

Quality Management into the Company Istanbul Deniz Otobusleri

In addition, it also examines the Information System for efficient management.... hellip; In order to attain ISO 9001:2000 certification, the most important thing is the quality assurance at different stages till meeting the customer requirements and continuously keeping the standard by efficient quality management system.... This is mainly attained by being customer oriented and with Quality management System (QMS). The objective of any business organisation is to generate profit....
15 Pages (3750 words) Case Study

Accounting Ethical Issues of American International Group

The company that is the subject of this study "Accounting Ethical Issues of American International group" is American International group, Inc.... In addition, AIG group companies are leading providers of retirement services, financial services, Auto Insurance, Health Insurance and asset management around the world....
6 Pages (1500 words) Case Study

Orange Resorts International

This case study "Orange Resorts International" presents the design and implementation plan of the newly developed IS, the business functions of ORI will be determined to successfully improve its performance.... Moreover, individual management along with non-IT stakeholders who have conferred their interest towards the successful operation of the new system will also be considered as a major group of sponsors in the proposed plan.... In this regard, appropriate management and evaluation of data would be a major supportive attribute of the proposed system plan....
16 Pages (4000 words) Case Study

Marketing Management

Consequently, the company was in a position to compete with the likes of Volkswagen group and the Daimler group, both German automobile manufacturers who specialize in developing luxurious brands such as Mercedes Benz and AUDI.... This work called "Marketing Management" focuses on the critical marketing mix strategies employed by tata Motors.... hellip; This change in ownership of the brand swayed consumer's perceptions and ideas towards the brand, and as such, required an executive move from the tata Motors Limited in order to win back the support of its customers....
8 Pages (2000 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us