Loading presentation...

Present Remotely

Send the link below via email or IM


Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.


MGMT3101 Tata Group Case Study

No description

Stella Huang

on 15 October 2014

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of MGMT3101 Tata Group Case Study

Tata Group
Tata Group
Creating A Corporate Advantage
Overview of Tata Group's Business Structure
Analysis of Current Corporate Parenting Approach
100+ operating companies
business sectors
communications & IT
consumer products
operate in 100+ countries, 6 continents
employ 540, 000 people worldwide
Business Structure
Business Group
Holding Company/Companies
Company 1
Board of Directors
Board of Directors
Board of Directors
Company 2
Company 3
Tata's Business Structure
Controlling Stake
Controlling Stake
Controlling Stake
Tata Trusts
66% shareholding
34% shareholding
Tata Sons Limited
Tata Industries
Tata Strategic Management Group
Tata Interactive
Tata Services
Tata Quality Management Services
Group Strategic Sourcing
Tata Financial Services
50% shareholding
What Approach Should Tata Group Pursue
1. Long Term Sustainable Approach
(value adding)
2. Short Term Opportunities
Tata Group Value Adding Approach
long term sustainability
do you want high investments?
under the leadership of Ratan Tata
Corporate Parenting
unified look to the future (Tata brand)
defining vision and future strategies
Value Adding Approach
2 main decision bodies
developing a common identity
BEBP agreement
Group Executive Office (GEO)
Group Corporate Centre (GCC)
Brand Equity Business Promotion (BEBP
1. signatories use logo and name
2. known as Tata Enterprise
3. joint ventures
Value Adding Approach
consisted of Tata Business Excellence Model (TBEM) and Tata Code of Conduct
show scalable improvement and increasing performance standards
Centralised Services
centralised services
operated on a no profit, no less basis
funded through BEBP
significant advantages across the Group
available to all Tata companies
no mandate to use services
Tata Services
Centralised Services
Provision of Financial Services
decision making related to capital raising and structure - linked to the Centre
Tata Sons involved in all financial decisions
Group companies able to leverage financial strength of the Group with help of financial Sons
One can count on financial support from the other Group companies...
Benefits of Value Adding Approach
network of firms
members benefit from:
reduced uncertainties
Rallis received funding
Tata brand reputation
freedom to choose services
services - legal, HR
Tata Sons
Negatives of Corporate Parenting
potential lock-in
leakage of information
loss of short-term opportunities
loss of autonomy
adhering to a standard
all financial decisions have to be approved by Tata Sons
e.g. Tata Chemicals
brand image
way of life
distinct culture
critical glue
common identity
balance between small companies and Big Fish
Are There Other Alternate Methods?
Project Prune
downside to the Tata-ness
some cost saving oppotunities present
economies of scale and scope opportunities
aim of creating commercial value for group companies
short-term opportunities
discretionary - firms didn't pursue this method
Macro Recommendations
Group Selection Committee:
Conglomerate Diversification
continue with a diversified portfolio of companies, which helps to mitigate risk and improve profit across the Group
occurs when there is no common relationship or relatedness between companies, such as with Tata Group
Group Selection Committee:
Prevent Sales Cannibalism
increase control over existing Tata companies that are competing in the same industry
screen potential new companies to ensure there is no industry overlap with existing Group companies
Macro Recommendations
Macro Recommendations
Group Selection Committee:
Vertical Integration & Synergies
ensure that the portfolio offers competitive inter-company synergies
i.e. vertical chain integration
the idea of Keiretsu (an informal business group) could be utilised in pursuing great integration
Micro Recommendations
Group Selection Committee:
Conglomerate Diversification
short term losses hurt smaller companies the most
Tata culture (Tata-ness) has been described as a good support network between companies
BEBP agreement = wealth distribution system
helped to support smaller Group companies
Micro Recommendations
TETB Surveillance
surveillance of individual companies to ensure cooperation with TETB and proper maintenance of the Tata brand
Recommendation Criticisms
Conglomerate Diversification
Small Company Support and Development
not immune to large systematic shockes
i.e. financial crises
ease of access to financial support can promote risk taking by individual companies
Recommendation Endorsement
continue with existing long-term value adding approach
also introduce proposed Group Selection Committee to facilitate:
Conglomerate Diversification
Prevent Sales Cannibalism
Vertical Integration & Synergies
Full transcript