WRITTEN CASE ANALYSIS REPORT:
The Last Rajah: Ratan Tata and Tata’s Global Expansion
Except where I have indicated, the work I am submitting in this assignment is my own work and has not been submitted for assessment in another course.
Executive Summary 4
1. Introduction 5
2. Source Problems 6
3. Secondary Problems 6
3.1 Long term 6
3.1.1 Diversification of investments and businesses 6
3.1.2 The continuation of operation of Corus mills 6
3.1.3 Sustainability of its business versus sustainability of its corporate social responsibility during economy slow-down 7
3.1.4 Management control in Tata Group 7
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3.1.3 Sustainability of its business versus sustainability of its corporate social responsibility during economy slow-down
Should there be an economy slow-down, the ability of Tat Group to sustain its businesses versus their ability to sustain the social responsible culture, which is developed by Ratan’s ancestors (Griffin and Moorhead 2010), remains a challenge for Tata Group. The Rata conglomerate will have to decide between sustaining its businesses and fulfilling this culture. This will be especially tough with a $7.4 billion debt already on its books.
3.1.4 Management control in Tata Group
As mentioned in the article, Mr Ratan is the chief steward, of his team of nine senior executives in the Group Corporate Office, who negotiates major deals himself and immerses himself in the details of his businesses. Ratan Tata is also the major decision maker in most of Tata Group’s major deals.
At the time when the article was written, Tata Group has not found a suitable successor. The fact that Mr Ratan Tata is single and childless (Luthans and Doh 2009) thus poses the toughest challenge of who is to fill the void for Tata Group, when Mr Ratan retires.
4.1 Diversification of investments and businesses
This long term problem will prove to be an obstacle towards its global expansion and the development of the company to its full potential, as there is no