Being able to maintain Tata Groups core values and vision; during a time of uncertainty in the economy and in the internal organisation as well.
2.0 Secondary Problems
These problems can be identified separately as short or long term problems. Whereby the short term problems are ones that can be solved and addressed currently or instantly, whereas long term problems having to take some careful planning and analysis and require solutions that are spread out over a couple of years instead.
2.1 It is known that the current chairman of Tata Group, Ratan Tata is close to stepping down from his position and retiring. With this, comes the challenge of identifying a suitable and qualified …show more content…
There has been speculation and questions being raised about the abilities of Cyrus Mistry – whether he will be able to continue the legacy that Ratan Tata has created. Importantly, how he sees the importance of maintaining a high level of CSR and contributing to the society like his predecessor did. Taking over Tata Group at such a time will be extremely challenging due to the current state of the World economy. Naturally, profit margins will be reduced as society and investors become more sceptical towards the market.
Another thing that the Tata Group might face after Ratan Tata leaves is that the employees and other board members might not accept the new changes that Cyrus Mistry brings. A different style of leadership can be expected, and there will be some form of resistance to change. The organisation could also make use of Cyrus Mistry’s vulnerability of being thrust into a new position with a lot of expectations. There might also be jealousy amongst some of the other candidates that were looking to take over Ratan Tata’s position. They could jeopardise the entire group by going against Cyrus Mistry in the future.
The New Economy realities also mean that Tata Group will have to control its spending in the coming years. Instead of continuing to make investments, they will now have to look at ways to reduce business costs and marginalise the number of industries that remain profitable. India is currently