Ratan Tata - The Business Legend

 "The resurgent India is being ably aided in its journey towards world economic leadership by many enterpreneurs. These entrepreneurs have raised the profile of the brand India on the global stage. Ratan Naval Tata is one of the global stage. Ratan Naval Tata is one such entrepreneur. His name needs no introduction and now that is not so because of his surname but because of his surname but because of his achievements, which is the outcome of his hardwork and preservance. B&M Business Correspondance on Ratan Tata as a business Leader".
 Ratan Naval Tata was born on the 28th of December 1937. In 1962 he graduated with a degree in architecture and structural engineering from Cornell University. He came back to India and joined his first job in Tata Steel. Returning to India he joined his first job in the Tata Steel shop floor in Jamshedpur, in 1962. There he is believed to have done all types of tasks, including shoveling coal into the furnace. Perhaps, this is the reason he has wide knowledge base starting from shop floor to the managerial level. This is also the reason of his remaining in touch with the ground level and focusing on innovations that make the lives of ordinary people easier and treading in to the luxorious areas of business simultaneously.
           Ratan Tata is widely recognised as the person responsible for transforming the Tata Group, a large India-based conglomerate, from an unwidely collection of businesses into a relatively more nimble group of comanies better prepared to take advantage of opportunities.

Chairman at Critical Time:
In the changing post-liberlisation economic scenario Ratan Tata became the Chairman of Tata Group in 1991. That was the most critical time in the history of Tata Group because at that time the Group was in the stage of disintegration as fiefdom prevailed in every company. Not only at the national level but at the international level also it was a time of great chang. India changed from the permit-licence to free market regime. The Soviet system collapsed converting the global to a single-super power configuration. New groups sprang up out of nowhere.
       The time was especially critical for the Tata group because at Tata House the crises mounted: record losses at Tata Motors, the much derided plan to launch the Indica, criminal charges over Tata Tea's alleged links with Assam militants, allegations of foolishness in the sale of Tata Oil Mills assets, a plan to launch a domestic airlines that was comprehensively scuttled and more.

"When we see Ratan Tata refusing to pay bribes, refusing to lick politicians' boots and refusing to bend the rule -- and still taking the Tata from strength to strength, still buying the world's best companies, and still reinventing the rules of the car industry -- well then, we know that there is a better way. It's possible to be honest and principled. And still beat the rest of the world." Vir Sanghvi wrote on his blog.

Change is a must
He believes a business that does not change to adopt to the world's pressure doesn't survive. That's why business must move to a continous mind set. On the basis of this philosophy he updated his plan taking the newly opened economy in account. In this plan the thrust was on technology driven leadership and global competitiveness. That meant rationalising the business structure of the Tata industries which was unstructured and had overlapping business across multiple companies. In the rationalising process his first act was to sell the Tomco; swift exit from pharma, textile and cement. Next step was to integrate the industries of Tata. For that Ratan Tata created a new ownership structure as a result of which it started increasing its stake in companies and developed a Tata brand. To use the Tata brand, now the companies are needed to sign the brand equity and business promotion agreement. The companies not only have to follow the business practices and values set by the business practices and values set by the Tata sons but also have to pay royalty to it. This substantiates his ability to foresee the direction the economy is heading towards and act accordingly.
Goes Global
Ratan Tata is the person who is responsible for making Tata Group, a large india based conglomerate and made its presence felt in global arena. For him globalisation is the way and the leaders must move to a "change is an opportunity" mindset. This process started with numbers of merger and aquisitions like acquisitions of Daewoo, Corus, Tetly, Land Rovers, Jaguars and many more. These acquisitions were not for the sake of acquisition but as step toward his forward looking strategy.

No comments:

Post a Comment