House Of Tata

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Background and Key Players The House of Tata is one of the oldest and well-known collection of companies in India. Jamseti Tata started the group in 1874 and he took his vision and built it into one of the biggest business organizations in India. J.R.D. Tata was elected chairman of Tata sons, which was the initial investor in many Tata companies in 1938 and began decentralizing power as well as personally choosing many of the Tata company chairman. J.R.D was in control when Tata airlines nationalized as well as when the Tata companies became legally independent in 1970. In spite of the dismantling of the managing agency system there was still solidity and structure. J.R.D’s energetic persona, weekly cross-company director’s meetings and network of inter-corporate shareholdings created synergy. J.R.D’s chairmen under his influence managed their companies in parallel to one and other but within the Tata philosophy of professionalism and ethical business practices. J.R.D never micromanaged and the result was that Tata business were successful and on a level above all other home-grown businesses in Tata’s wheelhouse. J.R.D is what held the companies together and success was the result. Ratan Tata, the son of one of J.R.D’s cousins was shy and came back in 1962 after working in the United States as an Architect. In 1981 he became chairman of Tata Industries Limited (TIL) which he was tasked to turn from a small company to a Group strategy think tank. Ratan assembled a “Tata Strategic Plan” in 1983 which placed the group’s potential for growth in four areas advanced electronics, biotechnology, advanced materials, and alternative energy. Ratan did not find it advantageous to pursue companies that were not sustainable like textiles and cooking oils and focus on eight business areas,

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