Tata Group Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Introduction to the Case Study

Statement of Problem:

The problem which has been identified in the case and which might be the topic of debate in the future will be the structure of Tata Group. Different opinions have been passed on by the managers, where Muthuraman considers the current system as the most appropriate structure in which Tata Sons and the trusts form the root. Bigger or giant companies such as Tata Cement, Tata Chemicals, Voltas and Rallis India form the tree’s trunk as they are the bigger branches of the tree whereas smaller companies or subsidiaries are the smaller branches and leaves of the tree that is Tata Sons. The structure of the tree or the parent company is such that it provides nourishment to all the organizations whether large or small in the form of ethics, value and strategic guidance to the tree. While the most important leaves and branches of the tree that are small corporations receive better exposure to the sun and oxygen.

This structure of the company has been in operation since the start of the company, where it looks after all the subsidiaries whether large or small and provides full support through financial, administrative and operational help. Unlike Western companies which do not follow the same practice for their entities. On the other hand, another group of managers at Tata Group are thinking to make structural changes as per the demand of the current era. Sudharkar, the Chief Human Resource Officer at Tata Chemicals has a different opinion; he questions why activities with obvious synergistic potential were not simply mandated across the group. Basically, a group of managers thought that businesses or activities that are similar or of same kind or synergies should be combined and blended so that they bring about better results and outcomes for the parent company. There should be some set criteria and decision that should be uniform and should be mandatory for the all companies to follow. Basically, managers have different opinions over the problem where some believe that Tata’s value-adding, non-intrusive approach ideally suits to manage different and unlike businesses in different companies. Whereas, some believe that this approach will result in leaving a lot of money on the table.

Research Question:

Hypothesis Ho: To identify and determine the possibility of retaining the current system where different businesses are operating as separate companies and are independent to take decisions.

Hypothesis Hi: To identify and determine the possibility of changing the structure where Tata can change the arrangement and synergize those business processes that are common across all companies.

Research Aims and Objectives:

The basic purpose of this report is to identify the best method or the most appropriate tool to develop the future strategy for Tata Services Limited where managers have different opinion over it. Some senior managers believe that it is the most appropriate tool which differentiates them from other Western World multinationals. Over here Tata lets all its different businesses work as independent companies. However, some managers believe this method is wasting a lot of money and Tata Group should standardize those synergistically activities that are common in business to be directed across all companies.

Structure of Report:

The report discusses the problem which has been identified in the case, where the future direction of the company has to be decided in which the new chairman will have to decide how to go with the business. Different opinions have been developed regarding the credibility and the strategic position of the current system. A group of top managers has proposed a different idea where activities that are similar and synergistically same should be directed across the group. The structure of the report includes four sections which are description of the situation, problem statement, analysis and solution. Situation explains the circumstances and background of the study and issues that have been addressed in the case. Under the problem statement, the detailed literature review has been identified with resources and techniques to analyze the case study. Over here all theories and models have been discussed regarding the case. In the analysis section, the current position of the case with context to models discussed in chapter 3 is explained. Finally, recommendation and solution have been proposed based on results generated with models. With the above four sections, the case study thoroughly explains relevant sources and material that will enhance the learning and the context of the case in detail...............................

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