The Last Rajah: Ratan Tata and Tata’s Global Expansion

The Last Rajah: Ratan Tata and Tata’s Global Expansion

Overview

Tata Group, chairman named Ratan N. Tata, is the biggest conglomerate in India with a large range of business such as cars, steel, phone services, tea bags, and wristwatches. Being inspired by the global expansion of Chinese projects, Tata Group has taken its own global expansion strategies. In the recent past, the corporation has been through many phases of hardship as well as success. The Group has globally expanded to many countries such as in Asia, British, and the U.S. However, the company’s debt has risen because of dealing with to many heavy projects. They also led the firm running into many other short-term and long-term problems such as financial, human resources, and technology issues.

Problems

The major problem of Tata Group is organization structuring.

Because of its global expansion strategies, Tata Group has too many companies and subsidiaries in multiple businesses.

- 100 companies within Tata Group

- 300 subsidiaries

- 40 businesses

The task of adding new businesses along with strengthening and merging the existing businesses is complicated and is very hard to keep up. In fact, it causes Tata Group consequent problems such as short-term financing issues from short-term borrowings, human resourcing issues, technology updating issues, also client base building issues.

Alternatives

To slim down

Stop adding businesses at the moment

Sell least productive companies and subsidiaries

Pros: Tata Group can focus on existing businesses,