Brief Integrative Case 2 The Last Rajah: Ratan Tata and Tata’s (Global: pansion Sees ‘Among Asis business tans, Ratan N. Tata stands oat {ors modesty. The chalman ofthe Tata Group—tode's gps conglomrds, wih hina ranging om sae, ‘Sa tel phe service, abs ad Westies — {hull drives himeelf to the ofce in is $12.00 Tata Indigo Marna wagon. He reir to spend weekends in solitude with is two dogs at Beachfront bome he Aesigned mel And disainful of pretense, be travels soos even on lng busines rps, exhewng the reins fades who typically code corporate chieftains Bute ‘-yearold Tata also has a daredevil steak. An asi 2 ‘ton, he often flies fis Flcoa 2000 business jet Sound India. And in February he caused seston at the Aero India 2007 aie show by copllting Lochhead Fle and Boeing F-18 fighter jes ‘Tut's bine dag let the bole seo his per sonal. the past four years he has embarked om an Sodgy eplonalplyer imo 9 ghbel hemyweigh. Since 2003, Ta bought tbe wack ani of South Korea's Dae ‘00 Motos, a stake in one of Indonesia's biggest coal ‘nies, apd sts ils in Singapore, Tala, an Viet, thas taken ver aslew of tony hotels, nling New York's Pee, the Riz-Carton in Boston, and Sin Franco’ (Camden Place. The 200 purchase of Tyco Ineatoa’s Undersea tkcom cables for $130 min, & pce that Tindsigh looks Tike seal tamed Tata it the wal’s Tigges camer of ineraonal phone call With i SOT milion buyout of Bh engiering i lca Ine rational, Tt Tetacogies now a major supplier of ot oat nostra design for American ao ae espe Song, ith 3.30 engines in Indi. the United Stas, 2a Europe ‘The crowning deal © date hus toon Tata Stes 13 bilon takeover in April of Dstch-tritsh tet sant Corus Group, trpet that would have been uniakable jest a few pear ago. In one swoop, the move rely expands Tata Sto’ range of finshed product, sures tess toanomaler actos the United States and Europe, Sn! owt fe capuciy fetal, with mills added. i Pennsylvania sad Ohi, ‘Nom. 1 new gunbit oy csspult Tas into the big Jeagues of shi sto manutictring: The company i ‘si tobe weighing id or Jaguar Cars and Lard Rover Ivhich Food Mor Co ants to sl. On wp oll this ‘he group plans $28 bilon i capita investments at hme toner the next ve yeas in ste, ablon, telecom, power, ‘hence and more "We resald orthinkng ia tm fof grown Tot sys over tea at Bombay House, the rou headquarters since 1926, a tanga asi with Swell mile floors, & vas coletion of modem Indian art and stators who cheulate with bol of vals Icecream every cy at 3pm. We ut Fred and exe four banesees to ake the pen” ao ‘The forcing and. cajoling have worked brandy, The ‘act value ofthe 18 sed Tata companies has sveled {© $62 bloom S12 bln, soe 2003. Group sles Spots have double, $29 bilion and $28 illo, ‘espectiely. The thee big companies that account fr 45 pce of sala Ste, Tala Moora, and Tata eas ever And in May Ta Ten ete $523 lion im Profit when Coe-Cal Co, (KO) pid $1.2 bon fr 50 percent sake in Energy Branis Inc, the maker of ‘Gacsau Viamin Water Not fora purchase mae ast. nine montis ere, This is tansfered Tala” sys Rajeev Gop, managing decor of private equity shop (Caryl Advisory Parner. ‘he slotal push began four years ag. Air a rocky frst deve a chemin, Tata commision a sweeping review to plot saegy, cluding a stay comparing Inia with China. He was struck bythe sce audacity ‘of Chinese projec "Wheter they Bul pt or high ay thy ithe kind of sae tha cased shepts to ine My God, iis over the tp he ay, “But (China aay sew ino India, he Concluded sould io think band so sould Tata Group. By leveazing Iria’ ast poe he thous, the company could sit ino urockrged expansion to Become & global beat sie "Tes xpubly the ost pont nog np of mutnaonlschising eto big dling aan ah China, Bri and Rania. These ercgng gt an op ino alan went ab tech lea nie rosary, while cating tr festh nthe wos Hgaest {gow males Bring wih enh and contiderce, they a af satin exp nv siness mx ane in some ofthe planet's vot cllenging plas operat OOBuilding an organization with a coherent vison and ‘apable of succeeding i so many industries and so many rmukot, though. is 2 dauning tsk. Asia has winessed the rie of many sap-o-nots Beherats that tived ‘when economic des were high suchas Kate's Dac, ‘Thailand's Chareen Pokphand, and Indonesi’s Salim Group, Most eventsly fell part The re test for Tas, ‘oo, 5 likely 19 come when India's boom abate and at fs fr talent and markt share involving both agressive Indian cvs and deep pocketed mlinioal ten. ‘But unlike most oxher Asian groups, “Tata aeady bas proved it can survive turmoll and consandy eovent {self says Harvard Business Schoo! profesor Tan ‘anna wh has closely te the group Tor a deat ‘At the center ofthe empire is Tata himself. An ai tectre grate from Cemell University in 1962, be serves a the group’ chi dealmakes, visionary, and spit Iual cement. He joined the company ater ealege, then Heady rose tough the ratks He tok over 16 years g0—aer the death of his geparions uncle, J. RD. Taj as India began ismaring decades of socialist style business controls, Tla has overscen sharp down ing, risky plunges into ano manufacturing apd telecom, tnd a vansfomation ofthe conglomerate’ insular and lethargic management cure. Now he wants to pave Tata companies can compete in the rich West as well cin the anpredciable hu hugely promising markets of the developing werld. What’ more, Tta Wants to set the group soil) on ph o ahioving all his before he vere, ‘The bare chested tyc00n hast named sucese o ssid whan he plans to step dova. He'l un 70 in Decem ber, but he sil has vielike handshake, and sscites tae amazed at hi command of numbers and technical Seale ofthe various Tats companies, Tat makes hi ture to designate a socessor all he move disconcerting Some even question whster his departre might sper the roup's breakup. “Who will be the gle?” womes one ‘cern inside. "Wil thee even be a cena lender” Ratan could even be the ast Tata o oversee tho group. ‘The Tata family te, on display at a company museum, sieches tack 800 years thraugh generations of Parl Press, an Indian mineity descended fom Pesan. It nds with Retan-—single and eidlss—and Ms siblings. Younger brother Jirmy and three palfsisers area't ‘volved in Tui tasineses His reclusive half bates, [Nook ioe a Taacowned reall cain, but is woclar ‘wheter e's enon timber, Succession “isa problem,” Ratan acknowledges "Tam inolved in more sues than [think T shouldbe" When he does step dow, Ratan Tat wil leave big void, Eventhough he and other faily ‘members own just 3 percent of shares in Tata Soa, the Prvate holding company with contolling stakes in its fusneses, Tats himsel chairs key unit ncading Tata Motors and Tata ‘Stel, He i intimately invalved in all jor deals and pusbed for aoqistions such as Corus ‘The venues iat passenger cas and telecom are his tubs, And Tata i insrumena inching new basi nese, bouncing ea leaned from his wavel 6 manag for follow, Ratan Tata serves snoter vital function: While at ease wid aera estat Bankers, he remains ly planted inthe developing word. He is pssonste pro ‘moter of corporate socal responsibiiy, @ mission that ates oe group's founding inthe 18705 by Tata's reat iradfther Samet Ta. The founder was a pioneering Industrials, pilantropis, and ferent nationalist who traveled othe United Stats with swam, meeting the ‘3eoans ofthe day. He opened India's Hist textile mil in ling porto wean Indians rom thei indus depend ence cn Bin, which util then had milled much ofthe hcontinen' cotton an thn shied the high-cost eoth tuck he colonies Tata offered worker benefits rach ax childcare and pensions long before most companies in ‘he West and alo oa of Janset's sons helped bankroll young Mahatma Gandhi wile he apated in South ‘Arca fr th hts of snaigrantIdins To this day, he Ta Group remains devoted to good ‘works Carb wats ova 6 peoeot of the shares in urea! Tats Sons, and many ofits companies fund grass Toots antpovery projects that seem far removed from their core businesses, Ask the chairman 10 name the Jroop's biggest challenges and he quickly cts two: “Taleo, and reining oor vale system as we gt bigger and more averse. We Ive to increase the management ‘ndwvidth, and withthe same eta! standard He also concedes that the group is much es focused thu he enisoned back in 1981, when e pledged o pare ititom scores of companies to jus dozen os, Tata id dunsp margoalbusinesses—eosmetics, paints, 26d ‘sement—but entered rel telecom, biotech, and aes. “Today, Tata Group comprises nearly 100 companies with 300 subiires in 40 businesses, Slimming The group own “is oe tea here T have not succeded in what | Set out oo e adits. c'm Mot Moving” ____ His hope ie that Tatas vnortodox rete wil give ind dual companies the pity to respond © new oppor ties and threats, "The organization slot ger han 9 ‘Wester conslomeat” sa Alan Rosina Briton who spearheads international expansion for Tata. "Tere i 20 ‘ental rate. We don't even have consllated finan ‘al sateen Te group i bound topetier bythe seal ‘ffs of Tata Sons and another holing company. Tata Tndusties. These wo, chied by Rat, provide static sion, contol the Tala brand, and lead @ and on big eae And Tata Sons can ras cash launch nee bus ‘nesses or help fond purchases suchas Cons. I 2004 i