Can Tata Survive

Strategy quotient
• Economies of scale: producing same quality and
quantity at lower costs eg: steel
• Differentiation: honesty and integrity. banks
investors, customers have trust
• Alliances with AT&T, IBM, Birla, Benz
• Business portfolios: vehicle projects, steel
businesses, Tea, hotels are doing good.
o
IT (TCS), electric (Tata Power) are doing excellent
o
Voltas, Eureka Forbes, pharmaceuticals are
making losses
 Operational quotient
• Introduction: some SBUs are inefficient
mgmt & training centre needs redesign
• Financial health: some investments are not
operating. 7 to 10 years for break even
 Change quotient
• Openness to change, but manpower not
developing at same pace
• Stability factor: No SBU ever split or demerged
But more dilution of control due to less stake
ownership, purchasing stakes is costly
• Leadership skills: Ratan Tata a true patriarch
but taking things lightly. Large responsibilities
to head the various businesses
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