Comprehensive cases Essay Example | Topics and Well Written Essays - 1500 words

Comprehensive cases - Essay Example This raised quite a stir as people thought Ratan Tata was an insecure person who wants to remove all experienced people form the company. Ratan Tata was no doubt and excellent leader as instead of paying heed to such skepticism he hired fresh talent for the company and therefore was able to bring in new ideas and motivated new employees for the business. He now developed Tata Business Excellence Model (TBEM), which was implemented with the help of Tata’s quality management service. With the help of this model he was able to enhance the productivity and efficiency of the organization. Ratan Tata believed in employee empowerment. His leadership style and long term vision were two important reasons for his success. According to the executive director of Tata Sons, Ratan Tata did not tell them what to do or gave orders like a typical boss, instead he would ask them what we wanted to do and how they would achieve their goals. This gave a sense of responsibility to the employees and empowered them. Ratan Tata brought in a new culture in the organization. His managers were now bolder and risk taking. They were allowed to experiment with new ideas and implement unique thoughts into action. Ratan wanted his employees to have a strategic vision and yet realistic goals. He was directing the company in two directions. In one direction the company was focusing on mass markets of India, where as in the other he went international. He understood how globalization was taking over and in a few years it would be difficult for him to compete in his own market if new measures were not taken. He then started an extensive marketing plan where he advertised his company in major public events like concerts, games etc. He also believed that in order to be on top, a business needs to have technological advantage. For this reason he threw out all obsolete equipment in the Tata Steel Mills and brought in new efficient models of those equipments. In just a few years time Ratan chang ed this slow moving giant in to a sleek model of quality and success. It is not an easy task to bring in and manage change in an organization. Ratan Tata was a leader with many qualities who was able to single handedly, bring in these changes and manage them effectively. He had vision, conviction and clarity. His was socially conscious and held ethical values which helped him transform this organization into what it is today. Question No 2 As soon as Ratan Tata took over Tata group of companies he started restructuring and streamlining the company as he thought that the presence of Tata in such diverse businesses affects its ability to respond to market changes promptly. Through this streamlining process Ratan Tata was able to remove all Tata companies which, instead of being productive were a liability for the Tata group of companies. He closed down businesses of cosmetics, consumer electronics, toiletries, pharmaceuticals, paints and oil, cement, textiles etc. On the other hand, h e saw some potential in businesses such as passenger cars, auto components, telecom retail and power insurance, and therefore invested more in these businesses. Ratan Tata believed in being on the top. When he was asked why he exited so many businesses he replied that if any of his companies was not among the top three companies, he would take extreme measures to either do something