Individuals or a group of visionaries who had a dream and an aim of making it big in the business world started star companies. As such, they did their best to pull up resources, work force and creativity to bring these companies to life. Tata Group is one of such companies. Founded in the year 1868, Tata Group has with stood the test of time to be a conglomerate that is now quickly expanding to be a global powerhouse. In all these years, which total up to more than a century of hard work, members of the Tata family have led Tata group.
This is from Jamsetji Tata who was the founder to Ratan Tata the current chairperson. Ratan Tata who is a fifth generation of the Tata family is about to exit as the chairperson of the Tata group. The critical question then arises; will the company survive, thrive and become a global powerhouse after Ratan Tata? As history has it, many companies that started mighty have collapsed after the loss of their founders and the chief executive officers.
With the changing trends of company acquisitions and executive acquisitions, many prominent companies are under the threat of extinction without the proper leadership at the helm of the organization. Tata is a multi billion company that has taken over a century to build and its death will be tragic to the economy of India as a country. Therefore, Ratan Tata as the head of the Tata sons had to come up with a clean exit strategy to facilitate the growth and sustenance of Tata Group. Society has come to recognize the leaders of modern corporations, among many others, as heroes.
Jeffrey (1988)As of the year 2012 December, Ratan Tata will be officially exiting the post of chairperson of the Tata group as he celebrates his seventy-fifth birthday. Having no children of his own to groom into the business world, a different person will have to come in. This will be the forty four year old Cyrus Pallonji Mistry, who is the current Deputy Chairman of the Tata Group. CEO succession is THE number one job of the board. This will be after twenty-one years at the helm of the organization.
Tata Groups runs over one-hundred subsidiary companies which have invested in all sectors of the economy. Therefore, proper leadership is fundamental to its success. Diversification of Tata Group is an assurance of the company’s existence and survival after Ratan Tata. Source problemsAs any other international company, Tata group has various challenges that are facing its normal operations. As such, Tata’s management must have proper trick laid up its sleeves to counter these problem. After Ratan Tata leaves the job as the head of this business empire there are certain short term problems that will come up.
These problems are fundamentally attached to the management. These problems are short term and mainly internal. The first problem will be communication breakdown after the change of leadership. Secondly, delegation of duties and thirdly adaptation to the new leader and his time of leadership style. Family matters may also arise as the new chairperson of the Tata Group will not be a member of the Tata Family.