Tata at a Crossroads

Abstract

The case is about one of the leading business houses in India, the Tata Group, which is known for its ethical leadership and was well known for its corporate social responsibility. Under the leadership of Mr. Tata, this legacy passed to the next level and Tata’s business flourished globally through acquisitions. When Mr. Mistry replaced Mr. Tata, he took a different approach of divestment. On October 24, 2016, Cyrus Mistry was removed as the chairman of the $100- billion Tata Group unexpectedly and re-appointed Ratan Tata as the chairman for an interim term of four months. This case study is about Ratan Tata, Cyrus Mistry and the different leadership in the Tata Group. It discusses how Ratan Tata restructured the Tata Sons business and developed the company subsequently. Mr. Tata transformed Tata from a struggling unit into one of the most successful and profitable companies in the world by revamping the operations of Tata Steel and made it one of the lowest cost steel producers in the world. He retired at the age of 75 and Mr. Mistry became the chairman of Tata. Apart from being the Tata Sons chairman, Mr. Mistry had also become the chairman of Tata Steel, Tata Motors, TCS, Tata Power, Indian Hotels, and Tata Global Beverages, the verticals of Tata Sons. He was a hard decision maker, which puts Tata into the red. Tata Family was unhappy at Mr. Mistry's policy of looking to sell off parts of the business rather than holding on to assets and extending the firm's global reach. In 2016, Mr. Cyrus was asked to step down within four years.