TATA GROUP

Report

Submitted To:
MR.MUBASHIR MALIK

Submitted By: RAMEEZ SHAHID & MASOOD SADIQ

Dep rtme!t o" Bu#i!e## Admi!i#tr tio!

U$I%ERSIT& O' LAHORE LAHORE

Introduction:

The Tata Group (Hindi: ) is a multinational conglomerate company headquartered in Mumbai, India. In terms of mar et capita!i"ation and re#enues, Tata Group is the !ar$est pri#ate corporate $roup in India and has %een reco$ni"ed as one of the most respected companies in the &or!d.[3][4] It has interests in steel, automobiles, information technology, communication, power, tea and hospitality. The Tata Group has operations in more than '( countries across si) continents and its companies e)port products and ser#ices to '* nations. The Tata Group comprises ++, companies and su%sidiaries in se#en %usiness sectors
[5]

, -. of &hich are pu%!ic!y !isted.

/(.'0 of the o&nership of Tata Group is he!d in charita%!e trusts. [6] 1ompanies &hich form a ma2or part of the $roup inc!ude Tata Tata !onsultancy er"ices, Tata teel, !orus Technologies, teel, Tata Motors, Tata Tea, Titan

Industries, Tata #ower, Tata !ommunications, Tata Teleser"ices and the Ta$ Hotels.The group ta%es the name of its founder& 'amsed$i Tata& a member of whose family has almost in"ariably been the chairman of the group( The current chairman of the Tata group is )atan Tata& who too% o"er from '( )( *( Tata in +,,+ and is currently one of the ma$or

international business figures in the age of globality([-] The company is currently in its fifth generation of family stewardship(
[.]

The /00,

annual sur"ey by the )eputation Institute ran%ed Tata 1roup as the ++th most reputable company in the world( [,] The sur"ey included 600 global

Brief History:
The foundation of what would grow to become the Tata 1roup was laid in +.6. by 'amset$i 2usserwan$i Tata 3 then a /,4year4old who had learned the ropes of business while wor%ing in his father5s ban%ing firm 3 when he established a trading !ompany in 6ombay( 7 "isionary entrepreneur& an a"owed nationalist and a committed philanthropist& 'amset$i Tata helped pa"e the path to industriali8ation in India by seeding #ioneering businesses in sectors such as steel& energy& te9tiles and hospitality :mpress Mills& a te9tiles "enture set up in 2agpur in central India in +.--& was the first of the big industrial pro$ects underta%en by the Tata 1roup( 'amset$i Tata was by this time& though& already gripped by what would the three great ideas of his life; setting up an iron and steel company& generating hydroelectric power and creating an institution that would tutor Indians in the sciences 2one of

these ideas would come to fruition while 'amset$i Tata li"ed& but they

were reali8ed in full measure by those who followed him( he most da88ling of the Tata enterprises that came into being during 'amset$ Tata5s lifetime was the Ta$ Mahal Hotel in 6ombay& which opened for business in ,03( <egend has it that 'amset$i Tata set his mind on building it after being denied entry into one of the city=s fancy hotels for being an Indian today& the Ta$ 1roup of Hotels is a byword for lu9ury and >uality& with standout #roperties across the world the most da88ling of the Tata enterprises that came into being during 'amset$i Tata5s lifetime was the Ta$ Mahal Hotel in 6ombay& which opened for business in +,03( <egend has it that 'amset$i Tata set his mind on building it after being denied entry into one of the city=s fancy hotels for being an Indian Today& the Ta$ 1roup of Hotels is a byword for lu9ury and >uality& with standout #roperties across the world In +,++& se"en years after his death& 'amset$i Tata5s long4cherished dream of :stablishing an institution where Indians could culti"ate their scientific temper was reali8ed( The Indian Institute of cience& set up in

6angalore& would nurture some of the brightest minds in India( In +,++& se"en years after his death& 'amset$i Tata5s long4cherished dream of :stablishing an institution where Indians could culti"ate their scientific temper was reali8ed( The Indian Institute of cience& set up

in 6angalore& would nurture some of The brightest minds in India It ,

was the first of a clutch of centers of learning and research that would come up with the substantial and steadfast support of the Tata 1roup It was the first of a clutch of centers of learning and research that would come up with the substantial and steadfast support of the Tata 1roup(

Tata products and services for consumers

7griculture 6e"erages *TH tele"ision Holiday homes 'ewellery olar appliances

7ppliances !harter flights ?inancial ser"ices Hotels <eather Telecommunications

7utomobiles !roc%ery ?ood Housing )etail @atches and cloc%s

1-Corporate Social Responsibility Objective and easure:

Tata #ower is committed to setting high standards in its pursuit of social responsibility and remaining sensiti"e to the issues of resource

!onser"ation&

en"ironment

protection

and

enrichment

and

*e"elopment of local communities in its areas of operations( The company has a simple philosophy that guides its acti"ities in these matters& A1i"ing bac% is a means towards going aheadB( Cur (

widespread programmers on biodi"ersity conser"ation& a forestation& #isciculture& family planning& health ser"ices& primary and secondary education and many more ha"e made inroads into the tiny hamlets and tribal regions of our Hydro catchments areas and it is our endea"or to light up these dar% and narrow treets to new dawns( ocial )esponsibility

The mission of the Tata Technologies !orporate

program is to ma%e a positi"e impact on the communities in which the company does business through its support of select programs& outreach efforts and initiati"es that impro"e and enhance the >uality of life( Cur goal is to ma%e things better for the planet& better for people& better for business& better now& better for the future( Tata Technologies; 6:TT:) D 6:TT:)E

Community !et"or# Services acomb Homeless Coalition

$nvironmental Ste"ards%ip Susan &' (omen for t%e Cure

Sin)apore Student *roject on Racial Harmony +sia *acific Blood ,onor ,rive Road Safety in India

 -irst Boo# ount Saint .incent

Coats for Colorado Cyber Safety

a/ Community !et"or# Services:

!ommunity 2etwor% er"ices Inc( F!2 G is a pri"ate& non4profit

human agency that pro"ides comprehensi"e health and social ser"ices to nearly 3&000 indi"iduals in Ca%land !ounty& Michigan& home of the Tata Technologies 2orth 7merican Head>uarters facility( Tata

Technologies participates in the annual A7dopt4a4?amilyB program in the months of 2o"ember and *ecember& to coincide with the !hristmas holiday season in the Hnited tates( #rofessionals collect

funds& shop for and wrap gifts for underpri"ileged families see%ing help through !2 ( The gifts and contributions are traditionally presented at the Tata Technologies Holiday <uncheon in *ecember in 2o"i( To learn more about !ommunity 2etwor% time or donate funds er"ices& including how to "olunteer

b/ acomb Homeless Coalition:

The Macomb Homeless !oalition FMH!G is an umbrella association of pro"iders of shelter and supporti"e ser"ices in Macomb !ounty&

Michigan& a community neighboring the Tata Technologies 2orth 7merican Head>uarters facility( Two annual efforts on behalf of MH! are the focus of Tata Technologies; Homeless !onnection *ay I Held each 'anuary to help needy indi"iduals find housing& employment& food& clothing& health care and emergency shelter( Tata Technologies professionals "olunteer time& technical support and computers on4site as resources throughout the e"ent( @arming !enter upport I

Throughout each winter& MH! coordinates temporary shelter with warming centers at local churches and community centers( Tata Technologies supports this effort through the collection of funds and personal care items including soc%s and bedding( To learn more about MH! and to support its effort

c/$nvironmental Ste"ards%ip:
Here days& 60 miles& countless blisters and thousands of dollars( That5s the bottom line for Tata Technologies professionals who participate e"ery year in the 6reast !ancer 34*ay e"ent in metropolitan *etroit&

benefiting

usan 1( Jomen for the !ure and the 2ational #hilanthropic

Trust 6reast !ancer ?und( The Tata Technologies team 4 professionals& their friends and family members 4 raised more than K+5&000 in

'

metropolitan *etroit o"er the past two years( #articipating teams wal% 60 miles o"er a long wee%end& supported by community "olunteers who pro"ide o"ernight camping facilities in bright pin% tents& hot meals& showers& entertainment& safety& medical support and& most importantly& encouragement( To learn more about the 3 *ay and usan 1( Jomen for the !ur

d/Susan &' (omen for t%e Cure:

Three days& 60 miles& countless blisters and thousands of dollars( That5s the bottom line for Tata Technologies professionals who participate e"ery year in the 6reast !ancer 34*ay e"ent in

metropolitan *etroit& benefiting 2ational #hilanthropic Trust

usan 1( Jomen for the !ure and the 6reast !ancer ?und( The Tata

Technologies team 4 professionals& their friends and family members 4 raised more than K+5&000 in metropolitan *etroit o"er the past two years( #articipating teams wal% 60 miles o"er a long wee%end& supported by community "olunteers who pro"ide o"ernight camping

facilities in bright pin% tents& hot meals& showers& entertainment& safety& medical support and& most importantly& encouragement( To learn more about the 3 *ay and usan 1( Jomen for the !ur

e/Sin)apore Student *roject on Racial Harmony:

ingapore is well4%nown for its multi4racial& multi4religious society( @hile ethnic !hinese are the largest group& the country5s population includes significant communities of ethnic Malays& Indians& :urasians and others( Tata Technologies was pleased to ha"e the opportunity to support and promote cultural tolerance by sponsoring a two4day camp for upper primary students from e"ery race& tagged A earch Those )ootsLB *uring the March /00. program& children were gi"en hands4on opportunities to learn more about one another5s cultures& languages& religious practices& pastimes and e"en fa"orite foods( The e"ent was concei"ed and organi8ed by a group of senior high school students as part of their own <eadership *e"elopment #rogram(

f/+sia *acific Blood ,onor ,rive:

Tata Technologies encourages its professionals to participate in "arious social e"ents organi8ed by non4profit organi8ations& non4go"ernmental

Crgani8ations F21CsG and charitable institutions that contribute to the social good( In %eeping with this spirit& Tata Technologies organi8es blood donation camps at its !enter for 7d"anced :ngineering and

+*

*esign in Hin$awadi& #ineM at Tata Motors& #impriM and at other locations throughout India and the 7sia #acific region(

)/Road Safety in India:

afety )yodan in India and the 7sia #acific region has conducted special )oad The )oad afety *ri"es in support of festi"als and special e"ents( afety *ri"es ha"e focused on traffic and pedestrian

management in"ol"ing up to +00 "olunteers 4 as well as a street play campaign in"ol"ing up to +0 "olunteers targeting youngsters( More than +00 "olunteers from Tata Technologies went through a "olunteer training program conducted by the local traffic department that pro"ided %ey insights on traffic and

%/-irst Boo#:
The Tata group encourages its group companies to support ?irst 6oo%& a non4profit organi8ation with a single mission; to gi"e children from low4income families the opportunity to read and own their first new boo%s( ?irst 6oo% pro"ides an ongoing supply of new boo%s to children participating in community4based mentoring& tutoring& and family literacy programs( ?ounded in +,,/& the ?irst 6oo% model was de"eloped to le"erage the wor% of local heroes who reach children

++

through e9isting literacy programs in a "ariety of settings& such as Head tart centers& libraries& soup %itchens& churches& housing

pro$ects& and after school initiati"es( To learn more& or to get in"ol"ed

i/ ount Saint .incent:

ince /00+& Tata Technologies has hosted a "ariety of e"ents year4 round for the children of Mount aint Nincent5s& based in *en"er& isters of !harity of

!olorado& H( ( and founded in +..3 by the

<ea"enworth as an orphanage( Cne "ery special e"ent is the 7nnual !hristmas #arty sponsored by the company and "ery generous staff donations of money and time to put on a great party& sometimes the only !hristmas these children e9perience(

In /005& Tata Technologies donated funding for the contents of an entire classroom at the new school that was being built& and Tata Technologies professionals consistently "olunteer on boards and with

other acti"ities at the school( Mount

aint Nincent is currently a

residential and day treatment center for boys and girls& ages fi"e to

+-

fourteen and in +,,- it began to offer ser"ices for children as young as three( To learn more about Mount aint Nincent

j/Coats for Colorado:

This past winter& Tata Technologies professionals initiated a campaign to be part of a local4to4!olorado& H( ( non4profit coat dri"e( In con$unction with *ependable !leaners and JM1H4TN& a local news station& Tata Technologies professionals dug deep into the closet and donated do8ens of coats for people in need throughout !olorado( !oats for !olorado is belie"ed to be the H( (=s largest per capita coat dri"e( ince the program=s inception in +,./& o"er +(5 million coats ha"e been distributed& and last year& more than .0&000 coats were donated to people and non4profit organi8ations in need( ?or more information

#/ Cyber Safety: T7T7 Technologies was acti"ely in"ol"ed in O!yber afe #ine /00,O a

three4day awareness campaign on cyber safety and security issues for clients& industry& academia& and other sta%eholders( The campaign addressed issues of information security& cyber crime& cyber security& best practices and pre"enti"e measures( The 2ational 7ssociation of oftware and er"ices !ompanies 4 *ata ecurity !ouncil of India

+3

F27

!CM 4 * !IG organi8ed the campaign under the !yber

ecurity

pro$ect sponsored by the *epartment of Information Technology& Ministry of !ommunications D Information Technology& and

1o"ernment of India( The program is part of a larger OTrusted ourcingO initiati"e to strengthen India=s regulatory framewor% and reinforce India=s appeal as an outsourcing destination(

Tata

teel 6enchmar% in !orporate )esponsibility

ocial

'amshedpur; 7 study on =6enchmar%ing !orporate

ocial )esponsibility

7cti"ities=& by the 1as 7uthority of India <imited F17I<G& finds Tata teel creating a benchmar% in corporate social responsibility F! )G( The study has been based on =Crgani8ation *ynamics=( The purpose of the study was to identify the best practices in ! ) acti"ities a"ailable in Tata teel& and to enable 17I< to underta%e the inter"entions more teel is a pioneer in

effecti"ely and in a more focused manner( Tata

the concept of ! )( It belie"es that the loyalty and commitment of its employees depend upon the >uality of life they are pro"ided with at

wor% and at home( !onsistent with the group purpose& Tata

teel has

declared in its "ision statement that it will constantly stri"e to impro"e

+,

the >uality of life of the communities it ser"es through e9cellence in all facets of its acti"ities( The company has recei"ed a number of awards in recognition of its ! ) efforts( The most recent testimony to Tata teel=s contribution is The :nergy D )esources Institute FT:)IG 7ward conferred on it in recognition of corporate leadership for good corporate citi8enship and sustainable initiati"es( Tata teel is the only

Indian company to ha"e pledged to translate the 1lobal !ompact principles on human rights& labor and en"ironment into practice( It was conferred the 1lobal 6usiness !oalition 7ward for 6usiness :9cellence in the !ommunity for HIN P7I* ( C"er the years& the nature of the company=s in"ol"ement with the community has undergone a change( It has mo"ed away from charity and dependence& to empowerment and partnership( The many facets of Tata teel=s efforts are medical

and health ser"ices in the rural and semi4urban areas& sports& women=s health and education& water har"esting and tribal

de"elopment& relief and rehabilitate(

+(

0-COR*OR+T$ Social Responsibility Strate)y and Resources Implication:

Tata strategy management 1roup;

Trac#in) t%e Customer1s !eed

In order to achie"e higher profitability and mar%et share& companies should adopt a needs4centric mar%eting approach and design mar%eting initiati"es& product offerings and ser"ices around customer needs& say Hars%a (apoor& practice head& analytics& and Rituparna ,as)upta& associate consultant& of Tata trategic Management 1roup( The mar%et

place e"ol"es constantly and %eeping abreast of changes and pleasing the customer 6ecomes a huge challenge for companies( 7dd to this the fact that customers today are more Jnowledgeable& conscious and

demanding& and it is easy to see why traditional mar%eting approaches !entered around products& campaigns and a supply !hain are pro"ing to be inade>uate in achie"ing the trategic goals of companies( In

today5s mar%et& a Qone si8e fits all5 approach will show considerable shortfalls( @hen products are not aligned to customer needs& it results in wasteful mar%eting e9penditure& accompanied by low con"ersions and early attrition& due to incorrect targeting( !ompanies would do

+/

Much better to use needs4centric mar%eting approach F2!M7G that helps in increasing mar%et share and re"enue( 2!M7 in"ol"es deri"ing customer insights& identifying customer segments& prioriti8ation and selection of customer segments& and identifying the right mar%eting mi9 to meet their needs to enhance business performance and the company5s ob$ecti"es(

Identify Customer !eeds:

The first step is to segment customers into Homogeneous groups based on their needs and buying 6eha"ior( 7 myth in the mindset of most Indian !ompanies is that demographic data is a necessity for Meaningful segmentation( In fact& demographic egmentation might be

misleading at times as it could be possible that the needs of a /54year4 old customer are the same as that of a 504year4old( 6y using 2!M7& all customers with similar needs and buying beha"ior would belong to the same group( This would enable companies to first identify "arying clusters of needs and then address them differently( $2ample 1: 7 leading pro"ider of telecom ser"ices in India wanted to increase re"enues by launching a new range of "alue4added ser"ices( They deployed a product4centric mar%eting approach wherein they

+.

Targeted subscribers in the age group of /5435 years( Howe"er& response rates were much lower than e9pected( To the company5s surprise& there was a si8eable number of en>uiries from subscribers who were not in the target age group( The management was >uic% to reali8e that they were selling the product to the wrong subscribers and thereby missing out a large number of potential customers( 7 careful analysis of their customer call database re"ealed the distinct calling patterns of subscribers( 2ow& the company has segmented their subscribers into different groups based on their calling patterns and needs& rather than demographics( :ach segment represents uni>ue calling beha"ior and subscriber preferences( !oupled with e9ternal data& segment insights help the company identify subscribers who actually ha"e a need for the new product( $2ample 0: 7 financial ser"ices pro"ider in India wanted to increase mar%et share by impro"ing its renewal business and cross4selling strategy( 7nalysis of historical transactional data helped identify in"estors5 beha"ioral patterns and financial needs( ?ocus group

discussions with relationship managers and intermediaries further strengthened the results of the analysis( The company segmented its in"estors on the basis of their needs rather than on demographic criteria li%e geography and age profile( :ach in"estor segment

+'

)epresented a preferred in"estment portfolio along with a set of e9pectations from the financial ser"ices pro"ider( uch in"estor

insights ser"ed as building bloc%s for a strong needs4centric mar%eting strategy( Thereafter& the company was able to target the right in"estors with the right product offering through the right intermediaries( It achie"ed a competiti"e ad"antage o"er other players by adopting 2!M7 rather than the traditional demography4based targeting approaches(

+ssess potential and c%oose se)ments:

Cnce customers are segmented and their needs identified& the ne9t step is to assess their growth potential( 7 particular segment might be currently small in si8e& but might ha"e immense growth potential depending on the influence of mega trends li%e digiti8ation&

globali8ation& etc( :"olution of new technologies might radically alter the growth of certain segments( 6ased on the growth potential& customer segments can be e"aluated and prioriti8ed so that a selection can be made for focused attention( :9ample; 7 :uropean food and grocery retailer studied the impact of mar%et and macro4 economic trends on its customer segments( It bro%e the mega trends in consumer trends and deri"ed the implications for each segment( 2ew li"ing conditions and technology de"elopments were e9pected to

+4

Influence customer buying beha"ior and preferences& leading to new needs( @ith trends towards a more demanding wor% en"ironment and a stressful lifestyle& the health4conscious segment and the easy usage and con"enience segments were e9pected to witness si8eable growth( The retailer too% into consideration the growth potential& competiti"e intensity& strategic fit feasibility to ser"e and profitability to priorities and choose segments for core and secondary focus(

Meeting customer needs:

Cnce target groups ha"e been identified& meeting their needs effecti"ely becomes the challenge( egment4 specific initiati"es or actions need to be designed as customer needs are different for different segments( 7 particular segment might be price4sensiti"e whereas another might be willing to pay for >uality( Identifying the right mar%eting mi9 for each segment becomes crucial( The mar%eting mi9 would spell out the right pricing& the right product& the right place and the right promotion strategy that would optimi8e the return on mar%eting in"estment( $2ample 1: 7 leading Indian automobile manufacturer aiming to increase mar%et share identified its customer needs and growth potential( Howe"er& the challenge was to target them effecti"ely(

-*

7 thorough diagnosis

of

the company5s

mar%eting

and

selling

#rocesses re"ealed that the dealers were not communicating to the customers correctly( Cften the product met customers5 needs but this was not con"eyed effecti"ely by the dealer( The company wor%ed on the communication aspect and organi8ed an e9tensi"e training programmed for dealers( !ommunication impro"ed significantly and so did the results( $2ample 0: 7 :uropean retailer had de"eloped a uni>ue customer segment 3 one that bought pet food and accessories along with party festi"al items( They noticed that purchase of disposable plates& glasses and decorati"e items for !hristmas P Halloween parties dro"e the sales of pet accessories and pet food( This implied that customers belonging to this particular segment would generally pic% up an item for their pets as and when they shopped for a party( This insight helped the retailer redesign its store pangram and it reported increased re"enue by displaying pet accessories and pet food near party items(

Benefits of !C +
2!M75s numerous benefits& in itself as well as compared to other traditional mar%eting approaches& are outlined below; !reates better understanding of customer needs& preferences and factors influencing

-+

!ustomer purchase decisions( :stablishes a one4to4one relationship with the customer for a more personali8ed customer e9perience( :nables de"elopment of products or ser"ice offerings that the customer needs or prefers to buy( Increases mar%et share and re"enue by ser"ing customers with products aligned to their needs( a"es wasteful mar%eting e9penditure on customers who don5t ha"e a need for certain products( 7 needs4centric mar%eting approach is feasible in the Indian conte9t( It enables a company to use customer insights to identify and effecti"ely target segments based on needs( This can enhance mar%et share and P or lower spending and potentially redefine mar%et leadership ran%ings( In the current competiti"e climate& 2!M7 can pro"ide the crucial edge to outperform other players( I *3IC+TIO!S The accumulation of ac>uisition opportunities ris%s derailing the focus on the core business( In /003& )atan Tata first mentioned his dream of building a I2) +00&000 Fabout H K/&500G carI the cheapest& by far&

e"er made( If the 2ano is a success when it goes on sale in the second half of /00.& it will herald the emergence of Tata Motors on the global auto scene& mar% the ad"ent of India as a global centre for small4car production and represent a "ictory for those who ad"ocate ma%ing

--

cheap goods for potential customers at the =bottom of the pyramid= in :merging mar%ets( @ith this bac%ground& it is not surprising that pundits rumbled in summer /00- when Tata Motors $oined the bidding for two of the world5s most lu9urious brands& HJ4based 'aguar and <and )o"ers( 44 In short& the >uestion is whether winning trophy brands is a correct strategy when the ultimate ob$ecti"e is to gain the appropriate production scale and technology to be the world5s lowest4 cost car producer( econd& integration issues are responsible for the

relati"ely high failure rate of international MD7s F6runer /005G( 45 The /006P0- annual report of N 2< lists integrating ac>uisitions& managing operations in di"erse international locations and changes in the local regulations as critical ris%s for the success of the company5s plans( The Tata companies ha"e tried to de"elop an ability to understand the culture of the country where the ac>uisition ta%es place& as well as the @or%ing en"ironment in that country& as a strategic tool for s%ilful handling of post4merger issues( In the recent !horus combine& a trategic and Integration !ommittee F I!G chaired by )atan Tata has been formed to facilitate integration and create a "irtual organi8ation across the combined businesses( The ob"ious parado9 is that the emphasis on collaboration rather than controlling as the adapti"e model may ma%e it more difficult to %eep the distincti"eness of the

-3

Tata :>uity 6rand( In fact a crucial issue being debated within Tata is To what e9tent a group strategy& including a country4specific one& is needed to maintain a modicum of coherence( In outh 7frica and& to a

<esser e9tent& 6angladesh& Tata seems to be loo%ing at opportunities for di"ersification into prima facie unrelated businesses along the lines of the home country tra$ectory nothing li%e this is in the Hnited Jingdom& although no fewer than +. Tata companies operate there and generate H e9plicitly stated& K+(6 billion in sales in /00640-( 4. 7lthough not the reason may be that conglomeration has

ad"antages in a de"eloping country conte9t and not in an industrial one I despite the difficulties that Tata faces in 6angladesh for political reasons( In %eeping with its commitment to societal responsibilities& the Tata 1roup has been acti"ely in"ol"ed in initiati"es that promote the social and economic de"elopment of host countries( The Hnited 2ations5 1lobal !ompact has emerged as a %ey instrument to adopt common principles in the areas of human rights& labor standards& the en"ironment and anti4corruption( 7ll the +0 principles of the H2 1lobal !ompact are incorporated in the Tata !ode of !onduct( 50 Tata teel

is a founder member of the 1lobal !ompact and also been conferred the 1lobal !ompact 6usiness !oalition 7ward for 6usiness :9cellence in the !ommunity in recognition of its pioneering wor% in the field of HIN4

-,

7I*

awareness( The city of 'amshedpur is one among si9 in the world

to be chosen to participate in the H2 1lobal !ompact !ities #ilot #rogram( Tata teel Managing *irector 6 Muthuraman sits on the /04

member the 6oard of the 1lobal !ompact( Tata Motors has formulated in /005 specific policies on Human )ights& as enunciated by

International <abors Crgani8ation( There are also policies on :>ual Cpportunity& 2on4*iscrimination in :mployment and e9ual

Harassment( The 7dult <iteracy #ro$ect is in

outh 7frica of particular

interest insofar as the community de"elopment program is adapted from T! 5s computer4based functional literacy initiati"e that was implemented in India( The pro$ect was replicated in the 2orth otho

F epediG language in partnership with the @*6 Trust& an organi8ation that wor%s in the areas of micro finance& entrepreneur training and education of impo"erished rural women( The initiati"e has so far trained 65 people to read& with plans to introduce more languages to the program and thus increase its reach( Cther synergies ha"e been created in a s%ills4de"elopment program in rural outh 7frica

de"eloped by Tata 7frica and Jabana& an organi8ation set up by the Ministry for Minerals and :nergy in partnership with Harmony 1old and Minte% Fthe outh 7frican )D* center for minerals technologyG( 7s part

of the program& trainees tra"eled to India where they were trained in

-(

$ewelry ma%ing at the Titan plant in 6angalore and in decorating !eramic ware at Tata !eramics in Jochi(7n additional problem is lac% of recognition and the e"er4lingering ris% that an Indian company is treated as a sub4standard entity( 5+ 7gain& "arious Tata companies ha"e started post4merger integration by bringing the board of the ac>uired foreign companies to India to show them the new owners5 facilities( 5/ 7s part of the dri"e to get the group5s message across& the group is also opening offices in %ey countries(

4-Timetable for Implementation:

1565 'amset$i 2usserwan$i Tata starts a pri"ate trading firm& laying the foundation of the Tata group( 1578 The !entral India pinning& @ea"ing and Manufacturing !ompany is

set up& mar%ing the group=s entry into te9tiles and its first large4scale industrial "enture( 19:0 The Indian Hotels !ompany is incorporated to set up the Ta$ Mahal #alace and Tower& India=s first lu9ury hotel& which opened in +,03( 19:7

-/

The Tata Iron and

teel !ompany Fnow Tata

teelG is established to

et up India=s first iron and steel plant in 'amshedpur( The plant started production in +,+/( <imited in <ondon( 191: The first of the three Tata :lectric !ompanies& The Tata Hydro4:lectric #ower upply !ompany is set up( The second& 7ndhra Nalley #ower ets up its first office o"erseas& Tata

upply !ompany was established in +,+- and Tata #ower in +,+,( The first two companies were merged with Tata #ower in /000 to form a single entity( 1911 The Indian Institute of cience is established in 6angalore to ser"e as

a centre for ad"anced learning( 1910 Tata teel introduces eight4hour wor%ing days& well before such a

system was implemented by law in much of the @est( 1917 The Tatas enter the consumer goods industry& with the Tata Cil Mills !ompany being established to ma%e soaps& detergents and coo%ing oils( The company was sold to Hindustan <e"er Fnow Hnile"erG in +,.4(

1940 -.

Tata 7irlines& a di"ision of Tata

ons& is established& opening up the

a"iation sector in India( 7ir India was nationali8ed in +,53( 1949 Tata !hemicals& now the largest producer of soda ash in the country& is established( 198; Tata :ngineering and <ocomoti"e !ompany Frenamed Tata Motors in /003G is established to manufacture locomoti"e and engineering products(Tata Industries is created for the promotion and de"elopment of hi4tech industries( 19;0 'awaharlal 2ehru& India=s first #rime Minister& re>uests the group to manufacture cosmetics in India& leading to the setting up of <a%me( The company was sold to Hindustan <e"er Fnow Hnile"erG in +,,-( 19;8 India=s ma$or mar%eting& engineering and manufacturing organi8ation& Nolta5s& is established( 1960 Tata ?indlay Fnow Tata TeaG& one of the largest tea producers& is

:stablished(Tata :9ports is established( Today the company& renamed Tata International& is one of the leading e9port houses in India( -'

1965 Tata !onsultancy er"ices FT! G& India=s first software ser"ices ons(

company& is established as a di"ision of Tata 1971

Tata #recision Industries& the first Tata !ompany in

ingapore& is

founded to design and manufacture precision engineering products( 1958 The first 500 M@ thermal power unit at the Tomboy station of the Tata :lectric !ompanies is commissioned( 199; Tata Ruality Management er"ices institutes the ')* RN 7ward&

modeled on the Malcolm 6aldrige 2ational Ruality Nalue 7ward of the Hnited Model( 1996 Tata Teleser"ices FTT <G is established to spearhead the group=s foray into the telecom sector( 1995 Tata Indica 3 India=s first indigenously designed and manufactured car tates& laying the foundation of the Tata 6usiness :9cellence

3 is launched by Tata Motors& spearheading the group=s entry into the -4

passenger car segment( 1999 The new Tata group corporate mar% and logo are launched( 0::: Tata Tea ac>uires the Tetley group& HJ( This is the first ma$or ac>uisition of an international brand by an Indian business group( 0::1 Tata 7I1 3 a $oint "enture between the Tata group and 7merican International 1roup Inc F7I1G 3 mar%s the Tata re4entry into insurance( FThe group=s insurance company& 2ew India 7ssurance& set up in +,+,& was nationali8ed in +,56G( 0::0 Tata ons ac>uires a controlling sta%e in N 2< Frenamed Tata in /00.G& India=s leading international er"ices FT! G

!ommunications

telecommunications ser"ice pro"ider(Tata !onsultancy

becomes the first Indian software company to cross one billion dollars in re"enues( Titan launches :dge& the slimmest watch in the world( 0::8 Tata Motors is listed on the world=s largest bourse& the 2ew Sor% toc%

:9change& the second group company to do so after N 2<(Tata Motors

ac>uires the hea"y "ehicles unit of *aewoo Motors& 3*

outh Jorea(T!

goes public in 'uly /004 in the largest pri"ate sector initial public

Cffering FI#CG in the Indian mar%et& raising nearly K+(/ billion( 0::; Tata teel ac>uires ingapore4based steel company 2at teel by teel 7sia(

subscribing to +00 per cent e>uity of its subsidiary& 2at

N 2< Fnow Tata !ommunicationsG ac>uired Tyco 1lobal 2etwor%& ma%ing it one of the world=s largest pro"iders of submarine cable bandwidth(Tata ons completes 60 years of Tata operations in the H ( tar wood& ydney Frenamed 6lueG

The Ta$ ac>uires a hotel run by

and ta%es o"er management of The #ierre& 2S( 0::6 Tata %y satellite tele"ision ser"ice launched across the country(

?oundation stone for the Tata Medical !entre un"eiled in Jol%ata( 0::7 Tata teel ac>uires the 7ngo4*utch company !orus& ma%ing it the inaugurates T! !hina 3 a

world=s fifth4largest steel producer(T!

$oint "enture with the !hinese go"ernment and other partners( !omputational )esearch <aboratories& a di"ision of Tata ons&

de"elops :%e& one of the fastest supercomputers in the world and the fastest in 7sia( The Ta$ ac>uires !ampton #lace Hotel in Tata teel celebrates its centenary on 7ugust /6& /00-( 3+ an ?rancisco(

0::5 Tata Motors un"eils Tata 2ano& the #eople5s !ar& at the ,th 7uto :9po in *elhi on 'anuary +0& /00.(Tata Motors ac>uires the 'aguar and <and )o"er brands from the ?ord Motor !ompany(Tata !hemicals ac>uires 1eneral !hemical Industrial #roducts Inc( 0::9 Tata Motors announces commercial launch of the Tata 2anoM Tata 2ano draws o"er /(03 la%h boo%ingsM first +00&000 owners of the Tata 2ano chosenM deli"ers first Tata 2ano in the country in Mumbai(Tata Motors ushers new era in Indian auto industry with its new& world4 standard truc% range(Tata Teleser"ices announces pan4India 1 M ser"ice with 2TT *C!CMC(T)? ac>uires *utch <an%a Trailer

Manufacturers F*<TG&

ri <an%a& a world4class trailer manufacturing

company( 'aguar <and )o"er introduces its premium range of "ehicles in India( Tata Motors ac>uires remaining -, per cent shares in Hispano !arrocera& one of the largest manufacturers of bus and coach cabins in :urope(Tata Teleser"ices launches #hoton TN& an application that allows Tata #hoton #lus subscribers to watch li"e tele"ision channels on their laptops while on the mo"e& and on their personal computers at home and in the office( Tata !hemicals launches Tata world5s most cost4effecti"e water purifier( watch 3 the

3-

0:1: T)? ac>uires HJ4based Hewitt )obins International(

8-&ainin) Commitment Sta#e%olders:

The Tata 1roup has always stri"en to balance its responsibility toward shareholders with a commitment to the community( 1roup company Nolta5s& true to this tradition& has consistently loo%ed beyond its immediate business en"ironment to address larger societal issues( This concern springs from the belief that a true corporate "ision must embrace the wider community rather than $ust shareholders&

customers and suppliers( There is nothing idealistic or utopian about this "ision& nor is it in conflict with hard4headed business sense( Nolta5s understands that the time& resources and in4house professional e9pertise in"ested in social de"elopment pro$ects pay rich di"idends to the company and the communities in which it operates( The message is clear; creating profits can and should go hand4in4hand with generating goodwill( There ha"e been& through the years& numerous causes to which Nolta5s employees ha"e gi"en freely of their time and effort( 6ut until recently the company5s approach to community de"elopment initiati"es was not "ery structured( Things began to change when Margaret *5 ou8a& the resourceful and moti"ated senior

33

e9ecuti"e from Nolta5s human resources department in Mumbai& was handed the responsibility of gi"ing the mo"ement a decisi"e direction5s *5 ou8a& with a one4year deputation to the Tata !ouncil for

!ommunity Initiati"es FT!!IG& the group5s umbrella organi8ation for social de"elopment pro$ects& behind her& organi8ed a dedicated band of Nolta5s "olunteers( Help was forthcoming from the management( OCur managing director [7sho% oni] and "ice president Fhuman

resources [7' 1ole] ha"e gi"en tremendous support&O she says& Oenabling me to shape the corporate social responsibility mo"ement for Nolta5s during my deputation with T!!I(O pea%ing at the official release of a brochure on the company5s community de"elopment acti"ities& Mr( oni said the fact that Tata ons Fthe group5s holding

companyG was 60 per cent owned by charitable institutions was a "indication of the Tata philosophy of social acti"ism( He commended the "olunteering team for its untiring efforts and assured full management support for all such future initiati"es(Mr( 1ole re"ealed that o"er the past year there had been a decisi"e transfer of control and responsibility from the management to the "olunteering team( Ms *5 ou8a5s deputation to T!!I had& he said& resulted in a more structured approach to the company5s community de"elopment

initiati"es( OThe team5s in"ol"ement in core competency pro$ects

3,

ignals a paradigm shift in our corporate "olunteering efforts&O he remar%ed( Nolta5s "olunteers are currently in"ol"ed in two Qcore competency5 pro$ects& so called because they in"ol"e a sharing of the core s%ills of the company5s employees( :ngineers from across the "arious di"isions ha"e designed a course on air4conditioning that is specifically targeted to meet industry re>uirements( The course is being offered at the 'oseph !ardin Institute for Nocational Training in Mumbai& with the "olunteers pro"iding hands4on training to poor students( The company has donated e>uipment for this programmed& and its former managing director& 2* Jhurody& has e9tended "aluable support to ensure its success( The diploma course in air4conditioning and refrigeration being offered at the J' omaiya !ollege of

:ngineering in Mumbai is another brainchild of the Noltas family( *esigned by ) Iyer& a former general manager at Nolta5s research

and de"elopment wing& this course is the first of its %ind in Mumbai( The maiden batch of students passed out recently& and was >uic%ly absorbed up by the industry( The company5s Qcorporate "olunteering5 efforts encompass numerous other pro$ects in the "icinity of its facilities( This Qser"ice4nearer4home5 rationale has less to do with maintaining amicable labor relations than with easily monitoring pro$ect progress and usage of funds( #resented below are snapshots of

3(

ome of the causes where Noltas "olunteers ha"e made significant contributions(Natsalya& a Mumbai shelter for street children& is

recei"ing a helping hand from Noltas( !ompany "olunteers recently organi8ed an e9hibition4cum4sale of handicrafts fashioned by the inmates( The e"ent was a sellout& and was followed by a stage show entirely managed by the children( 7 computer centre for these %ids was inaugurated during the function( The 2ational 7ssociation for the *isabled :nterprise& a pro$ect directed by T!!I5s Mumbai chapter& employs blind and physically handicapped people to assemble and pac% typewriter components( It also runs a printing press 3 from where Noltas recently sourced a significant "olume of stationery 3 and a garment manufacturing unit( 7%an%sha& a ha"en for Mumbai5s destitute children& operates from Nolta5s Mumbai office( !ompany "olunteers ha"e held a series of meetings with 7%an%sha officials to start a mentoring programmed for these children( @omen are at the "anguard of the company5s community initiati"es( @ith Ms Jomal 6ir ingh in charge& the Noltas Crgani8ation of @omen FNC@G nurses the sic%& pro"ides financial help to the needy& and fre>uently organi8es "arious seminars& %nowledge wor%shops and training camps for the general public( The bul% of Now5s budget is allocated for dispensing medical treatment& and it plans to set up a dialysis centre for poor

3/

Jidney patients in the near future( The 72T7 school for mentally handicapped children in Mumbai is another institution Noltas has adopted( Nolunteers acti"ely support the many wor%shops organi8ed at this school and arrange to sell the handicrafts made by the children( #lans are afoot to set up a regular stall selling the school5s products( The hepherd5s @idows5 Home is a regular stopo"er for the "olunteers(

They chat up these lonely women and ma%e them feel wanted( <ast !hristmas was a truly $oyous occasion for the inmates& with anta

pro"iding the icing on the ca%e 3 a brand new TN( Nolta5s employees from #ine recently "isited the ?ather N <ourdes5s !hildren5s helter in

the city( The gifts they distributed brought a great deal of cheer to the homeless children there( This "olunteering effort was spearheaded by 2 henoy and 7rna"a8 Irani( The Tata 1roup has $oined hands with

the Hyderabad4based MN ?oundation to educate child laborers( Nolta5s Hyderabad& with Ni%ram Ja$$am from the human resources department at the helm& is acti"ely supporting this pro$ect by donating furniture and teaching material( 7 team of Noltas "olunteers in Jol%ata distributed school uniforms to needy children during last year5s *urga #u$a festi"ities( The city office has installed a collection bo9 for employee contributions toward social ser"ice acti"ities( Nolunteers regularly "isit the t( 'oseph5s Cld 7ge Home& run by the <ittle isters

3.

Cf the #oor& in Jol%ata to chat up the lonely people there and bring some cheer to their blea% li"es( @ith the Tata 6usiness :9cellence Model offering significant importance to such worthy initiati"es& the group has sent a strong signal that all Tata companies must do their bit for the community at large( Noltas is doing more than its bit to fulfill this commitment(

54Monitoring and :"aluation;

TCS: ,ouble clic#in) $.+
=:conomic Nalue 7dd= is not $ust another term that will settle down among management $argon( 7t T! it is a strategy that holds promise

to ta%e the company to the heights it plans to achie"e Tata !onsultancy er"ices FT! G is the oldest and most profitable

enterprise in India=s IT pantheon( @hile Indian software players see T! as the organi8ation which set up the industry in India& Tata 1roup

companies loo% up to it for the pace at which it implements "arious management and >uality practices( 7s it scales up to become one of the top +0 global consultancy firms& T! are stricter and opponents tougher( T! is playing a game where rules hopes its adoption of :N7 in

7pril +,,,& will help it sur"i"e in this intensely competiti"e business( To achie"e operational e9cellence& T! had to answer a few >uestions;

3'

How to grow beyond $ust an increase in numbersU How to sell competence and "alue rather than s%illsU How to manage

commitmentU How to reduce wastageU The answer to these >uestions demanded a system of efficient resource management& better control of outstanding& and performance e"aluation that would lin% rewards to re"enue generation( T! :N7& but it faced many challenges while implementing o"ercome them to complete the

successfully

implementation ahead of schedule( The implementation coincided with corporate reorgani8ation( 7lso& gi"en the nature of its pro$ects& T! had to design an incenti"e mechanism not only to retain talent but also to reward it accordingly(

a/$.+ for employees T! s :N7 framewor% aligns corporate "alue with the performance of the constituent business units and the indi"iduals who comprise these( It is a compensation model where the employee has a share in the profits of the organi8ation( 7t the indi"idual le"el& an employee needs to %now the dri"ers to enhance the :N7 of the enterprise and the business unit& and his own contribution towards all these( There are three basic dri"ers; re"enue& cost and capital charge( O1i"en that the order si8e is increasing& T! has now started loo%ing

34

7t pricing and structuring of deals using the net present "alue approach&O says Te$ #a"an of tern tewart( )e"enue is dri"en by the

rate or license price put into the product& sales& billable hours& response time and is domain affected s%ills( by !ost sales is and managed mar%eting through costs&

producti"ity&

and

recruitment& etc( )ecei"ables and training are the bul% of the capital charge( The indi"idual wor%s towards the impro"ement of the benefit pac%age& which essentially has three components; corporate :N7& business4unit :N7& and the indi"idual performance factor( Cut of the total :N7 payment& a certain percentage goes to each employee on the basis of corporate :N7 impro"ement( 6esides& if ones business unit does better than another business unit& one gets more than somebody in the other unit( It is a team reward concept(

b/Bonus ban# The third one depends on the e"aluation of indi"idual performance( T! has also introduced the concept of bonus ban%( @hene"er a

stipulated corporate target is e9ceeded& the company declares a potential bonus for the indi"idual( It is cumulated o"er years and the pay out is a function of the cumulati"e balance( This approach ensures performance impro"ements and maintains a cumulati"e relationship

,*

6etween pay and performance( If T!

successfully implements :N7&

the credit should go the organi8ations willingness to brea% down the broad strategy into day4to4day acti"ity and integrate them properly( More importantly& it is the commitment of the entire enterprise towards "alue creation that sets T! industry( apart from the rest of the

Tata Steel: Rollin) Out $.+

O:N7 is more rele"ant for us as we are in a capital4intensi"e business& and :N7 lays stress on in"estment management&O says 6 Muthuraman Tata teel is not content with being India5s only world4class steel

ma%er( The urge to impro"e and to emerge as the most cost4efficient steel producer induced it to consider >uality4 and performance4 impro"ement initiati"es( It adopted the "alue4engineering techni>ue& I C ,000& I C +4000& R among other things( ,000& i9 igma& and the ')* Ruality Nalue&

o why did the company choose to go in for one

more "alue4based management initiati"eU The company had been lagging behind in shareholder returns( Traditional measures li%e operating profit and price earnings ratio placed the company at the top( 6ut it still had a long way to go( 7s a performance4monitoring

,+

Tool& :N7 spea%s about "alue creation for shareholders( O:N7 is more rele"ant for us as we are in a capital4intensi"e business& and :N7 lays stress on in"estment management&O says 6 Muthuraman& Tata managing director(Tata teel5s

teel had not e9pected ma$or benefits in the

short term( 6ut it e9pected to identify the le"ers that would help plan future initiati"es( In the medium to long term& it plans to create a mindset where initiati"es across all le"els can be lin%ed to :N7 growth( !ascading accountability and decision ma%ing downwards is

challenging( O tern

tewart and !o will be pro"iding e9tensi"e training

to 40 of our officers& who will customi8e the training programmed and ta%e it down to each employee&O Mr( Muthuraman adds( 3uc# of t%e team Tata teel is luc%y in many ways( *espite its si8e and historical

baggage& the teams ha"e a lot of enthusiasm and ability to underta%e and impro"e upon the number of large initiati"es concurrently( They ha"e the best team to e9tract the best out of consultants& says Te$ #a"an 1andho% of tern tewart(

Tata

teel adopted a fi"e4stage process for implementing :N7;

haring

the "ision; !reation of awareness among employees Nalue diagnostic; Identification of gaps and opportunities Nalue audit and goal setting

,-

Measurement and management Training and %nowledge transfer from wor%ing groups to employees o far the implementation has

progressed along e9pected lines( Tata

teel5s e9perience with Qtotal

operating performance5 and the performance ethic programmed F#:#G ha"e helped( These initiati"es ha"e instituted a meritocracy4based management structure& which has impro"ed decision4ma%ing

processes e"en prior to the :N7 rollout( :arlier initiati"es& li%e the balanced scorecard& helped align employee goals with the company5s ob$ecti"es( Tata teel did not ha"e to spend time on identifying :N7

centers and dri"ers as the #:# was already structured on those lines( The company was able to integrate all initiati"es and ma%e speedy progress on multiple initiati"es( O@e ha"e set oursel"es the target of turning :N74positi"e by /00-& which implies that we should be able to meet the e9pectations of our in"estors&O says Mr Muthuraman( If the recent capital e9penditure plans are anything to go by& there is e"ery reason to belie"e :N7 is on a roll(

Tata Tea: $.+ in a tea cup

Tata Tea started building :N7 as a %ey performance indicator in the

,3

6alanced scorecards& so that the performance4management system centers around :N7 It was the preoccupation with the here& the now and the future that dro"e Homi Jhusro%han& managing director& Tata Tea& to embrace :N7( O7n organi8ation that measures business performance purely in accounting terms will fall into the trap of ta%ing decisions on the basis of impact o profit& a myopic way of running a business& rather than impact on wealth& a measure that forces one to thin% of the long4term conse>uences of e"ery decision made&O he says( Settin) t%e sta)e *issatisfied with traditional accounting measures& Mr Jhusro%han had as%ed tern tewart to do a diagnostic study on "alue in Tata Tea( The

aim of the study was to see whether information systems focused on "alue and enabled good decision ma%ing& and which areas had to be addressed in order to create positi"e "alue( 7lso& the "alue chain was not sufficiently de4aggregated to show where "alue was being created and where it was being destroyed( <ater& Tata Tea started the measurement phase( This in"ol"ed training its finance personnel in the ad$ustments to be made in the accounting figures( The company steering group decided on how many and which :N7 centers should be created within the company( The :N7 process was made possible through a wor%shop on plantation economics( The wor%shop was

,,

*esigned to pro"ide a method for treating each plantation as an asset& with the "alue of the discounted "alue of future earnings from the teas produced at that plantation e"aluated at auction4e>ui"alent prices( The method loo%ed at plantations as units of production that are capable of generating alternati"e streams of re"enue& depending on inputs& agronomic practices and prices( This outloo% allowed people to ma%e choices on the basis of financial outcomes rather than gut feel( Tata Tea has started building :N7 as a %ey performance indicator in the balanced scorecards& so that the performance4management

system centers on :N7( OThe minimum number of such balanced scorecards will be nine& one for each of the :N7 centers&O e9plains Mr( Jhusro%han( O ince :N7 is influenced by decisions made within the centre& the impact of these decisions will be trac%ed on the balanced scorecards for the :N7 centre(O The idea is to identify where the "alue for the sta%eholder is being created( The company will test its first cut medium4term three4year business plan on this metric& and determine whether the plan deli"ers the re>uired future growth "alue( If not& it will ha"e to ree9amine some of the strategies( C%an)in) for t%e positive Mr( Jhusro%han adds& O#eople generally thin% that only strategic decision ma%ing influences :N7( In fact& >uite a few day4to4day

,(

Cperating decisions impact "alue creation and future cash flows( :N7 is not $ust about capital budgeting or ma$or ac>uisitions(O :N7 does not bear fruit instantly( O@e must be realistic( The plan is to impro"e :N7 year4on4year( @e need to generate incremental positi"e change and ensure that were mo"ing in the right direction(B Implementing :N7 was not easy for Mr Jhusro%han and his team( They needed to change mindsets and beliefs that were once held dear( ?or instance& brands became Ocapti"e to plantationsO and the choices open to the company were narrowed down( *ependencies were created between plantations and brands& and these became difficult to se"er( 7ll own4plantation teas are substitutable and ha"e a "alue that can be easily

ascertainable( 2o unit of production can be awarded a reali8ation that is higher than its true economic rent( To ma%e the right choices& one needs to de4aggregate the "alue4chain and determine where "alue is being created and where it is being destroyed( The :N74based way of loo%ing at plantation "alues at the auction4e>ui"alent price of the teas produced& rather than the aggregated reali8ation that can be got out of a brand is a better and more correct way of loo%ing at the true economics of plantations& asserts Mr( Jhusro%han(7s far as human resources are concerned& training in the new methodology will be the greatest challenge( OCur finance people must thin% of themsel"es as

,/

business managers and guide the decision4ma%ing process correctly& in addition to controlling the boo%s&O says Mr( Jhusro%han( $mpo"erin) employees 6y creating :N7 centers in the organi8ation& Tata Teas top echelon is mo"ing away from a top4down decision structure( The company wants to brea% problems into constituent parts( The $ob of the plantation :N7 centre is to ma9imi8e the "alue of plantation assets( The nine :N7 centers are supported by :N74measurement points& which will aid the spread of the methodology( The 2orth India plantation operations are collecti"ely an :N7 centreM indi"idual plantations li%e #oway or !hubwa are :N74measurement points( The importance of shareholder "alue creation is the most important learning for the management( O6ringing a long4term perspecti"e to decision ma%ing& and not being a sla"e to today5s profits and tomorrows reports and results is crucial if the shareholders interests are to be ser"ed in the longer term&O says Mr Jhusro%han( Impro"ing decision ma%ing and forcing a focus on the longer term are the other important lessons that :N7 can teach a management( @hat the future holds Mr( Jhusro%han e9pects a momentous change from :N7 implementation( pea%ing of benefits to

the Tata 1roup& he says& OThe most significant benefit that the group can deri"e out of the :N7 methodology is an impro"ement in the

,.

Ruality

of

strategic

decision

ma%ing

within

indi"idual

group

companies(O If correctly implemented& an :N7 culture can become a way of life within the organi8ation(

References
+( Tata group introduction and history [online] FHpdated May /0+0G 7"ailable at; http://en.wikipedia.org/wiki/Tata_Group [7ccessed . 'uly /0+0]( /( Tata group corporate social Responsibility objective and measures [Cnline] Fupdated May /0+0G 7"ailable at; http://www.tatatechnologies.com/global/Community.asp ! "enuCode#$%$http://www.tata.com/company/releases/inside.a sp !artid#&"'ae(o)*+,# [7ccessed +0 'uly /0+0]( 3. Tata group corporate social responsibility objective and measure [Cnline] FHpdated May /0+0G 7"ailable at; http://www.tata.com/htm/tata_review.htm [7ccessed , 'uly /0+0](

4( Tata group Timetable -or ,mplementation [Cnline] FHpdated May /0+0G7"ailableat;http://www.tata.com/htm/Group_milestone.ht m!sectid#./w01k%+2%s#[7ccessed +3 'uly /0+0]( 5( Tata group Gaining Commitment stakeholders [Cnline] FHpdated May /0+0G 7"ailable at; http://www.tata.com/ourcommitment/articles/ inside.asp ! artid# 345*6o"m7&# [7ccessed +0 'uly /0+0](

/. Tata group Monitoring and :"aluation [Cnline] FHpdated 3 March ,'

/0+0G 7"ailable at: http://www.tata.com/company &rticles/inside.asp !artid#8G(slTd9)*"# [7ccessed ++ 'uly /0+0](

,4