Ratan Tata - A True Leader: Presented by
Ratan Tata - A True Leader: Presented by
Akshay Agarwal
Leader
Anusheel Sharma
Anushka Saini
Ashit Jhingan
INTRODUCTION
Born : 28 December 1937 (age 79) Surat, India.
Residence : Mumbai, India
Nationality : Indian
Occupation : Former Chairman of TATA Group(1991-2012)
Awards : Padma Bhushan(2000), Padma Vibhushan(2008)
LEADERSHIP STYLE:
MIXED APPROACH
Ratan Tata is a leader who engages more democratic style of leadership approach.
However at previous occasion has used other two kind of style as well. He is more
democratic because he always encourages his group leadership to be creating good
communication and participation. Future leadership are well informed about future
strategy and they are very well engaged in decision making process. Most of the
group long-term and short-term strategies are formulated by the lower rank of the
leadership.
Ratan Tata has occasionally shown some form of autocratic style of leadership.
Sometimes when needed especially when quick and informed decisions have to be
taken, but he is never too commanding in his nature, being a man of few words and
being more of a man of action, this is evident from the manner he aggressively
pushes for bold international deals, such as during the global acquisitions of business
powerhouses such as Corus, Jaguar and Land Rover, and Tetley Tea.
In daily routine matters and in developing the leadership, Ratan Tata also uses
facets of the Laissez-Faire model such as the delegation of important duties and
decision-making, he also does not in any way interfere with any manager's
functioning, he might make a broad strategic assessment but he does not interfere in
operational issues and details, this shows that he has complete trust and faith in his
managers and believes in their ability.
FIVE FACTOR MODEL
Emotional Stability: Ratan Tata has very low anxiety within him and has great sense
of security with his future leadership.
Extraversion: Even being a bachelor Ratan Tata is very sociable. He has produced
very positive affect on future leadership of TATA Group.
At Rs. 3.46 lakh crore, the Tata Group revenue is 40 times the 1991 level (60% of
which comes from overseas), while its net profit has gone up four times.
The Tata Group today includes India's largest private steel company, the biggest
auto manufacturer and the largest IT outsourcing firm.
Another example of his futuristic vision is Tata Nano. “What drove me — a man
on a two-wheeler with a child standing in front, his wife sitting behind, add to that
the wet roads — was a family in potential danger,” said Ratan Tata, while
explaining why he went for the Nano.
His big-bang takeovers started with Tata Tea’s takeover of iconic UK brand Tetley,
for $450 million in 2000. In 2007, Tata Steel bought Corus, Europe’s second largest
steelmaker, for $12.1 billion. Just a year later, Tata Motors paid $2.3 billion
for Jaguar Land Rover.
INITIATOR
He successfully introduced the first indigenously developed passenger car Indica
in India in 1998. It became the no. 1 car in its segment in two years.
Tata Tea, now Tata Global Beverages, acquired the Tetley group in 2000, the
world's second largest manufacturer of tea.
Tata Global Beverages formed a joint venture with Starbucks i.e. Tata Starbucks
Ltd, and helped Starbucks launch themselves in India by opening their first store in
Mumbai.
GOOD AT HANDLING
HUMAN RELATIONS
He is a man who is known to give great importance to Human Relations.
Ratan Tata working style is that of working together with all officers by using
unity of command and unity of direction.
The Tata group instituted an eight hour workday before nearly any other
company in the world.
Later again, he was given charge of the Empress Mills in 1977 which was in bad
shape. Due to a weak economy and a prolonged workers’ strike, the Empress Mills
floundered and was finally closed.
These two 'failures' haunted Ratan for decades. His track record was held suspect
even when he took charge in 1991 but he never looked back, and ultimately proved his
critics wrong.
CREATIVE AND
INNOVATIVE
Ratan Tata used his excellent innovative vision in
Titan Edge watches which developed the thinnest
watch in the world which is only 3.5 mm. in thickness.
Even after his retirement he was one of the key member to bring
back TATA group to the aviation industry. TATA introduced Air Asia
India( TATA – Air Asia Joint Venture) in 2014 and Vistara
Airlines( TATA – SIA Joint Venture). Vistara Airlines was the first
airline in India to introduce Premium Economy Class.
RISK TAKER
TATA – Corus Acquisition
The critics declared that “the Corus
deal would lead the group to
bankruptcy”. But Ratan Tata took the
risk and today, it is considered one of
the most successful acquisitions.
TATA – Jaguar & Land Rover
Acquisition
STRENGTHS
•Visionary
•Strategist
•Initiator
WEAKNESS THREATS
•Risk Takers
•Less Autocratic
•Perfectionists
•Dependable
•Question the
OPPORTUNITIES unquestionable
•Adaptability
•Changing
Champions
•Business Ethics
PRINCIPLES OF
RATAN TATA
Nothing worthwhile is ever achieved
Build trust.
Communicate with your employees.
The unique thing about Mr Tata's legacy is that he managed to do that without undue
political patronage.
Here's a look at some milestones the group achieved during his tenure.
1998: The Tata Indica, the conglomerate's first passenger car, was launched this year.
The car went on to become the No. 1 brand in its segment within two years.
2000: Tata Tea, now Tata Global Beverages, acquired the Tetley group, the world's
second largest manufacturer and distributor of tea. Tetley is the largest tea company
in the UK.
2001: Tata AIG, a joint venture between the Tata group and American International
Group Inc (AIG), marks the re-entry of the Tata group into the insurance sector. The
group's insurance company, New India Assurance, founded by Dorab Tata in 1919,
was nationalised in 1956.
2002: The group acquires a controlling stake in Videsh Sanchar Nigam Ltd. VSNL
was founded in 1986 and was the first Indian PSU to be listed on the New York
Stock Exchange.
2003: Tata Consultancy Services became the first Indian software company to cross
$1 billion in revenue. The company went public a year later.
2004: Tata Motors is listed on the New York Stock Exchange. The company also
acquires the heavy vehicles unit of Daewoo Motors the same year.
2007: Tata Steel acquires Anglo-Dutch company Corus, the second-largest steel
maker in Europe.
2008: Tata Motors unveils the Nano, the country's cheapest passenger car. It was
initially dubbed the Rs. 1 lakh car, though it now costs Rs. 1.5-2 lakh.
2008: Tata Motors acquires the Jaguar and Land Rover businesses from Ford, and
forms a new company, Jaguar Land Rover.
2012: Tata Global Beverages and Starbucks form a joint venture, Tata Starbucks Ltd,
and open their first store in Mumbai.
As the Chairman of Tata Group, he was able to achieve international recognition and
prestige for his company. The astounding financial success of the company brought
the Tata Group to the New York Stock Exchange and under his supervision the
corporation became a global brand by acquiring many companies including Tetley,
Jaguar Land Rover, and Corus.
CAMPAIGNS ORGANIZED
UNDER HIS LEADERSHIP
TATA TEA
He organized the Tata Tea campaign to
market his brand as well as to create
awareness among the people.
• The success of its first campaign
“Jaago Re”
• Tata Tea also launched another
campaign titled “ Aaj se khilana
bandh, pilana shuru”
TATA MEDICAL CENTRE
• Ratan Tata opens non-profit Tata Medical Centre specialized for Cancer
treatment in 2011.
• His stated mission is to promote the prevention and cure of cancer patients and
provide rehabilitation and palliative care to them. A special emphasis will be
given to children suffering from cancer.
TATA’s ₹1000-crore Diwali Gift for Cancer
Patients
(October 20, TOI)