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Ratan Tata - A True Leader: Presented by

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Presented By:

Akshay Agarwal

Ratan Tata – A True


Akshit Tripathy
Anilesh Kumar
Ankit Saroha

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.

Openness: He believes in originality and versatility. By making $2500 car he has


shown his great interest with and innovation seeking personality.
Agreeableness: Within his management team Ratan Tata is well trusted and very
friendly.

Conscientiousness: He is very dutifulness. He spent most of his life working for


TATA Group without any self-interest. He is very well organized as well.
TRUE VISIONARY
 It is Ratan Tata’s path breaking vision that has led Tata Group to become one of
India’s largest conglomerates with 98 operating companies spread across 56
countries.

 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.

 He expanded CEO’s concept of community philanthropy to be included in the


workplace, as evidenced by the Tata Group’s steadfast commitment to social service.
(Jaago Re campaign)
FIRM DETERMINATIONS
 Ratan Tata was appointed the director-in-charge of National Radio and Electronics
Company (NELCO). The company held barely 2% of the market share which
ultimately led to its collapse.

 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.

 Ratan Tata announces his vision of small affordable


car. Says ideal price level of an affordable family car
should be about $2500 or ₹1 Lakh.

 The Tata group also developed Tata Swach-a home


water purification device at low cost that operates
without electricity.
STRATEGIST
 Ratan Tata is a deep thinker and an extremely strategic person.
He is always thinking 2 steps ahead of his competitors.

 Under his leadership, 32 companies were acquired worldwide.

 He is credited with conceptualizing Nano, the cheapest car in the


world.

 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

“Tata was driving straight to disaster with the


Jaguar-Land Rover deal: the brands were
troubled, demand was low”.

Tata went on to prove everyone wrong. The


group’s international acquisitions are doing
well, some have started making serious
money.
SWOT ANALYSIS
SWOT ANALYSIS OF
RATAN TATA

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

without deep thought and hard work.

 Good human relations not only bring

great personal reward but are essential to the

success of any enterprise.

 Do what can’t be done.

 Build trust.
Communicate with your employees.

 Work on leading not following.

 One must forever strive for excellence, or


even perfection, in any task, however small,
and never be satisfied with second best.
BENEFITS TO TATA GROUP UNDER
THE LEADERSHIP OF RATAN TATA
When Ratan Tata took over as chairman in 1991, India was engulfed in a financial
crisis. The consequent opening up of the economy in 1992 completely transformed
the economic dynamics of the country. Several old business houses could not adapt
to this changing wind. Under Ratan Tata, the Tata group not just survived, but rather
thrived. It grew from a family-owned business house to a professionally managed
global conglomerate. 

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)

Tata Trusts, led by Ratan Tata, has pledged Rs 1,000 crore


and other resources to help the central government develop
cancer-care facilities in five states, an initiative that
promises to drastically improve access to treatment for
thousands of patients.
WHAT WE CAN LEARN
FROM RATAN TATA

• Communicate with your employees • Be yourself


• Take Chances • Make a difference
• Build Trust • Be motivated by competition
• Be Humble • Do what can’t be done
HAN
YOUK

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