TATA Group: History, Challenges and Current Strategies

Running Head: Ecommerce

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TATA Group
In this essay a detail study is done of Tata Groups including their history, background
as well as their current strategy. The modern world is the glorious combination of high
technology, enterprises and robust infrastructure which is accomplished by the contribution
of TATA groups. Tata has been an interesting part in the countries development over the
ages.
History and background
Jamsetji Nusserwanji Tata is the founding father who established the TATA groups
on value, vision and leadership. The Tata steel was first established in Jamshedpur in 1868
initially it was a trading company. Later the company was under his elder son Dorab Tata,
between the years 1932-92 J.G.D Tata took the TATA groups to different level by the
establishment of Tata Aviation Services, future established Tata chemicals which were the
reason for rapid growth (Mithas and Arora, 2015). The Tata groups kept on growing by
future additions like TATA consultancy services, Tata tea, Tata motors, Voltas, Tata mc
Graw hill. Tata was serving the nation and has become a part of people in daily life. It has
served the nation from land to air, at workplace or at home; between 1992 -2012 when Tata
group was under the leadership of Ratan Tata, the company grew 33 times more in revenue
(Rajaraman, 2015). It achieved the success globally as it spread over 85 countries in six
different continents. It contributes in the overall development and received acquisition from
all countries. This group has contributed in technological evaluation by setting a steel plan,
hydroelectric plan and inorganic plant. TATA has various organisations which has made
India a self-reliant nation (Sharma, 2017). This success was not easy there exist a story
behind Tata groups to become what they are today.

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Challenges faced by TATA groups
There are certain challenges faced by Tata groups, first is building relationship
between different headquarters groups so that there are no conflicts while operating. Thus it
is difficult to maintain the business globally persistently. Apart from that Tata groups are
suffering from the issue portfolio issue along with certain quality issues (Cuervo-Cazurra,
Newburry and Park, 2015). Nowadays company is not innovating new products and keeps on
selling the products that are already designed. On the other hand, challengers are coming in
the market with better innovative products and capturing the audience.
The major challenge faced by TATA groups is leadership; there is no future leader
after Ratan TATA to manage the company so well. The company has faced the downfall in
recent years due to poor decision making of buying Corus (Doh, Husted and Yang, 2016).
The decision making is the main component of companies’ growth. Apart from that company
has faced challenge in the telecom industry due to large number of debt payments whereas
the profit margin decreased due to tariff plans. TATA Power is also facing problem because
of high coal prices and depreciation of the commission prices. The company's development
has decelerated due to the sovereign debt crisis in US economy (Venkataramany, Bhasin and
Ng, 2016).