Management International Management Ratan Tata Term Paper

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Each and every member is respected in a productive global business environment with multicultural or diverse teams. Positive thinking is the constant habit of good teams in the global market environment with multicultural teams. It will be impossible for a global multicultural organization to function properly without good team attributes because of the wide acceptance of teams as well as multicultural teams in the global business environment (Qualities of Leading Global Multicultural Teams, 2009).

Issues of Concern

In Ratan Tata's plan to go global he believed that the biggest challenge they faced was finding the right talent which retaining the Group's value systems as the company grew bigger and more diverse. He thought that in order to be successful they had to expand their managerial perspective while retaining the same moral and ethical standards that they had before.

Another issue seen by others was the fact that the Group still had a presence in a wide range of disparate businesses that included salt, jewellery, computer software, and tea, insurance and steel. In fact the company had actually added to its diversity by entering the new businesses of direct to home services and retail consumer electronics. There is something to be said for expanding but companies must watch and make sure that they are not spreading themselves so thin that they once again are only mediocre at everything they do and don't have the resources to excel at anything.

There were also many critics that wondered what would happen to the company once Ratan Tata was gone. They wondered if his departure would be the end of the Group or would it be able to thrive on. There was no doubt that under Ratan Tata the Tata group had prospered. He had in fact been instrumental in transforming the focus of the company from domestic to global. Ratan Tata had the conviction, belief and determination to convert his vision for the Group into reality, all while retaining the ethical values of his predecessors.

Organizational Structure and Plans for Expansion

Ratan Tata's perspective on going global was not just one increasing turnover. He also had a vision to creatively engage in the development of the countries in which the Group was doing business. Carrying out this philosophy, the Tata Group took up a number of projects that had a direct influence on the social environment in which they did business. Social investments are expected to yield longer-term benefits as engaged consumers step up their purchases, a broader investor base develops, or new talent flocks to a company's recruiters. Corporate responsibility acts as a conduit through which companies can demonstrate that they care about their stakeholders. A company should assess its initiatives regularly to ensure that they foster the desired unity between its own goals and those of stakeholders. Calibrating strategy frequently improves the odds that corporate responsibility will create value for all parties (Bhattacharya, Korschun, & Sen, 2012).


There is no question that Ratan Tata is a great leader. He knows how to set a vision and then get everyone involved on the same page in order to be successful in carrying out that vision. He took a company that was on the brink of collapsing and made it a globally respected company with potential. Like with every company that is in business, this one must make sure that they contain their expansion efforts so that they do not over expand themselves out of business.

Ratan Tata's growth by expansion theory is a good one on the surface but has many risks associated with it. Growth by expansion is a great way to build up a business. Ratan Tata basically used two different ways to expand -- globalization and acquisition. Globalization is often seen as a high risk strategy. The reasons for such a business strategy could be due to a rise in opportunity that the firm has identified, or feel the need to tap and rely on new sources of growth and so on. While it is considered as a more risky approach that the others, the firm must be able to carefully assess its abilities before plunging into a new area that it may or not have competencies in. Acquisition or acquiring refers to the act of taking control over another corporation. By taking control over another business entity, one would hope to gain access to certain key functions, skill or knowledge in a particular industry (Growing Your Business - Growth & Expansion Strategies, n.d.). No matter what the critics say Ratan Tata was successful at both of these strategies.


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