Thursday 27 October 2016

Tata Empire - A Single Cohesive Unit or a Thousand Isolated Kingdoms?

I will write about Tatas, but not about the ruckus of the day. I don’t care about who heads the firm but what bothers is that even if Tata is a charade, it was a charade well maintained. Now, because of this, there are questions over Ratan Tata’s conduct as a gentleman, there are questions over the sophisticated way in which the company is run - Tata Mundra, NTT Docomo, Corus, Tata Nano are failures and $18 billion as write offs is not a number to talk about. Succintly put by someone, the single line tells loads. What is the Tata Group? A string of under performing companies, if you exclude TCS and JLR, but strutting around because of the value system it firmly holds. But yes, Cyrus Mistry didn’t behave as the gentleman he ought to be. He was wronged and he blurted out in anguish. But was he without blemish?
Well, the topic of discussion is one single complaint made against Cyrus Mistry - he looked at Tata Group companies as individual units and not a composite whole. Ironically, this is applicable to Ratan Tata as well, to some extent. I have got a few questions in this regard.
1. What did the management do to convert 6.5 lakh Tata employees to loyal Tata customers?
2. Are there any migrations happening from one Tata company to another? Will this not knit them more and help in sharing expertise?
And let’s look at a few things which the Tatas can do to turn around their loss making business. It’s surprising that none from the Tata hierarchy did anything in this effect(well, some may have been done).
1. TCS is based on a client-vendor model and requires extensive client visits. Is there a tie up between TCS and Taj Hotels?
2. If, say, a 10% discount is given to all Tata employees to all Tata products, how many will go to a different company other than Tata Motors, Croma or Westside/Landmark?
3. In sprawling Tata campuses like TCS Siruseri or Tata Steel Jamshedpur, do we have a Star Bazaar+Croma+Westside combine serving everything for the employees, with counters or even, kiosks for Tata Motors, Life Insurance and other products? How much business can you make for that?
4. Tata Power is a major player in Mumbai and Jamshedpur. How much percentage of Tata facilities are supplied power by Tata Power?
5. TCS, say, has clients as Lufthansa. Is it possible for TCS to operate as a mediator between Lufthansa and Tata Motors for sale of buses? What if they are offered an additional 5% discount on the final deal as coveted trade partners of TCS? Can TCS work as a front for Tata Motors or other Tata companies to boost up their business volume?
6. Tatas, can they venture into defence manufacturing or ship building or iron intensive industry? That in itself will create a huge market for their loss making Steel business.
7. How much percentage of Tata employees use Tata Indicom or Tata Docomo? What incentives can be given to employees to switch over to Tata Teleservices?
8. How much of Tata trust funding for research is funneled into Tata Motors, Tata Steel and others?
9. How many companies of Tata group have their IT managed by TCS?
This is the direction in which any Tata Sons chairman should think - form the complete group into a cohesive, single entity and not thousand independent units. That will give it a level of positive feedback boosting up it’s revenue. We Indians are proud of Tatas, let it be like that.

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