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Coursework 2 - Essay Example

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Coursework 2

Graham (2010) pointed out that “TATA’s business structure includes 11 charitable trusts that together earn 66% of TATA Sons and that are intimately involved in its governance. (Family members own only 3%)”(Graham, 2010, p.8). No other company in the world may have the same reputation as TATA has as far as social service is concerned. TATA is currently funding many social service activities such as clean water deliver, literacy, prenatal care etc. Moreover Indian Institute of Science, Tata institute of fundamental research, the national center for performing arts, Tata memorial hospitals, etc are founded or supported by the TATA group (Graham, 2010, p.8). In fact TATA is spending a substantial portion of their business profits for charity activities. Because of the huge attention given to social activities, members of TATA family are comparatively poorer than their business counterparts in India. In 2009, TATA spent $ 159 million for social service activities (Graham, 2010, p.8). TATA believes that community support is the most important requirement for a business group to sustain its growth. It should be noted that Coke like international giants failed to operate successfully in India because of their failure to offer something to the community in which it operates. Coke’s bottling plant in Kerala was closed recently because of the allegations against Coke with respect to the exploitation of underwater resources in Kerala. At the same time, it should be noted that millions of hectares of land in Kerala are used for tea plantation by TATA and the people in Kerala do not have much problems with that. This is because of the fact that TATA is servicing the people in Kerala in many ways even though they use Kerala’s land for tea plantation. Recently TATA has introduced world’s cheapest passenger car (NANO) priced only $ 2500. In fact TATA wants to help the poor people with this product. Poor families of medium income families can afford a car with the introduction of NANO. While most of the other car manufacturers are trying to develop luxury cars, TATA thinks in the opposite direction. They wanted to make car which is affordable to even poor people and the outcome was NANO. Contaminated drinking water is causing thousands of deaths in India. In order to help poor people to purify drinking water, TATA introduced TATA Swatch or water purifier priced less than 1000 Indian rupees in 2009(Graham, 2010, p.9). It should be noted that there is no need for TATA like big companies to introduce products such as water purifier. However, they introduced this product only to demonstrate their social commitments. “The TATA group has a set five core values; integrity, understanding, excellence, unity and responsibility” (Angwin, 2011, p.133). These core values can be seen in every TATA business segments. Even though TATA’s business groups are operating independently, they understand each other work strictly in accordance with the vision, mission and core values of TATA group. In short, TATA’s business culture is more oriented towards the servicing of poor. For TATA, business is not at all about making money or profits; it is about how well an organization can service the community without sins. Community servicing has many roles in TATA’s business strategies which is evident from the fact that ...Show more


Case Study: TATA Company Analyse how Tata’s culture as described in graham (2010). Exhibit 16 influences, their mission vision and objectives. TATA seems to be following a unique business culture. While most of their competitors are concentrating on expansion of their companies using the profits, TATA seems to be more interested in doing charity works using the profits they earned…
Author : janellekub
Coursework 2 essay example
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