Case 10, Ethical Leadership: Ratan Tata and India’s Tata Group
A brief introduction framing the issues of the case. Do not spend a lot of space on the history, development, and growth of the company over time. We have all read the case. · Identification of the company’s internal strengths and weaknesses. · Identification of the opportunities and threats in the external environment surrounding the company. · Analysis of the corporate-level strategy pursued by the company, if addressed in the case study reading material, and whether it fits effectively with the company’s SWOT analysis. · A consideration of issues raised in the case write-up that is germane to concepts we have studied in the course. This is important. Cases have been chosen and placed where they are in the course because they illustrate important principles that we are studying. Be sure to tie the case in with the concepts we are studying in some detail. · Answers to any specific questions asked in that week’s Case Study Assignment. · Specific recommendations for what the company should do next and directions that it should take Introduction This case is about the Tata Group, one of the leading business houses in India, a key emerging market. The group had a long-standing reputation for ethical leadership and was well known for its corporate social responsibility and principles such as the “Tatas don’t bribe” and the “Tatas don’t indulge in politics”. Under the leadership of Ratan Tata, the group carried forward this legacy and consolidated its businesses further in India while also acquiring a global footprint. India, like many markets in transition, was passing through a period when excessive power was concentrated in the hands of the political elite and their cronies. This had led to a government-dominated economy characterized by nepotism, patronage, and corruption. According to some experts, most Indian entrepreneurs operated in “oligopolistic markets and in sectors where the government had given them special privileges.” Despite operating in this market, the Tata Group had managed to build its empire emphasizing the twin pillars of trust and integrity—so much so that these had become a key aspect of the Tata brand. However, in 2010, the group and its leader Ratan Tata were dragged into the infamous 2G scam that broke out in India. Investigations into the scam in the fast-growing telecom sector revealed deep-seated corruption in the country. There was quite a bit of evidence of corporate wrongdoing, and many corporate houses, including the Tata Group, came under the scanner (Deresky, 2017). Activity Instructions Write a Case Study on Case 10, Ratan Tata, in your primary text, using the guidelines in the Case Study Guidelines document, available in Course Documents. You do not have to address the financials of the case, except as they are impacted by other factors. In addition to the elements in the guidelines, specifically, consider the cultural orientations of the countries participating in the case and their impact upon it.
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