Tata Group under Cyrus Mistry: Shedding Weight?




Case Details Case Introduction 1 Case Introduction 2 Case Excerpts

ABSTRACT

The case discusses the growth of India’s largest multinational conglomerate, the Tata Group under its new chairman, Cyrus Mistry (Mistry). When Mistry took over as the CEO of the Tata Group in 2012, in the wake of a global economic slowdown, he focused on addressing the huge debt mountain, raising cash, refinancing loans, selling assets and writing down their value. On the other hand, the group’s former Chairman, Ratan Tata , who had served the Tata Group for over two decades had propelled the group onto the global map by acquiring international brands such as UK-based steelmaker, Corus Group plc (Corus), Ford Motor Company’s, luxury vehicle brands, Jaguar Land Rover, UK-based beverage manufacturer, Tetley, and New York’s luxury hotel, Pierre. While Ratan Tata grew the Tata Group into a US$ 100 billion revenue earning company by 2012, he also increased the company’s debt 11-fold attributable to the several acquisitions made by the Tata Group. ...

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Issues

The case is structured to achieve the following teaching objectives:

  • Analyze the effectiveness of Mistry’s efforts to sell off loss-making assets such as Tata Steel UK.
  • Apply strategies that would help Mistry reduce the group’s dependence on TCS and focus on new clusters to reduce the group’s debt burden in future.
Contents
INTRODUCTION
BACKGROUND NOTE
TATA GROUP UNDER RATAN TATA
CYRUS MISTRY STEPS IN
THE RESULTS
LOOKING AHEAD
EXHIBITS

Keywords

Tata Steel, Tata Group, Ratan Tata,Cyrus Mistry, International acquisitions, Debt burden, Organic growth, Inorganic growth, Global economic slowdown, Cash cow, Economic environment,Corus  Group,Tata Consultancy Services,Jaguar Land Rover

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