Preface Organizational Structure * What is organization structure * Traditional Organizational Structure * New Design Options * What major forces shape an organization’s structure Organizational Change * What causes change * Approaches to manage change * Resistance to change * Contemporary change issues for today’s managers About the Tata Group * Leadership with trust * Governance * Excellence * Promoter Holding Companies * Management * Heritage * Tata Consultancy Services Survey Conclusion Bibliography PREFACE GENERAL ELECTRIC & JACK WELCH
About GE A General Electric company or GE is an American multinational conglomerate corporation incorporated in Schenectady, New York and headquartered in Fairfield, Connecticut, United States. The company operates through four segments: A. Energy B. Technology Infrastructure, C. Capital Finance D. Consumer & Industrial. Jeffrey Immelt is the current chairman of the board and chief executive officer of GE. He was selected by GE’s Board of Directors in 2000 to replace John Francis Welch Jr. (Jack Welch) following his retirement.
Previously, Immelt had headed GE’s Medical Systems division (now GE Healthcare) as its President and CEO. General Electric is a large diversified industrial and financial company, whose major product lines include : i. Appliances ii. Lighting products iii. Aircraft engines iv. Plastics v. Power systems vi. Medical imaging vii. Broadcasting viii. Financial services General Electric was incorporated in 1892 as a combination of three existing companies, one of them founded and run by the inventor Thomas Edison.
It was an original member of the Dow – in fact, the only one still in existence. Case Study Presented For Analysis – GE and Jack Welch Case Study Jack Welch and General Electric developed cult-like followings on Wall Street, culminating in a $7. 1 million book deal (Jack: Straight from the Gut, published in 2001). During his 20-plus-year tenure, GE enjoyed enormous financial success and its methods were imitated worldwide. But what made GE so successful under Welch? How has it managed to excel in such a wide range of businesses? History
General Electric is a large diversified industrial and financial company, whose major product lines include appliances, lighting products, aircraft engines, plastics, power systems, medical imaging, broadcasting, and a wide range of financial services (consumer finance, leasing, private equity, credit cards, and so on). See Exhibit 1. In 2000, GE employed 223,000 people in over one hundred countries and reported net earnings of $13b on revenue of $130b. General Electric was incorporated in 1892 as a combination of three existing companies, one of them founded and run by the inventor Thomas Edison.
It was an original member of the Dow – in fact, the only one still in existence. Over the years, it has been wildly successful, reinventing itself as time and markets changed. James Surowiecki (New Yorker, December 18, 2000) notes: In the twentieth century, GE was the industrial equivalent of the New York Yankees. Regardless of who ran the team, it just kept on winning. … Charles Coffin kept GE afloat during one of the worst depressions in American history. [H]e essentially created the country’s electricity infrastructure and outmaneuvered a competitor, Westinghouse, whose technology was superior early on.
Gerald Swope and Owen Young reinvented GE as a consumer-goods powerhouse, then had to find a way to make money during the Great Depression. Ralph Cordiner made GE a space-age giant and masterminded its widely imitated decentralization. Welch In December 1980, Jack Welch was announced as the successor to Reginald Jones, himself a highly regarded executive, after an extensive internal search. Although GE was a profitable and respected company when he took over, its financial results during the 1970s were troubling to both its investors and senior management.
Welch immediately made changes to the company’s structure and management practices. Early newspaper reports cite his aggressive and demanding management style and a willingness to shift GE out of its traditional lines of business. GE also changed from a highly-bureacratic organization to one with fewer layers of management focused on speed and responsiveness. Welch stressed from the start the importance of being one of the top players in any industries in which it was involved. Welch told his colleagues that GE should be number 1 or number 2 in all of its businesses.
If they were not, the options were to fix, sell, or shut them down. The “number 1 or number 2” mantra was intended to give a clear goal to managers of individual businesses. He soon found that he needed additional criteria about the businesses themselves. In his words, “being number 1 or 2 in hula hoops would not do very much good. ” (From Janet Lowe, Jack Welch Speaks. ) Later on, some of his junior colleagues complained that the goal had turned into a game of market definition: managers could often define themselves to number 1 or 2 by defining the market narrowly.
Appliances are a good example. Although GE was estimated to be number 3 in North America (see Exhibit 2), it was first in refrigerators and ranges/stoves. Welch’s colleagues suggested he add the requirement that the market definition give GE no more than a 10% market share. They argued that this would give them 90% of the market to shoot for and focus them on growth. Welch also stressed size. But Welch emphasized that it allowed GE to diversify its risks. The way to capitalize on its size was to use this ability to diversify internally to take a lot of risks.
The 2001 annual report put it this way: We understand [the] inherent limitations [of size] — on speed and on clarity of communications, among other things — and we fight every day to create the quickness and spirit of a small company. But we appreciate the one huge advantage size offers: the ability to take big swings, big risks, and to live outside the technology envelope, to live in the future. Size allows us to invest hundreds of millions of dollars in an enormously ambitious program like the GE90, the world’s highest-thrust jet engine, and the “H” turbine, the world ’s highest efficiency turbine
generator. Size allows us to introduce at least one new product in every segment, every year, in medical diagnostics, or to spend hundreds of millions on new plastics capacity, or to continue to invest in a business during a down cycle, or to make over 100 acquisitions a year, year after year. Our size allows us to do this knowing that we don’t have to be perfect, that we can take more risks, knowing that not all will succeed. That’s because our size — far from inhibiting innovation, the conventional stereotype — actually allows us to take more and bigger swings.
We don’t connect with every one, but the point is, our size allows us to miss a few — without missing a beat. A final feature of GE is the wide range of businesses in which it operates. Although many other companies have had difficulty expanding outside their core businesses, GE had been successful for decades doing precisely that. Some observers find it difficult to believe that a single firm can understand and operate such different businesses as aircraft engines, television broadcasting, and venture capital.
Others, however, suggest that the quality of GE’s management and management practices are valuable regardless of the industry to which they are applied. Apparently even this has it limits, however, as GE stumbled badly when it bought Kidder Peabody. As Welch puts it: “[I] didn’t know diddly about it. I was on a roll. … I thought I was 6-foot-4 with hair. … I had two very smart board members, Walter Wriston and Lew Preston, who both said: ‘Jack, this is awful. ’ But I bullied over them. … It wasn’t worth it … to go through the headaches we made [for ourselves] for being such jerks. ”
Financial Data Exhibit 1. GE Segment Revenues (millions of dollars) Segment| 2001| 2000| GE| | | Aircraft Engines| 11,389| 10,779| Appliances| 5,810| 5,887| Industrial Products and Systems| | | Industrial Systems| 4,440| 4,469| Lighting| 2,550| 2,739| Transportation Systems| 2,355| 2,263| GE Supply| 2,302| 2,159| Total Industrial Products and Systems| 11,647| 11,630| Materials| | | Plastics| 5,252| 6,013| Specialty Materials| 1,817| 2,007| Total Materials| 7,069| 8,020| NBC| 5,769| 6,797| Power Systems| 20,211| 14,861| Technical Products and Services| | | Medical Systems| 8,409| 7,275|
Global exchange Services| 602| 640| Total Technical Products and Services| 9,011| 7,915| Eliminations| (2,900)| (2,101)| Total GE segment revenues| 68,006| 63,788| Corporate items| 445| 517| Earnings of GECS (excl goodwill)| 6,138| 5,812| Total GE revenues| 74,589| 70,117| GECS (GE Capital Services)| | | Consumer Services| 22,705| 22,993| Equipment Management| 8,272| 7,525| Mid-Market Financing| 8,695| 7,043| Specialized Financing| 2,930| 4,105| Specialty Insurance| 11,064| 11,878| All Other| 4,687| 12,633| Total GECS| 58,353| 66,177| Eliminations| (7,029)| (6,441)| Consolidated Revenues| 125,913| 129,853|
Exhibit 2 Market Shares in Selected Businesses (a) Global market shares for aircraft engines (total served, 2000) Company| Market Share| GE/CFM| 48%| Pratt & Whitney| 28%| Rolls-Royce| 14%| Source: Lehman Brothers. CFM is a joint venture of GE and France’s Snecma. (b) North American market shares for appliances (2000) Company| North Am Revenue| Market Share| Whirlpool| 6,233m| 29%| Electrolux| 4,710m| 28%| General Electric| 3,754m| 22%| Maytag| 800m| 18%| Others| $21,386m| 4%| Source: Wachovia Securities. | | | (c) Global market shares for lighting (2000)| | | | | Company| Revenue| Market Share|
Philips| 4,743m| 33%| Siemens/Osram| 3,569m| 25%| General Electric| 3,000m| 21%| Matsushita| NA| ~10%| Source: Wachovia Securities. | | | (d) Global market shares for power systems (1995-2000)| | | | | Company| Share for Steam Turbines| Share for Gas Turbines| General Electric| 16%| 50%| Alstom Power| 15%| 10%| Siemens| 14%| 25%| Mitsubishi| 9%| 10%| Toshiba| 8%| –| Source: Lehman Brothers. | | | (e) Global market shares for selected medical systems (2000) System| GE Share| Competitors’ Shares| MRI| 47%| Siemens 23%, Philips 12%| X-ray| 30%| Philips 25%, Siemens 19%|
Computed Tomography (CT)| 48%| Siemens 20%, Marconi 17%| Ultrasound| 24%| HP 13%, Toshiba 12%| All Diagnostic Imaging| 34%| Philips/Marconi 25%, Siemens 21%| Source: Wachovia Securities, Lehman Brothers. | | (f) Global market shares for reinsurance (net reinsurance premiums, 2000) Company| Market Share| Munich Re| 22%| Swiss Re| 21%| General Re| 13%| General Electric (ERC)| 12%| Hanover Re| 7%| Source: Lehman Brothers. | | Group Analysis Question 1 :- In what ways is “number 1 or number 2” a useful goal? In what ways not ? * Jack Welch believed that it will help managers set a clear goal with regard to individual businesses.
* But the problem with setting such kind of goal was with respect to manipulation of market definition. Managers could declare their businesses as number 1 or number 2 by narrowing down the market. * Later on, Welch after suggestion from colleagues added the requirement that the market definition give GE no more than a 10% share. Question 2 :- What are the advantages and disadvantages of GE’s enormous size ? * Advantages : – A. Ability to take big risks which allowed them to invest hundreds of millions of dollars in enormously ambitious programs. B.
Size allowed GE to do this knowing that they don’t have to be perfect, that they can take more risks, knowing that not all will succeed. * Disadvantages : – A. Small scale and size is typically viewed as s competitive disadvantage. B. Most small brands want to get larger so they can compete more effectively with larger brands. C. However a smaller sized scope can be a unique competitive advantage if it is used properly. D. It was not very easy to be successful in every venture and acquisition. The only options were to fix, sell or shut down. E. Market uniformity was equally challenging to be maintained.
Units in each nation had to adapt separately. Question 3 :- What are the advantages and disadvantages to GE of managing such a diverse set if businesses? Can you think of other examples of “unrelated diversification” that have been less successful? Related diversification strategies: Firm moves from a core of activities in a specific product market to other related activities and markets – Demand and/or cost linkages between lines of business – Sharing value chain activities and transferring core competencies Two directions of related diversification: 1.
Horizontal diversification (HD) : different businesses in similar stage of value chain – concentric diversification: businesses are highly related – conglomerate: businesses are unrelated 2. Vertical diversification (VD) : Number of stages a firm engages in the value chain – Forward (into distribution channels) vs. backward integration (sources of supply) – Make vs. buy Unrelated diversification strategies – Replace external capital market with internal capital market allocation – No linkages between businesses Advantages : – Business risk scattered over different industries.
– Financial resources directed to those industries offering best profit prospects – Stability of profits : Hard times in one industry may be offset by good times in another industry – If bargain-priced firms with big profit potential are bought, shareholder wealth can be enhanced Disadvantages : – Difficulties of competently managing many diverse businesses – Lack of strategic fit which can be leveraged into competitive advantage – Consolidated performance of unrelated businesses tends to be no better than sum of individual businesses on their own (and it may be worse).
– Promise of greater sales-profit stability over business cycles seldom realized The overall diversification scenario can be looked from a closer angle in terms of the following advantages and disadvantages : 1. Limiting Risk Diversification strategies help to limit risk as a diversified portfolio keeps a firm insulated from downturns and volatility — or market fluctuations — in that industry. Also investor’s risk is limited. 2. Maximizing Returns Diversification strategies also have the effect of maximizing portfolio returns.
This is in part because risk is limited — by avoiding exposure to major losses, the portfolio can be more likely to make money. But diversification also maximizes returns by providing investor exposure to high-return growth industries. GE with large diversification with major product lines including appliances, aircraft products, plastics, power systems, etc has always kept it abreast in terms of revenue with the ability to take calculated risks with innovative swings capitalizing on its enormous size an organization. 3.
Caveats A diversified portfolio is still exposed to the challenges of systemic risk, or downturns that impact the entire market or the entire economy. Even diversified portfolios can suffer losses in serious economic crises. GE is an industrial behemoth which too did face troubles in finances in 1970s which led Welch to reinvent the company’s structure and management practices to shift it out of the traditional business line to a house decentralized from a highly bureaucratic to a one with fewer management layers, more speed and responsiveness focused.
Example of unsuccessful unrelated diversification Escorts, a prominent engineering company has a widely diversified product portfolio which includes tractors, automobiles of the two wheeler type and several critical automobile components for auto engines. The company’s diversification was developed around its core competence in automobile engineering . This firm has recently diversified into unrelated areas including electronics and telecommunications without much success TATA GROUP Tata Group – Leadership With Trust
Alternate Case Study Presented For Analysis – Tata Group Case Study The Tata group comprises over 100 operating companies in seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. The group has operations in more than 80 countries across six continents, and its companies export products and services to 85 countries. The total revenue of Tata companies, taken together, was $100. 09 billion (around Rs475,721 crore) in 2011-12, with 58 percent of this coming from business outside India.
Tata companies employ over 450,000 people worldwide. The Tata name has been respected in India for more than 140 years for its adherence to strong values and business ethics. In tandem with the increasing international footprint of Tata companies, the Tata brand is also gaining international recognition. Brand Finance, a UK-based consultancy firm, valued the Tata brand at $18. 16 billion and ranked it 39th among the top 500 most valuable global brands in their BrandFinance® Global 500 2013 report. In 2010, BusinessWeek magazine
ranked Tata 17th among the ’50 Most Innovative Companies’ list. History The foundation of what would grow to become the Tata Group was laid in 1868 by Jamsetji Nusserwanji Tata — then a 29-year-old who had learned the ropes of business while working in his father’s banking firm — when he established a trading company in Bombay. A visionary entrepreneur, an avowed nationalist and a committed philanthropist, Jamsetji Tata helped pave the path to industrialisation in India by seeding pioneering businesses in sectors such as steel, energy, textiles and hospitality.
Empress Mills, a textiles venture set up in Nagpur in central India in 1877, was the first of the big industrial projects undertaken by the Tata Group. Jamsetji Tata was by this time, though, already gripped by what would the three great ideas of his life: setting up an iron and steel company, generating hydroelectric power and creating an institution that would tutor Indians in the sciences. Following Jamsetji Tata’s death, in Germany in 1904, the chairmanship of the Tata Group passed to the elder of his two sons, Sir Dorab Tata, who accomplished the daunting task of turning his father’s extraordinary ideas into reality.
Sir Dorab was the force behind the setting up, in 1907, of the Tata Iron and Steel Company. Seven years later, India’s first iron and steel plant, in Jamshedpur in the eastern part of the country, started production. In 1915, the Tata Group broke new ground once again, this time by generating hydroelectric power from a site near Bombay. Tata companies presently employ over 450,000 people worldwide. Taking good care of this large family is a priority for the Group, and it has a tradition to stay true to while doing so.
Tata Steel introduced eight-hour working days in 1912, well before it became statutory in much of the West, and the first Tata provident fund scheme was started in 1920 (governmental regulation on this came into force in 1952). The Tata townships, and the facilities they have, are another example of the manner in which the Group extends itself to care for its employees. By the time of Sir Dorab Tata’s death in 1932, the Tata Group had consolidated in businesses while also getting in new areas, notably insurance and the production of soaps, detergents and cooking oil. Sir Dorab was succeeded as chairman of the Group by Sir Nowroji Saklatwala.
In 1938, following Sir Nowroji’s demise, 34-year-old JRD Tata (left) was appointed as the new chairman. He would lead the Tata Group for the next 53 years — with wisdom, foresight and a rare grace that touched everyone he met. The first of JRD Tata’s big moves in business was born of a childhood fascination for flying. In 1932, Tata Aviation Service, the forerunner to Tata Airlines and Air India, India’s national carrier, took to the skies. The maiden flight in the history of Indian aviation took off from Drigh Road in Karachi, now in Pakistan, with JRD Tata at the controls of a Puss Moth.
In 1953, the Indian government nationalised Air India. During the more than five decades that JRD Tata was at the helm, the Tata Group expanded regularly into new spheres of business. The more prominent of these ventures were Tata Chemicals (1939), Tata Motors and Tata Industries (both 1945), Voltas (1954), Tata Tea [(1962) now known as Tata Global Beverages], Tata Consultancy Services (1968) and Titan Industries (1984). Expansion The beginning of the 1990s ushered in plenty of change in Indian business.
Economic reforms opened up many sectors, signaling increased competition and the arrival of foreign companies. Ratan Tata, who took over as chairman in 1991, guided the Tata group in a fast-changing business environment where old rules did not apply and new realities were taking hold. The Tata Group has, over the past decade-and-a-half, changed more than ever before in its long and illustrious history. Rejuvenating existing businesses, entering new ones, manufacturing breakthrough products and expanding into foreign markets are among the initiatives the Group has undertaken with vigour during this period.
In 1996, Tata Teleservices was set up to tap into India’s burgeoning telecom market; in 1998, the Indica, India’s first indigenously made car, was successfully launched; in 2002, the Group acquired VSNL, India’s top international telecom service provider; in 2004, Tata Consultancy Services went public in the largest private sector initial public offering in the Indian stock market; and, in 2008, the trailblazing Tata Nano was unveiled. The Tata group is now more cohesive and united than it has ever been.
This is no accident; rather, it is the outcome of a set of policies that have been emphasised and reinforced by former chairman Ratan Tata and the Group Corporate Centre, the top decision-making body in the Group. There’s more to the new-world Tata. The pursuit of business excellence has become the norm and there is a focus on innovation. What have not changed are the group’s emphasis on ethical business practices and its commitment to the communities in which it operates. The new millennium has seen Tata companies looking beyond Indian shores for growth opportunities and a global footprint.
Acquisitions of foreign enterprises have been one way of doing this. The first big acquisition was by Tata Tea of Tetley back in 2000. In 2004, Tata Motors acquired the heavy vehicles unit of Daewoo Motors, South Korea; in 2005, Tata Steel acquired the Singapore-based NatSteel and Tata Chemicals secured a controlling stake in Brunner Mond Group, UK. The grandest of them all came in 2007, when Tata Steel acquired Corus, the Anglo-Dutch giant, in a landmark deal, and in 2008 Tata Motors added the Jaguar and Land Rover brands to its stable. The future promises plenty for the Tata group as it sets the agenda for the next phase of its evolution.
The words of former group chairman Ratan Tata sum it up best: “One hundred years from now, I expect the Tatas to be much bigger, of course, than it is now. More importantly, I hope the group comes to be regarded as being the best in India — best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics”. “Having said that, I hope that a hundred years from now we will spread our wings far beyond India, that we become a global group, operating in many countries, an Indian business conglomerate that is at home in the world, carrying the same sense of trust that we do today.
” Financial Data Exhibit 1 : TATA Group Segment Revenues| | Tata Group – Financial Highlights| | Year| 2011-12(Rs. Crores)| 2010-11(Rs. Crores)| Total Revenue| 475,721| 379,675| Sales| 471,045| 374,687| Total Assets| 373,026| 313,960| International Revenues| 280,840| 220,277| Net forex earnings| 7,604| 4,778| | | | Tata Group Figures – Sector Materials| Years| 2011-12(Rs. Crores)| 2010-11(Rs. Crores)| Total Turnover| 134,660| 119,842| Sales Turnover| 133,076| 118,854| Value of Assets| 85,601| 86,465| Gross Block| 132,517| 110,994| Exports| 1,917| 2,448| | | | Tata Group Figures – Sector Services| Years| 2011-12(Rs.
Crores)| 2010-11(Rs. Crores)| Total Turnover| 19,383| 15,617| Sales Turnover| 18,739| 13,815| Value of Assets| 64,047| 47,375| Gross Block| 7,877| 8,357| Exports| 780| 1,450| | | | | | | Tata Group Figures – Sector Engineering| Years| 2011-12(Rs. Crores)| 2010-11(Rs. Crores)| Total Turnover| 183,710| 134,959| Sales Turnover| 182,847| 134,714| Value of Assets| 68,752| 53,194| Gross Block| 107,971| 85,250| Exports| 4,116| 4,396| | | | Tata Group Figures – Sector Energy| Years| 2011-12(Rs. Crores)| 2010-11(Rs. Crores)| Total Turnover| 26,548| 20,038| Sales Turnover| 26,266| 19,617| Value of Assets| 49,541| 40,889|
Gross Block| 51,825| 44,360| Exports| 0| 596| | | | Tata Group Figures – Sector Consumer Products| Years| 2011-12(Rs. Crores)| 2010-11(Rs. Crores)| Total Turnover| 19,544| 15,802| Sales Turnover| 19,249| 15,507| Value of Assets| 10,659| 8,890| Gross Block| 7,090| 6,236| Exports| 649| 522| | | | Tata Group Figures – Sector Chemicals| Years| 2011-12(Rs. Crores)| 2010-11(Rs. Crores)| Total Turnover| 13,909| 11,223| Sales Turnover| 13,735| 11,123| Value of Assets| 7,384| 6,093| Gross Block| 10,743| 9,703| Exports| 505| 340| | | | Tata Group Figures – Sector ITC| Years| 2011-12(Rs. Crores)| 2010-11(Rs. Crores)|
Total Turnover| 77,968| 62,194| Sales Turnover| 77,133| 61,058| Value of Assets| 87,042| 71,056| Gross Block| 78,196| 69,439| Exports| 36,095| 28,101| Sectors| Percentage Share| Services| 4%| Materials| 28%| Engineering| 39%| Energy| 6%| Consumer Products| 4%| Chemicals| 3%| ITC| 16%| Exhibit 2 : Market Shares in Selected Businesses| | Market Scenario – Telecommunications Industry| Name| Market Cap(Rs. Crores)| Sales Turnover(Rs. Crores)| Net Profit| Total Assets| Bharti Airtel| 122,622. 25| 41,603. 80| 5,730. 00| 63,559. 00| Idea Cellular| 38,569. 20| 19,322. 33| 576. 54| 23,072. 72| Reliance Comm| 13,426.
49| 11,110. 00| 156| 73,068. 00| Tata Comm| 6,545. 03| 4,091. 77| 171. 34| 8,087. 80| TataTeleservice| 1,726. 45| 2,488. 44| -517. 55| 4,237. 96| MTNL| 1,304. 10| 3,368. 99| -4,018. 45| 12,184. 20| Tulip Telecom| 147. 9| 4,057. 96| 432. 31| 4,115. 30| Goldstone Infra| 35| 59. 78| 1. 91| 109. 63| Nu Tek India| 10. 04| 82. 27| 2. 19| 582. 96| | | | | | Market Scenario – Chemicals Industry| Name| Market Cap(Rs. Crores)| Sales Turnover(Rs. Crores)| Net Profit| Total Assets| Pidilite Ind| 13,108. 26| 2,816. 33| 334. 5| 1,635. 79| Tata Chemicals| 8,403. 14| 7,987. 28| 586. 6| 7,476. 66| United Phos| 5,610. 01| 3,308.
01| 227. 04| 4,957. 60| Guj Flourochem| 3,326. 81| 2,069. 00| 431. 61| 2,904. 68| BASF| 2,580. 69| 3,515. 94| 100. 86| 1,223. 61| BOC India| 2,364. 08| 1,324. 44| 89. 48| 2,100. 01| Solar Ind| 1,715. 96| 723. 75| 60. 89| 491. 18| Guj Alkali| 1,107. 06| 1,710. 77| 153. 61| 1,919. 21| | | | | | Market Scenario – Auto(LCVs/HCVs) Industry| Name| Market Cap(Rs. Crores)| Sales Turnover(Rs. Crores)| Net Profit| Total Assets| Tata Motors| 96,915. 72| 54,306. 56| 1,242. 23| 30,379. 29| Eicher Motors| 7,543. 94| 1,049. 26| 144. 76| 557. 1| Ashok Leyland| 6,398. 93| 12,841. 99| 565. 98| 6,607. 32| Tata Motors (D)| 5,501.
46| -| -| -| SML Isuzu| 481. 91| 1,035. 83| 41. 87| 341. 2| | | | | | Market Scenario – Information Technology Industry| Name| Market Cap(Rs. Crores)| Sales Turnover(Rs. Crores)| Net Profit| Total Assets| TCS| 309,857. 44| 38,858. 54| 10,975. 98| 24,952. 86| Infosys| 170,562. 50| 31,254. 00| 8,470. 00| 29,757. 00| Wipro| 109,681. 62| 32,053. 60| 4,685. 10| 29,595. 70| HCL Tech| 53,728. 62| 8,907. 22| 1,950. 42| 7,305. 45| OracleFinancial| 23,836. 70| 2,605. 85| 1,089. 23| 6,247. 04| Mahindra Satyam| 14,902. 92| 5,964. 21| 1,202. 80| 4,567. 90| Tech Mahindra| 14,211. 85| 5,243. 02| 460. 55| 4,569. 80| MphasiS| 8,362.
29| 3,420. 84| 611. 04| 3,901. 16| | | | | | Market Scenario – Steel Industry| Name| Market Cap(Rs. Crores)| Sales Turnover(Rs. Crores)| Net Profit| Total Assets| Tata Steel| 34,881. 17| 33,933. 46| 6,696. 42| 75,910. 28| SAIL| 29,058. 25| 46,341. 79| 3,542. 72| 55,908. 53| JSW Steel| 16,589. 88| 32,122. 66| 1,625. 86| 30,799. 71| Visa Steel| 521. 95| 1,365. 91| -118. 85| 1,437. 66| | | | | | | | | | | Market Scenario – Finance-Investments Industry| Name| Market Cap(Rs. Crores)| Sales Turnover(Rs. Crores)| Net Profit| Total Assets| L&T Finance| 14,152. 99| 111. 84| 71. 25| 3,353. 66| Bajaj Finserv| 12,894.
48| 135. 77| 76. 57| 1,445. 03| Bajaj Holdings| 10,435. 99| 647. 93| 567. 46| 4,848. 44| Rel Capital| 9,366. 39| 3,267. 52| 519. 34| 25,362. 00| Muthoot Finance| 7,770. 66| 4,536. 67| 892. 02| 18,406. 05| Religare Enterp| 3,923. 28| 56. 64| -816. 21| 2,978. 57| Responsive Ind| 2,523. 66| 1,078. 05| 48. 95| 897. 58| Tata Inv Corp| 2,422. 26| 202. 29| 161. 59| 1,920. 92| | | | | | Market Scenario – Power Industry| Name| Market Cap(Rs. Crores)| Sales Turnover(Rs. Crores)| Net Profit| Total Assets| NTPC| 122,898. 65| 62,053. 58| 9,223. 73| 120,629. 50| Power Grid Corp| 50,926. 98| 10,035. 33| 3,254. 95| 77,033.
24| NHPC| 25,954. 57| 5,654. 69| 2,771. 77| 42,806. 33| Tata Power| 23,445. 95| 8,495. 84| 1,169. 73| 20,954. 12| Reliance Power| 21,080. 53| 66. 12| 310. 86| 16,101. 33| Neyveli Lignite| 12,549. 27| 4,866. 85| 1,411. 33| 15,462. 02| Adani Power| 12,169. 79| 3,948. 90| -293. 92| 30,832. 27| Reliance Infra| 11,388. 78| 17,906. 67| 2,000. 26| 27,688. 61| JSW Energy| 10,020. 73| 5,016. 42| 234. 64| 11,119. 71| Group Analysis Tata Group- A Snapshot The Tata Group is India’s largest business group accounting for 5. 2% of India’s GDP and operates in over 80 countries with group revenue amounting to a whopping USD 62.
5 billion in 2008. The group operates in seven broad sectors ranging from steel, automobiles, energy, chemicals, hotels and consumer goods to communication systems with Tata Steel, Tata Motors, Tata Consulting Services and Tata Power accounting for nearly 50% of the group revenue. The group profit has grown at a CAGR of 19. 4% over the last decade and a half and the group revenue has grown at a CAGR of 16% over the same time period. Over the last decade, the Tata Group has had a clear focus on internationalization with contribution of international operations to the revenues having gone upto 61%.
Today, the Tata Group comprises of 96 companies, operates in 6 continents and employs approximately 350,000 people. Inorganic route has played a major role in this fast growth story. Inorganic Route to Achieve an International Presence Over the last ten years, the group’s strategy has revolved around building a very strong presence in international markets. To quote Alan Rosling, Executive Director, Tata Sons, “Internationalization is not a strategy; it is an imperative, a challenge or an objective. ” The group has made a conscious attempt to fo