Tuesday, June 9, 2009

Tough Time for Tata: Survival at Stake!

Tata is perhaps the most famous brand name in India. It is also perhaps the most famous Indian brand outside of India. In fact, it has 96 or 98 separate organizations under its umbrella and these companies have presence in more than 80 countries. This is the thing that perhaps has made the conglomerate vulnerable to the economic recession. Last year, Tata made headlines with its acquisition of luxury car brands. Well, I think that the idea of expansion in international market was not taken wisely by top management in the group.

On the other hand, I do not blame them because who could predict 2 years ago that there would be massive global recession? Ratan Tata is worried about the recession and he has warned all the 96 companies that they would have find their own survival strategy. In other words, every company is for themselves and if they can survive fine otherwise they would be out of operation.

This message may sound chilling to many people but I feel that Tata Group has no other choice at this moment.

((This entry was first published in February 2009. Because of a technical problem, the entry had to be deleted and I am reposting again now.)

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