Introduction about TATA group:

The Tata Group comprises operating companies in seven business sectors : Materials, Engineering, Information Technology and Communications, Energy, Services, Consumer Products and Chemicals. The Group was founded in the last quarter of the 19th century in India when the country had just set out on the road to gaining independence from British rule. Consequently, the founders of the Group aligned business opportunities with nation building. This approach remains ingrained into the Groups ethos even today even as it spreads its operations to other geographies. Tata Group has operations in more than 80 countries across six continents and its companies export products and services to 80 nations. It comprises 114 companies and subsidiaries in seven business sectors, 27 of which are publicly listed. 65.8% of the ownership of Tata Group is held in charitable trusts.

Greiners Model of organizational Growth: Greiner's Growth Model describes phases that organizations go through as they grow. All kinds of organizations from design shops to manufacturers, construction companies to professional service firms experience these. Each growth phase is made up of a period of relatively stable growth, followed by a "crisis" when major organizational change is needed if the company is to carry on growing. Dictionaries define the word "crisis" as a "turning point. The companies certainly have to change at each of these points, if they properly plan for there is no need for panic and so we will call them "transitions". Larry E. Greiner originally proposed this model in 1972 with five phases of growth.

STAGE 1: GROWTH THROUGH CREATIVITY:

This is the first stage where idea was generated in 1868 .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 fathers banking firm when he established a trading company in Bombay. Jamsetji Tata helped pave the path to industrialization in India by seeding pioneering businesses in sectors such as steel, energy, textiles and hospitality.Planned to set up an iron and steel company, generating hydroelectric power and creating an institution that would tutor Indians in the sciences. In order to start the business the capital was bequeathed from family personal and many other relatives from the trust they have created. This was a creative way of pooling the funds for business. These trusts today control 65.8 per cent of the shares of Tata Sons, the holding company of the group, and they support an assortment of causes, institutions and individuals.

Milestones
1868: Jamsetji Nusserwanji Tata starts a private trading firm, laying the foundation of the Tata group.

1903: The Indian Hotels Company is incorporated to set up the Taj Mahal Palace and Tower, India's first luxury hotel, which opened in 1903.

1907: y The Tata Iron and Steel Company (now Tata Steel) is established to set up India's first iron and steel plant in Jamshedpur. The plant started production in 1912 y Sets up its first office overseas, Tata Limited in London. Company was creative enough to enter into blue ocean market (untapped market).

1910: The first of the three Tata Electric Companies, The Tata Hydro-Electric Power Supply Company is set up. The second, Andhra Valley Power Supply Company was established in 1917 and Tata Power in 1919.

1911: The Indian Institute of Science is established in Bangalore to serve as a centre for advanced learning

Leadership crisis which can be inferred is that the group takes the name of its founder, Jamsetji Tata, a member of whose family has almost invariably been the chairman of the group. The leadership is transformed to next generation by their ancestors since they trusted their family member the most and they didnt want outsiders to hold their own company and that is why the major holding of 65% is still hold by Tata sons.

STAGE 2: GROWTH THROUGH DIRECTION

Tata group introduces eight-hour working days, well before such a system was implemented by law even in most western countries 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. Taking good care of this large family is a priority for the Group. This correct direction helped the company to grow at faster pace. It can be inferred that they hired professionals for their business which they themselves born in their own institution of sciences and various creative methods were adopted to retain those employees (to reduce attrition level) milestones 1912 :Tata Steel introduces eight-hour working days, well before such a system was implemented by law in much of the West 1917: The Tatas enter the consumer goods industry, with the Tata Oil Mills Company being established to make soaps, detergents and cooking oils. The company was sold to Hindustan Lever (now Unilever) in 1984

STAGE 3: GROWTH THROUGH DELEGATION

This was the beginning of new era since there was introduction of liberalization, privatization and globalization in Indian economy. Rejuvenating existing businesses, entering new ones, manufacturing breakthrough products and expanding into foreign markets are among the initiatives the Group has undertaken with vigor during this period. Ratan Tata, who took over as chairman, would guide

the Tata Group as it faced a host of challenges in a fast-changing business environment where old rules did not apply and new realities were taking hold since there was competition with beginning LPG era, which gave a new phase to the country. 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 emphasized and reinforced by Chairman Ratan Tata and the Group Corporate Centre, the top decision-making body in the Group. Theres more to the new-world Tata. The pursuit of business excellence has become the norm and there is a focus on innovation. 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: y Tata Chemicals (1939), y Tata Motors and Tata Industries (both 1945), y Voltas (1954), y Tata Tea (1962), y Tata Consultancy Services (1968) and y Titan Industries (1984). The post-independence era in India, right up to the early 1990s, was a time of tight government controls on business, but despite this the Tata Group managed to grow considerably.

Every Tata company or enterprise operates independently. Each of these companies has its own board of directors and shareholders, to whom it is answerable. Control Crisis didnt arise since a much more sophisticated head office function is applied, and the separate parts of the business which need to work together were managed efficiently. Delegation of work was done properly since company entered into many mergers and acquisitions during than time span. Milestone 1995: Tata Quality Management Services institutes the JRD QV Award, modeled on the Malcolm Baldridge National Quality Value Award of the United States, laying the foundation of the Tata Business Excellence Model. 1996: Tata Teleservices (TTSL) is established to spearhead the group's foray into the telecom sector. 1998: Tata Indica India's first indigenously designed and manufactured car is launched by Tata Motors, spearheading the group's entry into the passenger car segment.

STAGE 4: GROWTH THROUGH CO-ORDINATION: This stage is skipped since TATA groups first priority was always to serve people and then profit. Tata Company is building multinational
businesses that will achieve growth through excellence and innovation, while balancing the interests of shareholders, employees and civil society.

STAGE 5: GROWTH THROUGH COLLABORATION:

Tata is focusing on new technologies and innovation to drive its business in India and internationally. The Nano car is one example, as is the Eka supercomputer (developed by another Tata company), which in 2008 was ranked the worlds fourth fastest. Anchored in India and wedded to traditional values and strong ethics, It can be inferred that Organizational structure was product matrix and decentralized decision making since there were many mergers and acquisitions of which some took place in overseas also. y Acquired Tetley Tea in 2000. y In 2004, Tata Motors acquired the heavy vehicles unit of Daewoo Motors, South Korea; in 2005, y Tata Steel acquired the Singapore-based NatSteel. y In 2007, Tata Steel acquired Corus y In 2008, Tata Motors acquired Jaguar and Land Rover. y In 2010 ,  Tata Tea announces joint venture with PepsiCo for health drinks  Tata Chemicals launches i-Shakti dals, India's first national brand of pulses y In 2011 ,  Tata Coffee and Starbucks sign MoU for strategic alliance in India  Tata Chemicals rebrands its global subsidiaries in the UK, the US and Kenya under the Tata Chemicals corporate brand. The new millennium has seen Tata companies looking beyond Indian shore for growth opportunities and a global footprint. Acquisitions of foreign enterprises have been one way of doing this.

Growth Rate of the Industry

Tata Group international revenue