logo image

Here’s What Could Have Lead To Mistry Losing the Coveted Position at Tata Group Essay

In what comes as a surprising announcement from one of the most powerful industrial scions of the world, Cyrus Mistry has been removed as the Chairman on Tata Sons Ltd and the industrial magnate Ratan Tata himself has decided to step in as interim chairman for four months.

This move comes as a surprise to the industry, who for long had considered Mistry as the torch bearer of the business empire.

Here’s why we think led to Mistry losing the coveted role and forced Ratan Tata to get into the leader’s shoes yet again!

  • Obsession to let go of low margin businesses : Mistry for long wanted to shutter loss-making and low-margin businesses , including certain sections of the conglomerate’s steel business in Europe which has been under stress due to global slowdown and Brexit. Focussing solely on cash making units, was something that was against the core values of the business empire that had previously made landmark acquisitions like Tetley and Jaguar Land Rover.
  • Bitter legal battles: The conglomerate’s telecom arm has been battling with legal issues with its Japanese partner NTT DoCoMo. Earlier in June, an international arbitration court has ordered Tata Sons to pay $1.17 billion (nearly Rs 7,956 crore) to NTT DoCoMo for breach of contract on the grounds that the Indian group neither found a buyer nor bought back the Japanese partner’s 26% stake in their telecom joint venture Tata Teleservices.
  • Dividend divide : The Tata group, which has always given priority to its employees and shareholders. However, this year under Mistry’s helm their shareholders were asked to be patient for higher dividends, as the company was going through a turnaround amidst stringent global situations. In a shareholders meeting that anyone looking for short term gains should opt out of the group, which did not go down well with the Tata Group’s loyal shareholders. The turnover of India’s largest conglomerate dropped to $103 billion in 2015-2016 from $108 billion the previous year. Net debt rose to $24.5 billion in March 2016 from $23.4 billion a year ago.

Need essay sample on "Here’s What Could Have Lead To Mistry Losing the Coveted Position at Tata Group"? We will write a custom essay sample specifically for you for only $ 13.90/page

Ratan Tata has always moved with times keeping core policies in place. The industry magnate has been an active investor in new-age startups and at the same time kept core businesses intact.

It would be interesting to see how soon the scion would be successful in finding a new heir to his position.

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
Complete Buyer Protection
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy