Tata Case Study

 

TABLE OF CONTENTS

INTRODUCTION...........................................................................................................................3CURRENT SITUATION.................................................................................................................3Company Overview.............................................................................................................3Corporate Governance.........................................................................................................5Financial Position.................................................................................................................6CORE COMPETENCIES................................................................................................................7Research & Development....................................................................................................7Acquisitions, Mergers & Expansion....................................................................................9Organization Location.......................................................................................................10PEST..............................................................................................................................................11Political..............................................................................................................................11Economic...........................................................................................................................13Social..................................................................................................................................14Technological.....................................................................................................................15SWOT ANALYSIS.......................................................................................................................16Strengths............................................................................................................................16Weaknesses........................................................................................................................17Opportunities......................................................................................................................18Threats................................................................................................................................19CAPITALIZING ON TATA MOTOR’S SUCCESS....................................................................20CONCLUSION..............................................................................................................................21WORKS CITED............................................................................................................................22APPENDIX A, B, C, D, E.............................................................................................................242


The Tata Group is one of the largest and most respected business conglomerates in India. Established 140 years ago by Jamsetji Tata, the group's businesses encompass power, software, automobiles, steel, hotels and chemicals among other interests. The Group employs more than 350,000 people worldwide, and 27 Tata Group companies are publicly listed. In addition to its strong business model, the Tata Group is also acknowledged as a socially conscious organization and is well known for its philanthropy.

Tata Group leadership recognized early the need to address the risks associated with climate change and the need to formulate a long-term mitigation strategy for the Group. Mr. Ratan N. Tata, Chairman, Tata Sons stated, “We should sensitize ourselves to what our processes are doing and how we can reduce the pollutants and the emissions in our processes today.”1

The Tata Group, through Tata Quality Management Services (TQMS), selected Ernst & Young to measure its carbon footprint and to identify abatement levers for the largest companies in the group. This included its automobile, chemical, power and steel businesses. The plan was to address at least 80% of the total emissions of the Group.

Detailed analysis

The study, which was carried out over the course of 2008, covered the Group's operations in India, Europe, the United States, Singapore, Thailand and Kenya. The analysis enabled the Tata Group to:

  • Estimate the GHG emissions of its major facilities. Ernst & Young professionals worked alongside plant personnel to conduct a detailed analysis. The goals were to understand the unit's operations, identify the major sources of emissions and accurately estimate the emissions. The study followed the World Business Council for Sustainable Development (WBCSD) guidelines as well as relevant ISO standards.
  • Identify potential mitigation opportunities within the organization. Once the GHG emission estimation was complete, Ernst & Young advised the individual companies on how to improve their operations and develop an approach with respect to GHG reduction.
  • Formulate a clear, detailed climate change strategy. The study has enabled the organization, and the individual companies, to make more informed decisions regarding their future growth in light of carbon constraints.
  • Sensitize its employees to the effects of global warming. Ernst & Young conducted several training sessions with participating senior level functionaries of the individual Tata companies. Through these sessions, Tata identified champions to drive the processes within their respective companies.

Positive results

The results of the study have been apparent within and outside the Group. While Ernst & Young conducted the study for the four largest Group companies, many other Tata Group companies are now preparing to carry out such studies in conjunction with TQMS. This will permit all the companies to estimate their GHG emissions and to formulate policies to mitigate climate change risks by limiting emissions of CO2 and other GHGs without jeopardizing their growth plans.

The national press in India has applauded the Group's initiative. An editorial in one of the nation's largest circulated daily newspapers commented, “This (the carbon footprint study) is one project that could win the Tatas more accolades … the goal is to bring emission levels on par with those following global benchmarks — all within the next three years.”2



1 Ratan N. Tata, Tata Sons Chairman, at the Tata Group's Business Excellence Convention, Pattaya, 2007.

2 “EDITORIAL COMMENT | Go Green,” TimesofIndia.com, 9 May 2009.

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