SYPartners Strategy Assignment June 2015

Unity: We must work cohesively with our colleagues across the group and with our customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation. – Tata Group, Core Values

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Your salt-to-software company has become the leader in India and is scaling up to become a global player, rather than an Indian company with a global presence. Your hard work and investments in innovation, operational excellence, and corporate social responsibility are paying off. If you can overcome the numerous challenges ahead, your poised to achieve growth by 2020.

The Situation

Acquisitions and PartnershipsAmidst some doubts from outsiders, the acquisition and partnership strategy has proven fruitful.• JLR Earnings Hit $4B, up 4.5% • Tata Starbucks JV is flourishing

TBEM Improves OperationsThe Total Business Excellence Model has improved operations across the board, not just in manufacturing. Sharing executives as assessors has lead to unexpected benefits too.• Steel Europe Shares Safety Across Group

34th Best BrandGrowing numbers of verticals, headlines for innovation, and increasing community trust have boosted the Tata brand to an all-time high.• Brand Value Rises 11% to $21B

Massive Growth PlansGroup executives are optimistic and have created bold growth plans by 2020. Tata Chemicals being one of the most ambitious with plans of 40% / yr. • Tata Chemicals Projects Rs 12-50B in 5yrs

Growing organizations in any field must constantly evolve, accept or even seek new ideas, new visions,

and new enthusiasms. – Jamsetji Tata

AN INSIDER’S PERSPECTIVE

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TURMOIL AND OPPORTUNITY

The Setting

One has to be ready for every kind of situation. - TV Narendran, Tata Steel

9 Billion by 2020

New Executives

India is in a very dynamic setting with an unstable currency, a consumer revolution, and a new government calling for bold policies but lacking executionary prowess. This provides your Group with multiple challenges to overcome, and a few opportunities to exploit.

$100 B in SpendingIn Next Few Years

If Tata Group as individual companies and as the collective doesn’t pursue new ways to to overcome these threats and exploit new opportunities quickly, future existence can be seen as questionable. This is something Vinayak Deshpande (MD of Tata Projects) knows all too well.

Aside from an uncertain setting and competitive threats, internal problems, such as ore mines shutting down for a month at the end of ’14, and decreasing profits, or even net losses, across most core companies in the last fiscal quarter are reasons for deep concern. Additionally, many of Tata Group’s core companies have new executives, a handful of which are in this very room.

Outside Investments of 100% Made Legal

Supreme Court RulingsHold Business Back

In the midst of global population growth and currency dips like the one in ‘14, your group is still driving to become a global player. This is a risky play considering that larger, global competitors are starting to view you as a threat. As many of you have mentioned in interviews, their global scale is a force to be reckoned with. Although agility, innovation, and TBEM might have propelled you through the downturn, you’re still not out of the woods yet.

“Had we not moved quickly… we would not have survived the slowdown.” - Deshpande

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WE ARE TATA It is time to leverage and promote the Tata brand across the entire group. Everyone needs to feel a part of the Tata family, including end-users and partners. Titan, Taj Group, etc need to participate too.

Marketing Campaign• Highlight history, CSR, and innovation• # W E A R E T A T A social push• Inspiration from “I’m a PC”

Brand Cohesiveness• Tag Products & Commercials with Logo• Inspiration from Unilever Flag

Expected Results• Increased Brand Recognition• Rise in Public Trust & Goodwill• B2B + B2C Sales to Ethical & Innovative• Increasing Sales to Employees

The SolutionP1 / MARKETING CAMPAIGN

Cross-Sales

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The Solution

You need to increase inter-group communication, cooperation, and sales to mitigate risks and achieve your growth goals by 2020. Many of you have stated value-added services are crucial, and cross-selling + cooperation enables you to provide a more complete solution.

Create Process• Establish Key People Under M. Kannan• Make Cross-Sales Groups in SugarCRM

Share & Encourage• Tap Interactive Systems for Edu Software • Add to TBEM Analysis & Create Award • Financial Incentives for Users & Companies

Expected Results• Increased Emp Knowledge of Companies• Rise in Innovation through Collaboration• Inter & Outer-Group Sales Increase• More Customers Mitigates Risk

Cross-Sales

P2 / COOPERATION + CROSS-SALES

Warren HarrisTata TechnologiesPresident

Tata is a very diversified group and we need to leverage some of the strong capabilities that we have, such as our Strategic Mngt Group and others. ~ S Padmanabhan, TQMS

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Each of the following 22 leaders are the on the executive council or in charge of major companies at Tata Group. I propose that before providing solutions, we speak with them to better understand the reasons for their optimism and concerns.

People Title Company

Mistry Chairman Tata Sons

Kannan Biz Dev / PR Tata Sons

Rajan Brand / Ethics Tata Sons

Kumar Strategy Tata Sons

H Bhat Marketing Tata Sons

Katragadda CTO Tata Sons

Jamwal Exec Director Industries (High-Tech)

Bhinge CEO Strategic Mngt Group

Padmanabhan Exec Chair Quality Mngt Services

Chandrasekaran CEO Consultancy Services

Ramakrishnan President Motors

B Bhat MD Titan Company (CPG)

Harris President Technologies

Sardana MD Power

Misra CEO Global Beverages

Mukundan MD Chemicals

Narendran MD Steel India, SE Asia

Kohler MD Steel Europe

Deshpande MD Projects

Kumar MD Communications

Singh MD Advanced Systems (Defense)

N Tata MD International (Trading)

The MeetingSHAKE IT UP!

By telling the story of Nokia’s failure and bringing one of their lifeless phones with me, I’m hoping to hit close to home and create a sense of urgency. (Nokia owned 60% of the phone market in India, but has since failed with a cheap exit of $7B to Windows. Similarities abound with Tata, such as their focus on the customer and CSR.)

Causes of Nokia FailureDiverse Product Lines Increased Mfg & Dist CostsFocus on Lower to Middle Income & Emerging MarketsServiced Existing Users at the Cost of InnovationIteration Over Innovation & Poor Execution with OS

I believe that people are best convinced by what they have said themselves, so by asking strategic questions, we can help guide them to the answers they seek. If agreement is reached that change is needed, I would delve into creating a mutually agreed upon vision and strategy to enact the appropriate changes. People don’t enjoy being told what to do, so the trick is making the solutions their idea, even if they don’t see them or believe that they need them at first.

As a group, we must continue to seek opportunities for our companies to pool resources to co-create shared value.

- Cyrus Mistry, Chairman of Tata Sons