www.mbainfoline.com

Source: E-mail dt. 8 December 2011

Challenges for Cyrus P. Mistry

Mr.Sagar Shrestha

Sambhram Group of Institution – MBA (VTU)

HEIR OF TATA SONS: CYRUS P. MISTRY

The search for new chairman to the India’s largest business conglomerate TATA Group is over. As, the selection committees’ one and a half year of rigorous effort came to an conclusion with the appointment of their new successor chairman as Cyrus Pallonji Mistry.

Mistry was appointed as Deputy Chairman of Tata & Sons. at the company’s board meeting. He will be heading the enterprise as a chairman from December 2012 A.D.

ABOUT CYRUS P. MISTRY

BORN: July 4, 1968

EDUCATION:

· BE in Civil Engineering from Imperial College, London, UK

· Masters degree in Management from London Business School—Fellow of the Institutions of Civil Engineers

EXPERIENCE:

Designation	Company Name
Director	Tata Sons and Tata Elxsi (India)
Director	Shapporji Pallonji and Company
Director	Forbes Gokak
Director	Afcons Infrastructure
Director	United Motors (India)

CHALLENGES FOR THE NEW CHAIRMAN

The economy being stalled all over the globe and recession followed in various western nations can be seen as a challenge ahead for Mr. Mistry at a macro level.

Besides, the company’s internal factor itself will carry various challenges in the coming years many industrial experts and analysts quote.

A point-wise and its precise narration is given below:-

ü Global Economic Condition

ü Scams and Allegation

ü Government regulation maintenance and Standardization

ü Cut-throat competition within India

ü Failure of Innovation

Global Economic Condition

This decade has been flooded by continuous recession. Still the economy jeopardized in the West, TATA’s foreign market will always be scant in this condition.

Scams and Allegation

TATA Co. had faced 2G allegation and Mr. Ratan Tata’s involvement in it. In such hurdle time the new chairman will have to face various challenges relating to the Company’s image.

Government regulation maintenance and Standardization

The Company has not been able to set up it’s tele-communication in Delhi due to TRAI’s standards. Similarly, the TATA Nano also faced problem of engine burning during its initial stage which had to be halted.

Cut Throat Competition in India

Many Multi National Companies (MNC) has turned towards Indian market. Also the Union Government allowing Foreign Direct Investment (FDI) into India will bring in the major players of the market. When the hoards and legion of big players come to India, TATA alone cannot prevail as a market leader. It will face a greater challenge in years to come.

Failure of Innovation

TATA is a proud conglomerate to introduce innovative products like Nano and DoCoMo. Yet, the worth what TATA has done is not scaled up to the mark. Nano is almost towards low volume sales and experts believe this product to be a failure in the nearest future. The Company can anticipate innovative product but the challenge will be to gratify the end-users or customers.

CONCLUSION

The above are few of the challenges that the new Chairman is posed to. There are many other contingent and situational outcomes that must be faced. Also, there always exist invisible factor which can hit a hard-blow to the Company. Ultimately, it will be the Chairman who will lead the ship from the storms of hardships and fight-back all the challenges—turning them to opportunity.