Tata Group: Trauma of Transition

The case is set around the removal of Cyrus Mistry from the Chairmanship of Tata Sons Ltd, the holding company of the Tata Group. The case traces the origin and evolution of the Tata Group, the challenges of succession as experienced by the group and the emerging challenges of adapting to a new paradigm of its global existence. The case also explores the unique organization structure of the group, genesis of its value system, the reality of its suboptimal performance, and the challenges of nurturing organizational processes to ensure all-weather leadership for the changing times. The case brings into focus the social context of an organization and brings in the debate whether profit maximization is the only prime objective of an organization or whether profit maximization has to rank along with the social commitment of the organization.