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Old 25th October 2016, 08:32   #31
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Default Re: Ratan Tata makes a comeback as Chairman of Tata; Cyrus Mistry out

Here is how it was revealed,

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Old 25th October 2016, 10:11   #32
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Default Re: Ratan Tata makes a comeback as Chairman of Tata; Cyrus Mistry out

Such a shocking decision and so unlike Tata. I have a feeling, more muck is going to come out in open in the coming days.

Here is an open letter by Mr. Ratan Tata to the employees in which he says the ouster

Quote:
"is in the interest of stability of and reassurance to Tata group"
http://economictimes.indiatimes.com/...w/55035360.cms
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Old 25th October 2016, 10:17   #33
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An interesting read..

http://m.economictimes.com/news/comp...w/55040072.cms
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Old 25th October 2016, 10:17   #34
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Default Re: Ratan Tata makes a comeback as Chairman of Tata; Cyrus Mistry out

What a shocker of a Monday! What I gathered from the news channels last night is there were concerns over performance, vision and moving away from Tata's core values.

Sure is a lot of bad blood. Tata's statement doesn't even thank Cyrus for his contributions or wish him well. Very un-Tata I must say.

With due respect to Ratan Tata, he is almost 80 years old - too old to put up with the demands of such a big & varied group. Hopefully they find a competent, visionary chairman soon. Things aren't going to be easy for the top bosses @ Tata though, what with their top shareholder being pissed off.
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Old 25th October 2016, 10:25   #35
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Default Re: Ratan Tata makes a comeback as Chairman of Tata; Cyrus Mistry out

Whether it is in politics ( SP thamasha) or in board rooms it looks like the old guards are not simply willing to give up control.

Much of the issues faced by Tata group today were in the making when Ratan Tata was in power. The 'Nano fiasco' and the 'Corus take over, are few cases in point. Tata motors got some vigor back with Tiago and had a successful product after a long time.

Now what magic Ratan Tata is going to do is the million dollar question. This will also end in a whimper like Narayana Murthy's return to Infosys. Every one can't be a 'Steve jobs' particularly when you are 80.

Last edited by poloman : 25th October 2016 at 10:26.
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Old 25th October 2016, 11:13   #36
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Default Re: Ratan Tata makes a comeback as Chairman of Tata; Cyrus Mistry out

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Hopefully they find a competent, visionary chairman soon. Things aren't going to be easy for the top bosses @ Tata though, what with their top shareholder being pissed off.
The tragedy is that such a visionary chairman will have a huge fight on their hands since the main problem with the Tata group has always been entrenched long-timers with their own fiefdoms that they do not want to give up control of or change with the times. It's evident from the struggles that Tata Motors has had with reinventing itself into a more flexible and modern entity. In fact Ratan Tata in his day had to stare down a lot of such people and was generally successful, perhaps he had the political skills that Cyrus Mistry lacks. It's ironic that Ratan Tata now is being brought back by interests representing just the kind of folks that he fought against when he was in Mistry's position.
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Old 25th October 2016, 11:18   #37
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Default Re: Ratan Tata makes a comeback as Chairman of Tata; Cyrus Mistry out

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Now what magic Ratan Tata is going to do is the million dollar question. This will also end in a whimper like Narayana Murthy's return to Infosys. Every one can't be a 'Steve jobs' particularly when you are 80.
I don't think he is going to take any major decisions. He has been taken in the interim till a new leader is found and I feel that is just to have BAU and not to develop a new strategy in place. Anyway, what magic can be expected of him in the 4 months time frame that is expected to be at the helm
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Old 25th October 2016, 11:38   #38
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Default Re: Ratan Tata makes a comeback as Chairman of Tata; Cyrus Mistry out

Letter from Ratan Tata:
Attached Thumbnails
Ratan Tata makes a comeback as Chairman of Tata; Cyrus Mistry out-image.jpeg  

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Old 25th October 2016, 11:40   #39
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Default Re: Ratan Tata makes a comeback as Chairman of Tata; Cyrus Mistry out

What baffles me is the level of secrecy and to-the-point statements made by Mr. Ratan Tata and others. Not a single line of praise in the four pages of Times of India I read in the morning. The way his ouster is being handled reminds me of how under-performing freshers are shown the door in IT industry.
I mean there has to be some good explanation, its not like they caught him stealing milk cartons from the communal fridge in Bombay house.
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Old 25th October 2016, 11:56   #40
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Default Re: Ratan Tata makes a comeback as Chairman of Tata; Cyrus Mistry out

I read a news article wherein it was stated that the shareholders of Tata Motors Limited complained of very low bonus somewhere in August 2016.

I think this complaint caused to trigger the pent up unrest (can't think of a suitable word) against Mr Mistry. His line of thinking was to sell out loss making ventures and focus on increasing profit. Per that, Tatas are exiting from tea business, and also the process of exiting from UK steel is going on.

I think that selling of loss making business is against the Tata philosophy and hence Mr Mistry stands removed. The letter written by Ratan Tata for the employees of the group companies is a hint in that direction, I feel.
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Old 25th October 2016, 12:25   #41
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Default Re: Ratan Tata makes a comeback as Chairman of Tata; Cyrus Mistry out

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Originally Posted by NiInJa View Post
What baffles me is the level of secrecy and to-the-point statements made by Mr. Ratan Tata and others. ...

I mean there has to be some good explanation.
We cannot make this too simplistic. There might be issues related to allegations of conflict of interest, fraud, integrity, etc that cannot be simply put forward as an explanation without proper proof.

I would guess that there would be deeper investigations and I won't be surprised if a more formal explanation comes out in the weeks/months to come.
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Old 25th October 2016, 12:34   #42
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Default Re: Ratan Tata makes a comeback as Chairman of Tata; Cyrus Mistry out

In India, the older generation simply won't let go. Barring any integrity issues, I feel for Cyrus Mistry; he thought that Ratan Tata really meant what he said when he told him four years ago: " Be your own man".

And I can't see a successor in 4 months. Or even in a couple of years, which will be nice because it will be interesting to see how the group does over the next three years, with Ratan Tata in the hot seat at a time when goings are tough globally. A lot of his lustre will disappear, is my prediction, because most of the companies are in sunset industries, with mediocre management, and there is little scope now for buying their way to growth; there is too much debt already.

I am not a big fan of Reliance values, but it does look like Mukesh Ambani being the much better business leader than either of these two.
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Old 25th October 2016, 12:43   #43
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Default Re: Ratan Tata makes a comeback as Chairman of Tata; Cyrus Mistry out

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Originally Posted by Swapnil4585 View Post
I think that selling of loss making business is against the Tata philosophy and hence Mr Mistry stands removed. The letter written by Ratan Tata for the employees of the group companies is a hint in that direction, I feel.
It is quite true that Tata does business in a more philosophical way than being driven by profits. I remember discussing with people at Tata Motors that the reason they never entered three-wheeler business was because those vehicles are inherently unsafe.

However, with such business values, Tata Group and its businesses would find themselves cornered in a league of honchos who are purely driven by money. For eg. the way Tata manages Jamshedpur as a city is unparalleled and they are the government of that region. I don't think any business house even comes close to Tata here.

It is difficult to fit the Tata way of business in conventional model and anyone who tries doing so would come out totally baffled which I guess happened to Cyrus Mistry. Tata Group is founded on principles which are different from others and it is a behemoth which can not be steered from course in such a short time.
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Old 25th October 2016, 13:29   #44
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Default Re: Ratan Tata makes a comeback as Chairman of Tata; Cyrus Mistry out

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It is quite true that Tata does business in a more philosophical way than being driven by profits.
+1

I feel that there are many incidents and events which have contributed to this, and not just one trigger event. Nothing is done without reason. And whatever is done, has sound preparation behind it, which can always be backed up at a later stage if necessitated.

The Tata group philosophy has always been to build relationships, and not see businesses obliquely in terms of profit and loss. Now while this may seem unnatural in terms of an aggressive business strategy which we see in all major businesses today, it has always been this way.

In general, Mistry's approach seems to have been very aggressive in terms of ensuring excellent operating margins in several group companies. And also with respect to letting go (quite literally) of several businesses which failed to live up to his standards of operating margins/profit numbers. This is not the way a Tata would do business. Odd as it may seem, numbers aren't everything.

Also, it seems that the ugly battle with DoCoMo has been seen as being badly handled. An offer should have been made which could not have been refused.

All in all, it seems that the core values and vision that the group has were being changed and the ship was being steered in a different direction, which is why this decision was made. It may not have been swift at all, for such a decision would have seen a long and arduous preparation by those who effected it. And one thing is for sure, it would be unlike the Tata's to let the real reasons out to the public, for such mud slinging does not fall in the realm of the way they do things.
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Old 25th October 2016, 13:39   #45
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Default Re: Ratan Tata makes a comeback as Chairman of Tata; Cyrus Mistry out

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Tata Group is founded on principles which are different from others and it is a behemoth which can not be steered from course in such a short time.
Absolutely agree with you. While I do not like to comment in speculation when we do not have enough data in hand in a matter of real seriousness I would like to suggest all those who are commenting left, right and center on old guard, turf hoggers etc that they should not forget that a group of the size of Tatas, irrespective of all its shortcomings in today's modern world has some basic and core ethics and values intact which probably lets them survive.

So when we do not have enough data and everything is based on mere heresay and are the outcome of speculative, investigative reporting in newspapers we should desist on commenting so authoritatively on characters of people and groups. If the Tatas have taken such a tough and quick decision (remember, they are known to be otherwise quite slow when it comes to taking swift, disruptive decisions) then there has to be some very serious reasons which I or you may or may not agree with but which the group believes is not acceptable from the man who is their face to the world. They will not talk of these things openly, knowing how they operate. Washing dirty linen in public is not their style IMHO.

Let's watch how this one unfolds.

Last edited by Zappo : 25th October 2016 at 13:40.
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