Ratan Tata is known as one of the most iconic business figures in the world. His dreams and his style of work ensured that Tata Sons reach the heights and a worldwide footprint. However, after the replacement of Cyrus Mistry from the Chairman post of the conglomerate, it seems that he was actually going against it.
As per the industry experts and veterans, Cyrus Mistry was never the ideal man to lead at least if the dreams and projects of Mr. Ratan Tata were to be followed. The man who made the dream has now come back to secure it. The interim chairman of the Tata Sons Group would also find a replacement for the post. But what interests more in this story is the strategy of Cyrus Mistry and how he went wrong. Out of 9 board members, 6 key people voted to ouster him from the post, media report suggests. However, two of the remaining members abstained and he himself opposed the decision. But what went wrong for him? Here are some clarifications.
The Cost Cutting approach was hurting the sentiments of the people and the reputation of the company. The stakeholders and the people associated with the companies be it employees or the clients weren’t too pleased with the current approach.
Mr. Mistry was giving up more projects and that is something that has irked Ratan Tata. Apart from UK Steel Projects, under Mr. Mistry, Tata Sons were leaving projects in Steel, Power, Communication and Hotels Business. He even cancelled the decision to enter into banking and that was one of the major upset for the board members.
Docomo Legal Battle
The legal battle with NTT Docomo, erstwhile partner of Tata has created many voices within the group.
Apart from two companies under Tata Sons, every other company was running in losses and that created a panic and sense of emergency among the board members.
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