“Leaders do not really matter because most of the things that affect an organization’s success or failure are outside a leader’s control”. Identify any one leader you have read about/know and describe how he/she demonstrates leadership that supports this statement. Topics: 1. About tata group 2. About ratan tata 3. About tata nano 4. Ratan tata as a charismatic leader 5. Relationship between ratan tata and tata nano 6. How ratan tata saved jaguar and land rover 7. how tata nano was a failure 8. Factors that made tata nano a failure 9. How ratan tata could'nt do anything to save nano 10. conclusion

1. Project Report
MBA- 2022-24
Subject- Organisation Behaviour
Subject code- SLHR501
Topic- “Leaders do not really matter because most of the things that affect
an organization’s success or failure are outside a leader’s control”. Identify
any one leader you have read about/know and describe how he/she
demonstrates leadership that supports this statement.
“Ratan Tata as a Charismatic leader and his failure in TATA NANO”
Submitted To- Dr. Chetna Priyadarshini
Submitted By-
Name Enrollment number
Ashish Kumar 22BSPHH01C0226
Arunesh Chandra 22BSPHH01C0216
Aditi Jauhari 22BSPHH01C0050
Richa Mahajan 22BSPHH01C0910
Anushka Jain 22BSPHH01C0187
Rini Katiyar 22BSPHH01C0917
Varshika Madhogaria 22BSPHH01C1427
Sara Grace 22BSPHH01C0774

2. INDEX
S.NO Particulars
1. Introduction
2. Rata Tata as a Charismatic Leader
3. Relationship between Ratan Tata and Tata Nano
4. How Ratan Tata Saved Jaguar and Land Rover
5. Tata nano- A failure
6. Reasonsthat led to the failureofTataNanoor FactorsThat Made
TATANANOAFailure
7. How ratan tata couldn’t do anything to save nano
8. Conclusion

3. About Tata group
Founded in 1868, the Tata Group of Companies is one of India's oldest business empires. It is
operating in more than 100 countries across six continents with 2,46,000 employees. The
company has a shareholder base of over two million and market capitalization of over $57.7
billion. Headquartered in Mumbai, Tata Group is operating several primary business sectors
including chemicals, consumer products, energy information systems, materials, services, etc.
The company's mission is 'To bring enhancement in the quality of life in the communities', it
is serving on global level with long-term stakeholder value creation based on Leadership with
Trust. Tata Sons are the principal investor and promoter of the holding companies. Sixty-six
percent of the equity share capital of Tata Sons is held by philanthropic trusts that support
education, livelihood generation, health, art, and culture.
Each Tata company or enterprise operates independently under the guidance and supervision
of its board of directors. There are 28 publicly-listed Tata enterprises with a combined market
capitalization of about $145.3 billion (as on March 31, 2018).
The trusts also support non-government organizations working in the areas of education,
healthcare, and livelihoods. It also supports different types of social welfare initiatives.
The major competitors of the company include Aditya Birla Group, Mahindra and Reliance.
In 2017-18, the revenue of Tata companies was $110.7 billion.
Ratan N Tata
Ratan Naval Tata is an Indian industrialist, philanthropist, and a former chairman of Tata
Sons. He was the chairman of Tata Group, from 1990 to 2012, and again, as interim
chairman, from October 2016 through February 2017, and continues to head its charitable
trusts. He is the recipient of two civilian awards of India, the Padma Vibhushan (2008), the
second highest civilian honour, and the Padma Bhushan (2000), the third highest civilian
honour.
Tata Nano
Tata Nano is a compact city car that was manufactured and marketed by Indian
automaker Tata Motors over a single generation, primarily in India, as an inexpensive rear-
engined hatchback intended to appeal to current riders of motorcycles and scooters — with a
launch price of ₹100,000 or US$1,300 on 10 January 2008.
The car comes in five petrol and one CNG variant. The variants are as follows Nano XE,
XM, XT, XTA AMT and XMA AMT. The Tata Nano comes with the 624 cc petrol engine
which is common across all variants with an option of a four speed manual or a five speed
automated manual transmission. In terms of safety, it comes with booster assisted drum
brakes, front and rear seat belts, side intrusion beams and hazard warning switch. Key
features include body coloured bumpers, power steering, air conditioning, music system with
Bluetooth and front fog lamps.

4. RATAN TATA AS A CHARISMATIC LEADER
“TAKE THE STONES PEOPOLE THROW AT YOU, AND USE THEM TO BUILD A
MONUMENT.” –Ratan Tata
Naval Ratan Tata is a well-known personality. Despite becoming the future chairman of the
Tata Group, he began his career at the Tata Steel Division, where he worked alongside blue-
collar workers. In 1971, Tata was named Director-in-Charge of the National Radio and
Electronics Company Limited (NELCO), which was in desperate need of resuscitation, and
he successfully turned it around.
He took over the Tata Group in 1990 and implemented a series of changes to modernize the
group’s business practices to compete successfully in the new era. During his time, he
merged all Tata enterprises, purchased numerous companies, notably Tetley and Jaguar Land
Rover, and listed Tata Motors on the New York Stock Exchange, bringing the company
international recognition.
He is a visionary. When he joined the group, it was barely doing any business outside India.
Even though many opposed him, he maintained that the company had to go global. Today
half of Tata’s revenues come from overseas. Under his leadership Tata acquired brands like
Tetley, Jaguar Land Rover, and Taj Boston.
He is known for his humility, and there are countless examples. He started out working as a
blue collar employee for Tata Steel. He personally visited the families of the 80 employees
who were affected because of the 26/11 attacks. He remembers almost everyone by their first
names, and is not dismissive. There are many examples of how attentive he is, and he is well
loved by all who know him.
He is a decision maker. A famous quote of his is “I don’t believe in making the right
decisions. I take decisions and then make them right.
He inspires people. Tata does well because its employees and management adhere to its
values. Ratan Tata has made sure that the huge conglomerate sticks to the Tata values. He is a
risk taker. He has made big moves like launching the Tata Nano, and acquiring the second
largest steel-maker in Europe.
“A life without excitement, ups and downs is too much boring and dull. You need to be a
storyteller to your grandchildren, why don’t prepare for that from now? We get this life
only once, experience every aspect of it. No one ever have grown without falling once, fail
as many times as you can, then only you can succeed. So quit complaining and start
exploring,” he has said.
Therefore, Mr. Ratan Tata has emerged as a charismatic leader. He is a visionary with a quick
decision and inspiring personality. He posseses empathy and gratitude in his behavior which
makes a person(leader) with a good interpersonnel communication.

5. RELATIONSHIP BETWEEN RATAN TATA & TATA NANO
Ratan Tata is one of the most well known and respected persons in the automotive
industry. He recently shared a picture of himself launching the Nano. He also wrote the
reason behind launching the Nano in the Indian market.
He says that he came up with the idea of Nano when he saw scooters being used by
families. The child would often be sandwiched between the father and the mother and two-
wheelers are less safe than four-wheelers especially when the surface is wet. It was 2003
when he saw a family of four on a scooter on a rainy day.
Ratan Tata went to the school of architecture at Cornell University in 1959. It taught him
to doodle in his free time. First, they were trying to make two-wheelers safer. Eventually,
the doodles became four-wheelers with no doors and windows. So, essentially it was a
dune buggy. Then he finally decided that it should be a car. Nano was always meant for
everyone.
Tata Motors unveiled the Nano on 10th January 2008 and was launched in 2009. The
initial pricing was around Rs. 1 lakh as promised by Ratan Tata. Despite some cost
increases, the small hatchback was sold for Rs. 1 lakh because Ratan Tata said, “a promise
is a promise”.
“What really motivated me, and sparked a desire to produce such a vehicle, was constantly
seeing Indian families on scooters, maybe the child sandwiched between the mother and
father, riding to wherever they were going, often on slippery roads. One of the benefits of
being in the School of Architecture was it had taught me to doodle when I was free. At
first, we were trying to figure out how to make two-wheelers safer, the doodles became
four wheels, no windows, no doors, just a basic dune buggy. But I finally decided it should
be a car. The Nano, was always meant for all our people”.

6. How Ratan Tata Saved Jaguar and Land Rover
It all started back in 1999 when Shri. Ratan Tata, then the chairman of the Tata Group, faced
humiliation when he and his team went to sell Tata Group’s fledging car business to auto
giant Ford in Detroit. As recollected by one of Tata’s teammates, “They toldus ‘you do not
know anything, why did you start the passenger car division at all. They saidthey will do us a
favor by buying our car division”.
Irked by the humiliation faced, Ratan Tata decided not to sell Tata’s passenger car division,
despite the huge downfall the division faced owing to Indica’s massive failure. He and
Praveen Kadle continued to work on Tata Motors’ passenger car division, putting in blood,
sweat, and everything else they had. Over the years, Tata’s business flourished, with Tata
Motors also listed on the NY Stock Exchange.
9 years after the “humiliation” life took a full circle. The American automotive giant Ford
was on the verge of filing bankruptcy post the 2008 financial meltdown when Shri Ratan
Tata and his team stepped in and humbled the auto giant by taking over the iconic Jaguar
Land-Rover brands through a historic $2.3 billion, all-cash transaction. This was the sweet
revenge Shri. Ratan Tata took, without a pinch of ego.
At that time, JLR was going through a rough patch. The retro designs were getting
outdated and competing with new efficient diesel engines made the British carmaker
redundant. It's not that the American car manufacturer Ford did not try the turnaround.
The carmaker started the work much earlier with the focus of resolving quality problems.
But, the carmaker could not dent the luxury car market. Before handing over to Tata Motors,
Ford launched Jaguar X-Type, an entry-level Jaguar, but was later criticized for building a
disguised version of Ford's bestselling Mondeo sedan in the European markets.
However, it was Tata, who was convinced the new acquisition will turn out well in the
future. According to an article by Forbes, Tata Motors majorly focused on three areas -
improvingliquidity, cost control, and new products.
Three clear and pointed strategies later worked out well for the company.
In a report, Ralf Speth, CEO, of JLR, said, “He allowed us to survive. He has givenus a long
leash to deliver the future strategy. He has given us a mid-and long-term perspective. I don’t
have to pay a lot of dividends (to the parent company). He just keptthe money in the
business.”
With this, JLR invested more in research and developments and new products. The company
invested almost 14 percent of its annual revenues much higher than the industry standards of
five percent.
At that time, one thing that came as a blessing for JLR was the changing consumer preference
from luxury cars to luxury SUVs. On other hand, Jaguar was facing the serious challenge to
sell the XJ sedan and the XK coupe because of the retro design.
Moreover, it lacked efficient engines at a time when fuel prices were touching the sky.
From 2009 to 2012, Jaguar could barely sell 50,000 units across the world.
Andy Vine, Jaguar Land Rover dealer in Louisville, Ky., US recalled Ratan Tata was directly
involved in the business. Ratan Tata and Ralph Speth traveled across the US meeting dealers
and taking feedback on the Jaguar Land Rover brand.

7. Ratan Tata responded to the market needs immediately. The XF and XJ sedans got more
efficient engines in no time. Andy Vine said in a report, "Things that before we were told
would take three, four, five years, by the time Mr. Tata was done, we were seeing in 12 to
24months.”
In 2013, the strategy to invest in new products started paying off, with new F-type sports cars
and XE, an entry-level Jaguar. The company clocked 77,000 sales that year.
Jaguar almost tripled its sales in 2017 from 2009. The luxury carmaker sold 178,601 units in
2017. With this, the JLR revenue topped by $34 billion.

8. Tata Nano- A failure
On January 10, 2008, a single-generation Indian manufacturer unveiled and began selling the
Tata Nano, a small urban car that appealed to existing motorbike riders. The smallest rear-
engined hatchback is the Tata Nano. Tata Motors aimed to produce 250,000 vehicles per year
when it first launched. This has not been achieved, and a number of factors, including timing
delays when the company moved from Singur to Sanand, have contributed to a decline in
sales volume.
There have been instances where consumers have felt that the waggon is risky due to cost-
saving measures. Current sales for the 2016–2017 model year totaled 7,591. This endeavour
was a waste of money, as Cyrus Mistry, the former president of Tata Sons and Tata Motors,
admitted in 2017. Tata has stopped making the Nano because weak safety records and
marketing gaffes failed to draw new customers. This ultimately caused the car's
attractiveness to fade as the middle class in India became more accustomed to high-end
brands like Nano.
Concerns about safety have grown over time, and demand from lower-income groups has
declined as well. Although Indian consumers had once anticipated buying 200,000 Nano cars,
after the car's introduction, their sales fell far short of Tata's projections. In November 2010,
the company only sold 509 Tata Nano vehicles. The company had to stop producing when
this number fell to just three in June 2018.
The Ratan Tata vision came to a dreary ending in the end. Sales of the automobile were never
above a positive level. In January 2008, Ratan Tata was well aware of the steep increase in
the cost of steel, pipelines, and other auxiliary components that would lead to an increase in
the final price of automobiles.
However, he stuck to the initial price of 1 lakh because he had made a promise to the people.

9. Reasons that led to the failure of Tata Nano:
• Lack of Practicality - Two-wheelers are small, nimble vehicles that make it simple for
people to manoeuvre through traffic, and parking is almost never a problem. Regarding the
Nano, the same could not be said. So, the fact that it wasn't a motorbike was a big problem.
Despite being compact, it was simply too large and inconvenient for those who ride
motorcycles. The company has not even thought to address that important problem with the
Nano's marketability. If the design had been better and safer, as well as having a more
elegant appearance and feel, both of these distinctions from bikes may have been
eliminated. People simply didn't want to buy it. This market for cars was very sensitive to a
car's appearance.
• Poor Marketing strategy - The company believed that the Nano's cheap cost would be
sufficient to persuade consumers to purchase it. To put it simply, people who could afford
a more expensive Nano did not want to drive one. Additionally, status-conscious
individuals search for items that will make them appear wealthier than their friends, family,
and coworkers. Although a car may seem like an improvement over bikes, a cheap one that
looks the part will always be despised and will never be seen as raising one's social
standing.
• Emotionally Disconnected Advertising - Advertising is one of the most difficult
components of promoting a car like the Nano. A fundamental tenet of advertising is to build
an emotional relationship or connection with the audience that compels them to try the
product. Tata's Nano commercials fell short of meeting this goal. Even while some TV
advertisements were quite effective, the majority of their viewers just could not connect
with what they were seeing on screen. If the faulty positioning was not enough, the fact that
individuals also could not relate to the commercials made things a lot worse.
• Poor Build Quality - The safety rating of the Nano was one of its biggest issues. The
Nano's manufacturer anticipated that the Euro New Car Assessment Program (NCAP) crash
test would award the Nano four stars. However, it failed poorly in a test conducted by the
German car club Altemeyer Deutscher Automobil-Club (ADAC) in 2014. Airbags and
adequate adult protection were absent from the Nano. Additionally, it did not adhere to
fundamental UN safety standards and was not as secure as Tata had anticipated. Additionally,
Nano was incredibly light, which made it a terrible choice for the frequently rough Indian
roads. That also meant that driving felt risky.
Additionally, it was noted that the Nano caught fire on multiple occasions for unknown causes. The
corporation asserted that the emission was connected to defective foreign electrical equipment as the
cause. To make matters worse, they offered to replace the purportedly problematic parts in the vehicles
that had already been sold while refusing to recall the vehicles with defective equipment and instead
extending the warranty to four years. The Tata Nano was a flop in part due to poor customer service.
• Fictional Public Relations- The situation was made worse by the automaker's poor
public relations. The corporation blatantly disregarded this important factor, and nobody
mentioned how many units were operating without incident on the roadways while
everyone was fixated on how many units caught fire. That also persuaded the public that
the reason the Tata automobile was so inexpensive was because the business made
manufacturing errors.
• .Production Issues- The long delivery wait time was another significant issue that led to the
Tata Nano's collapse. The new West Bengal factory was expected to produce the Nano.
Sadly, the company was unable to get land for the facility and was forced to begin
manufacture in Gujarat. Additionally, the initial demand could not be met by the smaller
production capacity, and many customers decided not to purchase a Nano at first because

10. they could not find any.
It was a bad plan that never materialised into a potentially promising reality. The company
simply was unable to fulfil its promise to the public and instead provided them with a cheap
vehicle that was unsafe to drive, looked, and felt cheap. The Tata Nano was eliminated as a
result of a cascade effect that began with the initial presumption that people desired an
inexpensive vehicle. The car was simply too pricey for the intended market and too
inexpensive for those who could buy it. The Tata Nano ought to have started a revolution.
Ratan Tata set a lofty goal to provide every Indian with a safer means of transportation. But
neither the initiative nor the circumstances ever faltered. Tata's benevolence was evident in
the lower-than-ever margins. Maybe it shouldn't ever succeed or bring Tata Motors a sizable
profit. Maybe it was merely Tata's genuine desire to work for the sake of the nation.
Whatever the reason, the Nano has changed the automotive industry.

11. FactorsThat Made TATANANOAFailure
 Promotion And Positioning
Tata Nano was often called “Lakhtakiya” that means “Worth a Lakh”. Tata Motors used
the penetration price strategy. The company marketed it as the cheapest car in the world
to make it accessible to the masses irrespective of their social economic background.
 Social Status
People did not want to own an item known for its cheap cost. Also, with the tag of
cheap, stereotypes are bound to arise. People assumed that cost effectiveness comes
with quality compromises, and hence TATA Nano could not find its footing.
 Emotions Over Logic
Tata Nano’s marketing strategy was unable to touch the hearts of Indians. Buying
decisions are mostly emotional rather than rational. The marketing campaigns lacked
that emotional touch and focussed more on the features.
Vouching on features in the marketing was also necessary, as the company wanted to
tell people that they are providing almost everything that cars usually have. But,
somewhere, they could not bridge the emotional connection, and thus lost their grip
on the market.
 The Hype
The Tata Nano launched was hugely hyped in 2008. As people were waiting for the
launch, tata announced the shift of the brand’s production plant from Singur, west
Bengal to Sanand, Gujarat on October 7, 2008.
The main problem about the hype was, it mainly revolved around the price of the Tata
Nano and not around the value proposition.
 Wrong Market Analysis
It seems like the company had assumed what their market desired. They were so
ambitious about the product launch that they forgot to empathize with their target
market before positioning their product.
They should had realized that their customer did not want “the cheapest car”. They
were more comfortable living as they were than going for a cheap car. Thus, a
comfortable, fully functional car that came with a tag of “cheap” was not appreciated
by the market.

12. How ratan tata couldn’t do anything to save nano
There is a reason ousted Tata Sons chairman Cyrus Mistry went after the Nano. Data from
the Society of Indian Automobile Manufacturers says it may have been the cheapest car
around but not the hottest. Its sales dropped 70% over the last six years. In an email on
Tuesday to the Tata Sons board, Mistry said there was no “sight of profitability” for the car
and the only way out was to scrap it. However, it continues for emotional reasons and
because it supplies parts to an electric car company part-owned by Ratan Tata. But Tata
Motors insiders say Ratan Tata, Mistry’s predecessor as Tata Sons chairman and the driving
force behind the Nano, had a plan to turn the car’s fortunes around. But the plan did not take
off after he made way for Mistry in December 2012.
“There was a lot of research and development on the Nano platform… There were plans to
use it to develop an air car (which uses compressed air to drive), and hybrid and electric
cars,” said one of them.
In 2015, Ratan Tata had made another investment in Ampere Vehicles, makers of electric two
and three wheelers. The company denied having bought any Nano body shells from Tata
Motors.
There were few technology learning from the Nano, but you cannot cut corner in building a
car… The current car was not safe,” said Deepesh Rathore, London-based analyst of
Emerging Markets Automotive Advisors.
Boardroom battle brings brand Tata in focus
Automobile industry experts say the Nano is nothing to be ashamed of. “The Nano was
developed to tackle a phenomenally bold challenge at an unheard-of price. It is not
uncommon for pioneers to fail,” said an former Tata Motors executive who had worked on
the Nano project.

13. Conclusion
The failure of the Tata Nano is a vital getting to know factor in automotive advertising and
marketing, positioning and practices to keep away from. Poorly designed and fabricated from
the start, incorrect advertising and advertising of the hatchback only exacerbated the trouble.
His choice to make road journey more secure for Indian households influenced him to create
Tata Nano.
However, the initiative never failed and neither did the scenario.
Tata has shown leniency as margins preserve to decline. It became probable in no way a success
or worthwhile for Tata automobiles. Regardless of the motive, the Nano has made an impact at
the automobile industry. The Tata Nano is geared toward low-earnings humans who've never
taken into consideration buying a car. However, there has been some resistance to this. In
public, media and public opinion, the Tata Nano changed into called an automobile for the bad.
The Tata Nano turned into advertised as the most inexpensive vehicle in the wish that it would
entice people to shop for it. But no one desired to get worried with cheap vehicles. It has
additionally been assumed that value efficiency approach less nice. Due to an advertising and
marketing mistake, the Tata Nano failed.
From the example above, we will finish that leaders don`t without a doubt rely because most
matters that have an effect on the fulfillment or failure of an employer are out of their control.

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