Business Kohinoor Ratan Tata by B.C. Pande

Seven principles of Ratan Tata's success

You may have heard that 90% of businesses fail in the first five years and only 5% of businesses grow in ten years. So from this you can guess how few companies are successful in business for years. Research has shown that 0.01% or less companies are successful in business for 100 years. Now let's talk about Tata Company, Tata is one of those companies who have been operating for not only one hundred years but also one and a half hundred years and this company is not only working but is so successful that today Tata Group Company operates more than 100 companies in more than 100 countries. Its most famous companies are Tata Steel, Tata Sky, TCS, Tata Motors, Tata Power, Titan, Taj Hotel Group etc. In 2018, the Tata Group's total revenue was more than $150 billion, and more than 60% of that total revenue came from outside countries such as the United States and the United Kingdom. The Tata Group is the seventh largest company in the world in terms of employees, employing more than 650,000 people, and all the credit for this success goes to the leaders of the Tata Group. From Jamshedji Tata to Ratan Tata, many great leaders have managed the Ratan Tata Company very well, keeping in mind some rules, principles and wisdom. The great principles of all these great leaders have today made the Tata Group the largest company not only in India but in the world. Therefore, it is very important that we also understand and follow the great principles of all these great leaders of the Tata Group Company so that we too become successful in our lives. Well we can learn a lot from many great leaders of this company but today I will tell you only 7 lessons of Ratan Tata's business and life which helped him to achieve great success in Tata Group company, e.g. Ratan Tata, under his 21 years of leadership, increased the company's profits by fifty times and gross revenue by 40 times, Ratan Tata extended the company to many countries outside India and gathered many more achievements. Today we appoint Ratan Tata as a consultant and learn special things from his life and the books written on him that is very useful for us in our life and business. So let's start.

Principle no. 01, (Prioritize values and promises over profit)

If you remember, a few years ago, in 2016, there was a news about the Tata Group Company, how the company abruptly removed Cyrus Mystery from the post of chairman. Everyone was amazed as Ratan Tata himself had worked hard all year to find Cyrus Mystery for the chairmanship, with the hope that Cyrus Mystery would fill his place well, and the fact that everyone had high hopes for Cyrus Mystery. That is why when Cyrus Mystery was fired from the company, everyone was talking about why the Tata Group fired Cyrus Mystery. Now there are a lot of possible reasons given by the people at that time such as the company's revenue had decreased significantly after Cyrus, the company's debt had also increased, Cyrus's management was not good, etc., but according to various experts the real reason was that Cyrus was focusing on the Tata Group's profits rather than the value and affiliation of the Tata Group, for example, when Japan's DoCoMo came to India, they had a 26% stake in Tata for 13,000 crores of rupees, and at the time of the deal, the Tata Group had promised them that, they could go, whenever they wanted to go and they would be reimbursed according to their current market value, or at least half the investment. Shortly afterwards, when Tata Tele source Ltd. was not functioning properly and was suffering a small loss, DoCoMo decided to return, and at the same time when DoCoMo was deciding to return, Cyrus became chairman. DoCoMo asked Cyrus to find a good buyer, but when he could not find one, DoCoMo asked the Tata Group to buy DoCoMo's shares themselves, as the deal was done at the beginning of the business. But then people say that Cyrus, in consultation with the Reserve Bank of India, refused to buy Tata Group shares from DoCoMo because, according to Cyrus, it was not a good deal at the time. DoCoMo felt bad about it because it relied so much on the Tata Group Company because the name of the Tata Group Company was so famous all over the world because of its values and affiliation, DoCoMo felt very bad about it, So DoCoMo started suing the Tata Group of Companies and in the end, Cyrus 'decision did not please Ratan Tata at all, which again became a major reason for Cyrus' expulsion from the company. When question was asked in an interview, Ratan Tata said that trust and confidence is the biggest thing for him, adding that the trust of employees, shareholders and customers is the most important thing for me and also for Tata Group Company. And that's the basis on which a business is run, you will find a lot of people in the business who will lie to make a small profit in the business. They promise people anything and Later they often break promises, and they do so only for a temporary profit. "But the Tata Group and Ratan Tata were not like that," he said, adding that he knows people's trust is the real thing and that is why the Tata Group has been successfully established in the market for years. From Ratan Tata's point of view, we understand that we should always focus on business confidence. First, we must not make promises that we cannot keep, and if we do, we must fulfill them at all costs. We should focus more on values and promises in business than just profit.

Principle no. 02, (Secret to success in listening and reading)

We all know that Ratan Tata was initially offered a very good job by IBM but he did not accept the offer. Instead he came to Tata Steel and started doing normal work with the rest of the employees. , Such as shifting equipment. In an interview, he said he spent the first eight years of his career like this. "At that time, I felt like my work was in vain, I felt like I was wasting my time," said Ratan Tata. But then after a very long time I realized that what I learned from working with employees in those 8 years and that was the best time of my life. Ratan Tata said that learning and understanding are the two things that lead a person to success. At the graduation ceremony, Ratan Tata addressed the children as follows: "Most people do not understand what they should say to their graduates, but I would say that your degree is complete, so you Should not think that your education is complete, but if you want to be more successful in life and move forward, always keep reading good books because people around the world who keep moving forward and are successful, they always learn by listening and reading.”

Principle no. 03, (Always have a sense of accomplishment)

Ratan Tata's famous story that may you have heard from different people is very interesting. When Ratan Tata made the Indica car, it did not succeed in the market, which caused a lot of damage to Ratan Tata. Seeing the loss, the company's experts and partners advised Ratan Tata to sell the company. Ratan Tata did not want to sell this Ratan Tata Company but still he had to obey the partners and he went to Ford Company of America to sell his Ratan Tata Indica Company. When he was meeting the owner of a Ford company in the United States, the owner of the Ford company insulted Ratan Tata by saying, "When you don't know how to make a car, what do you need to make a car” and at that time, Ratan Tata did not like it at all, so he left the agreement and returned to India, but he did not let this anger and disgrace go to waste. He turned his insult into a passion and with a lot of research and hard work put Tata Motors on the path to success but it did not end there. Then came the time when the Ford Company suffered a major loss, which led it to consider selling its two brands, Jaguar and Land Rover. When Ratan Tata found out about it, he decided to buy them both, as a result of which Billford sold these two brands to Ratan Tata, saying, "You are doing us a favor by buying these two brands from us." Doing good through hard work is the good way to take revenge in a positive way using emotions, but most people started abusing when they are angry or start doing wrong things, that is, they hurt themselves. But Ratan Tata turned his anger into passion and then made a huge profit in business by working strategically.

Principle no. 04, (Teamwork is the key to success)

Ratan Tata says that nothing great can ever be achieved by a single person because it is very important to have a very good team. Every employee who work in your industry is your team, so it's important that you take care of your team. Now let me tell you a few facts related to this, Tata was the first company to introduce the law of working eight hours a day in 1912 and then many people also followed this law in their companies. Similarly, Tata Group Company started giving medical benefits to its employees due to its innovative thinking and this law also affected many companies around the world and they started following this law. The Tata Group has always put the trust and position of its employees first, so you may have noticed that many people say that if you want to make money, invest in Reliance, but if you want to get a job, then do for Tata's, so remember that teamwork is very important for success in any place but teamwork in any company will be good only when the people working in the team are very capable and good. When you bring people into confidence, value them and organize more training sessions to improve the team, your team will be stronger and then the teamwork of the company will be stronger and when the teamwork of the company is stronger than there lefts no doubt about its success.

Principle no. 05, (Believe in your decisions)

Many people raised many questions about Ratan Tata's decisions, for example why he did not want to sell Tata Car Indica to Ford Company. Similarly when he bought Tetley Tea for $450 million and similarly his decisions were questioned many times but because he was confident in his decisions so he followed them and then finally he added Tata Car Indica and Tata tea to the world's largest companies. Now it was not that Ratan Tata never made a wrong decision but the important thing is that a person should follow his decisions which he believes in. He once told the students that you should do what you believe in, many times people will not agree with your decision, but the fact is that most people will treat you differently, but if you really believe that you can do what you want to do, then you should make your own decisions, you will often make wrong decisions but you should not be afraid of them. Instead, you should learn from them and make better decisions in the life to come. "

Principle no. 06, (Take risks and seize opportunities)

We must keep looking for opportunities in life, as did the makers of Apple, Facebook, Amazon and Google. Today they are the biggest companies in the world but they all started from a small house, there were no big companies behind all these companies and there was not much financial backup but still today these companies are dominating all over the world. The reason was that they often took great risks and did not waste opportunities and possibilities, they showed courage and turned their work and thinking into reality. Similarly, if you want to succeed in your life and move forward, you have to take a little risk, get away from the ordinary life, show a little courage and do something different.

Principle no. 07, (Support the poor)

Many may be wondering why the name of Ratan Tata is not among the richest people in the world while Mukesh Ambani is often considered as one of the richest people in the world. Now the reason is that the Tata Group company always donates 65% of its total revenue to charities and then this money is spent on education, health and training of the poor, needy and orphans. When asked in an interview, Ratan Tata said that Mukesh Ambani is a businessman and I am an industrialist so our goals are a bit different. The Tata Group Company is not only focused on wealth but always thinks more about people.

Now it is the unhidden reality that they really want their country to move forward, for example, the Tata Car Indica was created so that the Tata Group could help the poor people of India by providing a car for less money. That is why, despite the losses, they did not shut down the Tata Car Indica. On one occasion, the Tata Group donated Rs 1,000 crore to cancer patients. Ratan Tata says that if you are doing something in life and are on the path to success, it is very important that you should give something back to the society and your country. Ratan Tata added that you should not merely consider your wealth as your success but the real success is that when you go to bed at night and if you feel that yes I have done something good for the society then that is the real success of life.

I have told you all these things in the form of a summary of a book called: