Family Management and its Characteristics of Indian Big Business Houses

Case of developing strategy of Tata Group

Abstract

In 1990 India introduced a New Economic policy. This policy posted an excellent average growth rate of 6 %. As a result, the number of the growing middle class grew.

Although there is new policy, India's leading Big business Groups are still governed by traditional family ways. Usually those big business groups separate at the time of succession. But the Tata Group, one of India's largest business conglomerates maintains its unity under the unique Tata style. The Tata style has formed 2 bodies: Group Executive Office (GEO) and Group Corporate Centre (GCC), which are the two decision-making bodies that define and direct the business endeavors of the Group. The Tata Group consists of Tata sons which share 66 % of the controlled Non-profit trusts. In other words, the Tata Groups have successfully grown into their own unique style while still based on traditional methods.