Phase 1

Hi everyone, this is my phase one of my case study:

Phase One

Key Facts

Year Founded: 1960
Founder: Hassan Tata
Country: Nigeria

Main operating Branch: Lagos (Capital city)

Key Players

Father (CEO): Hassan Tata

Mother: Amina Tata

1^st Son: Minu Tata

2^nd Son: Dada Tata

3^rd Son: Sanu Tata

Daughter: Amal Tata

History

The patriarch of the Tata family, Hassan Tata, who started a trading commodities company, trading in kolanut, cocoa, beads and groundnuts in Lagos and Accra under the company name, Tata & Sons Limited, founded the Tata Organisation around 1960. Upon Hassan’s death in 1980, the mantle of running the business fell on his three sons, named Minu, Dada, Sanu, excluding their daughter Amal. Before Hassan died, his wife Amina and him held a final meeting in which they wanted to assess which of their three sons was the most credible candidate to succeed in Hassan’s place.

The eldest son, Minu, was the greatest disappointment to the family but he still remained his father’s greatest hope. He began to rebel from a young age as his father instilled in him that his future will never go beyond Tata & Sons Limited and it was his duty to carry on his family’s legacy. The Hassan family were strong Muslims and especially in the Nigerian culture, the eldest sons are always the family’s pride and joy, as they were to carry on teaching their children the Muslim traditions identical to their father’s methods. Minu, however, had a different focus. He was an extremely bright individual. He was brought up in private schooling education and attended an Ivy League university in America. However, after graduation, Minu began to recognise the increasing value of his family’s business and acted accordingly – like an ungrateful human being that over indulges in the materialistic objects of life. Although Minu knew that he was next to be in charge of the family business, he paid little attention to learning how the business operated or is managed, as he knew would also make money from the business regardless with his expected shares.

Hassan’s younger sons, Dada and Sanu, were not fond of Minu and his mischievous behaviour, especially as they knew his potential to be a great businessman if he only applied himself. Dada and Sanu shared an apartment, as they were closest in age, and considered themselves twins. They did everything together: they attended the same schools from a very young age, achieved the similar exceptional grades and both sought an interest in their family’s business as soon as they graduated. Dada and Sanu eventually took positions in the family business, Dada as the Head of Accounting and Sanu as the Head of Marketing.  They knew most of the employees on a first name basis and they knew all the suppliers personally, which helped them establish a competitive edge within their market, as the kolanut industry was extremely competitive, especially in the city of Lagos.

In several conversations with their father, Dada and Sanu repeatedly mentioned that, “if one of us were to become the CEO, we would share the role and make it a joint partnership”. Dada and Sanu worked so closely together that they would rather stay in their individual lower level positions, as the head of different departments, than take on the CEO position without the other. Dada and Sanu expected to be given the CEO role eventually, as soon as their father grew tiresome of waiting for the eldest son Minu to take life seriously.

As Dada and Sinu were resting so comfortably in their expectations, they were not aware that their sister Amal had been preparing for the CEO role ever since she stepped foot into the company. Amal was even brighter than all of her brothers combined and the most cunning, just like her mother. She was the only one to achieve a PhD in Economics and Marketing. Her knowledge and experience was undoubtedly just what her father needed to take his role. In a conversation with her mother she stated:

“Those boys are so inadequate, mother. They do not know what I have been doing in this business. Every move they make, I am always one step ahead of them. After all, I am the head of HR, I see and know everything and everyone. All the decisions they make, I have taken them to father and pointed out how flawed they are. They think just because they are the boss’s sons that they do not have to work overtime to instil perfection in their work. It is not fair. I have made a portfolio for father to show him just how weak his sons are as candidates for the CEO position. I have also made a five-year projection plan based on Dada’s and Sanu’s work output to show father what they plan to do with the business when he dies. If I do not take over Mother we will lose everything. You have to help me!”

Hassan’s doctor informed him that he has just two weeks left to live with his illness rapidly deteriorating his brain function. Therefore, Hassan had two weeks to decide whether (a) he wants to take a chance on his eldest son or (b) promote his two sons into the CEO position and risk his daughter bringing down the whole company because she does not get the CEO position she wants. Hassan questioned how company receive a woman as a CEO if he listens to his daughter’s advice. The situation was extremely complex and time sensitive. Hassan worried about the fate of his family dynamics as a result as he knew his children were already hostile towards on another.

The Tata Group’s annual revenues exceed $300 million annually. The company was at its peak just as Hassan was at his decline in health. He needed to make a decision fast.