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  TATA GROUP Tata Group  is an Indian multinational conglomerate holding company headquartered in Mumbai, Maharashtra, India. Founded in 1868 by Jamsetji Tata, the company gained international recognition after purchasing several global companies. One of India's largest conglomerates, Tata Group is owned by Tata Sons. Each Tata company operates independently under the guidance and supervision of its own  board of directors and shareholders. Significant Tata companies and subsidiaries include Tata Steel, Tata Motors, Jaguar Land Rover, Tata Consultancy Services, Tata Advanced Systems Limited, Tata Power, Tata Chemicals, Tata Global Beverages, Tata Coffee, Tata Teleservices, Titan, Voltas, Tata Cliq, Tata Communications, and The Indian Hotels Company Limited (Taj Hotels), TATA Autocomp Systems Ltd. Tata Sons is an unlisted company. Around 66 % of its shares are owned by the various Tata trusts, most importantly Sir DorabjiTata Trust (27.97%) and Sir RatanTata Trust (23.56%). The next major chunk of 18% is controlled by ShapoorjiPallonjiGroup, whose heir apparent is Cyrus Mistry. (“Mistry”)    CONFLICT BACKGROUND Mr. Mistry wasappointed as thechairman of Tata Sons inthe year 2011 who wasthe sixth Chairman of Tata Sons.In the Board meeting of TATA Sons Limited held on 24thOctober, 2016,Mr. Cyrus Mistry, was replacedwith immediate effect and Mr.Ratan Tata was appointed asthe interim Chairman of TATASons.Further, the Board constituted aSelection Committee comprisingMr. Ratan N. Tata, Mr. VenuSrinivasan, Mr. Amit Chandra, Mr.Ronen Sen and Lord Kumar Bhattacharyya, as per the provisionsin the Articles of Association of TataSons, to choose a new Chairmanwithin four month.   Negotiating Agreement I . Don’t Bargain Over Positions : Any method of negotiation may be fairly judged by three criteria:    It should produce a wise agreement if agreement is possible.    It should be efficient.    And it should not damage the relationship between the parties. A wise agreement can be defined as one that meets the legitimate interests of each side to the extent possible, resolves conflicting interests fairly, is durable and takes community interests into account. But here Tata sons used Being nice is no answer    strategy .    In 2011, when Ratan Tata cherry-picked Mistry, it was seen as the victory of youth. “Be your own man”, was Tata’s advice to his then 43 -year-old successor. But soon, youth was perceived as insolent, precocious and out to destroy “the core values that the group stood for, for close to 148 years.    There was a fundamental disconnect between Mistry and Tata, particularly with regard to ethos, values, vision and the direction that the group was headed in.    Several of Mistry’s decisions, including the disposal of some of Indian Hotels Co’s overseas properties and especially the move to shut the UK steel operations, did not go down well with Tata Trusts.    Shareholders of Tata Sons, in an extraordinary general meeting (EGM) on a Monday afternoon, voted to remove former chairman Cyrus Mistry as director of the company without any adequate reason. But in the end, it was a coup that was planned to perfection and executed to the tee. Here it is also a perfect example of Hard negotiation  were Tata trust used all instruments at hand in the pursuit of one-sided advantage. Pressure, bluffing, tricks, etc. are applied in order to outsmart Mistry. Hard bargaining is about pushing through one-sided interests and it follows the competitive logic of zero- sum games in which one side’s losses are the other side’s gains.    What if they use dirty tricks? There are three steps in negotiating the rules of the negotiating game: Recognise the tactic: Tata sons unhappy with the business decisions made by Cyrus Mistry and they thought of removing him as a chairman Raise the issue explicitly: All the companies under the tata group have conducted meeting and removed Cyrus Mistry as chairman and they have conducted the EGMs to remove Cyrus Mistry from the chairman of tata group. They have spotted the plot and made him feel uncomfortable.and have raised the issue explicitly Questioning the tactics legitimacy and desirability: They can question the legitimacy moves of Cyrus Mistry as he is the major share holder with 18% and ask him why he have sold the steel company in Europe that is going good and question him what is his desire in selling that company. Phony facts: The annual reports of Tata Motors Ltd don’t mention what were the losses run up on the  Nano car   —  which Mistry mentioned in the leaked email We can see that these are false allegations made by Cyrus Mistry Here he should have bargained with the tata sons but he haven’t done so  so they have removed from the chairman position

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Sep 10, 2019
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