Strategic Leadership

Group 1 | Sec AB

Strategic Leader:

Mr. Jamsetji Tata

Submitted by: Submitted

to:

Ayushi Saxena (201811009) Dr. Jagannath Mohanty

Akanksha Gohil (201812059)

Jhalak Panchal (201811022)

Mohit Jain Dudheria (201811030)

Ratnakar Gaur (201812090)

Yash Patodia (201812106)

Introduction

Jamsetji Tata, in full Jamsetji

Nusserwanji Tata, (born March 3,
1839, Navsari, Gujarat, India—died May
19, 1904, Bad Nauheim, Germany), Indian
philanthropist and entrepreneur who
founded the Tata Group.

The Founder of the Tata group began with a textile mill in central India in the 1870s. His vision
inspired the steel and power industries in India, set the foundation for technical education, and
helped the country leapfrog into the ranks of industrialized nations. Jamsetji Tata was more than
just the entrepreneur who helped India take her place in the league of industrialized nations. He
was a patriot and a humanist whose ideals and vision shaped an exceptional business conglomerate.

Nusserwanji lived an austere life, peculiar to the priestly caste of Zoroastrians, the ‗Dasturs‘. He
was reportedly married at a tender age of five years to Jeevanbai, at a mass wedding, since
traditional ceremonies were expensive for the cash strapped community. The industrialist in
Jamsetji was a pioneer and a visionary, possessed of a spirit of entrepreneurial adventure and
acumen never seen before or since in a native of colonial India. The nationalist in him believed
unwaveringly that the fruits of his business success would enrich a country he cared deeply
about. These attributes, by themselves, would have been enough to mark him as an extraordinary
figure. But what made Jamsetji truly unique, the quality that places him in the pantheon of
modern India's greatest sons, was his humaneness.

It is this characteristic from which stemmed Jamsetji's generosity of heart and his compassion for
a citizenry laboring under the twin realities of oppressive foreign occupation and overwhelming
poverty. The distinctive structure the Tata group came to adopt after Jamsetji's passing, with a
huge part of its assets being held by trusts devoted to ploughing money into social-development
initiatives, can be traced directly to the empathy embedded in the Founder's philosophy of
business.
Tentative beginnings

Nothing of Jamsetji's childhood suggested he would create his own destiny. Born on March 3,
1839, in the sleepy town of Navsari in Gujarat, he was the first child and only son of
Nusserwanji Tata, the scion of a family of Parsee priests. Many generations of the Tata‘s had
joined the priesthood, but the enterprising Nusserwanji broke the mould, becoming the first
member of the family to try his hand at business.
Raised in Navsari, Jamsetji joined his father in Bombay when he was 14. Nusserwanji got him
enrolled at Elphinstone College, from where he passed in 1858 as a 'green scholar', the
equivalent of today's graduate. The liberal education he received would fuel in Jamsetji a lifelong
admiration
for academics and a love of reading. Those passions would, though, soon take a backseat to what
Jamsetji quickly understood was the true calling of life: business.
An inclination to envision really big was recognized in Jamsetji Nusserwanji Tata at a very
young age. Born on March 3, 1839, in a small town of Gujarat, Navsari, he was the first child
and only son of Nusserwanji Tata, the head of a family of Parsee priests.
It was only natural that Nusserwanji, would, as usual join the family priesthood, but the
enterprising youngster broke the tradition to become the first member of the family to try his
hand at business.
After his success in East Asia, Jamsetji tried to set up an Indian bank in London, and he travelled
all over Europe for that. However due to the financial crisis prevalent then, Jamsetji‘s idea of an
Indian bank abroad, did not really succeed and had to be dropped. The failure of the bank also
meant that the Tata Group‘s companies all over India and East Asia, had to bear the losses too.
The entrepreneurial acumen of Jamsetji coupled with his nationalistic outlook, which led him to
believe that the fruits of his business success would enrich the nation as a whole, made him truly
unique. Completing his education as a ‗Green Scholar‘ (equivalent of today‘s graduate) from
Elphinstone College, he joined hands with his father who ran a small firm. Jamsetji was only 20
then. The repression of the Indians in the hands of British rulers coupled with widespread
poverty all across the nation at that time, was at the root of this entrepreneur‘s philosophy. This
is what precisely set the stage for the Enterprise to plough back profits into various social-
development initiatives – a direct fallout of the empathy set in the founder‘s philosophy of
business.
Strategic Challenges

Cotton mills

During the following two decades, 49 cotton mills were started. Towards the mid of 19th
Century, India began attracting a lot of investors from all over the world. The development in
railway and shipping industry opened doors for India to export wheat, cotton and jute. Suez-
Canal was opened which made country much more accessible. Jamsetji studied cotton industry in
India carefully and as a whole. He noticed that the major problem that obstructed India to
compete with other countries was the irregular rains upon which agriculture depended so heavily.

This was also the time when the British decided to take total control over the overseas trade,
thereby drastically affecting the ordinary Indian. By the end of the 19th Century, this export
surplus had become a big problem for Britain‘s balance of payments. Since the tariff went up in
US and other European countries, Britain found it difficult to sell their finished products. Thus,
they started selling their finished products in India, which became a captive market for the
Lancashire textile industry. Jamsetji saw this as an opportunity to enter the textile market and
break this vicious circle created by the English Empire.

After doing an in-depth study of the cotton industry, Jamsetji returned to India with an extensive
knowledge about the textile industry. He was determined to establish an industrial revolution in
India. Bombay was the place to start the industry, but he understood that the textile industry
could be best set up at a place which was at a close proximity to cotton fields and had an easy
access to a railway junction. Apart from this, the place should be in the midst of a market and
have an abundant supply of water and fuel. After much research, he narrowed down a place in
the heart of Maharashtra – Nagpur, as this city met all the requirements. Jamsetji acquired
marshy ten-acre land from Rajah of Nagpur and filled it up with earth.

Wah Taj.!

Living conditions for the tourists were unfavorable. The houses were cheek to jowl and the rats
scampered around the city at nights. Unfortunately for the city, it only had one hotel that could
be worthy of calling it so – the Watson’s. Even then, this hotel was far below the European
standards. The rooms were small, heat was unbearable, especially with mosquito nets and
curtains, and ventilation was horrendous. To add to this disgrace, the hotel did not admit Indians.
Jamsetji was denied entry into the Watson‘s and that‘s when he decided to build a hotel far better
and bigger than Watson‘s and this sparked Jamsetji to build the magnificent Taj Mahal Hotel.
Nevertheless, this was a strategic plan on his side to build a spectacular hotel for the guests of
this city. It could very well have been what Sir Stanley Reed said, ―He had an intense pride and
affection for the city of his birth, and when a friend protested against the intense discomforts of
the hotel life in Bombay he growled: ‗I will build one.‘ Jamsetji took the decision for the
foundation of Taj in 1898 without even consulting his friends, partners or family.

Reaching the shores with shipping

To start with, he carefully planned all his wealth and made sure that not only his family, but
majorly all of India would be benefitted. A big portion of his income was allotted to education
and if there was any surplus, he would invest them in industrial experiments. His projects often
failed. But to a great man like Jamsetji, failure was just a stepping stone to success. He would
turn his mind to other projects that would show his patriotism. One such revolutionary step that
Jamsetji took changed the way the shipping industry worked in India. Jamsetji noted that while
exporting to his company‘s branches in China and Japan, there was a heavy freight charge. This
was because the routes were monopolized by three companies, Austin Lloyd, Rubbatino
Company, and Peninsular and Oriental Company (P&O), which was the biggest among all. After
entering the business, he became aware of the advantages derived from the ‗invisible exports‘ of
a carrying trade and decided to start his own line of steamers. He had a fair idea of the challenges
that were going to come his way.

A few years before, Jamsetji had fought the high rates but was beaten. This was because, the two
companies he most relied on, deserted him. They further backstabbed him to get into an
agreement with P&O. The export of cotton increased to China and Japan. The three companies
took an advantage and raised their charges even further to Rs.13 and Rs.19 per cubic ton.
Jamsetji turned to the director of a Japanese steam navigation company called Nippon Yusen
Kaisha that offered him to compete with trade in China only if he agreed to equally invest in the
scheme. Jamsetji agreed and an agreement was signed between the N.Y.K. (Nippon Yusen
Kaisha) and Tata‘s for the carriage of the Indian cotton goods at cheaper rates.
China
After his retirement, Nusserwanji was struck with a serious illness and had to travel to China and
Japan for treatment. While in China, Nusserwanji decided to reopen the Hong Kong branch with
the help of his connections that were related to the trade industry. They were his brothers-in-law
Dadabhai and Sorabji Tata who had gained success in a small but long standing import-export
business between Bombay and Far East. Dadabhai had been the chief cashier and accountant in
Nusserwanji‘s first venture. Nusserwanji placed Dadabhai Tata in charge of his business in
China and assigned half the share in business to Jamsetji and himself. The firm thus constituted
and continued for several years till Dadabhai‘s death in 1876. This is when Jamsetji and his
father withdrew their capital.

Strategic Intents

One of the best intents of any leader would be one where he combines the benefit of his company
along with the stakeholders of the company and Jamsetji perfectly fits into this framework of a
leader who not only made an empire but also helped his employees and stakeholders grow along
with him in the process, for him above individual growth the growth of the society, the growth of
the country came first.

Cotton Boom

In 1863, Jamsetji travelled to England, hoping to establish an Indian bank that could cater to
Indian businesses and expatriates. However, the tide was against Jamsetji as the Indian cotton
market that had skyrocketed during the American Civil War, simply crashed. During the war,
southern US did not produce enough cotton to suffice the demands in England. As a result, they
were forced to buy Indian cotton to keep their textile industry running. As soon as the Civil War
came to an end, the American South resumed their production and the demand fell. Jamsetji was
still on board an England- bound ship and hence oblivious to these upheavals till he reached
England. He soon discovered that the bills of exchange that he was carrying were worthless and
he was virtually penniless. He went to the heart of London‘s financial district, where most of the
banks were located, including the Bank of England and the Royal Exchange. He spoke to many
bankers and solicitors to help him start up a business. Jamsetji successfully impressed many
shrewd English businessmen with his frankness and integrity. As a result, they appointed him as
their own liquidator and gave him an allowance of twenty pounds a month, which helped him
pay off his creditors.

Abyssinian War
The start of Abyssinian War brought back the demand and contract for Indian cotton industry as
well as British-Indian Army. General Napier, Commander-in-Chief Bombay, was appointed to
go to unknown territories of Ethiopia to fight a war that could last for months. He needed
supplies that would last for a year for the 16,000 men he was taking along with him.
Nusserwanji‘s firm was experienced at executing such contracts and successfully bagged the
business. This brought the firm out of their financial crisis. Post Industrial revolution, the British
had become very powerful and Jamsetji was convinced that there was a huge scope to poke a
hole and take advantage of the Abyssinian War. Jamsetji moved into the textile industry in 1869
and set his eyes on a broken-down, bankrupt oil mill in Chinchpokli, which was located in the
heart of Bombay. The mill was renamed Alexandra and converted into a cotton mill. The cloth
being produced in India at that time was very coarse compared to what was being produced in
England and elsewhere in the world. Two years later, Alexandra was sold to a local cotton
merchant for a fat profit and Jamsetji decided to learn how the English operated their textile
industry. After this, Nusserwanji retired and handed the reins of his business to Jamsetji.

Empress Mill

After doing an in-depth study of the cotton industry, Jamsetji returned to India with an extensive
knowledge about the textile industry. He was determined to establish an industrial revolution in
India. Bombay was the place to start the industry, but he understood that the textile industry
could be best set up at a place which was at a close proximity to cotton fields and had an easy
access to a railway junction. Apart from this, the place should be in the midst of a market and
have an abundant supply of water and fuel. After much research, he narrowed down a place in
the heart of Maharashtra – Nagpur, as this city met all the requirements. Jamsetji acquired
marshy ten-acre land from Rajah of Nagpur and filled it up with earth. Jamsetji spent next
several years of his life in Nagpur, building and resolving any problems that the men faced at the
mill. Jamsetji‘s success can be attributed to his keen eye for finding the right men to work with.
One of his greatest discoveries was a young Parsee, Bezonji Dadabhai Mehta, a Goods
Superintendent on the Great Indian Peninsula Railway. At the time of appointment, Bezonji
knew nothing of the cotton

industry, but possessed qualities such as common-sense, honesty and experience that greatly
appealed to Jamsetji. He trained him for two years and later made him responsible for the mill.

Rotten Mill

Jamsetji noticed that about two thirds of British exports to India were cotton goods. He opposed
the use of British cotton goods and started a mill that would make only superior quality textile
with Indian cotton. With this objective in mind, he found Swadeshi Mills Company Limited in
1886. Dharamsi Cotton Mill, located in Kurla (near Bombay), was going through severe
financial trouble. The mill had destroyed reputation of several agents and because of
superstitious reasons, cotton merchants now feared to invest in this mill. Jamsetji saw this as an
opportunity and took over the mill, which was much more profitable than expected. He renamed
this mill to Swadeshi Mill. Jamsetji could have sold the mill for a whooping profit of Rs. 2,
00,000 within twenty-four hours of its buying but the success of Empress Mills had given him a
confidence and he took it as a challenge to recreate Swadeshi Mill. He brought experts from
Nagpur to work on this mill. The experts were not in favor of this purchase, but Jamsetji made it
very clear that they should only stick to advising and not deciding. He jokingly called this
mill, ―Rotten Mill‖. The situation got worse when financers denied their support. Shareholders
were disappointed and Jamsetji was left alone. Nevertheless, he assured everyone that this was
one of the best bargains, and he would make the best of it. Despite the odds of theft, shortage of
labor, poor machinery, and difficulties in management, the Swadeshi Mill rose to its epitome due
to the adroit management of Jamsetji.

Strategic Actions

Jamsetji Tata was more than just the businessman who helped India take its place in the league
of industrialized nations. He was a patriot and a humanist whose ideals, vision and values shaped
an unprecedented business conglomerate.
Jamsetji was a pioneer and a visionary, possessed of a psyche of entrepreneurial adventure and
sharpness never seen before. The patriot in him believed unwaveringly that the fruits of his
business success would enrich a country he cared deeply about. These qualities, by themselves,
would have been enough to mark him as an extraordinary figure. But what made actually truly
different, the quality that places him in the pantheon of modern India's greatest sons, was his
humaneness.

In 1868, aged 29 and wiser for the experience gained by nine years of working with his father,
Jamsetji started a trading company with a capital of Rs 21,000. His first trip to England soon
followed, where he learnt about the textile business.

He was convinced that there was enormous scope for Indian companies to make a dent in the
British dominance of the textile industry. Jamsetji made his move into textiles in 1869. He
acquired a crumbling and bankrupt oil mill in Chinchpokli, renamed the property Alexandra Mill
and converted it into a cotton mill.

Couple of years later, Jamsetji sold the mill for a significant profit to a local cotton merchant. He
followed this up with a longer visit to England, and an exhaustive study of the Lancashire cotton
trade. The quality of men, machinery and produce that Jamsetji saw during in this brief visit was
impressive, but he was certain he could replicate the story in his own country. He believed that
he could take on and beat the colonial masters at a game they had rigged to their advantage.

The Mills

The prevailing dogma of the time determined that Bombay was the place to set up the new
project, but Jamsetji's genius told him otherwise. He figured he could maximize his chances of
success if he factored three crucial points into his plans: vicinity to cotton-growing areas, easy
access to a railway junction, and ample supplies of water and fuel. Nagpur, near the heart of
Maharashtra's cotton country, met all these conditions. In 1874, Jamsetji had created a new
enterprise, the Central India Spinning, Weaving and Manufacturing Company, with a seed
capital of Rs 1.5 lakh. Three years later, his venture was ready to fruit its fate. On January 1,
1877, the day Queen Victoria was announced Empress of India, the Empress Mills came into
existence in Nagpur. At the age of 37, Jamsetji had embarked on the first of his fantastic
adventures.
It was at Empress Mills that Jamsetji Tata pioneered worker welfare initiatives, unheard of at the
time. The years following the establishment of Empress Mills was the most significant of
Jamsetji's busy life. In hindsight, it was also the most poignant.

(Pic. 1: Jamsetji's pioneering employee welfare initiatives included separate dispensaries

for men and women.)

From about 1880 to his death in the year 1904, Jamsetji was consumed by what has to be the
three great ideas of his life: setting up an iron and steel company, creating hydroelectric power,
and making a world-class educational institution that would tutor Indians in the sciences. None
of these would take place while Jamsetji lived, but the seeds he laid, the work he did and the
force of will he displayed in fulfilling this triumvirate of his dreams ensured they would find
glorious expression.

Steel

The iron and steel idea got sparked when Jamsetji, on a trip to Manchester to check out new
machinery for his textile mill, attended a lecture by Thomas Carlyle. By the early 1880s, he had
set his mind and soul on building a steel plant that would compare with the best of its kind in the
world. This was a ginormous task. The industrial revolution that had transformed England and
other countries had bypassed India. Officious government policies, the complexities of
prospecting in barely accessible areas and sheer bad luck made matters worse. Jamsetji Tata
found his path stonewalled at every other turn by what his biographer, Frank Harris, called
"those curious impediments which dog the steps of pioneers who attempt to modernize the East".
(Pic. 2 Jamsetji's vision to build a township for workers in his steel plant, included a school
for employees' children.)

The twists and turns the steel project took would have defeated a lesser man, but Jamsetji
remained unflinching in his determination to see the venture come to fruition. On his way he had
to face the scorn of people such as Sir Frederick Upcott, the chief commissioner of the Great
Indian Peninsular Railway, who promised to "eat every pound of steel rail [the Tata‘s] succeed in
making". There is no record of where Sir Frederick was when the first ingot of steel rolled out of
the plant's production line in the year 1912. Jamsetji had been dead eight years by then, but his
soul it was, as much as the efforts of his son Dorab and cousin RD Tata, that made real the
impossible.

The brick-and-mortar endeavors that Jamsetji planned and executed were but one part of a bigger
idea. How much of a man of the future he was can be gauged from his views about his workers
and their welfare. He offered his people shorter working hours, well-ventilated workplaces, and
provident fund and gratuity long before they became statutory in the West. He spelt out his
concept of a township for the workers at the steel plant in a letter he wrote to Dorab Tata in
1902, five years before even a site for the enterprise had been decided. "Be sure to lay wide
streets planted with shady trees, every other of a quick-growing variety," the letter stated. "Be
sure that there is plenty of space for lawns and gardens. Reserve large areas for football, hockey
and parks. Particularly allotted areas for temples, mosques and churches." It was only fair that
the city born of this sterling vision came to be called Jamshedpur.
Nurturing brilliant minds

Jamsetji's philanthropic principles were rooted in the belief that for India to climb out of poverty,
its most brilliant minds would have to be harnessed.

(Pic. 3: Jamsetji personally selected Freany Cama, a woman doctor, to be the first recipient
of the JN Tata Endowment.)

Charity was not his way, so he created the JN Tata Endowment in 1892. This enabled Indian
students, regardless of caste or creed, to pursue higher studies in Britain. This beginning
flowered into the Tata scholarships, which flourished to the extent that by 1924, two out of every
five Indians coming into the elite Indian Civil Service were Tata scholars. The idea of creating
the IISc came from the same source, but here, as with the steel plant, Mr. Tata had to endure long
years of heartburn without getting any tangible recompense in his lifetime.

Jamsetji pledged Rs 30 lakh from his personal earnings towards establishing the institute, drew
up a blueprint of the shape it ought to take, and sought the support of everyone from the Viceroy,
Lord Curzon, to Swami Vivekananda to turn it into reality. Swami Vivekananda, backing his
idea, wrote in 1899, "I am not aware if any project at once so opportune and so far reaching in its
beneficent effects has ever been mooted in India. The scheme grasps the vital point of weakness
in our national well-being with a clearness of vision and tightness of grip, the mastery of which
is only equaled by the munificence of the gift that is being ushered to the public." Despite this
and similar endorsements, it took a further 12 years before the splendid IISc started functioning
in Bangalore in the year 1911.
Analysis of Action:

For analyzing the action of Jamsetji Tata, we are using OODA framework, which was given by
developed by military strategist and United States Air Force Colonel John Boyd. This is a decision
making process. OODA stands for Observe, Orient, Decide and Act. It is a cyclical model. By
using this OODA Loop one can continuously adapt to changing circumstances and use this to
draw on their strengths.
Observe:
In this step of OODA, a person observes the environment around him, gathers information
regarding changes in the environment that affects the system directly or indirectly, and how the
environment reacts to the strength, weakness, maneuvers, and intentions of the system.
Jamsetji Tat was a great observer, he liked gather as much information as he can from all the
resources available. While the idea of setting up they mill in Bombay was in process, it was Shri
Jamsetji‘s observation that diverted the thought process towards setting up the mill in Nagpur.
He sold off his mill in chinchpokli, earned profit from it and invested in Nagpur to build a new
cotton mill here. He used the available resources for this set up, such as, easy accessibility of
water, cotton growing region, availability of railway transportation etc. By giving these points,
Jamsetji Tata brought a cotton mill to Nagpur which was named as Empress Mill.

Orient:
In this step of OODA, a person should take data from the observation and make sense of it. It is
an interpretation of the observed information i.e, converting information into knowledge by
developing concepts through analysis of information. Orienting is important because it involves
a lot of mental machinery and also yields cost effective solutions.
Jamsetji grasped the power of modern business organization. Though Tata remained family-
owned, he tried to break with a rigid Indian system that relied on family managing agencies to
run businesses by following the more professional British way of appointing outside directors.

Decide:
Decide is calculating various options or other alternative options available from the concepts
knowledge developed during the orientation phase, and choosing the best one. Decisions are at
basic level thoughts, but they should be changes as soon as new information comes.
He saw an opportunity of entering into the hotel industry in early 1890‘s when there were no
decent hotel for the tourists visiting Bombay except a famous hotel the Watson’s, which denied
the entry of Indians. Therefore he devised a strategic plan on his side to build a spectacular hotel
for the guests of this city, ‗Taj Mahal Palace‘ in 1898, for which he has two options, either to
acquire the Watson’s or make his own hotel. Jamestji unlike his company‘s current rival The
Oberoi‘s took the path less travelled and built his own.
Act:
Act is carrying out or implementing the selected decision. This completes the OODA loop and
the feedback of the implementation is the basis for the next round of observation.
When the idea of setting up a steel plant sparked into his mind he immediately started putting
efforts toward making it in reality. For that Jamsetji planed an executed brick and mortar
endeavors. He also created a township for workers at steel plant to facilitate ease in production as
well as ensuring worker‘s well-being at the same time

Impact of his actions:

Jamsetji Tata had a vision of developing and growing India clearly stucked in his head and he
tried every way possible to contribute to that ultimate vision. He took many strategic and
compelling actions for that, some of which along with their impact are explained below:

1) Mills:
Jamsetji Tata at a very tender age of 29, saw mills as a growing segment and was
confident enough, that provided with all the resources this industry will be a blooming
one. He was also sure that he can replicate the same very process of Britishers in his own
country and beat them in their domain itself.
Jamsetji was a pioneer and a visionary, possessed of a psyche of entrepreneurial
adventure and sharpness never seen before. The patriot in him believed unwaveringly that
the fruits of his business success would enrich a country he cared deeply about. So, he
picked up a bankrupt oil mill in Chinchpokli and converted it into a cotton mill. The
quality of men, machinery and produce that Jamsetji saw during in this brief visit was
impressive, but he was certain he could replicate the story in his own country. He
believed that he could take on and beat the colonial masters at a game they had rigged to
their advantage.
He had this dream of setting up textile mills in India. Though Mumbai was considered to
be the most preferred location at that time, he knew very well how to economise all the
resources in hand and make full use of them. He set up his first plant in Nagpur: a place
with easy access to road transport, cotton growing fertile land and ample water sources in
its vicinity.
What happened as a result was that the textile mills of our country boomed again. It
provided employment to a huge chunk of people in the country. Thus, eradicating
 unemployment and poverty to some extent which were very dominant factors leading to
the economic downturn of India at that point of time.

2) Steel:
Jamsetji Tata on his visit to Manchester got an idea of coming up with excellent steel
plants on his own land. He caught up this dream and started working towards it. He faced
a lot of opposition from Sir Frederick and other locals of the country but despite of all
these twists

and turns he kept on working towards his dream. Though it was never fulfilled while he
was alive. His vision was so compelling that his son and his cousin continued his dream
and started to live it like one of their own. Eight years after his death first ingot of the
steel rolled out.
He always thought of his workers and their welfare and this was can be easily gauged by
his policies set up in the textile mills. Impact was that the people associated with the
company like it‘s their own, they never thought they are working for someone else but
always thought that they are working for themselves because the owner cares about them
so much. They were ready to do anything for him.
This built the seeds of employee relationship in HR context. He offered his people shorter
working hours, well-ventilated workplaces, and provident fund and gratuity long before
they became statutory in the West.
Impact being the wide acceptance of these steel plants by the people of the country which
eventually led to the huge success of these plants and cotton mills.

3) Nurturing brilliant minds:

Jamsetji's philanthropic principles were rooted in the belief that for India to climb out of
poverty, its most brilliant minds would have to be harnessed. he created the JN Tata
Endowment in 1892. This enabled Indian students, regardless of caste or creed, to pursue
higher studies in Britain.
He created different institutions all across the country and donated huge amounts for the
CSR activities with a vision of growing and developing India. Its impact being that
people built more trust in him and was even worshipped as God in many houses. He
 gained not only competency but also his people in whatever field he stepped him. People
were always ready to fight for him and do anything for him.

He eradicated the situation of unemployment, poverty and made education and skills
available to all. Thus carrying his dream and vision forward.

Non-corporate Parallel and its impact:

Nurturing brilliant minds

Jamsetji's philanthropic principles were rooted in the belief that for India to climb out of poverty,
its most brilliant minds would have to be harnessed. Charity was not his way, so he created the
JN Tata Endowment in 1892. This enabled Indian students, regardless of caste or creed, to
pursue higher studies in Britain. This beginning flowered into the Tata scholarships, which
flourished to the extent that by 1924, two out of every five Indians coming into the elite Indian
Civil Service were Tata scholars. The idea of creating the IISc came from the same source, but
here, as with the steel plant, Mr. Tata had to endure long years of heartburn without getting any
tangible recompense in his lifetime.

Jamsetji pledged Rs 30 lakh from his personal earnings towards establishing the institute, drew
up a blueprint of the shape it ought to take, and sought the support of everyone from the Viceroy,
Lord Curzon, to Swami Vivekananda to turn it into reality. Swami Vivekananda, backing his
idea, wrote in 1899, "I am not aware if any project at once so opportune and so far reaching in its
beneficent effects has ever been mooted in India. The scheme grasps the vital point of weakness
in our national well-being with a clearness of vision and tightness of grip, the mastery of which
is only equaled by the munificence of the gift that is being ushered to the public." Despite this
and similar endorsements, it took a further 12 years before the splendid IISc started functioning
in Bangalore in the year 1911.

Today there are many Tata trusts that together operate under the umbrella of the Tata Trusts.
Over the past 12 decades, the Tata Trusts have played a sterling role in supporting social
development and in building some of India‘s most exceptional institutes, among them the Tata
Institute of Social Sciences, Tata Memorial Centre, the Tata Institute of Fundamental Research
and the National Centre for Performing Arts. The one common tenet that has supported the work
of the Trusts has been the commitment to improving the quality of life of India and its people,
especially those on the margins. Two-thirds of the shareholding of Tata Sons, the promoter and
holding company of the Tata group, is held by the Trusts, ensuring that wealth creation remains
inclusive and connects back to the community. The Tata Trusts are all about giving back to
society. That was Jamsetji‘s passion and his legacy.

Learnings:

Jamsetji Tata known as the ―The Father of the Indian Industry‖, couldn‘t complete his
mission of Tata Group but led the foundation for success only to be fulfilled by his great
grandson Ratan Tata. Jamsetji was a pioneer and a visionary, possessed of a psyche of
entrepreneurial adventure and sharpness never seen before. The patriot in him believed
unwaveringly that the fruits of his business success would enrich a country he cared deeply
about. But what made actually truly different, the quality that places him in the pantheon of
modern India's greatest sons, was his humaneness.

Vision, Focus, Determination & Humility.

Good business leaders create a vision, articulate the vision, passionately own the vision, and
relentlessly drive it to completion. They have a clear, exciting idea of where they are going
and what they are trying to accomplish and are excellent at strategic planning. This quality
separates them from managers. Having a clear vision turns the individual into a special type
of person. This quality of vision changes a “transactional manager” into a
“transformational leader.” While a manager gets the job done, great leaders tap into the
emotions of their employees.

EG: He was convinced that there was enormous scope for Indian companies to make a dent
in the British dominance of the textile industry. Jamsetji made his move into textiles in
1869. He acquired a crumbling and bankrupt oil mill in Chinchpokli, renamed the
property Alexandra Mill and converted it into a cotton mill. The Empress Mills came into
existence in Nagpur. At the age of 37, Jamsetji had embarked on the first of his fantastic
adventures.
Leaders always focus on the needs of the company and the situation. Leaders focus on
results, on what must be achieved by themselves, by others, and by the company. Great
leaders focus on strengths, in themselves and in others. They focus on the strengths of the
organization, on the things that the company does best in satisfying demanding customers in
a competitive marketplace. Your ability as a leader to call the shots and make sure that
everyone is focused and concentrated on the most valuable use of their time is essential to
the excellent performance of the enterprise.

Humble leaders seek input from others to ensure they have all the facts and are making
decisions that are in the best interest of the team, Grow says. No one person has all the
answers. If you think you do, then it‘s probably time to reassess. People want to work for
people who value their opinions rather than ignore or dismiss them. Effectively humble
leaders are comfortable asking for input and can just as easily be decisive when the situation
calls for it.

EG: Jamsetji's philanthropic principles were rooted in the belief that for India to climb out
of poverty, its most brilliant minds would have to be harnessed. He pledged Rs 30 lakh
from his personal earnings towards establishing the institute.

EG: How much of a man of the future he was can be gauged from his views about his
workers and their welfare. He offered his people shorter working hours, well-ventilated
workplaces, and provident fund and gratuity long before they became statutory in the
West.