Landing on Tata runway for a rapid takeoff: Air India beyond 2021
Publication date: 13 October 2023
Abstract
Learning outcomes
The case study highlights two strategic angles – that of the business unit (business strategy, profitability, market leadership. organizational culture, operational turnaround, industry structure and competitive dynamics) and the owner (returns, repositioning strategy and funding plan). By the end of this case study, students would be able to understand the changing competitive forces of a dynamic industry; analyse the circumstances leading to a change in the control of a firm from the state to the private sector; understand the logic of acquiring a perennially loss-making firm operating in a volatile environment without a unique strategy; identify a firm’s strategic and operational choices for financial turnaround, return to profitability and regaining market leadership; and learn about the actual strategic realities and choices confronting a troubled business organization in a difficult industry.
Case overview/synopsis
When the Tata Group took over Air India on 27 January 2022 from the state that had ownership for 68 years, Air India was under a long spell of poor performance, bleeding losses and unmanageable levels of debt. Unsatisfactory customer service, management issues and competition were the key reasons. Therefore, a crucial question facing the group’s Chairman N. Chandrasekaran was what workable strategy he could use to reposition Air India and make it profitable again so as to recover the $7.5bn of estimated investment involved in the acquisition and turnaround.
Complexity academic level
This case study is intended for undergraduate and graduate executive education levels in business administration and management and allied subjects, particularly for courses in strategic management, marketing, financial management, turnaround and transformation, mergers and acquisitions and organizational change.
Supplementary materials
Teaching notes are available for educators only.
Subject code
CSS 11: Strategy.
Keywords
Acknowledgements
The author thanks all those who contributed to significant improvements in earlier drafts of this case study. The author also acknowledges the support of Indian Institute of Management Kozhikode.
This case study was prepared as basis for classroom discussion. The case study does not intend to illustrate either effective or ineffective handling of a management situation
Disclaimer: This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision-making. The authors may have disguised names; financial and other recognizable information to protect confidentiality.
Citation
P., R. (2023), "Landing on Tata runway for a rapid takeoff: Air India beyond 2021", , Vol. 13 No. 3. https://doi.org/10.1108/EEMCS-05-2023-0169
Publisher
:Emerald Publishing Limited
Copyright © 2023, Emerald Publishing Limited