Skip to main contentSkip to solution

In 1991, the 87-year-old J.R.D. Tata had been the chairman of the Tata Group for over 50 years. The group was known for its stability but lacked energy and dynamism. That year, a relatively young Ratan Tata, aged 53, was chosen as the new chairman. His selection raised doubts about his capabilities and acceptability, especially among the older leadership. However, these questions were answered over time, and Ratan Tata gradually earned acceptance, often by making tough changes.

Two decades later, as Ratan Tata planned his retirement in 2012, the Tata Group had transformed into a symbol of vibrancy and innovation. Under his leadership, the group embraced daring ideas, expanded overseas, and maintained a tight brand discipline. As Rahul Bajaj remarked, “Ratan Tata has changed the DNA—almost entirely for the better.”

When India began its journey of liberalization, globalization, and privatization in 1991, the Tata Group underwent a significant transition with Ratan Tata taking over from J.R.D. Tata. The older leadership, loyal to J.R.D., initially resisted the change, as Ratan Tata had no major achievements to inspire confidence. Still, J.R.D.’s decision went unquestioned, and Ratan Tata’s era began.

With the introduction of a younger leadership, the Tata Group evolved into a forward-thinking organization, pioneering bold strategies and maintaining its status as a leader in Indian industry.

Select the characteristic that best describes the Tata Group before Ratan Tata's leadership:

Solution

✅ Correct Option: 2

Option 1 -> The passage states the group "lacked energy and dynamism" under J.R.D. Tata, not that it was dynamic.

Option 2 -> Directly matches the passage: "The group was known for its stability but lacked energy and dynamism."

Option 3 -> Innovation and risk-taking came after Ratan Tata took over, when the group "embraced daring ideas."

Option 4 -> Global expansion happened under Ratan Tata's leadership when the group "expanded overseas."


Hence, Option 2: Stable but lacking energy -> The passage explicitly describes the Tata Group during J.R.D. Tata's 50+ year chairmanship as being "known for its stability but lacked energy and dynamism," which changed only after Ratan Tata's leadership transformed it into a "symbol of vibrancy and innovation" -> correct

Keyboard Shortcuts

  • Left arrow: Previous question
  • Right arrow: Next question
  • S key: Jump to solution
  • Q key: Jump to question