Features

Contributing to
the Success of
Contrasting
Business
Organisations
By Daniel Shenoy
9956
12a
Pearson BTEC Level 3
International Subsidiary Diploma
in Business
Tata Group & Oxfam
Table of Contents:
1. Introduction
 Purpose of the report
 The Scope of the report
2. Explaining the features of two contrasting
businesses
 Being a company
 Purpose of the companies
 Ownership of the companies
3. Explaining how two contrasting business
organisations are influenced by stakeholders
 Internal Stakeholders
 External Stakeholders
 How are they affected by the stakeholders?
4. Exploring the organisation structures, aims and
objectives of two contrasting business organisations
 Aims & Objectives
5. Assessing the relationship and communication with
stakeholders of two contrasting business
organisations using independent research
 How the companies communicate with its stakeholders?
6. Analysing how the structures of two contrasting
business organisations allow each to achieve its aims
and objectives
 Tata Group of Companies
 Oxfam
 Comparision
7. Evaluating the reasons for the success of two
contrasting business organisations, reflecting on
evidence gathered
 Elaborative Explanation on the reasons of success of each
business
8. Conclusion
 Summary of the report
 References

Introduction:
In this, I have researched about 2 contrasting businesses, A conglomerate
company (Tata Group) & A not for profit organization (Oxfam Charitable
Organization). In the following, I am going to explore the characteristics
of these businesses and show the contrast and comparison between the 2
companies’ ownership and liabilities, industrial sectors and purpose of
both the companies.

1/A.P1 Explain the features of two contrasting businesses

Tata group is a Indian Based Company that functions as a global

organisation and its global footprint spans more than 100 countries in
Asia, Europe, Africa, Australia, North & South America. There are 1,765
Tata Motors Cars Showroom just in India. The company has been
international since its establishment way back in 1868, Mumbai, India by
entrepreneur and philanthropist Jamsetji Nusserwanji Tata.

Their Range of businesses include automobiles, chemicals, engineering,

energy, consumer products, financial services, telecommunication,
materials and information systems.i

Just after 34 years in 1902, Tata group incorporated the Indian Hotels
Company through which they could commission the Taj Mahal Palace
and Tower which was India’s First Luxury hotel. After Mr Jamsetji’s
Death in 1904 Sir Dorab Tata took over and after his death in 1932 Sir
Naoroji Saklatvala became chairman. Currently, Natarajan
Chandrasekaran is the chairman of the Tata Group.

Being a Public Limited Company

Tata group is a Conglomerate Company, and the organisation is in the
private sector therefore the companies that are a Public Limited
Company, their shares can be sold on the stock exchange to its public,
And the companies that are a Private limited Company sell their shares to
family and friends. In the favor of Tata Group, there are a few advantages
of being a public limited company (PLC) is: Shareholders have a limited
liability ensuring that there is no personal responsibility towards the
losses the that Tata group incurs; also Tata group being able to raise
finances through the selling of shares (share capital). There are also a few
advantages of being a Private Limited Company (Pvt): Privacy and
limited liability is the one of the main advantages, this allows confidential
matters to remain within the circle of owners only; Being a Pvt also being
more control of the business remains with the business as the shares can
only sold to certain people who are trusted by the companies’
management.
The Purpose
Tata’s main purpose of the Tata Group is to function at its best capacity
and progressively grow as a “values-driven organisation, enclosing a
diverse range of businesses”. Tata Group operates all throughout the
world, and has a strong base of Leadership with trust as per its values.
These values continue to direct the growth and functioning of all the Tata
Companies, spotlighting ethical business practices, social influence and
responsibility.ii

Ownership
The ownership of Tata group of companies is rather intricate due to its
conglomerate nature with a legion of companies operating in various
different industries of the world. Tata Sons is the parent company of the
Tata Group. Tata Sons is a private company and its control is with
charitable trusts, fundamentally the Tata Trusts, and also individual
shareholders within the Tata family. A few Tata Trusts include, Sir
Dorabji Tata Trust, Sir Ratan Tata Trust, J.R.D. Tata Trust, and Tata
Education and Development Trust. These trusts are focused on charitable
activities and own a notable portion of the shares in Tata Sons.

Advantages of Tata Group being owned this way include: Privacy

and Confidentiality as their strategies and financial details will
stay within trusted sources. Control over decision making will also
be a crucial advantage as the owners are small scale and not large
in numbers.

Disadvantages of Tata Group being owned such this way include: The
main disadvantage may be Limited External Investment as attracting
external investors or even raising capital through public offerings may not
be widely obtainable. Potential for Lack of Inventions may also arise as
this ownership structure may prove as hindrance to new innovations and
creative thoughts within the workplace.
Oxfam is an international non-profit, registered charity that works
alongside with different businesses that vary in sizes, to spread awareness
and info on global poverty. Oxfam was first set up in England in the year
1942.

Up till today, Oxfam is currently the leading charity in the international

non-governmental organisation world, and their reputation with their aid
and work is remarkable, their work comprises of 13 different
organisations working within the charity with over 3,000 partners around
the globe in over 100 different countries.

Being a Non-profit organisation

Oxfam is run globally run with many paid personnel (300 globaly and
50,000 total including volunteers) and a CEO (Dr Dhananjayan Danny
Sriskandarajah) who manages the staff and the press for the
Establishment. Nonetheless, every decision within the charity is approved
by a panel of 12 trustees who are well-informed about their roles and
objectives. These trustees' actions are influenced by the votes or guidance
from the donors, signifying their obligation to adhere to the preferences
of the members.

The Purpose
Oxfam's objective is to establish enduring solutions for poverty-related
injustices. They execute sustained developmental programs to:
- Alleviate poverty and alleviate suffering
- Raise awareness about poverty
- Advocate for improved healthcare services accessible to all
- Campaign for a better and fairer world for all to live in

Oxfam works in the private sector, part of the economy that is not
government controlled. Whilst also being in the tertiary sector as they
provide useful service to the public.
Ownership
Oxfam is owned by many people globally. Oxfam is a charity, therefore
they are not officially 'owned' by anybody, but there will be paid staff and
a CEO. Oxfam has directors of trustees, and as the directors take on the
role to follow their members or donators desires and do what they aim,
They set a fair example of these roles and are elected to do what would be
to help third world countries or even supply good healthcare and help
people exercise their rights, also to provide a good education, dropping
the issue of illiteracy and limiting poverty throughout the world.

1/A.P2Explain how two contrasting business organisations are influenced

by stakeholders

A stakeholder is a person who is interested in being involved with the

businesses decisions and they can directly be affected by the businesses
decision and also their decisions could affect the business.
There are 2 types stakeholders, internal stakeholder and external
stakeholder.

Internal stakeholders
They are linked directly with the business such as employees, directors
and investors.
External stakeholders
They are not directly involved in the business such as customers,
suppliers, government and even the community near the business.

Stakeholders and Shareholders are not the same and there is a

understandable difference. A shareholder is mainly interested in the
financial aspect and is free to separate from the business organisation at
any given time, whereas the stakeholders will be held bound by certain
contracts and interests. A stakeholder is important to the company so that
the business runs smoothly and efficiently and reach their goals on time.

How is Tata influenced by stakeholders?

From the perspective of Tata Group, all their stakeholders are important.
Not all stakeholders hold the same level of importance or influence.
However, there are some stakeholders who obviously have more power
compared to the others such as the director of the company as these
people prioritize the company’s strategic directional growth.
How is Oxfam influenced by stakeholders?
Oxfam is a charitable trust but just like Tata, even Oxfam has
stakeholders who have a surprisingly significant impact on the non profit
organisation because each of them can easily affect the organisation’s
profits, efficiency and even the working environment. When it comes to
NGO’s stakeholders include Donors, Volunteers, Staff, Government,
Partners, Local Communities and Board of directors or Trustees. The
main concern of the stakeholders is that the mission of the organisation
always turns out to be successful.

1/B.P3 : Explore the organisation structures, aims and objectives of two

contrasting business organisations.

Each and every business has an aim and objective to ensure great success
and continual growth of the business to reach certain targets. Most
businesses follow the SMART framework, so that they can ensure that
their objectives are thoroughly interpreted, accomplishable and aligned
with the organization’s strategic decision leading to an efficient goal
fulfilment.
S- Specific
M- Measurable
A- Achievable
R- Relevant
T- Time Bound

Aims & Objectives of Tata Group:

The Tata Group’s goals revolve around social welfare, sustainable growth
and also technological growth. Key goals for involve promoting
economical development, revolution, innovation, promoting class
education and healthcare and ensuring development of the employees and
their well-being simultaneously. These goals convert into initiatives in
many different sectors which range from steel, social sciences and energy
to even technology and leadership development.iii

Aims & Objectives of Oxfam:

Oxfam is an international organization and registered charity with over 70
years of experience. Oxfam is a global movement; Their goal is to create
lasting solutions to the injustice of global poverty. As a charity that has
been operating very successfully for many years, our aims and objectives
must be relevant and effective. Oxfam is currently developing a 6-year
strategic plan with goals and objectives for the next 6 years. Over the next
six years, their goal is to “envision a world in which everyone can
influence the decisions that affect their lives.” Oxfam went on to say that
people should exercise their rights and responsibilities as human beings
and should be equal and valued.iv

1/A.M1 : Assess the relationship and communication with stakeholders of

two contrasting business organisations using independent research

Tata Group’s methods of communication with their stakeholders

Tata Group productively communicates with stakeholders through their
website, social media, internal portals, and press conferences. Tata state
that they communicate with different stakeholders in different ways. v
I will be talking about a few stakeholders here:
1. Directors/Managers
2. Employees
3. Suppliers
4. Customers

Directors/Managers:
These individuals also represent Tata Group as an internal
stakeholder.Tata Group uses a variety of ways to talk to its Directors and
Managers. They hold meetings and discussions where the Directors share
important plans and interesting updates with each other, Opinions of each
and everyone present in the meeting are taken into consideration keeping
in mind the values of the company. The duty for these Directors and
Managers are to maximise the profits for the company and ensures that
the employees of the business are calibrated correctly towards the aims
and goals of the business. Emails and Letters are also sent out to inform
them about any sudden changes as calling a meeting for every small task
is a waste of time and energy for everyone. Also, they use portals
accessible only by internal people of the company for additional
productivity.

Employees:
They also serve as internal stakeholders representing the Tata Group.
They ensure their employees stay informed of the company’s activities
using various communication approaches. Tata Group’s official website
is a sophisticated and detailed platform for sharing important updates.
The company website also contains information such as the company
policy as well as the resources related to its operations. They also send
emails and newsletters to employees to keep them informed about the
latest developments and events. Within the company, they have an
interesting intranet system where employees can access company-wide
announcements and many more.

Suppliers:
One of Tata’s External stakeholders. The company has to stay in touch
with its suppliers so that their company can grow to become better, they
use many methods to achieve this goal. They often appoint worthy people
to go meet the suppliers and have face to face discussions and negotiate
with them about pricing and also to talk about upcoming orders and
delivery plans. Emails are also a huge and probably the main form of
communications between Tata and its different suppliers. Alternatively,
they can also use an online platform or a portal where suppliers can log in
to access details about their orders, payments and any changes to their
requirements. This way, the Tata Group ensures smooth and effective
communication with its suppliers and also reduces time wastage, which is
vital for a successful business relationship.

Customers:
They represent Tata group as a major external stakeholder, and without
these individuals or groups the company won’t be able to succeed in
whatever they do, Therefore they are one of the most important
stakeholder out of every other one. The business keeps in close touch
with its customers through a diverse range of methods. They use their
website to share important information, updates, and details about their
products and services. Social networks like Facebook, Twitter and
Instagram help them reach a wider audience. They also send newsletters
via email, which is another way to keep customers informed. Customer
feedback is also important and that’s why they often run surveys or
feedback forms to find out what customers prefer and think of their
existing products or services. If the customers have any problems or
concerns, they have a customer service center and helpline contact
number to help them with every query and issue. All these methods help
the Tata Group stay connected and aware of the needs and desires of its
customers.

Oxfam’s methods of communication with its stakeholders

Oxfam uses a variety of methods to communicate with their stakeholders.
Few of their Main Stakeholders include:
1. Volunteers/Staff
2. Donors and Funders
3. Local Communities and the Public

They maintain an active online occupancy through their official website

with all their above mentioned stakeholders,vi where they share updates,
reports, and stories related to their projects and campaigns on how their
making our world a better place. Social media platforms such as
Facebook, Twitter and Instagram are also used to interact with a wider
audience and publicize their initiatives. Oxfam often communicates
through electronic newsletters, sharing information about work and
participation opportunities. Additionally, they use traditional media and
press releases to reach a wider audience of the older generations and
convey their message effectively. Additionally, they regularly collaborate
with local communities and partners to help around with philanthropic
activities, engaging in direct communication to understand their needs
and involve them in the decision-making process. Overall, Oxfam uses a
combination of online and offline communication strategies to effectively
engage and inform stakeholders of the organisation’s doings.

Volunteers/Staff
They are mostly interested in fair pay for their labour and making the
world a better place for the rather less fortunate people. They are Internal
Stakeholders for Oxfam, and for their voices to be heard by the main
leaders of the organisation they are required to attend general meetings
held annually with the trustees and directors where all the concerns each
staff has will be answered.

Donors/Funders
These individuals play a very vital role in the Not for profit organisation’s
life. Without them Oxfam’s mission to control and reduce poverty won’t
be possible at all. The Donors and Funders also provide for humanitarian
aid and also help promote fairness amongst the public. They are usually
the main people behind the success of a certain project, program and even
campaigns all around the world.

Local Communities and the Public

The local communities could also very possibly come under as part of the
Donors and Funders as well as Staff and Volunteers for each and every
campaign. A few other reasons why the Local community helps Oxfam is
by raising awareness of their tasks and doings, as well as giving active
and passive feedback as to how things are working out for Oxfam.
Oxfam engages with their local communities through regular meetings
and workshops. Interactive radio broadcasts, visual aids, and local
language materials ensure clear, understandable and accessible
communication by all types of viewers.

1/B.M2 : Analyse how the structures of two contrasting business

organisations allow each to achieve its aims and objectives

Tata Group of Companies

The Tata Group’s Organisational structure follows the Hybrid
Organizational Structure that combines elements of both functional and
divisional structures, which not only balances centralized administration
and decentralized operations, it also allows for diverse business activities
and alliance among their companies. This amazing approach promotes
innovation as well as research and development, in line with their goal of
maintaining cutting edge technology and many other premium services.
Emphasizing on sustainability and social responsibility, a dedicated team
has been alloted and they incorporate these principles into business
strategy. Prioritizing the customer’s experience is maintained through a
strong focus on understanding and meeting the customer’s demands and
needs, thereby contributing to Tata’s market expansion. Investing in
employee engagement and partnerships with external organizations
further aligns with Tata’s overarching aims and goals of comprehensive
growth and social impact, demonstrating their spirit of responsible
corporate citizenship.vii
Oxfam
Oxfam's organizational structure is designed to align effectively with the
organization's objectives, aims and goals. They follow the Matrix
Organizational Structure and it involves a combination of both functional
and divisional structures. It operates as an alliance of independent
charities, ensuring a decentralized approach with local freedom. This
structure facilitates rapid decision-making and adaptability to the unique
needs of different regions and communities. Centralized coordination
across the alliance enables the sharing of the best application, resources
and strategic information, optimizing collaborative advantages and
maximizing impact across all projects. Additionally, this framework
emphasizes collaborative engagement with local communities, ensuring
that their needs, wants and perspectives are at the heart of their program
design and implementation. Overall, this flexible, community-centered
organizational structure allows Oxfam to work effectively to achieve its
mission of reducing poverty and advocating for social justice around the
world.viii

Comparision:
Oxfam adopts a decentralized and collaborative organizational structure,
which facilitates rapid decision-making and effective resource allocation
for humanitarian aims and goals. In contrast, the Tata Group's complex
and decentralized organizational structure effectively manages a diverse
business portfolio, driving innovation and growth across various sectors.
Despite having different goals, both structures effectively serve their
respective purposes.
1/AB.D1 : Evaluate the reasons for the success of two contrasting
business organisations, reflecting on evidence gathered.

The success of Oxfam and the Tata group is due to different but yet
effective strategies. Oxfam, as a renowned non-profit organization, has
excelled through its dedication to humanitarian activities and strategic
partnerships. The proof lies in the substantial network of volunteers,
donors and community collaborators, demonstrating a strong community-
centered approach. On the other hand, the Tata Group's success can be
attributed to its diversified business model, global presence and list of
futuristic innovations available to everyone. Tata’s performance is clearly
demonstrated through a series of successful subsidiaries spanning many
fields as well as continuous research and development efforts. Both
entities succeed by remaining true to their core missions: Oxfam solves
social problems and the Tata Group by driving business growth and
innovation.

Oxfam's success is based on its commitment to social justice, effective

scheme and stratergy delivery, transparency and collaborative approach,
while the Tata Group's success is based on strategic business decisions, a
very diverse portfolio, upheld commitment to quality and integrity, and a
strong focus on the social aspects of the business responsibility.

Both organizations prioritize collaboration and partnerships, from

Oxfam's alliances with various different governments and NGO’s to
Tata's strategic acquisitions initiatives and global alliances, demonstrating
the importance of cooperate and teamwork to achieve their goals.

Conclusion
In conclusion, the successes of Oxfam and the Tata Group highlight the
different but effective paths that the organizations can take to make a
difference in our world. It also provides insight into the organization's
areas of success. On the contrary, we found a valuable lesson: success is
not a single concept but a dynamic interaction between the organisation’s
vision, strategy and its values.

References
i
https://www.britannica.com/topic/Tata-Group

ii
https://www.tata.com/about-us/tata-values-purpose

iii
https://tatainternational.com/about-us/vision-mission-values/#:~:text=To%20be%20the%20most
%20reliable,creator%20for%20all%20our%20stakeholders.

iv
https://www.oxfam.org.uk/

v
https://www.tatacommunications.com/apps/online-sustainable-development-report-2021/stakeholder-
engagement.html

vi
https://www.oxfam.org/en

vii
https://www.tata.com/business/tata-strategic-management-group

viii
https://studycorgi.com/the-oxfam-organizations-information/