TP Ajmer Distribution Limited: Managing Change in a New Business Model
(9 pages of text)
In July 2017, with a proven track record in power distribution in Delhi and Mumbai, Tata Power Co Limited incorporated a new organization called TP Ajmer Distribution Limited using the distribution franchise model in Ajmer, Rajasthan, India. The new company was created in partnership with the state government company Ajmer Vidyut Vitaran Nigam Limited as a strategic partner. One year later, the management team had to overcome various challenges including recruitment from diverse private and public sources, a limited competent talent pool, a lack of administrative and technology infrastructure, many first-time managers, a scattered team concept, a silos working style, a low level of work experience, and a dated distribution network. To ensure a successful transition, the new company had to streamline business processes and establish an organizational culture of safety, excellence, quality, and ethics consistent with the Tata name. The company had to decide whether to adopt the organizational culture of its parent company, create and entirely new culture, or customize its own culture based on Tata Power principles.
This case is suitable for graduate-level courses on strategic planning and management, organizational culture, and change management. After working through the case and assignment questions, students will be able to
- analyze a new branch of a major power distribution company using the strengths, weaknesses, opportunities, and threats (SWOT) framework;
- understand the challenges involved in developing a new organizational culture for a new branch organization with a diverse workforce; and
- devise a change management strategy for a new branch organization after all other relevant factors have been modified.
India, Large, 2018
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