Week relationship between group companies:

Lack of coordination could cause the companies to compete against each other. For example
TISCO, ACC Chemicals and TATA established huge cement plants which could lead to a
conflict in future. Also mentioned in the case, for stronger collective identity of different
groups, they introduced a Brand Equity Scheme because under the common brand the
companies could derive mutual benefit. The major advantage of a single or common brand
would give the companies a high reliability. Rotation of exectives with in the group
companies also enhances the relationship between them. A committee would be setup to
facilitate decisions regarding brand promotion.
Lack of Brand Image or unified TATA brand:
For the promotion of unified TATA brand they introduced a Brand Equity Scheme.
According to this scheme the subscribing companies require an annual contribution in order
to meet the expenses related to development, promotion and protection of this brand. The
main purpose of this scheme is to create a single strong equity that will benefit all the
companies. To facilitate high quality and ethical practices, a common code of conduct and
guidance play a vital role. So in this way they tried to overcome the problem that lack of core
values and ethics.