Finding The Right Balance With Technology

Technology can help restaurant franchises reduce operating costs, streamline their operation, build customer loyalty, enhance quality, and create more personalized experiences for customers. But restaurants must carefully weigh the benefits of technology against the potential challenges it can create. An inability to strike the delicate balance of technology and service can impact already thin restaurant profit margins.

Through regular meetings with our restaurant franchise clients, we have an understanding of their technology decision-making process and have learned first-hand what has and has not worked. Following are some of the key learnings and best practices we have gleaned from conversations with our restaurant clients.

Putting Control in Customers' Hands

One emerging trend our clients are taking into consideration is the ability to put more control in their customers' hands, literally. Both quick service and fast casual franchises are experimenting with mobile ordering programs that enable customers to place orders from either their own mobile device or a device at their dining table.

These programs can boost ordering accuracy, create a more personalized dining experience, reduce costs, and enable on-the-fly menu changes. Restaurants can also use the data gathered through mobile ordering to learn more about customer preferences and enhance customer loyalty programs, which means more return visits and a better customer experience.

The Big Benefits of Big Data

According to our clients, restaurants aren't limiting technology initiatives to customer-facing applications. With advances in computing and storage technologies and analytics software, restaurants can glean more insight into customer behavior and in-store operations than ever before.

Big Data can help restaurants analyze in-store traffic, more efficiently schedule staff, fine tune their marketing promotions, streamline purchasing, and create menu options based on known customer preferences. Armed with this insight, restaurants can identify food trends and even create more successful marketing promotions based on sound customer insight.

Restaurants Carefully Weigh Tech Benefits and Challenges

Our clients know that incorporating new technology into their restaurants isn't without risk. They cite the high costs of implementation - which can increase exponentially depending on the number of locations they operate - as well as the potential risk to their reputations should customers have a negative experience with the technology. For example, some of our clients have decided against implementing mobile ordering because it may alienate customers who prefer a more personable dining atmosphere.

They also cite data security concerns as a significant factor in their decision-making process. While technology has made it easier for restaurants to collect data on customers and their purchasing behaviors, it has also created challenges around how to protect that sensitive information.

Assessing Goals and Prioritizing Are Key

Mobile ordering and Big Data are only two of the emerging trends that are changing the restaurant industry. A number of our clients are also investigating the viability of mobile payments, digital-enabled customer loyalty programs, IoT (Internet of Things) capabilities, smart kitchen equipment, and even location-based beacons.

With so many technology applications available, our clients know that they need to separate what they want from what they need. It's easy to become overwhelmed by the potential these applications offer, but one best practice is to begin by understanding the specific business challenges you're trying to overcome.

Whether you want to reduce costs, improve staff scheduling, or enhance the customer experience, knowing where you want to go is the first step in mapping out how to get there.

In the past, restaurant franchises viewed technology as a support function, but now they are looking to technology as a strategy, a way to learn more about their customers, streamline their operation, grow their business, and create a competitive advantage.

Resource: http://www.franchising.com/

New Technology To Streamline Operations For 57 Year Old Franchise

New Point-of-Sale System for Ziebart International Corporation is Bringing Big Changes to Store Operations

TROY, Mich. - Oct. 19, 2016 // PRNewswire // - Automotive franchisor, Ziebart International Corporation, announces the newest advancement to their franchise operations, a proprietary point-of-sale software solution called iBart.

All 100 U.S. locations have been converted to the new software including all franchised and corporate locations in 19 states.

"iBart provides a unique franchise owner experience with capabilities that include seamless operational benefits to enhance the overall experience for our customers," said James F. Levagood, Vice President Information Technology. "The technology allows franchisees more time to be spent with the customers and less time staring at a computer screen."

iBart allows franchisees the ability to capture large amounts of data efficiently and accurately, while spending less time on the computer and more time with the customer, heightening the overall customer service experience. From the newly designed User Interface, to emailing quotes, work orders and invoices, to automatically imaging all warranties, there are a lot of new features that benefit the consumer.

In addition, the iBart software is simplifying operations for our dealers with U.S. Post Office address validation with "auto correct", VIN # Bar Code Scanner and VIN # validation with "auto fill", automatic emails to the customer with an invitation to review the recent experience, automatic updates with the latest software version at start up, and unlimited tax schemes (county, city, state, national, etc.).

About Ziebart International Corporation

Ziebart International Corporation is headquartered in Troy, MI, representing a global franchise network of vehicle protection and appearance services for over 57 years. The company was founded on rust protection in 1959 and operates approximately 400 licensed locations with 800 processing centers in 33 countries. Ziebart is the world's leading name in automotive services that renew, protect, preserve, and enhance the appearance of cars and trucks. Ziebart offers a full line of appearance and protection services for both the interior and exterior of vehicles, including professional detailing, window tint, Z-Shield® paint protection film, vehicle wraps and graphics, genuine Ziebart rust protection and undercoating, Rhino-Linings® sprayed-on bed liners, and much more. Visit www.ziebart.com for more information.

Resource: http://www.franchising.com/

Realty ONE Group Celebrates Continuous Explosive Growth With October Franchise Expansions and Openings Across U.S.

IRVINE, CA--(Marketwired - Oct 12, 2016) - Realty ONE Group -- a dynamic, full-service real estate brokerage and the nation's fastest-growing independent real estate brand -- welcomes two brand new franchise locations to the ONE Family: Realty ONE Group Experience in Conroe, Tex. and Realty ONE Group Advantage in Lutz, Fla. In addition, Realty ONE Group proudly announces the expansion of Northern California franchise Realty ONE Group Complete to Sacramento, with a grand opening slated for October 13, 2016; as well as the expansion of the Realty ONE Group United franchise of Torrance, Calif. which is opening new office locations in Hermosa Beach and Downey, Calif. with a celebratory grand opening event planned for October 20, 2016.

These new and expanding franchise locations, with more to be announced this year, are a testament to the brand's continuous upward trajectory of unprecedented growth as a result of a philosophy that espouses advancing tomorrow's real estate professionals, today.

"It has been another year of outstanding growth and owner/broker success," says Kuba Jewgieniew, founder and CEO of Realty ONE Group. "It's certainly no coincidence that since Lou Gonzalez came on board in April as president of Realty ONE Group Affiliates, our franchise division has skyrocketed. His wealth of industry knowledge has been a significant force in attracting high-caliber owners and brokers like Jill Daniels and Abbie Holland of Realty ONE Group Experience, and Dara Khoyi of Realty ONE Group Advantage -- each exemplary of the unlimited potential a franchise ownership offers."

Greg McClure, who joined Realty ONE Group after ten years running his own award-winning brokerage and achieving top one percent agent status, is thrilled to open the doors of his second Realty ONE Group office in the heart of the state capital. The Sacramento location boasts over 7,000 square feet, with 19 private offices, three large collaboration workspaces, a large training space, an exclusive rock star entrance, a café, and a life-size purple cow in honor of Seth Godin's business book about separating from the flock.

"I had been approached by many other real estate brands in the past but no one came close to Realty ONE Group's unique model that reflects where the real estate industry is headed," says McClure, whose franchise flagship in Rocklin, Calif. experienced an explosive market entrance, quickly reaching 200 agents in less than two years and dominating the region. "Plain and simple, Realty ONE Group figured it out before anyone else. It's really about empowering real estate professionals. When they can be the CEO of their own business -- and their own life -- there are no limits to what they can achieve."

Realty ONE Group has taken quantum leaps since launching in 2005. Fueled by high-impact business intelligence, innovative marketing technology and unparalleled agent support, it has rapidly evolved into an authentic lifestyle brand that fosters a collaborative company culture where everyone matters, everyone has a voice and everyone wins. An industry disruptor successfully developing and advancing real estate professionals for the present -- and well into the future -- Realty ONE Group not only delivers extraordinary results that exceed client expectations but also enables its real estate professionals to continually reinvest in their own success.

"Without a doubt, Realty ONE Group has developed the most attractive real estate franchise model in the industry, with the numbers to prove it," Jewgieniew adds. "In 2016 alone, we've seen an increase of over 200 percent in transaction volume year over year (YoY), with affiliate growth up 53 percent in the first eight months compared to 2015 -- and the year's not over. There's no telling where we'll land on December 31st, but we're certain we'll be celebrating a record-breaking year and ready to outpace ourselves again in 2017."

Since 2012, Realty One Group franchise offices have grown 89 percent year over year, with a 51 percent YoY increase in sales volume and a YoY net agent count increase of 28 percent. For 2016, the brokerage reports an average of 142 transactions per month, a major jump from nine per month reported just three years ago in 2013. With agents closing 29,103 transactions representing 10 billion in sales volume since the beginning of 2016, it is likely Jewgieniew's predictions will be right on track.

For more information on the grand opening events scheduled for Realty ONE Group Complete and Realty ONE Group Experience, please contact Brea Ballard at brea.ballard@realtyonegroup.com or 949.596.7358.

To learn more about Realty ONE Group, visit www.RealtyONEGroup.com.

About Realty ONE Group: Founded in 2005, Realty ONE Group is an independent, fully integrated residential real estate company designed to advancing tomorrow's real estate professionals, today. Empowering real estate professionals to open new doors and change lives every single day. Privately-owned and 100 percent debt-free, Realty ONE Group has rapidly evolved into a dynamic and authentic lifestyle brand, with more than 8,500 real estate professionals in 72 offices across 17 states. Ranked among Inc. 500's Fastest-Growing Companies for seven consecutive years, Realty ONE Group not only delivers extraordinary results that exceed client expectations but also inspires the entrepreneurial American spirit, with franchise opportunities available across the nation and one simple fee structure that enables individuals to continually reinvest in their own success. To learn more, visit www.RealtyONEGroup.com.

Resource: http://www.marketwired.com/

Kohl’s Launches Active and Wellness Ambassador Campaign

MENOMONEE FALLS, Wis.--(BUSINESS WIRE)--Kohl’s (NYSE: KSS) announced today a new partnership with six healthy-living ambassadors to energize families through motivating wellness experiences and personalized content. The company is also making it even easier to find the right active solutions for everyone in the family by enhancing its portfolio of authoritative national brands with new offerings from fitness wearables leader Fitbit and global performance brand Under Armour. Kohl’s compelling combination of engaging partnerships and powerful brand expansions delivers an unmatched wellness experience for families.

"We know Kohl's customers want to live happy, healthy and fulfilled lives with their families and are looking for ways to bring fitness into real life," said Michelle Gass, Kohl’s chief merchandising and customer officer. "By connecting our customers to experts who motivate in this space with the launch of our ambassador program and providing inspiration with our growing brand portfolio with new brands like Under Armour, Kohl's makes it easy for families to integrate wellness into their lives."

New Partnerships

For the first time, Kohl’s has partnered with six leading experts in the industry to share inspiring wellness tips and product recommendations, showing families how fun and easy it is to make their move towards a healthy lifestyle. The cascade of information will include multiple consumer and fan touch points, including Facebook Live feeds, in-person workouts, demonstrations and more. The wellness ambassadors include:

Tone It Up – Karena Dawn and Katrina Scott are the founders of Tone It Up, a healthy lifestyle brand and community for women. Karena and Katrina are both healthy living and fitness experts, having inspired millions worldwide to pursue their best lives through a fun, energetic and positive approach to all things fitness and nutrition. The duo offers workout content and guidance, the Tone It Up Nutrition Plan and branded active gear and apparel. For Kohl’s, Karena and Katrina will share high-energy exercise routines and wellness tips to motivate families to stay active.

Kevin Curry – Kevin Curry launched the Fit Men Cook blog to share his healthy food ideas and keep his followers motivated on their fitness journey. He has mastered the art of creating mouthwatering dishes that are also affordable. His philosophy is that it is all about everyday people — no matter the fitness level or athletic ability — aiming to live the best life possible through fitness and healthy eating. Kevin will share easy-to-do cooking demonstrations and recipes proving how simple and delicious it can be to eat healthy.

Bob Harper – With more than 20 years of experience, Bob Harper is a health and fitness expert, host of NBC’s The Biggest Loser, celebrity trainer and three-time #1 New York Times best-selling author. He is a proven lifestyle expert who is known for full-body exercises and nutrition plans for anyone on a fitness journey. Bob will provide a variety of fun ways for everyone in the family to get moving and enjoy the outdoors.

Sophie Jaffe – Sophie Jaffe is a health and wellness expert, certified as a raw food chef and yoga teacher. She launched Philosophie, a blog with the goal of making it easier, more inspiring and more delicious to attain optimal health and wellness. Sophie’s content for Kohl’s will focus on tips for families to find balance and get active.

Jordan Younger – Jordan Younger is the blogger behind the wellness and lifestyle blog The Balanced Blonde and is the author of the finding-balance memoir Breaking Vegan. She has emerged as a leading voice in the space due to her authenticity, unique voice, passion for all things wellness and relatability. Jordan’s tips and advice will guide families on how to start small on their healthy eating journeys.

Alicia Archer – With a background in dance, Alicia shares her fitness to showcase the power of movement as it relates to living a healthy and active lifestyle. She demonstrates new and exciting ways to get moving, whether in a yoga studio, in a city setting or exploring a new neighborhood park.

Amazing Product

Kohl’s also offers the right mix of products to ensure families across the country can find everything they need to reach their wellness goals. This includes new brand and product offerings with the launch of Under Armour, one of the most authentic and fastest growing active brands in the world, and new fitness trackers and accessories from Fitbit, the pioneer and leader in the connected health and fitness market. These are on top of what customers can already find on shelves with Nike, Columbia, New Balance, adidas and more.

Under Armour – The introduction of Under Armour performance apparel, footwear and accessories in early spring 2017 will be the biggest brand launch in the history of Kohl’s, reinforcing its promise to deliver powerful and relevant national brands that customers want. The innovative, performance-focused brand will take Kohl’s active offerings to a new level both in store and online. Under Armour products, designed to make all athletes better, will be available for the entire family, including men's, women's and youth.

• Fitbit – Kohl’s has expanded its collection of Fitbit devices with exclusive accessory styles and new product offerings for consumers to have even more choices to express their personal style while leading a healthy, active lifestyle.

• Products available now include:

• Fitbit Alta Activity Tracker ($129.99), a slim, sleek customizable fitness wristband with motivational health and fitness features.
• Fitbit Alta Special Edition Gold Series Activity Tracker ($149.99), a hand-polished, gold-plated, stainless steel tracker available in pink or black classic fitness band. Find the pink colorway for a fresh look exclusively at Kohl’s stores nationwide, Kohls.com and Fitbit.com. Additional accessories sold separately.
• Five exclusive Simply Vera Vera Wang for Fitbit Alta ($79.99) accessory designs inspired by Vera Wang’s signature style, ultimately creating unique accessories for everyday wear. Activity tracker sold separately.
• Fitbit Charge 2 Heart Rate Activity Tracker ($149.99) fitness wristband featuring innovative health and fitness tools based on its continuous wrist-based heart rate tracking technology, an enhanced fitness experience, smarter technology and a sleek new look with interchangeable bands that can easily go from a workout to a night out.

• New merchandise available this November includes:

• Fitbit Flex 2 Activity Tracker ($99.99), the first-ever swim-proof fitness wristband from the company, features an ultra-slim design and removable tracker to effortlessly track all-day activity, exercise and sleep in a style that can be personalized.

• Two Simply Vera Vera Wang for Fitbit Flex 2 hinge bangles ($69.99) that mix super-sleek black or silver metal with understated silicone to create a casual and chic bracelet option for versatile wear. Activity tracker sold separately.

Engaging Experiences

This holiday, make your move with Kohl’s by kick-starting the season with an exciting Under Armour customer challenge called “Maintain Your Momentum.” The healthy eating motivator and sweepstakes encourages and rewards participants to log 15 meals on their MyFitnessPal app account during the month of November. Once the 15 meals are recorded starting November 1 through November 30, participants can enter for a chance to win an Under Armour HealthBox Connected Fitness System and Kohl’s gift card. Find additional contest information and terms and conditions at MyFitnessPal’s mobile app.

Incredible Savings

On top of offering amazing national brands for all active and wellness needs, Kohl’s makes it easy to save. Customers who sign up for Kohl’s Yes2You Rewards will find extra savings every time they shop. Members earn one point for every dollar they spend, no matter how they pay, with no limit on points earned and no cost to join. They also receive a $5 reward for every 100 points in addition to other exciting benefits, like guaranteed savings offers, chances to earn bonus points and more. Only at Kohl’s, customers can earn $10 Kohl's Cash for every $50 spent in store or online during Kohl’s Cash promotions. Best of all, there is no limit to how much customers can earn, and they can use it to save on a future purchase.

About Kohl’s

Kohl’s (NYSE: KSS) is a leading specialty department store with more than 1,100 stores in 49 states. With a commitment to inspiring and empowering families to lead fulfilled lives, the company offers amazing national and exclusive brands, incredible savings and inspiring shopping experiences in-store, online at Kohls.com and via mobile devices. Committed to its communities, Kohl’s has raised nearly $300 million for children’s initiatives nationwide through its Kohl’s Cares® cause merchandise program, which operates under Kohl's Cares, LLC, a wholly-owned subsidiary of Kohl's Department Stores, Inc. For additional information about Kohl’s philanthropic and environmental initiatives, visit http://www.Kohls.com/Cares. For a list of store locations and information, or for the added convenience of shopping online, visit www.Kohls.com.

Resource: http://www.businesswire.com/

Constellation Brands Announces Agreement to Purchase Brewery in Obregon, Mexico

VICTOR, N.Y., Oct 31, 2016 - (ACN Newswire) - Constellation Brands, Inc. (NYSE: STZ and STZ.B), a leading beverage alcohol company, announced today that it will submit to the U.S. Department of Justice a proposal to acquire a brewery operation from Grupo Modelo, a subsidiary of Anheuser-Busch InBev SA/NV for $600 million. The brewery, located in Obregon, Mexico, is expected to have four million hectoliters of production capacity with minimal investment and optimization by Constellation after closing. This transaction is subject to customary closing adjustments and U.S. Department of Justice and Mexican regulatory approvals. The acquisition of the Obregon brewery allows Constellation to immediately obtain functioning brewery capacity to support its fast-growing, high-end Mexican beer portfolio and provides flexibility for future innovation initiatives. It also enables the company to become fully independent from the interim supply agreement with Grupo Modelo. As a result, Constellation will phase the buildout of 10 million hectoliters at Mexicali, with the first 5 million hectoliters of production capacity expected to become operational by December 2019, and subsequent capacity planned to align with future growth.

"We believe this is the right strategy to provide near-term capacity and greater flexibility to support our growth and innovation plans, while allowing for the buildout of our Mexicali brewery over an extended time period," said Rob Sands, president and chief executive officer, Constellation Brands. "We look forward to welcoming Obregon's talented employees to our Constellation family and working together to continue to capture the ongoing growth opportunities we see in the high-end segment of the U.S. beer market."

The Obregon brewery is located on Mexico's west coast in the state of Sonora, and will help service Constellation's largest beer markets in the western U.S. The majority of Obregon's production is currently satisfying the interim supply agreement today, so it is expected to be a smooth transition during the continued expansion of the Nava brewery and the buildout of the Mexicali brewery.

"The magnitude of our long-term investments in Mexico largely remain the same. The revisions to our operating plans essentially represent an initial shift in spend to Obregon from Mexicali. This will result in an increase in our free cash flow estimate for fiscal 2017 to a range of $575 - $675 million," said David Klein, executive vice president and chief financial officer, Constellation Brands. "As originally outlined, Mexicali is scalable to 20 million hectoliters to support the future growth of our beer business, which continues to significantly outperform the U.S. beer market."

Resource: http://en.acnnewswire.com/

EXHIBITOR Magazine to Manage ISE 2017 Stand Design Awards in Amsterdam

EXHIBITOR magazine is proud to announce the launch of the first ever ISE 2017 Stand Design Awards, Organized by EXHIBITOR Magazine. The new initiative is hosted by Integrated Systems Europe, the world’s largest audiovisual and systems-integration trade show (held in Amsterdam Feb. 7–10, 2017), and managed solely by EXHIBITOR magazine, an award-winning monthly publication featuring best practices for trade show marketing. 

Created to acknowledge ISE exhibitors and their exhibit-design efforts, the free competition is open to all of the show’s roughly 850 exhibits. Entries will be judged according to three size-based categories: 6–39 square meters, 40–100 square meters, and more than 100 square meters. 

EXHIBITOR magazine’s editor, Travis Stanton, along with senior writer and awards-program manager Linda Armstrong, will be on site for the duration of the show and will complete the initial round of judging to select the finalists. Stanton has served as editor of EXHIBITOR magazine since 2005. He has written and spoken about stand-design trends at numerous trade shows and conferences, including EXHIBITORLIVE in Las Vegas, EuroShop in Dusseldorf, Germany, and the International Federation of Exhibition and Event Services' world summits in both Cape Town and New Delhi. He also launched EXHIBITOR magazine's Expo Awards competition in 2010, which has honored the most exceptional experiential designs at the three world expos since, held in Shanghai, Milan, and Yeosu, South Korea. In addition, Stanton has juried multiple editorial and design competitions, including the American Society of Business Publication Editors' Azbee Awards and the Western Publications Association's Maggie Awards competitions. 

Armstrong has written about exhibit marketing and stand design for more than 15 years, during which time she has also managed EXHIBITOR Magazine’s Exhibit Design Awards, an internationally recognized stand-design competition now in its 31st year. In this role, she has selected world-renowned design experts to jury the competitions and has been part of every jury process since 2002. 

During ISE, a group of highly esteemed designers and marketers will be on site to judge the finalists. Jurors will consider how well each stand: demonstrates effective design realization/fabrication, delivers cohesive and effective graphics, offers clear organization/wayfinding, presents an effective lighting design, employs the allotted space, and more. A minimum of three finalists will be selected in each category and notified on the show floor. One winner per category will be selected, and the three winners will be announced at an Awards Ceremony on Thursday, Feb. 9. For additional information on the awards and ISE 2017, go to www.iseurope.org/sdawards. 

About Exhibitor Media Group

The leader in trade show and corporate event marketing education, Exhibitor Media Group publishes the award-winning EXHIBITOR magazine, a monthly publication featuring best practices in trade show marketing. EXHIBITOR'S Learning Events include: EXHIBITORLIVE, the training conference for trade show and corporate event professionals; EXHIBITORFastTrak accelerated learning conferences; and EXHIBITOR eTrak, professional online learning. Exhibitor Media Group is also the founder and sponsor of CTSM (Certified Trade Show Marketer), the world's only university-affiliated professional certification program.Learn more at www.ExhibitorOnline.com. 

EXHIBITOR is a registered trademark, and EXHIBITORLIVE, EXHIBITORFastTrak, and EXHIBITOR eTrak, are trademarks of Exhibitor Publications, Inc. in the USA and other countries. All company and/or product names may be trade names, trademarks and/or registered trademarks of the respective owners with which they are associated.

Resource: http://www.exhibitoronline.com/

Corporate governance standards intact, Ratan Tata assures LIC

NEW DELHI: Ratan Tata, the interim chairman of Tata Sons, has assured Life Insurance Corporation of India (LIC) that publicly traded group companies will uphold “proper governance standards” and decide independently about former chairman Cyrus Mistry’s continuation on their respective boards. 

Tata also told LIC that corporate governance standards have not been compromised at Tata Sons or in any group company, people close to the discussions told ET. Mistry’s fate as board director on Tata Group companies will be decided by their individual boards, the investors were told. 

“We were apprised that all listed firms will soon take a decision on Mistry’s continuity on their respective boards,” a person close to the discussions said. A spokesperson for the Tata Group declined comment when contacted by ET on this issue. 

Mistry is currently chairman of some of the biggest Tata companies such as Tata Motors, Tata Steel, TCS and Tata Power. 

LIC holds 13.62% in Tata Steel as per stock exchange filings dated September 30, the valuation of which is around Rs 5,200 crore as of Friday. Ratan Tata met the acting chairman of LIC, VK Sharma, on Thursday amid concerns that Tata Steel, in which LIC is the second-largest shareholder after Tata Sons, may have to take potential impairments running into billions of dollars. 

In a scathing letter to the Tata Sons board after his dismissal, Mistry warned that Tata Steel’s European acquisition “faced potential impairment in excess of $10 billion only some of which has been taken as on date”. 

Mistry was referring to the acquisition of Corus for about $13 billion in 2006. He also raised issues of corporate governance in some of the group companies in his letter. Mistry said there were ‘legacy hotspots (IHCL, Tata Motors PV, Tata Steel Europe, Tata Power Mundra, and Teleservices)’ facing a potential “writedown over time of about Rs 1,18,000 crore”. 

The missive forced Tata Sons to rush to calm investors. Koushik Chatterjee, the chief financial officer, assured some investors about the firm’s commitment to its strategy of downsizing and deleveraging. 

Other Tata Group officials also explained the Tata Sons board’s position to all investors and briefed them on the sudden ouster of Cyrus Mistry in separate meetings, a person privy to the discussions said. 

“We were told that Cyrus Mistry had lost faith of the board at Tata Sons but there are no corporate governance issues as mentioned by Mistry in his letter to the board,” the official told ET. 

Some investors were concerned about the way Mistry was axed, according to some Tata Group officials though they acknowledged that “Mistry’s management style was very different from that of Ratan Tata’s and one could argue that it was a divergence from the prevalent culture”. 

LIC’s stake in TCS alone, considered a cash cow for the group, is worth Rs 14,400 crore as per Friday’s closing price of the publicly traded scrip. Its other investments in Tata Group companies include a 5.2% stake in Tata Motors valued at around Rs 8,000 crore and a 13% stake in Tata Power valued at around Rs 2,700 crore. 

GOVT WATCHING 

The government is keeping a “close watch” on developments at Tata Sons but does not want to interfere in the “internal matter” of a private group, Minister of State for Corporate Affairs Arjun Ram Meghwal said in Gandhinagar on Friday. 

“This is an internal matter of Tata Sons... Since Tata is a major group, we are keeping a close watch on the developments. However, we don’t want to interfere in the matter at present.” 

A finance ministry official said the government will not give any directions to its state-run financial institutions on the fracas and that they enjoy complete autonomy in deciding what to do. 

Other public institutional investors in the group’s various firms include state-run general insurer New India Assurance Company, with 1.17% in Tata Steel and 1.34% in Tata Chemicals, and General Insurance Corporation of India with 1.52% in Tata Chemicals. Both the insurers hold nearly 2.5% each in Tata Power 

Resource: http://economictimes.indiatimes.com/