IN a proactive strategy to orient the group towards challenges posed by the World Trade Organization(WTO) regime, the Tata group has initiated a group-wide audit based on an indigeneously designed "WTO diagnostic model".

According to Tata group economic adviser Jiban K Mukhopadhaya, this is a pioneering effort on the part of the group to have initiated the audit. It will assess each company on WTO-related issues so that its competitiveness can be gauged vis-a-vis the Indian economy as well as the global economy. Based on the audit, hidden assets of each business of the company will be analysed so that it can be competitive enough not only to face the challenges of posed by the post-WTO regime but also to take the opportunity as the whole world can be tapped as a market.

The model designed by the group at the WTO cell, set up in the department of economics and statistics, entails a three prong strategy of developing the concept followed by a comprehensive methodology and then a scoring pattern on the basis of which the audit of each company will be assessed.

As part of the strategy, the companies under the traditional economy, mainly those belonging to the manufacturing sector, followed by the services sector will be put through the audit first.

Among these companies, the audit will be extended to those which subscribe to the Tata brand name in the Tata Brand Equity Promotion Scheme.

While the audit of the entire group is expected to take almost two years, the first report of the company already under audit will be out within three months. However, the name of the companies were not disclosed.

The audit, aiming to assess the global competitiveness of the group, will expose all operational details of each company. Based on this, a blueprint of the strategies will be worked out so as to tap the opportunities followed by the action plan to work towards it.

According to Mr Mukhopadhyay, the WTO audit is basically a global competitiveness audit which all companies need to do so as to draw a blueprint of the action plan.

Instead of taking it as a threat, this should be taken as an opportunity to rediscover the hidden assets of the companies. In fact, most of the Indian companies have great potential but do not get translated into action.