CasesNupur Pavan, Bang; Ramachandran, Kavil. "The Unfinished Agenda: Dr. Reddy's Laboratories Ltd", Harvard Business Publishing, 2018Read Description >Close >Discipline: Entrepreneurship
Industry: Pharmaceuticals
Length: 16p
Subjects covered: Corporate governance; Entrepreneurship; Family businesses; Family-owned businesses; Generational issues; Leadership; Leadership & Managing people; Stewardship; Succession issues
Publication Date: December 5, 2017
 
Description: 
Dr. K. Anji Reddy founded Dr. Reddy's Laboratories Ltd (DRL) in 1984. Since then, the company had grown to become one of the largest pharmaceutical companies in India. The company professionalized early on, and over the years, the family members defined and refined their roles for the efficient running of the company. Dr. Reddy passed away on March 15, 2013. His son-in-law, G. V. Prasad, had been with DRL for more than 25 years by then. Prasad acknowledged that a lot needed to be done to fulfill Dr. Reddy's dreams. He had been contemplating his own future role in the company and the need for a smooth succession. But who would succeed him? What would be the qualities of the person who would succeed Prasad, a passionate member of the founding family of DRL? Would a non-family CEO be a suitable replacement?

Learning objective:
The case takes the audience through the journey of an entrepreneur-driven company that transforms itself into a professionally run multinational company and the involvement of the next generation of the family members in the business. A few specific teaching objectives are to understand how family-controlled entrepreneurial ventures are transformed into professionally managed, well-governed organizations and understand the challenges of building the foundations of a lasting organization.

CasesManikutty, Sankaran., Ramachandran, Kavil. "Aravind Eye Care System – Retaining the Legacy", Harvard Business Publishing, 2017Read Description >Close >The case deals with multiple challenges faced by Dr. Nam, the second generation head of Aravind Eye care, a social enterprise providing eye care in India. His goal of setting up 100 eye hospitals had hit a road block as a number of new private eye hospitals had come up. The owner family had grown into its fourth generation and branched out. The next generation had grown up with different aspirations. Their career path were not likely to be similar to that of their previous generation. Dr. Nam realized that he had a lot to do within a short period of time to keep the legacy and growth intact.

CasesRamachandran, Kavil;  Mehrotra, Sonia . "Eastern Condiments: The Changing Curry Company", 2017Read Description >Close >Discipline: General Management
Industry: Spices & flavors
Length: 14p
Subjects covered: Assessing performance; Family businesses; Loyalty; Metrics; Organizational change
Publication Date: March 3, 2017
 
Description: 
Navas Meeran, the Chairman and Managing Director of Eastern Condiments Private Limited (ECPL) had been instrumental in the growth and professionalization of ECPL by bringing in non-family professionals, introducing state-of-the-art systems and processes in manufacturing, and nurturing the values of compassion and loyalty that his father had instilled across the organization. In 2014 he had taken a sabbatical and handed over the company operations to his younger brother Firoz. ECPL, the flagship company of the INR 8 billion, family managed Eastern Group headquartered in Kochi, India, was engaged in manufacturing and marketing spices, blended spice powders, pickles, breakfast staples and beverages in both domestic and international markets. The company began as a small shop set up by their father M.E. Meeran in 1961. It had grown to record revenues of INR 5.60 billion in 2014. Though Navas was pleased with the company's 2015 business performance under Firoz's leadership he was uncomfortable with the pace and execution of major organizational changes brought in by Firoz. He was worried about Firoz's aggressive approach; the speed of the internal changes Firoz had made to tap external market opportunities had resulted in 10 -15% attrition at all levels in the organization. Was it right for a traditional family run business bred on a culture of compassion and loyalty to make a sudden shift to a metrics-based performance culture? Would Firoz's efforts to transform the company into a professional organization ultimately sustain the growth of the business? Was there a need to both cultivate professionalism and reward loyalty across the ECPL value chain? Could a company based out of a Tier 2 city such as Kochi be able to attract high-quality talent easily? These were some of the questions that worried Navas.

Learning objective:
Professionalization of a business is about putting in place structure, systems and processes. Family owners need to practice professionalism to professionalize their business. Professionalization calls for appropriate changes in the structure and processes at the top management level to ensure that key people have the same organizational perspective. It should provide platforms to debate on HR policies; avoid creation of silos, that are detrimental to growth of the business.

CasesRamachandran, Kavil., Bhatnagar, Navneet. "Ketan Logistics: Charting The Next Route", 2016Read Description >Close >This case is about the dilemma faced by a next generation member whether to continue working for his family business or venture out on his own. Both alternatives have strong positive and negative implications. Rohit was a third generation member who jointly headed the western India unit of his family business, Ketan Logistics Limited (KLL). Rohit’s grandfather, had setup KLL in 1986. Over the years, the company expanded its fleet, acquired license to operate freight trains, diversified into ocean freight and transportation of large industrial equipment and food products. By 2014, it had become an integrated, multimodal logistics provider to business customers. KLL’s operations were divided into four geographic zones, each headed by a senior family member. KLL took several measures to professionalize operations, like: deployment of enterprise resource planning (ERP) software, adoption of a code of conduct and organization of employee training and workshops. After completing their studies, all next generation members except one joined KLL. Some of them like Rohit had high aspirations and wanted changes at KLL but often faced strong resistance from seniors. Accumulated frustration in the next generation led some to consider venturing out at different points in time. For Rohit, his close friend had recently come up with an attractive proposal to fund the entire new business that Rohit had in mind with 50% sweat equity for Rohit. He was emotionally connected to his father and other family members and did not want KLL to suffer but was worried about his own future as well. He would not get such an opportunity again easily. For Rohit, it was a tough choice to make.

CasesAlur, Sivakumar., Ramachandran, Kavil., Bhatnagar, Navneet. "Leadership Succession at Achal : A Tough Nut to Crack", Harvard Business Publishing, 2015Read Description >Close >Giridhar Prabhu, the owner of Achal Industries, a four-decade-old cashew processing and exporting, proprietary family enterprise plans to retire in the next five years but is dealing with succession challenges. His three daughters were not interested in pursuing the business. Prabhu knows that he will not be able to manage the business on his own for long. He was contemplating future options that included convincing one of his daughters to rethink her decision or inducting professional non-family members to steer the enterprise’s future or selling the business. He was in a dilemma on choosing an option that would be good for him, his enterprise, and his family.

CasesRamachandran, Kavil., Mathew, Alexander.,Bhatnagar, Navneet. "Professionalization of Sudarshan Chemicals Industries", Ivey Publishing, 2015Read Description >Close >This is a case on the interlinkages among strategy, professionalization and governance in building sustainable Indian family businesses. Sudarshan Chemicals Limited, set up by the Rathi family in Pune in 1951 has over the years emerged as one of the largest pigment manufacturers in the world. It has evolved over the past half century without any major turbulence at the interface of family and business. Since beginning, the company has strictly adhered to the practice of professionalism. Employment of family members in the business was conditional to their fulfilling specific educational qualifications. They considered share ownership of the company did not entitle anyone a job there. Non family executives were highly respected for their professional capabilities. The case narrates how smoothly the family practiced strong sense of governance that enabled them to behave professionally. In 2003, management of the company was completely handed over to the second generation that formalized many of the best practices with the help of a consultant. There are no major decision dilemmas in the case, but it is a good case to discuss what else and how better things could have been done in Sudarshan. The case establishes the interdependence of professionalization and governance at all levels in implementing the company strategy.

CasesRamachandran, Kavil., Bhatnagar, Navneet.,Suresh, Jayshree. "Zandu Pharmaceutical Works: The Takeover Bid (B)", Harvard Business Publishing, 2014Read Description >Close >This case is about the takeover battle between two Indian companies, Zandu Pharmaceutical Works and Emami Limited, in 2008. Zandu Pharma was owned by two promoter families. Emami bought the stake held by one of the promoter families, the Vaidyas without the knowledge of the other promoter family, the Parikhs. The Parikhs viewed this acquisition by Emami as a hostile move. Emami offered to run the firm under a joint management but Parikhs were opposed to such an arrangement. What followed was an intense battle for control over Zandu. None of the two sides wanted to give up the fight. A series of moves and counter moves on business, legal and family fronts, were witnessed as the fight went on. After months of fighting each other in the courts, on the stock markets and in media, both Emami and Parikhs are finding themselves worn out and under heavy financial and mental stress. With horns locked since long, markets watch as to who would blink first. Emami group has given Parikhs an offer to either sell their stake to Emami or buy the stake owned by Emami. The Parikh family has to now decide its course of action, that is, whether to sell out to Emami or to buy out Emami’s stake. Though seemingly easy, the choice for the Parikhs is difficult one to make. The case necessitates students to appreciate the business decision scenario from different standpoints. It encompasses several management issues about leadership, communication, acquisition strategy, legal/regulatory and emotional issues faced by promoter families. The case serves as a suitable tool for students to learn and apply leadership and communication skills in business, more specifically in complex and hostile acquisition situations.

CasesRamachandran, Kavil., Suresh, Bhatnagar. "Zandu Pharmaceutical Works: The Takeover Bid (A)", Harvard Business Publishing, 2014Read Description >Close >This case is about the takeover attempt for Jamnagar, (Gujarat, India) based Zandu Pharmaceutical Works by Kolkata, India based Emami group in 2008 and the opposition by one of the promoter families that followed. The company was owned and managed by two promoter families. One of the families sold their stake to Emami group. The other promoter family faces the decision problem in the case, which is - whether to sell out to Emami or to fight the takeover battle. The case narrates the circumstances and the actions taken by various parties involved. The case requires students to understand the business situation from different perspectives. The case deals with various managerial issues like leadership, communication, acquisition strategy and emotional issues faced by promoter families. The case serves as a suitable tool for students to learn and apply leadership and communication skills specifically in complex acquisition scenarios.

CasesRamachandran, Kavil., Ward, John.,Walker, Sachin.,Jha, Rachna. "India's Mewar Dynasty: Upholding 76 generations of service and custodianship", Ivey Publishing, 2011Read Description >Close >There are not many families in the world that can claim continuity of existence for over 76 generations in either business or otherwise. Families that manage such a feat tend to have strong roots of values and culture that are in line with the basic principles of trusteeship - to preserve and grow wealth (both material and spiritual) for the benefit of future generations. This case is based on the history of and current challenges faced by such a family, the Mewar dynasty from India.Learning Objective:The case may be used to discuss the following concepts: role of custodianship in a dynamic family business context possible opportunities to define the scope of the trusteeship value beyond business challenges faced by a family leader as the custodian of inherited and further enriched-wealth, while choosing the successor

CasesRamachandran, Kavil., Mathew, Alexander. "Passing the Baton: Role Transition of BK Jhawar", Ivey Publishing, 2011Read Description >Close >Most family businesses do not last for long. Only one third are able to survive the transition from first to second generation. A critical issue in the perpetuation of family businesses is the management of succession. Most successions primarily fail because the first generation founders find it difficult to let go or disengage from the business as they approach the age of retirement. As a result, they fail to prepare the next generation of successors for the leadership role. The founders often fail to plan for succession due to a number of different reasons such as a lack of other interests outside of work, psychological identity with the firm, and fears of aging or death. Due to these reasons, the founder's retirement from the business is frequently portrayed as a negative event. Succession, in turn, is often seen as a phase of crisis and upheaval, which a business must overcome. However, this need not necessarily be the case. Retirement could provide a new, even more exciting, phase of life, while succession could be viewed as a strategic opportunity to revive the business. This case involves an accomplished business leader, B.K. Jhawar (BK), founder of Usha Martin Group (UMG), who successfully managed the twin challenges of retirement and succession. By the time he reached the age of retirement, BK had built up a social venture (KGVK) as his second and endless career option. Before completely disengaging from the business and transitioning to his new role full time, BK prepared the second generation for business leadership and effectively passed on the baton.Learning Objective:This case has three major objectives:To discuss the twin challenges of retirement and succession and how both can be managed effectivelyTo understand the actual process of leadership transition in a successful successionTo discuss the benefits of any philanthropic activity that a family business may undertakeThe case fits into any course on family philanthropy, social entrepreneurship, family business succession and retirement. It can be used both in MBA and executive education programs, particularly in a developing country.

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