Bhagat Mishthan Bhandar: Strategies for Growth in the Company's Third Generation

Abstract

Amit Bhagat, the third generation in a business family, joined the family business in 2000. The Bhagat family had owned Bhagat Mishthan Bhandar (Bhagat), a renowned sweet and namkeen shop in Jaipur, since 1957. Famous for its traditional boondi ladoos and doodh ladoos, Bhagat established itself as high-quality makers of pure ghee sweets and namkeen and expanded the popularity of traditional sweets, ladoos. Amit, being young and having a fresh vision for the business, expanded the digital and social media presence of Bhagat with a dedicated website and Facebook page. During the initial years, Amit had a hard time getting his father’s approval for new business ideas as his father had a traditional business approach and did not believe in the benefits of these new ideas. However, in 2014, Amit obtained operational charge of Bhagat. Having relatively more operational freedom, Amit set on the path to expand the business further. After proving successful in the operational domain, Amit needed more capital expenditure freedom so that he could make expansion decisions independently. Focused on proving that he could make independent capital expenditure decisions, Amit was contemplating various expansion options to showcase his decision-making skills on capital expenditure issues. These options included: should the company open new stores in Jaipur to capture expanding city boundaries? Should it expand to other cities using a franchise model? Should it introduce new packaging to increase shelf life of products and thus expand delivery beyond the city or national boundaries? Apart from having financial feasibility, Amit knew he must clearly identify risks as well as future growth options to convince his father to forgo his control over capital expenditure.

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