The Transition of an Indian Family Business From Second to Third Generation: A Case of Growth, Polarization, and Emergent Leaders

The Transition of an Indian Family Business From Second to Third Generation: A Case of Growth, Polarization, and Emergent Leaders

  • Case
  • Teaching Notes
Abstract

The Jay Group is a family business that comprises five different businesses: manufacturing and sales of gutkha (a form of chewing tobacco consisting of a mixture of tobacco, betel nut, and slaked lime), aerated beverages and fruit juices, packaged snacks and namkeens (a savory snack made from gram flour that is mostly deep-fried), manufacturing of laminated rolls and pouches used for packaging purposes, and the real estate business of building and renting commercial property. The family business is still evolving and also is making a transition from its second to third generation. The family is thus grappling with challenges and complexities associated with transformations at various levels. This case provides students with an opportunity to simulate the decision-making of a member of a real-world family business as it transitions into its third generation, highlighting the challenges of the generation gap, issues related to informal decision-making process, transitional challenges such as the dilemma of professionalizing the business versus keeping it within a close family group, polarization, and emerging leaders within the family and the group.

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