Family business in transition: a case of PAL

Abstract

Purpose

The case aims to deal with multi generation entrepreneurship. Families are about people and businesses are about money, therefore, conflict between the two is inevitable. Family-owned businesses develop competitive edges when they align values, vision, strategy, investment and governance to make both family and business activities more professional and mutually supportive. It is a belief that “treating the business like a family”, driven by values and concern for human needs, creates an organization with motivated people working together to create long-term value. Jitesh Ghai is the MD of Panchamrit Asbestos Ltd (PAL), which stands for PAL. Jitesh has an “experiential learning” with the cement sheet business and has understood the nuances of the business. It is supposedly required that PAL ought to professionalize owing to market infeasibility. Shashwat, his son has diversified interests and therefore desires to spin-off to “Big Apple”.

Design/methodology/approach

The case is based on research and secondary information, which has been tested several times, while filling the case gaps during the process. To authenticate information, multiple sources (vendors and customers) of information have been used.

Findings

There is a dilemma between the father-son relationship and decision to professionalise or spin-off! It is understood that in multigenerational business, it is not necessary that the subsequent generation keep the same business, but must preserve wealth and traditions.

Research limitations/implications

The findings are based on observations on one organisation and research carried through secondary sources, which may limit to theory building.

Practical implications

An enterprise largely competes on the basis of available talent, knowledge, competency and capability. Therefore, knowledge must be managed. For survival and growth, business transition must be handled effectively.

Originality/value

The case is original with the business family in its second generation striving to survive.

Citation

Joshi, M. and Srivastava, A. (2014), "Family business in transition: a case of PAL", Journal of Entrepreneurship in Emerging Economies, Vol. 6 No. 1, pp. 72-96. https://doi.org/10.1108/JEEE-11-2013-0029