The entry of a second generation at SK Enterprises: challenges and future prospects

Abstract

Theoretical basis The case discussion begins with an understanding of Davis’s three-circle model. It then leads toward the key resources and challenges, by system and development stage as given by Gersick et al. (1997). After understanding the family business system, the case delves into making the students understand the circumplex model of the marital and family system. This matrix talks about the flexibility in the business structure along with cohesion in the family unit. The case then gets into the discussion about succession and the new generation joining the family business and the conflicts that may arise due to the same. It might be imperative to bring out the different forms of conflict that may arise in the family and business system. Researchers have identified three forms of conflict – task, process and relationship (Mckee, Madden, Kellermans and Eddleston, 2014). As passing the baton would take place next for this business in the case, the current generation needs to look at the future growth strategy for the business. Here, the discussion refers to the exploitation and exploration matrix given by Bergfeld and Weber (2011). Research methodology This is a primary data case. The data has been collected from SK Enterprises. Interviews were conducted to arrive at the issues and challenges discussed in the case. Case overview/synopsis This case talks about the dilemma of a first-generation entrepreneur. Jatinder Agarwal was the owner of SK Enterprises, a light-engineering firm manufacturing bright bars, engine parts and ceiling fan shafts. He had set up the business in 1984. His brother, Ramesh was helping him in the business. The business had prospered and grown from a single product manufacturing workshop in 1984 to two factories manufacturing multiple light engineering products. In 2015, the business was doing well and both Jatinder and Ramesh were excited to involve their respective sons, Pranav and Sanidh in the business after completion of their education. The case is about the challenges faced by Jatinder and Ramesh with the entry of a new generation. Jatinder and Ramesh were working in the family business with an implied structure where the business was a sole proprietorship in the name of Jatinder but the decisions were taken by both the brothers collectively. With the entry of the new generation, Jatinder had to decide how to re-organize the business and avoid conflicts in the family. He also had to take a decision regarding the future course of strategy, which would help the business grow further. Complexity academic level This case is about the dilemmas faced by a first-generation entrepreneur. The case can be taught in an “entrepreneurship” course, in a post-graduate MBA program. This case can also be taught in a family business program as part of the course on “Understanding Family Business – Managing Paradoxes” or “Building Lasting Family Business – Synergy in Vision, Values and Strategy.” This case can also be taught as part of a “business strategy” or “human resource management” in MBA or executive MBA program in the first year.

Scientometric analysis of Industry 4.0, Engineer 4.0 and Manager 4.0 in Family Businesses

“…Closely related to family business is the small yellow cluster, consisting of four elements addressing the challenges of running a family business, namely challenges of family business, entry of next generation, conflict, and growth strategies (Panda et al, 2020). The green cluster contains 10 keywords and represents elements related to family firms that revolve around issues related to the approach to running a business, entrepreneurial skills, operating strategy (Truant et al, 2019), entrepreneurial attitude and character of young people (Judit & Zsuzsanna, 2022) and entrepreneurship or risk management (George et al, 2022).…”

“…The impact of the fourth industrial revolution on management in family firms has been written about by Kazancoglu, Sezer, Ozkan-Ozen, Mangla, and Kumar (2021). In their publication, Panda, Gupta, and Sethi (2020) address the challenges of the second generation entering the enterprise. Cucculelli, Dileo, Pini (2022) write about the changes in the business model of family firms within Industry 4.0.…”