01-524-2020-1
RUKH CATTLE FARM
In mid-September 2019, a month after Eid ul Adha
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, Hasan Khan was busy procuring animals for his fattening
farm in Kasur. While he was presently operating the farm with a lot size of 50 animals, Hasan knew that he could
easily operate with 100 animals. Although he liked managing the farm, Hasan was concerned about its
profitability. He had a feeling that increasing the size of each lot to 100 animals would increase the profits but not
to a level where the returns would justify his time and financial investment. He believed that it was time to think
about the long-term sustainability of this venture, which he suspected was linked with expanding the scale of the
farm. The expansion, however, involved high costs, and he was not certain if the financial returns would be
lucrative enough.
BACKGROUND
Hasan was a software engineer who went to the US in the late 1980s for his Masters. After finishing his degree,
he worked in the US for about 11 years at a software consulting company based in Boston. A year after moving
to California and right when his consulting business began to flourish, unfortunately, Hasan’s father suddenly
passed away. Hasan had to rush back to Pakistan with his family in 2002. While his elder brother decided to stay
in Canada, Hasan permanently moved back to Lahore to look after his family’s farm. While Hasan did, at times,
miss the life in the US, he was, by and large, happy with his decision to return to Pakistan.
Hasan managed two farms, one in Sadiqabad and the other one in Kasur. The land in Sadiqabad, approximately
