Accounting Case 6 What Relationships Should Amit Develop Further And

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Case 6:

Suggestions for Use

This case is ideal for use with MBA students taking entrepreneurship and family business

courses. While recent graduates may enjoy a knowledge advantage regarding best

practices in management and governance of a family enterprise over the incumbent

Executive Brief:

captures the predictable tension between the

generations of a family in business. The incumbent generation knows the secrets to the

Suggested Discussion Questions

The discussion guide contains two sets of questions. The first set is general in nature and

is aimed at helping students focus on the case issues and prepare for class discussion.

1. Pre-class Preparation Questions (assign as short essays)

Amit plans to return to work in the family business immediately after graduating from

his MBA program. What alternatives, if any, would you suggest he consider and why?

2. Class Organization

20 minutes introduction to the case, the students discuss their case prep essays

1. What should Amit do first upon returning to Gupta Garments?

It is evident from the case that Gupta Garments is a successfully run family business with

a long tradition of quality. It has been managed and run by its founders, Anil and Ajay

2. What should Amit be careful not to do?

As the first MBA in his family business, Amit returns with advanced knowledge and

broad global vision, which can help him contribute to the company. But this knowledge

3. What relationships should Amit develop further and whose support should he

enlist?

Anil is expected to be active for another five years in the family business and Amit is

now working

most important relationship element for Amit to work on, especially until he can show his

Garments to benefit from the opportunities seen and what is likely to be his biggest

source of influence going forward?

First, Amit should gain support from Anil to bring about any needed changes. Having a

company leader champion the changes can largely reduce the internal barriers and

5. How can Amit improve his overall chances of success in bringing about the

needed changes?

Although Amit planned to help Gupta become one of the top five national players, he

might be better off establishing a more conservative target. An improvement in the

6. What approaches or family business best practices should be implemented in the

interest of continued success across generations at Gupta Garments?

First, in order to maintain and improve relationships and promote clear communication of

business ideas among family members, Amit could suggest setting up a formal family

council and organizing routine family meetings. Notice that the family already shares a

that, even as a fourth generation family business, it is being run as an entrepreneurial firm

that exploits the advantage of speed and agility. It is essential that the company retain this

` Fourth, only Amit

ultimately consolidate his position in the company. Therefore, Amit should utilize his

marketing research and analysis skills to address the key growth opportunities faced by

Gupta in the current market and provide successful strategies and solutions early in the

Concluding comments:

ional business understanding and experience as well as his strong