Al-Rasheed Food World – Surmounting Adversity

Al-Rasheed Food World – Surmounting Adversity

Will shifting the manufacturing base from Rajbagh to Padshahibagh area and now finally to Industrial estate give the business some momentum? Mr. Javiad Ahmad was thinking what would be the next course of action. As a family enterprise it was a major decision for him to convince the stakeholders regarding the benefits of  shifting the manufacturing base from the Rajbagh to Padshahi Bagh and finally to the Industrial estate. He was a seasoned negotiator having years of experience in  dealing with the government authorities for the sanctioning of land and facilities and simultaneously convincing the family members and investors, he has been able to drive the shift successfully. However, thinking over series of various struggles, Mr. Javaid was bit perplexed over the future course of action. The comfort of home  based facility to a choice of strictly professional layout for the business had not been easy. Also doing business in the state of J&K and sustaining it successfully over the period of 24 years had been a major challenge. Looking back Mr. Javaid though gratified yet was concerned for the future. He was trying to understand whether this has been a mere survival out of serendipity or a strategic growth. Competing in a maladroit environment where socio economic and geo political challenges have never been conducive to business is still a concurrent challenge. Mr. Javiad feels proud of his father Mr. Abdul Rasheed for establishing and sustaining an enterprise is such maladroit environment.

Mr. Abdul Rasheed Dar was born in 1962 in a very humble and honest family in the Srinagar district of Jammu and Kashmir. During this time economic and socio-cultural environment did not offer a positive environment for the education. Due to financial reasons Mr. Abdul Rasheed could not complete his education and  subsequently started working in a local food processing factory. Mr. Rasheed was a hardworking & honest man and did not want a job that was routine and fixed in the limits of official duration..........................

Mr. Javaid’s Venture from Heena Agro to Al-Rasheed Food World

Mr. Javaid was very enthusiastic and energetic. He wanted to take unit to next level where the traditional image of business would be replaced by professionally oriented unit. Mr. Javaid propelled by the enthusiastic remarks of the international buyer-seller meet wanted to reorient the business and gain the advantage of the slowly changing political environment in the state. However, the cautious and traditional approach of the family coupled with discouraging behavior of the government officials for the allocation of land in the industrial area proved to limiting factors for Mr. Javaid........

Status of Jammu and Kashmir

The state of Jammu and Kashmir is situated between 32⁰172 N and 36⁰ 582 N latitude, and 73⁰ 262 E and 80⁰ 302 E longitude. It is the northernmost state of the India and is famous all over the world for its natural scenic beauty and natural endowments in terms of various agricultural and horticultural produces. However, the state has failed to generate economic fortune out of its rich natural endowments. The armed conflict of early 1990’s dragged the state into economic disadvantage...............

Pickle Industry in India: An Overview

The pickle industry comes under tertiary processing category in the food processing industry. It is the sub segment industry of the fruits and vegetables segment of the food processing industry. Pickles are considered a complementary food item in the food list of the people around the globe, particularly in the Asian continent and are primarily consumed for the taste enrichment of the diet...........

Annexures

Annexure I: Growth Rate of NSDP and per capita at constant price from 3rd Five Year Plan to 11^th Five Year Plan

Annexure III: Leading Pickle Producing Companies of India

Annexure II: Performance of Food Processing Industry In Jammu & Kashmir

Annexure IV : Major Product Categories in the Fruits and Vegetables Segment of FPI of India

Al-Rasheed Food World – Surmounting Adversity

Synopsis

Al-Rasheed Food World in the Kashmir region of J&K is expository of an enterprise that has survived and is growing in a geo-political disadvantage and uncertain environment. It has been successfully doing business in an environment where the state has been under terror attack. This is a family run business unit that has been steadily growing over the period as a profitable venture. The entrepreneurial leadership accompanied with perseverance and consistency has transformed a small idea into an enterprise with turnover of over crores. The case highlights that even in unfavorable environments businesses can sustain and thrive if the business focus is consistent, contingency is planned for and the stakeholders remain concentrated focus on the market, customer tastes & preferences.

The case through the dilemma of Al-Rasheed Food World tries to develop an understanding that every business enterprise is a result of perseverance and  entrepreneurial motivation. The case can be taken up with the training sessions of entrepreneurial motivation as well as the graduate and postgraduate students in the courses such as entrepreneurship and small business strategy.

Prerequisite Conceptual Understanding

The case can be used to inspire discussion and analysis of business strategies amongst MBA and Executive MBA participants and presupposes an understanding of the following concepts:

• • Entrepreneurship and Strategy – entrepreneurship and decision making- business environments and factors – firm’s competitiveness and profit maximization – Succession Planning in family owned business

Case Positioning and Setting

The case is suitable for MBA and Executive MBA students for a discussion on the following course:

For the entrepreneurship and strategy course to discuss the issues related to the entrepreneurial decision making, environmental issues, family business  ownership and succession - Issues related to leadership, motivation, entrepreneurial skills, competitiveness and product planning in family enterprise and dynamic growth cycle.

Assignment Questions

• I. Whether the decision for scaling up the operations was correct?
• II. Whether the business should take support of government?
• III. What is the role of government in facilitating the business?
• IV. ............