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Sevji and Sons

CASE STUDY, ORGANIZATIONAL BEHAVIOR
ET CASES, 9 Pages
AUTHOR(S) : Prof. Jatin Pandey, IIM Indore Young Faculty Research Chair and Assistant Professor, Organizational Behaviour & HRM Area and Ms. Gunjan Garewal, IIM Indore

Case Preview

Sevji and Sons

On a Sunday morning when everybody was on the breakfast table discussing the family business over food, Bikaram Sevji was pacing back and forth in the living room, anxiously checking his mail every 5 minutes. He could hear his father apprehensively talk about globalisation hitting their business. His father was worried about the changing demand for machine-made packaged food which has resulted in the loss of business for the local meethai and sev shops. His uncle seemed to second his thoughts but couldn’t say anything further as his grandfather’s angry voice cut through the discussion, ending it at once. His grandfather was a man of tradition who had inherited their family shop from his father. He valued the customary pooja in the kitchen at dawn before the workers started making delicious hand-made fafda, sev, gathia, boondi, and other mouth-watering delicacies. Bikaram admired his grandfather but could not help disagreeing with him at times. He would blame it on the generational gap and move on. He got so engrossed in their discussion that he was startled when his phone pinged with a mail from Oxford University. He could not contain his excitement as he read the mail stating his selection in the Oxford business school.

Time at Oxford

Initially, Bikaram faced difficulty in adjusting to the new country and its environment. He severely felt homesick and doubted his decision of joining oxford, after all, MBA could have been pursued in India as well. Britain was very different from India. Clean roads, small houses, rain, food, people and their accent-everything was different and a new experience for Bikaram. ......

During his time at the university, he would go and talk to his friends and professors about his family situation and ask for advice, he had already started researching on how to bring the changes and he would prep himself with mock speeches, prepared for his grandfather, in front of the mirror. Once during his research, he asked his father for the accounts of the business. His father was reluctant, Bikaram could not understand why but anyway forwarded it when Bikaram said that he needed it for one of his class projects.............

..................

The scary yet exciting first day, meeting new people from across the globe, sharing views, culture, and most importantly fafda and sev. His home-made fafda and sev had earned him a bunch of friends and surely some international fans. Sevji, as they called him, was returning home not just with memories but with a determination to take the family name beyond their Banarasi galliyan................

Somewhere between reminiscing his past and thinking about future, he said goodbye to his hostel room and his university to board the plane to his motherland. He was returning a changed man, more confident, more enthusiastic, and driven by a cause to turn things around...........

...............

Keeping this in mind he kept his presentation focused on costs, revenues, and legal requirements. He started with the financial reports, the same that his father had sent him. Focusing on the increasing expenses and declining sales he first established why there was a need for change. It was a purely quantitative pitch. All facts that were already known. But then he opened the financial reports of haldirome and bikanagar-wala, the arch-rivals of sevji, and focused on their sales and revenues which were not limited to Banaras or just India for that matter..............

As he turned 18, he was married to Sashikala and had joined his father full-time. He had his first son at the age of 21 and by then he had almost taken over the shop. Life had been easy and people loved their namkeens. Suryaprakash was very proud of his namkeens.

............

After a decade or so, he read in newspapers that haldirome was getting split due to ownership issues into three distinct areas of operation. Kolkata faction, Delhi faction, and the Nagpur faction. Suryaprakash had sighed remembering his father’s words. He had thought “what good is the money if the family comes unstuck”.....

Back to the Pitch

Although, Bikaram hadn’t finished yet, now he had shifted to telling them how these brands keep the immigrant Indians close to their homeland and the attachment people feel towards these brands. A flash of guilt surely appeared in his grandfather’s eyes for not even considering what his sons were saying. He was too stubborn........

 ASSIGNMENT QUESTIONS

 I.               I.        Is there a need for change?

II.         ...........

III..................

Exhibits:

Exhibit I: Industry Overview

Exhibit II: Sevji and Sons – Income Statement (For the year ending Dec. 31, 2014 and Dec. 31, 2015)

Teaching Note Preview

Sevji and Sons

 

Synopsis

The case presents a Hindu undivided family’s business that had started in the late 1930s and whose management has been passed onto 3 generations of the family. Now as the newer generation (4th in-line) are ready to take charge of the company, they find the system obsolete in the present era of globalisation. Therefore, Bikaram, the youngest member of the family - who has returned from Oxford after completing his MBA- wants to restructure the business to a company form. The case presents a scenario of clashing interests and requires its readers to reason why there is a need for change. It motivates readers to apply force field analysis to structure their arguments. Readers can understand the forces- driving and restraining- by categorising them under self-interests, organisational culture, and perception of goal and strategy. The case also motivates its readers to be vigilant of the changes in the work environment and grab the opportunities at the earliest.

The case further requires the use of PEST analysis and SWOT framework to understand the market dynamics and the relative position of one’s firm as compared to the industry competitors. Analysis of the relative market position helps to determine the level of urgency of a situation and guides to bring in the change accordingly. Moving on, the case deals with ways of implementing changes. A strategic approach to change implementation is introduced through the case, it attempts to show its readers how to tackle the resistance that emerges in any organisation for the proposed changes. Dealing with such resistance to changes in technology, techniques and structure is an important quality to be inculcated in modern-day managers.  

Prerequisite Conceptual Understanding

 

Students are recommended to read chapter on change management from the book Management by James A.F. Stoner, R Edward Freeman and Daniel R Gilbert. Familiarity with PEST & SWOT frameworks will come in handy for the analysis of the case.

Case Positioning and Setting

The case study is appropriate for MBA classes for the following courses:

  • Principles of Management
  • Organisational Behaviour
  • Change Management
  • Family Business Management

Case Analysis

This case presents an interesting situation for students to think of traditional and family-owned organizations. The instructor may start with a question if someone in the class has a family business and thinks the working of their organization is obsolete. This can be a bridge to bring the discussion to the first assignment question, followed by a discussion on subsequent questions.

The students should be able to identify salient features of family-owned businesses that distinguish them from other forms of business.

  1. Mr Suryaprakash – the Karta of the business - has the final say in matters of business and his decisions are binding on others.
  2. ........
  3. .........
...........

Assignment Question

  1. Is there a need for change?

A force field analysis will help the grandfather decide whether or not to approve the change. The factors that are most prominent (but are not limited to) in the case for this analysis have been mentioned in the following text:

DRIVING FACTORS

  1. Market preference towards packaged food: many people have shifted to good brands with proper packaging and content/ingredient transparent products. And after the COVID-19 pandemic, it will be one of the most important consumer considerations and hence this becomes a very important driving force.
  2. .........
......................
 

PEST ANALYSIS

Political factors:  the incumbent government’s Make in India initiatives and its pro-business policy regime is one of the best times for Sevji and Sons. to incorporate as a company. Government of India’s Startup India promotes entrepreneurship by providing guidance and mentorship to new businesses, it's Pradhan Mantri Kaushal Vikas Yojana trains people to develop industrial skills to earn better livelihood but this also helps India to generate cheap yet skilled labour. The government has also approved 100% foreign direct investment in the FMCG sector which is also good news for the family business as Bikaram wanted his friends to invest in his business. Good political backing is necessary for a business to flourish and there is no better time for it.
................

SWOT

Strength

Sevji and Sons’ strength is in their reputation that they have built through generations. They face negligible competition in the local markets of Banaras. Their recipe is unique and not just appeals to the Indian taste but also the tastes of people from other countries. Which implies that they will not face many challenges in terms of taste as their food products have cleared the tests. They also have a dedicated workforce who are loyal and have worked for them for generations now and continue......
...............

Threat

The government could increase safety standards which in turn can increase the cost to the firm. Apart from this already established deep pockets might cut prices to maintain a bigger chunk of market share this can make it difficult for Sevji to make its place in the market. If Sevji does not improve on its packaging then there is a chance that due to a shift in consumer preferences for hygienic packaged goods Sevji can run out of business or might not remain as profitable as before........

.............

Unfreezing

Humans tend to avoid changes because it brings a new environment with which people have to learn to adjust again. Therefore, it becomes important that the leaders or the person proposing change should make others realise why the status quo is no longer working for the growth of the organisation and how will everyone else benefit with the change. Communication becomes a key element in this stage.

..............

Refreezing

It is important to cement the change so that members do not go back to their old ways. Positive rewards are important in this stage and can help reinforce the change.

At the backend, he should start the procedure of officially restructuring his company. By getting in touch with his lawyers, auditors, investors etc. Incorporation of a company is a fairly long drawn process and hence clear planning and agents for the procedure are a must.

................

Debriefing

Case can be wrapped up by summarising the complete exercise as given in Diagram I

Exhibits:

Table I: Lists Driving Factors and Restricting Factors for Implementing the Change

Diagram I: Summarises the Flow of the Discussion

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Abstract

The case presents a Hindu undivided family’s business that had started in the late 1930s and whose management has been passed onto 3 generations of the family. Now as the newer generation (4th in-line) are ready to take charge of the company, they find the system obsolete in the present era of globalisation. Therefore, Bikaram, the youngest member of the family - who has returned from Oxford after completing his MBA- wants to restructure the business to a company form. The case presents a scenario of clashing interests and requires its readers to reason why there is a need for change. It motivates readers to apply force field analysis to structure their arguments. Readers can understand the forces- driving and restraining- by categorising them under self-interests, organisational culture, and perception of goal and strategy. The case also motivates its readers to be vigilant of the changes in the work environment and grab the opportunities at the earliest.

The case further requires the use of PEST analysis and SWOT framework to understand the market dynamics and the relative position of one’s firm as compared to the industry competitors. Analysis of the relative market position helps to determine the level of urgency of a situation and guides to bring in the change accordingly. Moving on, the case deals with ways of implementing changes. A strategic approach to change implementation is introduced through the case, it attempts to show its readers how to tackle the resistance that emerges in any organisation for the proposed changes. Dealing with such resistance to changes in technology, techniques and structure is an important quality to be inculcated in modern-day managers.

Case Positioning and Settin

The case study is appropriate for MBA classes for the following courses:

  • Principles of Management
  • Organisational Behaviour
  • Change Management
  • Family Business Management 


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On a Sunday morning when everybody was on the breakfast table discussing the family business over food, Bikaram Sevji was pacing back and forth in the living room, anxiously checking his mail every 5 minutes. He could hear his father apprehensively talk about globalisation hitting their business. His father was worried about the changing demand for machine-made packaged food which has resulted in the loss of business for the local meethai and sev shops. His uncle seemed to second his thoughts but couldn’t say anything further as his grandfather’s angry voice cut through the discussion, ending it at once. His grandfather was a man of tradition who had inherited their family shop from his father. He valued the customary pooja in the kitchen at dawn before the workers started making delicious hand-made fafda, sev, gathia, boondi, and other mouth-watering delicacies. Bikaram admired his grandfather but could not help disagreeing with him at times. He would blame it on the generational gap and move on. He got so engrossed in their discussion that he was startled when his phone pinged with a mail from Oxford University. He could not contain his excitement as he read the mail stating his selection in the Oxford business school.

Time at Oxford

Initially, Bikaram faced difficulty in adjusting to the new country and its environment. He severely felt homesick and doubted his decision of joining oxford, after all, MBA could have been pursued in India as well. Britain was very different from India. Clean roads, small houses, rain, food, people and their accent-everything was different and a new experience for Bikaram. ......

During his time at the university, he would go and talk to his friends and professors about his family situation and ask for advice, he had already started researching on how to bring the changes and he would prep himself with mock speeches, prepared for his grandfather, in front of the mirror. Once during his research, he asked his father for the accounts of the business. His father was reluctant, Bikaram could not understand why but anyway forwarded it when Bikaram said that he needed it for one of his class projects.............

..................

The scary yet exciting first day, meeting new people from across the globe, sharing views, culture, and most importantly fafda and sev. His home-made fafda and sev had earned him a bunch of friends and surely some international fans. Sevji, as they called him, was returning home not just with memories but with a determination to take the family name beyond their Banarasi galliyan................

Somewhere between reminiscing his past and thinking about future, he said goodbye to his hostel room and his university to board the plane to his motherland. He was returning a changed man, more confident, more enthusiastic, and driven by a cause to turn things around...........

...............

Keeping this in mind he kept his presentation focused on costs, revenues, and legal requirements. He started with the financial reports, the same that his father had sent him. Focusing on the increasing expenses and declining sales he first established why there was a need for change. It was a purely quantitative pitch. All facts that were already known. But then he opened the financial reports of haldirome and bikanagar-wala, the arch-rivals of sevji, and focused on their sales and revenues which were not limited to Banaras or just India for that matter..............

As he turned 18, he was married to Sashikala and had joined his father full-time. He had his first son at the age of 21 and by then he had almost taken over the shop. Life had been easy and people loved their namkeens. Suryaprakash was very proud of his namkeens.

............

After a decade or so, he read in newspapers that haldirome was getting split due to ownership issues into three distinct areas of operation. Kolkata faction, Delhi faction, and the Nagpur faction. Suryaprakash had sighed remembering his father’s words. He had thought “what good is the money if the family comes unstuck”.....

Back to the Pitch

Although, Bikaram hadn’t finished yet, now he had shifted to telling them how these brands keep the immigrant Indians close to their homeland and the attachment people feel towards these brands. A flash of guilt surely appeared in his grandfather’s eyes for not even considering what his sons were saying. He was too stubborn........

 ASSIGNMENT QUESTIONS

 I.               I.        Is there a need for change?

II.         ...........

III..................

Exhibits:

Exhibit I: Industry Overview

Exhibit II: Sevji and Sons – Income Statement (For the year ending Dec. 31, 2014 and Dec. 31, 2015)

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