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Ensuring Family and Business Continuity at Indias GMR Group Case Solution & Answer

Most family businesses do not survive beyond two or three generations. One of the main reasons for short-term family businesses due to the lack of governance mechanisms of the family. With better governance of family business development becomes a more pleasant journey and ensures business continuity through generations. This case concerns a family business in India, GMR Group, which was created from a quarter century, and in 2010 became one of the organizations of diversified infrastructure leaders in the country with a high interest infrastructure scale ( power, roads and airports) and manufacturing (agro-industry, mainly sugar). Since its inception, the group has come a long way, a company owned by a separate family holding company with several companies under its control, with external stakeholders. The group’s growth was led by the entrepreneurial zeal and organizational capacity of its founder GM Rao. After seeing many family businesses due to lack of appropriate governance mechanisms, Rao opened the way for the drafting of the constitution of his family with the help of several experts. The whole family spent many hours, and after several rounds of iteration created and signed a constitution in 2007. The process of drafting the Constitution, have developed policies and processes for optimal performance and maximize the welfare of the family of GMR in the current and future generations. The case reflects the essential production processes and drafting of a constitution of the family.
by
K. Ramachandran,
John Ward,
Sachin Waikar,
Rachna Jha
Source: Ivey Publishing
16 pages.
Date Posted: November 18, 2011. Prod #: W11509-PDF-ENG
Make sure family solution and business continuity Case GMR Group of India

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