Ensuring Family and Business Continuity at India's GMR Group

Ensuring Family and Business Continuity at India's GMR Group Description

Most family businesses do not survive beyond two or three generations. One of the main reasons for the short life span of family businesses is due to the lack of governance mechanisms in the family. With better family governance, business development becomes a more enjoyable journey and ensures continuity of the business across generations. This case is about an Indian family business, GMR Group, which was established a quarter century ago, and by 2010 became one of the major diversified infrastructure organizations in the country with large-scale interests in infrastructure (energy, roads and airports) and manufacturing (agri-business, mainly sugar). Since its founding, the Group has come a long way, from an independent proprietary enterprise to a family-owned holding corporation with several companies under its control, along with external stakeholders. The growth of the group has been led by the entrepreneurial zeal and organizational capabilities of its founder G.M Rao. Having seen many family businesses breaking up for want of adequate governance mechanisms, Rao led the way for the writing of his family's constitution with the help of several experts. The entire family spent many hours, and after several rounds of iteration created and signed a constitution in 2007. The writing process of the constitution, and the policies and processes developed were optimal for maximizing GMR's performance and the family's well-being in current and future generations. The case captures the essential processes and output of writing a family constitution.

Case Description Ensuring Family and Business Continuity at India's GMR Group

Strategic Managment Tools Used in Case Study Analysis of Ensuring Family and Business Continuity at India's GMR Group

STEP 1. Problem Identification in Ensuring Family and Business Continuity at India's GMR Group case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of Ensuring Family and Business Continuity at India's GMR Group case study

STEP 3. Industry Specific / Porter Five Forces Analysis of Ensuring Family and Business Continuity at India's GMR Group case study

STEP 4. Evaluating Alternatives / SWOT Analysis of Ensuring Family and Business Continuity at India's GMR Group case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis Ensuring Family and Business Continuity at India's GMR Group case study

STEP 6. Recommendations Ensuring Family and Business Continuity at India's GMR Group case study

STEP 7. Basis of Recommendations for Ensuring Family and Business Continuity at India's GMR Group case study

Case Analysis of Ensuring Family and Business Continuity at India's GMR Group

Ensuring Family and Business Continuity at India's GMR Group is a Harvard Business (HBR) Case Study on Strategy & Execution , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Ensuring Family and Business Continuity at India's GMR Group is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Ensuring Family and Business Continuity at India's GMR Group case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Ensuring Family and Business Continuity at India's GMR Group will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Ensuring Family and Business Continuity at India's GMR Group case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Strategy & Execution, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Ensuring Family and Business Continuity at India's GMR Group, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Ensuring Family and Business Continuity at India's GMR Group case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Strategy & Execution Solutions

In the Texas Business School, Ensuring Family and Business Continuity at India's GMR Group case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Ensuring Family and Business Continuity at India's GMR Group

Step 1 – Problem Identification of Ensuring Family and Business Continuity at India's GMR Group - Harvard Business School Case Study

The first step to solve HBR Ensuring Family and Business Continuity at India's GMR Group case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Family Constitution is facing right now. Even though the problem statement is essentially – “Strategy & Execution” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Family Constitution, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Ensuring Family and Business Continuity at India's GMR Group.

The external environment analysis of Ensuring Family and Business Continuity at India's GMR Group will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Ensuring Family and Business Continuity at India's GMR Group case study. PESTEL analysis of " Ensuring Family and Business Continuity at India's GMR Group" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Ensuring Family and Business Continuity at India's GMR Group macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Ensuring Family and Business Continuity at India's GMR Group

To do comprehensive PESTEL analysis of case study – Ensuring Family and Business Continuity at India's GMR Group , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Ensuring Family and Business Continuity at India's GMR Group

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on Ensuring Family and Business Continuity at India's GMR Group

Government policies have significant impact on the business environment of any country. The firm in “ Ensuring Family and Business Continuity at India's GMR Group ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Family Constitution is operating, firms are required to store customer data within the premises of the country. Family Constitution needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Ensuring Family and Business Continuity at India's GMR Group has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Family Constitution in case study Ensuring Family and Business Continuity at India's GMR Group" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Family Constitution in case study “ Ensuring Family and Business Continuity at India's GMR Group ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Family Constitution in case study “ Ensuring Family and Business Continuity at India's GMR Group ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on Ensuring Family and Business Continuity at India's GMR Group

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Ensuring Family and Business Continuity at India's GMR Group ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Family Constitution can compete against other competitors.

Government Scheme & Subsidies Impact on Ensuring Family and Business Continuity at India's GMR Group

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Ensuring Family and Business Continuity at India's GMR Group case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on Ensuring Family and Business Continuity at India's GMR Group

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Family Constitution needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Ensuring Family and Business Continuity at India's GMR Group

Social Factors that Impact Ensuring Family and Business Continuity at India's GMR Group

Technological Factors that Impact Ensuring Family and Business Continuity at India's GMR Group

Environmental Factors that Impact Ensuring Family and Business Continuity at India's GMR Group

Legal Factors that Impact Ensuring Family and Business Continuity at India's GMR Group

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Ensuring Family and Business Continuity at India's GMR Group case study. PESTEL analysis of " Ensuring Family and Business Continuity at India's GMR Group" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: Ensuring Family and Business Continuity at India's GMR Group case study solution