Working Papers

. "ISB Institutes"
. "Seminar"
CasesAlur, Sivakumar; Ramachandran, Kavil ; Bhatnagar, Navneet . "Leadership Succession at Achal: A Tough Nut to Crack", 2015Centre for Learning and Management PracticeRead Description >Close >Discipline: Entrepreneurship
Industry: Agribusiness
Length: 9p
Subjects covered: Entrepreneurship; Exit strategy; Family businesses; Family-controlled businesses; Family-owned businesses; Leadership transitions; Succession issues; Succession planning; Valuation
Publication Date: September 14, 2015
 
Description: 
Achal Industries was a 40-year-old proprietary family enterprise engaged in cashew processing and export. Giridhar Prabhu, 57, was Achal's second generation entrepreneur and managed its operations in the Indian states of Karnataka and Maharashtra. He had been in this labor intensive business for close to three decades. Family owned businesses and private partnership firms dominated this sector. The cashew processing industry was facing severe constraints due to high employee turnover and a labor shortage. Many enterprises had started exploring the option of automating cashew processing at their factories. Giridhar had also been studying and analyzing this option. He anticipated that, five years hence, automation would prove more economical than labor-intensive cashew processing. His own plan was to retire from the business in five years, but to his disappointment, he found that none of his three daughters was interested in running the business. Giridhar felt he would not have the ability to manage a new, profitable automated factory, which would demand quite an effort, as he got older. Lack of support from the family would add to that burden. In November 2014, he was contemplating future options that included selling his business, expanding the business and inducting professional non-family members to steer the enterprise's future. The dilemma before him was to choose the option that would be best for him, his enterprise and his family.

Learning objective:
The case highlights the challenges of family business succession planning, especially when the next generation members have different aspirations and lack interest in sustaining the business. The case exemplifies the intricacies of valuing a small business and implications of a "hold" versus "sell" decision. Appropriate Courses: a) Strategy b) Entrepreneurship c) Family Business (Succession Planning) d) Managing Small and Medium Enterprises (SMEs) e) Leadership and f) Corporate Governance

. "Panelists"
Working PapersDevalkar, Sripad K., Anupindi, Ravi.,Sinha, Amitabh. "Dynamic Risk Management of Commodity Operations: Model and Analysis"
Published PapersDevalkar, Sripad K., Sohoni, Milind G., Arora, Priyank. (Forthcoming) "Ex-post funding: How should a resource constrained non-profit organization allocate its funds?", Production and Operations ManagementRead Abstract >Close >We study the funds allocation problem for a resource-constrained non-profit organization (NPO) that implements social development projects for public good. In addition to raising funds from donors who contribute prior to project implementation (``traditional donors''), the NPO uses a novel approach, which we term as the ``ex-post funding'' approach, to also raise funds from donors who contribute based on the results delivered by the NPO (``ex-post donors''). In this approach, the NPO uses its initial funds to implement early phases of the project, creates ``results-certificates'' from the completed phases, and invites ex-post donors to purchase these certificates. The donations raised from selling the results-certificates are used to recover the NPO's own funds used in the project implementation. Operationalizing this approach is complicated when the project must incur a large fixed cost before any benefits are delivered by the project and the total benefit delivered is time sensitive. We show that for a given amount of initial funds available, there exists a threshold amount of funds that the NPO should raise from traditional donors before implementing the project phases so as to maximize the total expected benefit delivered. Through numerical studies, we analyze how the threshold of funds raised from traditional donors and the total benefit delivered vary with donor characteristics such as donor willingness to give and the proportion of donors who contribute prior to project implementation. Our numerical studies suggest that even with relatively small amount of initial funds, the NPO can deliver substantially higher benefit by using the ex-post funding approach when compared to using a traditional approach that requires the NPO to raise all the funds required upfront.

. "Speakers"
. "Agniv Dutta"
. "Home"
Working PapersChittoor, Raveendra.,Aulakh, Preet.,Ray, Sougata. "Internationalization of Emerging Market Multinationals: Role of Managerial Intentionality"
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