Case
THE QADRI-GROUP: INNOVATING IN FAMILY BUSINESS
INDUSTRY :-
AREA :GENERAL MANAGEMENT
ORGANIZATION :-
LENGTH :30
LUMS No :30-120-2012-1
PUBLICATION YEAR : 2012
ABSTRACT:
The case provides a real situation of a 100 year old patriarchal family business that is facing internal challenges in terms of interaction of the family members with business entities (eight companies) and external challenges in terms of selection of appropriate market opportunities and attainment of the capabilities required to tap these opportunities. Asim Qadri, Director Operations at Qadri Group (QG) had to understand and present to the Family Council how to formalize family values and related processes through family consultation and develop a technology strategy. Asim Qadri thought that it was a good idea to explain the group’s technology strategy and core competence and highlight important aspects to be considered in order to benefit from upcoming business opportunities. The group had a history of technology partnerships with international technology leaders in the sugar plant manufacturing market and transferring technology. However, due to uncertainty in the local sugar plant manufacturing market and opening up of new opportunities in African countries, QG was currently facing technology and business challenges. Moreover, the local cement plant/consumable manufacturing market carried a lot of opportunities. However, QG was not sure about entering the cement plant manufacturing market without an experienced technology partner. The Director Operations also wondered how challenges related to the involvement of the fourth generation with the business would complicate the situation in years to come. He had to give suggestions on how to handle increased complexity (in terms of individual educational backgrounds, gender involvement issues, allocation of incentives to family members according to their profile, and so on). These issues were of increased importance as many male cousins of the third generation of the Qadri family were concerned about passing the baton to the fourth generation in the future. However, due to the complexity of the expanded business and family, confusion about the important aspects to be considered for development of future family and business strategy prevailed. Asim Qadri’s suggestions were expected to increase the clarity of the issues to be addressed in the Family Constitution which was to be developed in the future.