Bikanervala Foods Private Limited: Professionalization of a Family Business

Description

Bikanervala was a fourth-generation Indian family business in the domestic fast-food and packaged-snacks industries. In its 65 years of existence, it had grown from a small outlet selling traditional Indian sweets and snacks to the industry’s second-largest player. This case traces the evolution of Bikanervala’s business model, which uniquely leveraged professional management practices along with strengths rooted in its family values. As the business expanded, Bikanervala faced further pressures to professionalize on several fronts, and the family was forced to consider whether its family-oriented management style could scale up indefinitely or whether family ownership and management had to be diluted to grow the business.

Learning Objective

This case can be used in graduate-level or executive education programs, as part of an elective course on family business management. It can also be used to illustrate the difference between managing family and non-family businesses in core strategic management courses at the undergraduate level. After working throuh the case and assignment questions, students will be able to ·illustrate the differences between managing family businesses and non-family businesses; ·understand the benefits and challenges of family businesses as compared to non-family businesses; ·clarify the different stages of development of family businesses and their unique challenges; and ·understand the meaning of professionalization and the challenges it creates in the context of a family business.

Keywords

Family Business Growth India Innovation ownership skill succession Values