The Professionalization of Ujwal Bharati Harvard Case Solution & Analysis

Introduction

Ujwal Bharati was begun by Rajeshwar Rao in the days of British Raj. The company became the market leader in the region within a short period of time. After the independence in 1947, the company grew faster and became international player with the addition of several new products. He had two sons, Shankar and Srinivas. Shankar had completed his M.Sc. in Chemistry from Christ College Bangalore and Srinivas did an MBA.

Shankar looked after the R&D efforts of the company while Srinivas became the managing director of the company. He had control of three departments such as marketing, operations and finance. Although the company grew under the management of Srinivas but the growth had slowed down recently. The company was 100 percent family owned with the net profit of Rs 750 million on an annual turnover of Rs 6 billion in 2006.

The company’s performance was going well but these brothers decide to take advantages of the potential opportunities. In 1999, they hired the services of a well-known consultancy firm to advise them on future strategy and M&As. With the passage of time, they developed a good relationship with Parasuram. The appointment of Jairaj was not successful as Srinivas thought that he did not inform him about the knowledge of the affairs of the business and finally he appointed Parasuram to take hold of the position of CEO.

Problem Statement

                Srinivas was concerned about the attitude of Parasuram. He was unhappy with the changes he brought in the company.  The organizational structure of the company had changed since he had arrived in the company.  The company had already lost 10% of their control over the company because it had been sold by Parasuram to pursue a proposed project.

 However, he failed to introduce improved cost control system and budget analysis and unable to convince Srinivas about the advantages that would the business get if the strategies proposed by him go through. The dilemma in front of Parasuram was to convince him and even retain his position in the business. He is worried about the ways to make him realize that these changes are a part of the growth process.

Another dilemma for him was to convince Natarajan, the EVP finance, about the benefits to be enjoyed by the company in the long-term of the changes made into the business.

8 Steps Kotter created in the case

Establishing a Sense of urgency 

Most successful change efforts start out when some individuals or some groups start to look severely at a company’s competitive situation, market place, technical trends, and financial performance.They concentrate on the potential revenue drop when an important patent expires, the five-year trend in declining margins in a core business, or an emerging marketplace that everyone appears to be brushing aside.They then discover ways to convey this information broadly and dramatically, especially with respect to crises, potential crises, or great opportunities that are really timely. In this case, Jairaj began to fix the loop-holes in the organization and then tried to invest and grow(Kotter, n.d.). 

Creating a Powerful Enough Guiding Coalition

                Change program starts with just one or two people. If the transformation efforts has to be successful, there should be a strong coordination between the owners and the management team. It is difficult to bring about major change if the head of the organization does not support one. If the successful change is required, then the coordination of chairman, CEO and other influential members is required. In this case, Jairaj and Parasuram were successful in bringing change when they had the support of Srinivas(Kotter, n.d.)The Professionalization of Ujwal Bharati Case Solution

Vision

According to Kotter, there should be a vision in the minds of the person who wants to bring change.If anyone is unable to communicate his vision in fewer than five minutes to other person, he is said to have not passed this phase. For instance, Parasuram had the clear vision of making Ujwal Bharati the Indi’s leading pharma companies. It was the reason he was able to gain success in the initial period of his appointment as the CEO of the company(Kotter, n.d.).

Communicate the Vision

           The person who wants to bring change should communicate the new vision and strategies to juniors by using every possible medium. They try to attract people through their behavior. For instance, Jairaj was punctual at all meetings and asked others to follow. Moreover, he used to meet Srinivas daily to discuss plans and strategies. However, when he left meeting him frequently, he became suspicious and dissatisfied. As the information about the process was not transferred to him, Jairaj lost the support and the change program failed(Kotter, n.d.).............

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