Rohit Gupta, who is the oldest member of a family business’ third generation, needs to determine whether to continue working towards the path where he has a strong sense of loyalty and responsibility for the company, or follow his fantasies and venture out by himself. Both choices have strong positive and negative consequences. His grandpa had set up KLL, a logistics supplier, in 1986. Through the years, the business expanded its fleet, acquired a license to run freight trains, and diversified into ocean freight services and the transfer of big industrial equipment and food products. By 2014, it would turn into a combined, multimodal logistics provider to business customers. KLL's operations were broken down into four geographic zones, and each of them was headed by one of the second generation family members, i.e., Rohit's dad and uncles.
KLL took several measures to professionalize operations, like deploying enterprise resource planning (ERP) software, embracing a code of conduct and organizing worker training and workshops. Some of them, like Rohit, had high aspirations and desired to make changes at KLL, but their efforts consistently met with strong resistance. This caused frustration among some next generation members who had contemplated venturing outside on their own at distinct points in time. Rohit also had a company idea, which he discussed with his old friend Amit Goyal who also belonged to a business family. Goyal enjoyed the idea forthwith and offered to invest in the new venture. Rohit didn't desire KLL to suffer as an effect of his way out and was emotionally attached to other family members and his dad. He also had to consider future and his own hopes. He would not easily get the chance to launch his own enterprise again. Rohit was facing a tough decision predicament.
PUBLICATION DATE: July 11, 2016 PRODUCT #: ISB062-HCB-ENG
This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP
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