Zandu Pharmaceuticals, situated in Gujarat, India, was operated by two families, the Parikhs and the Vaidyas. The Parikhs brought their business acumen to the firm, primarily the Parikhs was a part of a trading community. On the other hand, the Vaidyas capitalize their technical expertise to the business, when came from a lineage of Ayurveda practitioner. These two families had established Zandu Pharma in 1910 and through facilitating each other, the two families operated the business for about a century.
To sustain the business for a far longer term, each of the families had to effectively pass their knowledge to their descendants. The Parikhs’ later generation had succeeded to gather the technical knowledge, owned only by the Vaidyas and created deep roots in the firm’s overall operations. On the other hand, the Vaidyas had not paid concentration in creating the competency in their next generation. Ultimately, the Parikhs took the executive authority from the Vaidyas as they seemed marginalized.
After being ignored, the Vaidyas sold their stake in Zandu to Indian based Emami group, a Kolkata based beauty and healthcare company. This case is about the takeover bid when Emami group intended to takeover the firm in 2008 and then Parikhs had to choose a direction that whether to sell their stake to Emami or to fight the takeover battle.
This case enhanced students’ expertise in strategic thinking and negotiations required in such arising complex scenarios in today’s environment and determines the situation specific leadership style. It deals with the issues encountered by both of the families.
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