Family business profile 200

A
REPORT ON
FAMILY BUSINESS
MANAGEMENT

SUBMITTED TO-

PROF. AJAY DIXIT

ON

March 2TH, 2010

SUBMITTED BY-

Oneil Jhaveri
ROLL NO.: 094237
MBA FB & E (IB)
INSTITUTE OF MANAGEMENT,
NIRMA UNIVERSITY

Gopalas Textile Overseas Page 1

 Family business profile 200
8

1. Brief introduction of family business :-

The firm is a JAIPUR (Rajasthan) based entity and is named
“GOPALAS TEXTILE OVERSEAS”. The firm is into manufacturing
and export of handicrafts which includes home furnishing items and
ethnic garments. These home furnishing items includes apparels, wall
hangings, curtains, bedcovers, cushion covers and other traditional
items as per the customized order. GTO is an export oriented
company dealing with a number of countries.

The company has a policy and a strong orientation to the rich cultural
heritage. This is the reason that every product of the firm has some or
the other hand work from the rich tradition of the country. This
activity of the firm has a multifold effect. It would come out with
innovation in the handicraft market and would also create a
permanent livelihood for the innumerable women in the country
having rich artisans’ skills. The firm achieves this by sustained,
profitable, and efficient coordination of the design, production, and
marketing of the products and services in mainstream national and
global markets.

The base of the business lies on the skilled labour

which is sourced from the rural areas of Rajasthan.

Gopalas Textile Overseas Page 2

 Family business profile 200
8

They are further trained to use machines to maximize

their efficiency.

About myself :-
INTRODUCTION:-
I Oneil Jhaveri am a commerce graduate and is
pursuing my masters in business administration from
nirma university at present. I have completed my
bachelors of commerce from rajasthan university’s
commerce college, jaipur and did my schooling from
one of the prestigious schools of jaipur, maheshwari
public school affiliated to cbse board.

ABOUT ME:-
I have many interests which includes sports, music,
fashion and outing. I wanted to join my family business
right from the very beginning but before entering
wanted to be fully equipped with sufficient knowledge.
This inspired me to pursue MBA and because I always
had an inclination towards family business resulted in
specialization in family business and entrepreneurship.

AMBITION:-
I am a person with versatile knowledge and jack of
many trades but master of few which includes public
relation and so far it has helped me a lot. My ambition
Gopalas Textile Overseas Page 3
 Family business profile 200
8

is to utilize my varied knowledge into my business and

take it new heights with the guidance and experience
of my parents.

2. History :-

FIRST GENERATION:-
Our family business was eventually started by my
father and his two brothers after the death of their
father in 1994, before which all of the three were in
different fields. They started the business of handicraft
exports in the name of gopalas textile overseas,
with a good market scope, but everything did not
started well and they had to struggle to establish and
set up their business.
All three brothers were strong in different fields and
had great command over one or the other field that laid
a strong foundation for the business.

SECOND GENERATION:-
The second generation is the young brigade of the
three brothers. Three of them are actively involved in
the business and three getting ready for the same.

Gopalas Textile Overseas Page 4

 Family business profile 200
8

This generation has a strong platform laid by their

parents and are ready to carry on and expand and
diversify.

FAMILY TREE AS ON TODAY:-

Gopalas Textile Overseas Page 5

 Family business profile 200
8

CURRENT CORPORATE STRUCTURE:-

3. Family community and family culture or value

concepts of my family business:-
• The business is “Family-first” business, but still some points of
“Management-first” business are also present in the business. Also

Gopalas Textile Overseas Page 6

 Family business profile 200
8
non-family members are given due importance in the business.
Their decisions are also taken into consideration. However, the final
decision lies with the Head of the Family Business only.
• This is always believed that the business is totally dependent on
customers’ trust and loyalty”. So customers should be served as per
their needs and requirements.
• As the business is that of handy craft therefore the customer seeks
the best of quality and hand finishing, and this is what we promise
to provide.
• The other family members are not involved in the business, but still
their concern and suggestions are taken into consideration.
Employees are also given consideration on the basis of
responsibilities and duties, and not on the basis of position in family
business members.

4. Personality and leadership style of head of

family:-

The head of my family is the final decision taker

after taking all consideration in mind and he is
trusted and respected by each member of the
family equally. For him family is the first and
foremost priority but he treats family and business
as different.

Gopalas Textile Overseas Page 7

 Family business profile 200
8

• Although he delegates most of the responsibilities

to the right person concerned and next generation
members but in true terms he is the business
representative and final decision maker. Hence his
style of running the business runs parallel to
AMBASSADOR CEO STYLE.
• He makes others to learn the business on the first hand and to
eventually take the responsibilities. He likes to give
responsibilities to non-family members also, so that they are
able to take decisions on their own. He also accepts suggestions
from the non-family managers.
• He is helpful if the non-family managers are not able to carry
out their responsibilities properly and guides them to work
efficiently and effectively.

5. Vision :-

"To be a manufacturing and trading institution offering services to

ensure" complete customer satisfaction"

Mission :

 Balance of Art and Commerce :

We believe that anything we do is a balance of Art and Commerce.

Gopalas Textile Overseas Page 8

 Family business profile 200
8

 Youthful Idealism and Passion :

We believe in the idealism and the passion of the young balanced
with the wisdom and knowledge of the old.

 Price-Quality Ratio :
We always consider the Price-Quality Ratio in the merchandise we
produce and sell. (It is the best in its class without meaning the most
expensive).

 Sustainable Profitability and Growth :

We maintain the highest efficiency in administration for sustainable
profitability and growth.

 Receive and grow the skills of the members :

Aims to evolve a business model that balances between livelihood
and market.

 Networking :

Gopalas Textile Overseas Page 9

 Family business profile 200
8

Activate collaboration by providing a forum that generates leads,

builds domestic cooperation, forms global export alliances, and
publicizes industry news & events.

 Professional Development :
Develop staff capabilities and build on management infrastructure
through education programs that improve standards of performance.

 Product & Manufacturing Development :

Drive innovation and collaboration in design and production methods
by overseeing research initiatives, showcasing technologies, and
establishing cooperative enterprises.

 Export Readiness :
Ensure manufacturers are fluent in export provisions by creating
guidelines and training seminars that address trade agreement
compliance, international quality standards, labor laws, and customs
requirements.

Organisation & Organisational culture :

Values :-

Gopalas Textile Overseas Page 10

 Family business profile 200
8

• The following are the values that help us in achieving our

mission and vision :

• We shall not take what is not ours. (no imitation and

copying of designs)

• We shall have an environment conducive to openness.

• We shall believe in innovation.

• We shall have an environment conducive to development.

• We shall respect our customers' rights.

• The value of trust.

• We shall be fair.

• We shall work for providing a long term

livelihood to the artisans by revitalizing their
skills.

6. SWOT ANALYSIS
It helps to determine strengths and weakness which in turn will
facilitate the company to tap the opportunities and overcome the
threats.

7.1 Strengths:

Gopalas Textile Overseas Page 11

 Family business profile 200
8

• Base in rajasthan, so it will be easier to get in touch with the

skilled artisans from the rural India.
• Being a young organization there is a greater room for creativity
and innovation.
• There is a huge availability of raw material locally. It reduces
the overall lead time.

7.2 Weaknesses:

• A small scale unit, procuring finance for big expansion and

diversification is a problem.
• Quality control is a difficult process in handicraft.
• The trends keep on changing everyday.
• It is difficult to know the taste and preferences of the consumers.

7.3 Opportunities:

• There is a huge potential market for handicrafts in many Indian

cities and abroad.
• Though Indian handicraft industry is considered as a cottage
industry, it has evolved as one of the major revenue generator.
Thus the government gives many subsidies for the same.
• There has been a constant growth of 20% over few years in the
industry.

Gopalas Textile Overseas Page 12

 Family business profile 200
8

• Availability of Low Cost and Skilled Manpower provides

competitive advantage to industry.

7.4 Threats:

• Competition from other developing countries, especially China.

• Continuous Quality Improvement is need of the hour as there
are different demand patterns all over the world.
• Elimination of Quota system will lead to fluctuations in Export
Demand.
• International labor and Environmental Laws.
• To balance the demand and supply.
• To make balance between price and quality.

KEYS TO SUCCESS:-

1. Constant innovation is the main venture of the organization. We will try

and achieve this by understanding the customer requirement before
hand. We will then try and exceed customer satisfaction by providing
them what they require. This will be achieved by the quest of the
following:
• A constant and personal touch with the customers and getting their
feedback.
• Constant innovation by coming out with newer innovative designs
which are unique, thus creating products that are superior in design
and quality.

Gopalas Textile Overseas Page 13

 Family business profile 200
8
2. Keeping a tough check in the quality standards.
3. Having an environment in the organization which would allow employee
participation and their empowerment.Thus we will strive to achieve a
healthy relationship with all the partners and stakeholders in the
organization. We will make sure that all the stakeholders are satisfied
with the organization.

CRITICAL ISSUES:-

As our brand is new there are many critical issues we have to deal:

• Establish our store as a premium ethnic wear destination.

• To increase awareness of our brand “Banjaran” among our target market.
• To maximize revenues and reach break-even as soon as possible.
• To keep expenditure as minimum as possible.
• To maintain the quality at affordable prices.
• To provide best customer service.

7. Family business governance

Family Business Governance is setting up the roles and
responsibilities of family members in the business to make the
smooth running of the business. In our family business work is
properly divided among family and non family members and
everyone knows what are liabilities on their part and who has to
report whom.

Gopalas Textile Overseas Page 14

 Family business profile 200
8

In our business, periodic assemblies of the family takes place

where open discussions takes place and decisions are taken
which are best in favour of family and the business
simultaneously, in a way they all the families are benefited.
Our family council and assemblies help in the following ways:-
• Develop clarity of roles , responsibilities and rights for the
family members.
• Encourage family members, family employees, and family
owners to act responsibly towards the business and family.
• Regulate appropriate family and owner inclusion in
business discussion.

8. Succession planning

The head of the family i.e. Mr Gopal maheshwari is 55yrs old

CEO of the business and is a wonderful leader with great and
deep knowledge of the business which is expected of any CEO.

He is expected to work for the organization and for the interest

of the family for at least next 8-10 years. But during that period
he has under him a young and enthusiastic team of members in
the form of me and my cousins who are to be guided and trained
by him to create provisions of successors and future executors of
the business. And this is being done in a pretty nice manner by
him.
Gopalas Textile Overseas Page 15
 Family business profile 200
8

He takes part in major decision making and delegation of the

work to the work force available to him and acts as a
representative of the business.

He is an AMBASSADOR to our business.

9. Strategy for survival and growth

10.1 Market coverage:- We can cover large section of the

target market because of the availability of the wide range of
products which will increase our sales.

9.2 Advertisement:- Doing various brand building exercise

through advertising and sales promotion using various channels
like news and print media, and also sponsoring various events.

9.3 Combination of best price and quality

9.4 To constantly introduce innovative designs and

retain consumer interest
Gopalas Textile Overseas Page 16
 Family business profile 200
8

9.5 To ensure continuous availability of the product

and meet the demand

9.6 To sell the concept of embroidery

Gopalas Textile Overseas Page 17