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ENTREPRENEURSHIP AND
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FAMILY BUSINESS
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MANAGEMENT
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SIMULATION REPORT
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Submitted by -
Mathew Febin Charles
b2539

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 HONEYCOB HONEY HERITAGE

 INTRODUCTION

The business was started by Mr Harsh in the year 1972. it all was started from a single
hive and the profit from that made him start the family business “HONEYCOB HONEY
HERITAGE”. The business started growing more rapidly and he decided to quit his odd
jobs and put his focus completely on his honey business. He started to learn about the
business from the bee keepers since he had less or no idea about this business. As his
business started gaining growth, his wife Radhika helped him in the production and packing.

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The business grew from a family kitchen to a closed factory. As time passed on, the business

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started expanding on various stages and it became quite important to take up various

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decisions.

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 DECISIONS
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Decision 1 – Harsh focuses time and money on business.

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Harsh decided to focus on business because his business was growing rapidly and it
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needed complete attention. Getting diverted at this point of time would not be good for the
business. Also he had no workers at this point of time. His only support was his wife so he
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could not let his attention wander. After a good amount of expansion, he could start giving
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his time for his family. So he decided to focus his time and money on business.
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 Decision 2 – Continue to oversee business operations

Harsh was still confused whether to hand over the control to the 2 nd Generation as he
had put all his sweat into this. He thought that for some more time he can take care of the
business and then let it go so he decides to continue to oversee the operations.

Decision 3 – Hire professionals

The business had grown to a large extent. It was not possible to go with the traditional
methods that Harsh had used to run his business. For the business to expand, professional

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decisions were extremely important. And after Ravi and the siblings took over, it became

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tough for them to handle everything so they decided to hire professionals to take decisions

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regarding the business.

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Decision 4 – Build a mixed board
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Till now the board meeting was more of an informal type, but as mentioned in the
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previous decisions, professionals were hired to take decisions with respect to the business.
Informal board meeting may not have professional decisions. Decisions would be taken by
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taking the emotions of family members into consideration. But having board members from
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outside will help in taking rational decisions and it will help in the growth of the business. A
growing business should have professional decisions and not emotional decisions.
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Decision 5 – Continue to self-fund

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The business had enough funds to carry on. As of now, the family didn’t want
investors to come in and take control. Also seeking external funds might create a lot of
liabilities so for time being depending on self-funds seemed better.

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 Decision 6 – Launch R&D effort into personal products

Every business when successful likes to diversify and also the consumers always
would be eager to know more when a company launches a new product and it is purchased if
the marketing is done right. So in order to diversify it was important to launch R&D effort
into personal products.

Decision 7 – Open a formal CEO search

Avni never had the leadership quality in her. For the sake of handing over the

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business to family, it was a risk to hand over the control to Avni. Ravi looked at the success

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of his business rather than concentrating on his emotions. Emotionally, he would have gone

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for his daughter but taking the betterment of the business into consideration, it was better to

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Decision 8 – Minor Shareholders do not set up governance

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As of now, there was no need for a governing process. Things were going smooth and
having the control with the family would be good for the time being.
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Decision 9 – Buyout of minor shareholders

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Buyout of minor shareholders was important as the demands of the family was
growing and it became difficult for the management to meet all the demands. In order to keep
the business on track, this decision was needed.
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 Decision 10 - IPO

Initial Public Offering was the only option to remain in the competition. Raising funds
was highly important as the business was lagging behind and was growing on bank loans.
Also IPO would help in improving the image of the company in the public eye so the
decision of going public looked good.

 CONCLUSION

The company achieved Local business, small operations which are profitable, with a

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medium ownership value (since most of the shareholders have stayed with the company)

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and the family relationship is also medium. In the years after the fourth generation takes

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control of the company, HoneyCob eventually splits into multiple competing companies. Few

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of them are profitable, and most languish as small operations.
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Regardless of their current connections to the business, all of Harsh's descendants continue
the tradition of giving two drops of honey to each new baby on their first birthday.
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