Schlesinger Global Family Enterprise Case Competition

Mending The Fence Before The Family Fell Apart: Succession In The Shampoo Family
Vivek Jain
PGP co’23
 Timeline

Herbal Hair was set up by
Doctor to manufacture
herbal shampoo (Jeeva).
1978
Rajesh joined family business &
start looking Marketing &
Finance. And soon after married
to Sandhya
2000
Tejas returned to India and Rajesh formed a separate company “Herbal
started handling HR Marketing Ltd” with all eight members of the
department of the company. family and Doctor as Chairman.
2012 2014

1998 2011 2013 2018

Doctor had mild stroke,
Rajesh was in final year &
Tejas joined junior college
in Singapore. Vipul start
handling the business.
Sandhya joined the
company as R&D manager
and start reporting to Vipul.
Doctor shouted at Rajesh
and challenged him to
prove his worth and as a
result ” they discontinued
board meetings
Rajesh appointed Pandey, a
consultant, to resolve the
growing resolve between him
& Vipul.
 Profile of Family Members
Vipul Shah
 Age -45
 Degree - Bachelors of Arts.
 Extrovert, good at networking &
find it easy to interact with people.
 Prefer the autocratic style of
leadership.
 Handle operation, Purchase
department, general
administration, and R&D.
 Usually gossips on musicians and
artists with Doctor
Raveendra Sheth
 Age – 70
 Love Movies & Music
 Established Herbal Hair to
manufacture herbal shampoo (Jeeva).
 Chairperson of Herbal hair & Herbal
marketing.
 Don’t trust his son’s ability to handle
business & make positive change
 Enjoy spending time with Vipul &
support his way of doing business
Rajesh Sheth
 Age – 45
 Degree – Engineering.
 Introvert, disliked noisy festivals &
don’t have many friends.
 Prefer professionalization.
 love Hindustani classical music, read
serious fiction and books on philosophy.
Enjoy time with children.
 Handle Marketing & finance in the
company.
 Profile of Family Members

Tejas Sheth
Sandhya Shah
 Did engineering degree from Singapore
 Bachelor of Science in Home
& MBA from the UK
Science.
 Worked in London in the finance
 Daughter of a well-known surgeon
department of FMGC company.
 Wife of Rajesh Sheth
 Took care of the HR department after
joining the company
 Independent lady
 Tejas & his wife Jaya (lawyer) both were
 Want to build a bungalow like
not happy with their role in the
Vipin & live independently from
business.
family.
 Proved his competency on various
 Appointed as R&D manager in
occasions & capable of handling
2011
situations.
 Self-justification of behaviour

Vipin Sheth
I am after all an outsider and have no
right to intervene between Doctor &
Rajesh Fight
Tejas Sheth
I am not too happy with the fact that my
talent is not fully utilized. I want to go
back to Uk or start something of my own
Raveendra sheth but the doctor is not ready.

I had no choice but to bring Vipin for help

because of a stroke in 1992

Sandhya Shah
My husband is the future MD of the
group, We both deserve a separate
bungalow for ourselves. Why vipin enjoy
Rajesh Sheth special treatment?

Parents never gave me time when I

wanted the most & I never like when
Vipin says that this “wealth won’t be
created without him”.
 Problem ?
Implementation of changes without everyone’s acknowledgement
 Late information to Vipul about the interview of R&D Head
 Major change in packaging without consulting doctor
 Testing new herbs and perfumes without the knowledge
of Vipin
Unprofessional Management
Intrafamily
 Often shouting by Vipul to senior managers Friction
 Doctor advice of “Never fully trust anyone”
 Making company with all family members as directors
 No simultaneous increase in salary of Herbal Hair
staff along with Herbal marketing.
Non corporative nature of family members
 The doctor’s lack of believe in his son’s ability to
make any positive changes.
 Demand of Sandhya for separate house.
 The family was, in general, ambivalent about the
recommendation of consultant
Not utilization of Tejas’s full potential
 Streamlined the HR process.
 Resolved the conflict between purchase and marketing
department in polite manner
 Not allowed to build something of his own after proving
his potential in company
Vipul & Rajesh rivalry
 Doctor and Vipul come to the board meetings together
while Rajesh comes with the Independant Directors.
 Vipin stated to tejas that herbal marketing & herbal hair
are still two different company
 Rajesh stopped vising Herbal hair office after new
company
Doctor’s lack of trust in ability of rajesh to handling business.
 Stated family meeting a waste of time
 Encouraged Rajesh to follow the style of Vipin.
 Doctor and Rajesh shouting at each other in board meetings
 Why Division of business is not the solution?
Medium Size business
The nature of business is not monopolistic,
dividing the business into 3 parts will result
in insignificant assets to fight with
competitors. In fact, dividing the business
may result in insignificant assets among the
three families. Hence, any family loses its
fortune due to continuous wrong decisions.
Decision will not be right for whole family
Every member of the family brings
something to the table. Dividing the
company will result in losing the important
pillar of the company and it will be hard to
replace someone with the same competency
in that position. It will also hurt Sandhya
which doctor don’t want to do in any case.
Fear of cannibalization
All 3 families will be selling the same
products will result in competition and
cannibalization among themselves.
With no differentiation among the
product, it will result in a price war and
hence net profit will be reduced
significantly.
Low product line to divide
Low product line makes it difficult to
divide the company. And it is also
difficult to run & grow the company
with just one product in your portfolio.
 The new structure of the Company

Raveendra Sheth
Chairman

Tejas Sheth
Vipul Shah
MD, HR and Finance Rajesh Sheth
Operation, R&D
Marketing & Purchase
 Reasoning
Raveender Sheth
Role of Faciliatory
 Doctor should start trusting Rajesh and encourage
professionalization in the company
 As a chairman of company, In the long run, he should try to
bring harmony among all three through mutual
understanding and respecting everyone’s way of doing work.
Vipul Shah
Hire & Handle in his own way.
 Since Vipul finds it hard to work in a professional culture,
he should be allowed to hire employees for his
departments and allowed to work in his own style until he
is comfortable with the professional culture.
 Vipul should handle operation & R&D because he has
sufficient experience in same
 In short term, avoid direct communication with rajesh and
use tejas as a medium of communication. In long run,
should work on improving the relationship.
 Reasoning
Rajesh Sheth Tejas Sheth

Work on professional management. General management & Business development

 Rajesh should follow his work of professionalization and start hiring the right
 Increase product line and work on business
employees for the job after consulting with Tejas.
development.
 Involve any close family friend who is respected by everyone to facilitate the
 Tejas being MBA and proved his potential should be MD
change in behavior gradually and at the time of conflict, help in solving the
and look into general management. It will also help in
dispute.
grabbing his full potential and give him self-satisfaction.
 Rajesh should take the decision of his own department & avoid involving in
 Since Tejas has work experience in finance, therefore it
the department concerning to Vipul.
makes sense to handle him finance department.
 Rajesh should handle Marketing & purchase department since both the
 He should act as a key chain for holding whole company
department are highly dependent on each other and rajesh has high interest
and should work on the professionalization of business
on the same.
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Time, Money and Reputation. I hope and I believe that this Template will your Time,
Money and Reputation. Easy to change colors, photos and Text. You can simply Easy to change colors,
impress your audience and add a unique zing and appeal to your Presentations. photos and Text.

I hope and I believe that this Template will your Time, Money and Reputation. Easy to
change colors, photos and Text. You can simply impress your audience and add a
unique zing and appeal to your Presentations.

You can simply impress your audience and add a unique zing and appeal to your
Presentations. Easy to change colors, photos and Text.
Columns Infographic
You can simply impress your
audience and add a unique zing.
You can simply
impress your
audience and add a
unique zing and
appeal to your
Presentations. I hope
and I believe that this
Template will your
Time, Money and
Reputation. You can
simply impress your
audience and add a
unique zing and
appeal to your
Presentations. Easy
to change colors,
photos and Text.
01 Easy to change colors,
photos and Text.
PowerPoint Presentation Templates
Get a modern PowerPoint Presentation that
is beautifully designed. I hope and I believe
that this Template will your Time, Money and
Reputation. Easy to change colors, photos
and Text. You can simply impress your
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Templates. Get a modern PowerPoint
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hope and I believe that this Template will your
Time, Money and Reputation. Easy to
change colors, photos and Text. You can
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unique zing and appeal to your Reports and
Presentations with our Templates..
02 Easy to change colors,
photos and Text.
PowerPoint Presentation Templates
Get a modern PowerPoint Presentation that
is beautifully designed. I hope and I believe
that this Template will your Time, Money and
Reputation. Easy to change colors, photos
and Text. You can simply impress your
audience and add a unique zing and appeal
to your Reports and Presentations with our
Templates. Get a modern PowerPoint
Presentation that is beautifully designed. I
hope and I believe that this Template will your
Time, Money and Reputation. Easy to
change colors, photos and Text. You can
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 Fully Editable Icon Sets: B

You can Resize without

losing quality
You can Change Fill
Color &
Line Color

FREE
PPT
TEMPLATES
www.allppt.com
 Fully Editable Icon Sets: C

You can Resize without

losing quality
You can Change Fill
Color &
Line Color

FREE
PPT
TEMPLATES
www.allppt.com