Harilela Case Study
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Transcript

  • 1. Harilela Case Study An Indian Family Business In Hong Kong
  • 2. Family Issue + Recommendation
    • Each brother had a seat on the board, not have equal interests in the group: Hari 56%, Peter 12%, Bob 6%, Gary 6% and Mike 7%.
    • Recommendation: company organize an annual meeting to evaluate the six brother’s performances and participations in the company. In this way they can increase or decrease their shares accordingly.
  • 3.
    • Family relied on an informal set of rules to maintain harmonious relationships. This may become an issue in the future because the family could loose control over its members.
    • Recommendation: To avoid confusion and debates within the family, ground rules should be established so that members can respect their boundaries.
  • 4.
    • Too many children in spite certain problems in his business: failure of opening a small silk shop of his own, break out of World War II and the harsh life in Japan. Sons, had disagreements between them and eventually separated businesses, with tailoring and Hari took a risk and moved towards his own hotel
    • Recommendation: they could have decided and concentrated on one proper family business instead of diversifying into several other business plans.
  • 5. Business Issues and Recommendations
    • Family members started also personal businesses. This may become an issue if the family members loose focus
    • Recommendation: should organize periodic meetings with updates of how the company is going. In this way everyone feels part of the business no matter what.
  • 6.
    • Another issue is whether the company should go public. This may cause frictions within the company.
    • Recommendation: to go public in order to have a higher growth and to expand in other new markets. At the moment the lack of capital is constraining the company’s growth.
  • 7.
    • Move to his own hotel business which went through a series of problems including disagreements from his brothers, borrowing money for the construction and selling a number of properties like the imperial hotel.
    • Recommendation: such a risk could have been avoided, as their fast expanding tailoring business along with its retail business was going through a stage of growth and more profits.