Amarnath Gupta and Sons: The Family Business
(6 pages of text)
Amarnath Gupta and Sons was a distributor of lubricants and owner of a petrol pump based in Alwar, Rajasthan, India. The business was originally set up as a family-owned single petrol pump in 1953. The family member currently in charge of daily operations had expanded the business significantly, especially since the entry of new multinational players in the Indian lubricant market. In 2013, this owner-partner was looking at ways to involve his children—one of whom had finished college (a son), one of whom was in college (a daughter), and one of whom was about to start college (a son)—in the family business. Should three businesses be established for each of the three children, or should they all be part of the same business? How could the next generation enter the business successfully? This case won the 2015 ISB-Ivey Global Case Competition in the entrepreneurship category. The ISB-Ivey case competition was sponsored by ISB.
The case is multi-faceted and can be taught in an entrepreneurship course on succession planning or in a special family business program. This case can also be taught as part of business strategy or human resource management courses in the first year of an MBA or executive MBA program.
The case has the following learning objectives:
- To help students understand the current and future role of key stakeholders in a family business by using techniques such as Davis’s “three-circle model” and Gersick, Davis, Hampton, and Lansberg’s “three-axes model”
- To encourage students to use different business tools to understand the level of efficiency and effectiveness of a firm
- To illustrate the dynamics of the decision-making process when incorporating the next generation in a business
- To enable students to apply tools to understand options for expanding a family business
India, Small, 2013
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