個案資料

On April 2, 2017, the chairman of Kamat Hotels (India) Limited (KHIL) and his son, the company’s chief executive officer, were having breakfast and recalling tough times endured in 2014 after a failed corporate debt restructuring. It had been one of the most important decisions ever made by the public sector undertaking bank—leaving their previous joint lenders and deciding to assign the loan to an asset reconstruction company. The incident had proven to be a turning point for the company. The failure of the corporate debt restructuring mechanism had become an unexpected advantage, and the company never looked back. The two leaders were now focused on their commitment to grow the company in a sustained manner, staying true to the local environmental challenges. With the goal of aggressive growth in several Indian states, the chief executive officer was looking for more hotels to own, manage, or lease in the mid to high segments of the market as an expansion plan. His vision was to someday retire as the owner of one of India’s largest hotel assets and to take his family name forward to the next benchmark of Indian hospitality. Was this the best path forward for KHIL?

This case is suitable for a graduate-level course on family business or entrepreneurship management. The case can also be used in a specialized module focusing on strategic brand management or financial restructuring. The case provides an apt simulation of a medium-scale Indian company combating economic downturn while retaining an optimistic vision of growth. The discussion may also lead to articulating a leadership perspective into a shared vision. This case demonstrates the challenges for next-generation business leaders in a family-managed business. After completion of this case, students will be able to<ul><li>understand the ownership transition process in a family-managed business;</li><li>analyze the family-business life cycle amid growing complexity;</li><li>analyze the pros and cons of alternative strategies of growth versus consolidation paths;</li><li>create mutually beneficial strategies that will encompass environmental sustainability and branding; and</li><li>analyze the social and economic implications of the business environment in terms of sustainable business practices in the service industry.</li></ul>

• family managed business, core competency