Sapna Book House: Charting a Trajectory for Long-Term Growth

In 2018, the group president of Sapna Book House, operating in two South India states, was determined to take the family business to the next growth level. However, he was concerned about the threats and challenges posed by a rapidly changing competitive environment. As a third generation entrepreneur, he had executed some of the initiatives planned by his father and uncles, and had upgraded the technology to reach existing and new technology-savvy customers. His future plan was to increase the number of stores fivefold by 2020 and make the company a global brand. He believed that adding professional employees, rather than only family members, to the management team of the business was the only way to ensure the massive expansion and growth that would enable the top management family members to focus on strategic decisions and business resources, while allowing professionals to carry out routine tasks. Another issue of concern was how to raise funds from external sources to support his plan for growth, which most family members opposed.

This case is intended for use in both undergraduate- and graduate-level courses in management, and entrepreneurship. It is especially relevant in teaching subjects related to new venture creation, family businesses, enterprise growth, and professionalization. After working through the case and assignment questions, students will be able to<ul><li>understand the ecosystem that supports entrepreneurship and the factors that facilitate new venture creation, while appreciating the theoretical perspectives on entrepreneurship;</li><li>identify the advantages, disadvantages, challenges, and special concerns of a family business;</li><li>appreciate the issue of work–life balance in a family business and examine theories that attempt to explain this phenomenon;</li><li>recognize the need for different types of strategies at different stages of an enterprise’s life cycle, with special reference to the need for professionalization and external funding during the growth stage; and</li><li>design appropriate strategies to professionalize a family business and secure external resources without eroding the family’s values, culture, and control.</li></ul>

• family business, professionalisation