Succession Planning at Ranbaxy - Family Drama, Corporate Style

  
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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:
Case Code : HROB057 For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges

Themes

Succession Planning
Case Length : 18 Pages
Period : 2000-2004
Pub Date : 2004
Teaching Note : Not Available
Organization : Ranbaxy
Industry : Pharmaceuticals
Countries : India

Abstract:

The case discusses the CEO succession planning controversy at Ranbaxy Laboratories Limited (Ranbaxy), India's largest pharmaceutical company. It describes the concept of succession planning and its importance in managing large companies (especially family owned businesses). The case describes how and why Parvinder Singh (Ranbaxy's promoter, also CEO) believed in running the business professionally and handed over the company's management to D S Brar (Brar), a professional (and a non-family member), amidst stiff opposition from family members. The case then details how Brar transformed Ranbaxy from a small Indian pharmaceutical company into a research based global pharmaceutical major.

It examines the reasons for Brar's decision to step down as the CEO and comments on his succession plan. The case concludes with a discussion of whether Ranbaxy's promoters would take over the company's management or continue to allow professionals to manage their business.

Issues:

» Succession Planning in Family Owned Businesses

Contents:

  Page No.
An Un-Expected Departure? 1
Succession Planning - What it's All About 2
Family Owned Businesses & Succession Planning 4
Ranbaxy's Professional Management Focus 4
Ranbaxy under Brar 5
What Happened Behind the Boardroom Doors? 7
Leadership Challenges for the Future 8
Exhibits 11

Key Words:

Ranbaxy Laboratories, CEO Succession Planning, Leadership Development, Management Style, Tools in Succession Planning, Succession Planning for Managers, Family owned Business

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