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Family Feud at Biological E. Ltd.
Abstract
Biological E. Limited was a Hyderabad, India–based pharmaceutical company. The founder, J.A Narsimha Raju (Raju), along with his business partner, Venkata Krishnam Raju Datla, grew the business worldwide through numerous associations. The business partnership between them turned into a personal relationship with the marriage of Renuka, daughter of Raju, and V.K Datla (Datla), son of Venkata Krishnam Raju Datla. After the death of Raju, Datla took on the responsibility of BEL and continued to run it as Managing Director and Chairman till his death in March 2013. His death set off a feud between his wife Renuka and their three daughters, Mahima, Purnima, and Indira for the control of the company. Till March 2013, Datla, Renuka, and G.V. Rao (Rao) were the Directors of the company. After the demise of Datla, only Renuka and G.V Rao were left on the Board. Rao offered his resignation soon after the demise of Datla, but within a day he took back his letter and convened a board meeting in which he inducted the three daughters of Datla into the board.... |
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Issues
The case is structured to achieve the following teaching objectives:
- To understand the reasons for conflicts that can hinder the efficient functioning of a family business.
- To appreciate the importance of Succession Planning in family businesses to prevent any sort of conflicts due to the unavailability of the head of the family business.
- To learn about the Succession Planning Model so as to run a family business effectively for the longest period of time.
| Contents |
| INTRODUCTION |
| BACKGROUND NOTE |
| THINGS GET BITTER |
| THE WAR OF WORDS |
| RENUKA COMPLAINS TO THE COMPANY LAW BOARD |
| TAKING THE ISSUE TO THE COURT |
| THE AFTERMATH |
| EXHIBIT |
Keywords
Family business management,Family feud; Conflict,Resolving conflicts among family members,Three Circle Model of the Family Business System,Succession Planning,Succession Planning Model,Family council,Organizational Behavior,Business Law
