Product Overview

The case describes the entrepreneurial trajectory of Madan Mohanka and his family business, Tega India Limited. The company was at an inflection point, when product demand in India for industrial rubber products for material handling in mining and mineral processing stagnated and competition intensified. The Swedish collaborators of Tega were acquired by competitors who already marketed competing products and services in India.There was an impending price war in the Indian market.The choice between exiting the business by selling out to consolidating foreign competitors or competing with them by developing new capabilities for international business was not an easy one.

Learning Objectives

To enable an understanding of risks in family businesses when multiple adversities arise simultaneously demanding scarce management bandwidth for difficult decisions; To understand how underlying weaknesses revealed in the strategy and organisation of a business during a growth stall may require painful trade-offs between shareholder value and sustainable growth; To study new horizons potentially available for international business from the perspective of choice of geographical footprint, new markets, new products and services, and new business models; To consider what dynamic capabilities would be required for engaging with new horizons of business endeavour; To explore the nature of control systems, organisation structures, and management processes required in the transition, when a domestic enterprise transforms to become a multinational enterprise.