The Third Generation in a Family Business – How should it Grow?

Abstract

This is a case of 70-year-old Sahni Bakery in Patiala, Punjab, India. It narrates the business conditions and problems as perceived by Inderjit Singh Sahni, the third-generation owner. The bakery makes biscuits, cakes, sweets and other foods and operates two restaurants and two stores from four locations in the state of Punjab. It is a family business that has no management hierarchy, formal practices, or employee problems. Due to the consistent quality of its offerings, it has earned the trust of its consumers. Inderjeet wants to grow his business and respond to the growing competition. He needs to induct his son, the fourth generation, into his business. A discussion of this case would help students to understand family business and change management and explore and propose solutions.