RE:another option
by yunus shaikh on Aug 05, 2008 08:41 PM
Well to start of its a simple theory rakesh as we can say an indian with american origin. First thing he never showed any trust,faith in his father who single handedly built an empire with which and with whose reference we can say rakesh started his company. Rakesh father indian as we say always hard working,and a alot lot dedicated towards his approach his work.He knew that his son was finding it very hard to cope with the existing pressure.First thing he was new to the business,that to in india where you know how the business runs here rakesh was totally blank for it.Well rakesh should have understood his father for 30 years have been a businessman and rakesh should have studdied about india market from his father as we say business is not a joke think,study,learn,and the most important think advice from your family your father your mother. Well i can say that rakesh should forget everything of past say sorry to his father and join his hands and run the show. There is one phrase in hindi ek aur ek gyaraah.
Hi, I think both are right at there places and both need to introspect and rework on their strategies and chalk out some new plans.From father's perspective Mr. Shriraman was right just not bcoz he has financed his company but also to avoid the brutal failure of his son. He being an experienced person had given ample time to his son to do business.But after 2+ yrs when he (Rakesh) failed to grab even a single order , it was not only the Shriraman's financial matter but his duty to jump into his son's business to get his son out of the sufferings. When we look from Rakesh's view it seems that he is also right at his place. After so long span every one gets frustrated if not enjoyed with business even after spending their complete efforts. Infact they overtrusted each other and jump into the same. The only way to come out of this problem is : First they should plan the work and then work the plan. Shriraman should put some more faith in his son and handle bank matters and Rakesh should hire some new concerned persons to get his business on the track.
I assume Rakesh has no prior work experience. I would say then that its a bad idea to start off with a business with no work experience to back in that area even if you have an excellent degree. whatever happens in college is far different than what happens in reality. Secondly his father shouldnt have taken up the part he played as he is not aware what this business is all about .. these two reasons diverted the focus of the company.
Remedy: The company should be shut down if it can get rid of most of the debt. Careful analysis has to be done as to how much loan can be paid back and how much time would be needed to pay back the remaining. Its a lethal combination to have someone inexperienced to head a buisiness like rakesh and someone who has no clear idea of the business of high tech IT like his father. Rakesh should take up a job for some years in the area where he wishes to start a company. If during that course he realizes he needs an education in management he can go ahead and get the same with focus on entrepreneurship and finance. His father should return back to the old family business. His father can try developing his old business more to get the needed capital.
In answering the problem I felt that it had happened with me and I had solved it myself. The problem is happening in the business world. So, This seems to be a true case.
Rakesh came to india and started his bussiness here in the a technology with an intent of keeping with in touch of American clients. Later, both Father and Son forgot and landed up giving Demos to Public sectors. If the person who made this case study has made it purposely like this, than I think that Rakesh should start an office abroad and tap the overseas market. Its never too late.
Shivraman has put in financial stake so he needs to worry. rakesh has put in his knowledge and skill and if he does not succeed he needs to worry. The best option is let Shivraman concentrate on convincing bank to give extensions for payment and look into administrative side of the business as a Father figure. Rakesh should concentrate throughly on his technical expertise and also be a go getter of business and look after sales. If his father feels he is insecure of his monies an option for rakesh is to bring in a financial partner who will pump in more money with a marginal profit to be given to the investor. let Shivraman remain a father figure as later on his good offices will be required by rakesh. Maybe as profits turn around and Shivraman pays of the bank he may handover the Company to rakesh as sole owner with Shivraman just having his name as a goodwill in the Company and rakesh being the sole owner now. A Happy ending!
