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2-2 Harvard Business Review Simulation and Journal
Southern New Hampshire University
May 15,2022
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From the initial start of his business venture, Harsh had a distinct competitive edge
over other businesses as he started the venture of selling honey with very negligible start-up
costs. Their honey old were from his boss’ beehives. He used other people’s property to store
his hives and the harvested honey as the business grew. He added value to his operations and
products by supplying honey on a lifetime basis for his boss, whose hives he used initially. He
also promised a lifetime supply to his neighbours whose gardens were used to grow and feed
the bees.
The business grew into a larger venture, and Harsh decided to resign from his regular
job to focus completely on his honey business. The honey business had grown and was
paying off well. For example, the income generated from the business grew by a tenfold
measure in just two years. When his children were of age, they went to study at colleges and
obtained college degrees. After achieving the degrees, they worked in the honey business
company to help their father (Kim & Mauborgne, 2005). The business also garnered a
reputation by donating 5% of its annual profits to charities. The company spread its branch
offices in different cities of India and grew into a major business. His honey brand has
become a household name and a trusted product. Harsh then decides to let go of the
company’s control to his son Ravi who has ideas for the expansion the f its product lines.
Ravi wants to expand the product line to Honey confectionaries. This step proves to be very
beneficial for the company’s profits.
As the company continues to grow further, the sons hire a COO so that the operations
run smoothly. The brothers also form a diverse board of directors and seek more external
funding to finance the company’s further growth. The company also ventures into personal
care products in the future. As time goes by, Ravi steps down from the CEO post and hires an
outsider as CEO of his family business (Kim & Mauborgne, 2005). This makes some
VALUE CREATION b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b 3
stakeholders of this family-run business angry. However, the new CEO convinces the board
of directors to bring in new governance processes so that the relationship between the family
and the business is regulated and company growth is not hampered. The company grew and
became public. On the other hand, the fourth generation decides to take over the company. In
the fourth generation, the company decides to shift its focus from only honey to other natural
and organic products because it is a thriving and competitive space with a lot of potentials.
The company continues to do well in organic cosmetics and wellness products.
The company grows further under its new identity, and family members who have
stakes in the company receive dividends from the profits. The company has grown into a
Fortune 500 company that holds its place as one of the fastest-growing companies worldwide.
Thought Process
When I was making business decisions in the course of the simulation, I saw that I
was trying to make decisions that were necessary for the company to grow. Therefore, at
every step, I considered multiple perspectives before making a final decision for the
company. During this entire process, I kept a Blue Ocean Mindset. Throughout the process,
there were times when I wanted to look after my family’s interests, but in the end, I took
decisions that helped the larger picture of company growth. The Blue Ocean strategies helped
the company extend its product lines into broader categories of use instead of staying
restricted to the single stream of honey products that it started with. The diversification of
product lines helped the company find new user acquisition and revenue generation scope.
Discovery
In the simulation course, I discovered that it takes many years of toil to grow a family
business into a full-fledged company. It takes hard work and dedication from the stakeholders
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of the family-run business to maintain the profitability of such a company. The leader has to
make many difficult decisions and has to find the right people who will implement them
correctly. There is always a possibility of upsetting fellow family members in the process.
However, there will always be honest people who will give you an honest assessment of a
situation and help you make a decision in the company’s favour. The path to take and the
choices made will be difficult but worth it.
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References
Kim, W. C., & Mauborgne, R. (2005). Value innovation: a leap into the blue ocean. Journal
of business strategy.
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