Connecting Family Business & Generations: A Case of Hafizia Art & Crafts Pvt. Ltd.

Abstract

Hafizia is the sixth generation business, after a legacy was established by Late Mr. Haji Noor Mohammad, followed by his grandson, Late Mr. Haji Ilahi Baksh. Later, he migrated to Sitapur in 1968. His legacy was followed by the Grandfather then, Late Mr. Haji Asghar Ali and further by Mr. Hafiz Mohammad Akram.

Hafizia was set up in 1992 at Sitapur (U.P), India. It had been a leading manufacturer and exporter of superior range of home furnishing products. Hafizia supplied floor covering products to many Indian retail stores. It gave direct employment to 450-500 people and indirectly supporting more than 1000 families.

The Business of Hafizia is totally owned and operated by Family members with the help of other team members. As of now, most of the marketing activity is handled by Mr. Zubair Akram and Mr. Umair Akram, two elder son of the Founder Mr. H.M. Akram. Both are Directors in the business. Mr. Zubair Akram had been active in Sampling and Research and Development, being a core competence of any business. The Board was separated the areas of Marketing, region wise, to avoid conflict and miscommunication. Mr. H.M. Akram, Managing Director of Hafizia worked as a mentor for marketing and daily operations.

Hafizia emerged as the sole exports’ firm to some of the major destinations of the international markets. Mr. Ubaid Akram, had been the Director and third son of the Founder. Most of the activities of the business from marketing, sampling, production, finance, to day to day activity of the organization handled and operated by the family members. Strategy still, is undefined, the firm produces and sells world over but has not been able to create a brand name for itself. Diversification is another issue.

The imbroglio surrounds professionalization amidst growing concerns of internationalization of business. The firm has to have a decision making unit which takes away all the redundancies associated with it being a traditional and a purely family run business.

Will Hafizia be able to put itself right across the vents of being only a family run business and emerge as a Professionally organized business? Will the firm have an Entrepreneurial Strategy surrounding creation of Hafizia as a reliable and internationally renowned brand? Will Hafizia be able to utilize its full potential to diversify also? Amidst these, the firm thrives and grows, but inconsistently!!

Keywords: Family Business, Professionalization, Internationalisation, Strategy, Transition, Entrepreneurial Strategy, Trade Facilitation and Grievance, Innovation