Case

Editor’s Introduction 115

Succession Management Asian Journal of Management Cases

9(2) 115–126
Challenges: The Case of © 2012 Lahore University of
Management Sciences
a Family Business in the UAE SAGE Publications
Los Angeles, London,
New Delhi, Singapore,
Washington DC
DOI: 10.1177/0972820112454240
http://ajc.sagepub.com
Martin Spraggon
Virginia Bodolica
Mona Manoussifar

Abstract
This case study illustrates the story of Raja Garage Ltd, a small car repair services company based in
the United Arab Emirates (UAE). It begins with Izat Raja’s dream to start his own business and follows
his journey in pursuit of turning his dream into reality. Shortly after the establishment of his car work-
shop, Izat is joined by his nephew, Waleed, and together they face the obstacles that arise on their road
to success. Years later, Izat’s only son, Kamran, also joins Raja Garage Ltd to find out that the company
is slowly regressing and may be on the brink of failure. Kamran decides to take over the family busi-
ness and shares his ideas with his father, ideas which he believes could salvage the company. Recently
recovering from the impact of the financial crisis, Raja Garage Ltd has proven its capacity to overcome
multiple challenges throughout its years of existence. Yet, the company’s current survival and future
development hinges upon the family members’ ability to make the right decisions.

Keywords
Family business, succession management, family conflicts, UAE, car workshop, business challenges, firm
survival

‘You have never supported me! Few years ago when I decided to go to university to study engineering,
you wanted me to join you in the business right away’.
‘What is wrong with a father wanting his only son to join the family business?’

This disguised case was written by Associate Professor Martin Spraggon (martin.spraggon-hernandez@hec.ca),
Associate Professor Virginia Bodolica (virginia.bodolica@hec.ca) and Mona Manoussifar at the American University of
Sharjah, UAE to serve as basis for class discussion rather than to illustrate either effective or ineffective handling of an
administrative situation. This material may not be quoted, photocopied or reproduced in any form without the prior
written consent of the Lahore University of Management Sciences. This case study received funding from the National
Research Foundation (NRF) of the UAE (Grant Agreement No. 0516/2011) as part of the Research and Scholarship
Awards (RSA) 2009 Competition (Project Number RSA-1108-00466). The case presentation and analysis reflect only
the authors’ views and the NRF is not liable for any use that may be made of the information contained therein. The
authors would like to thank Nabeela Ali for her assistance during the early stages of this project.
116 Martin Spraggon, Virginia Bodolica and Mona Manoussifar

‘I never said I wouldn’t! The point is that every time I say something you have to reject it. Now, when I
say that I am ready to take on the business – you say “NO”!’
‘I don’t think you have enough experience yet.’
‘Who needs experience? I am a Mechanical Engineer with a minor in Management! I am more than
qualified!’
‘Wadrega!1 I am older than you and know what I am saying!’
‘You see? Now, when I come with a bunch of fresh ideas and propose to bring Bilal in since he can help
us to save the company—you say no, again!’
‘Experience has taught me that friends should not be done business with.’
‘Not everyone is Rizvi, dad!’
‘It’s not about Rizvi. It’s about you! I said you need more time and experience!’
‘This is pointless. Mor2, I’m going out!’
‘See? You sweat blood and tears to raise them only so they can shout at you. Javeria, you spoiled
him!’

Javeria flinched as she heard the front door slam by her son; she flinched again as her husband slammed
the bedroom door shut. The past few days had been like this; screaming, arguing, and slamming doors
shut. The two men in her life could not understand each other and it was up to her to find a middle
ground. She looked at Waleed who was silently sipping his coffee and he nodded. They got up together,
bracing themselves for what awaited them. ‘Bismillah’ 3, she said as she opened the bedroom door, while
Waleed headed towards the front entrance. Only God could help them at this point.

Arriving to the UAE

In the year 1975, twenty-six year old Izat Raja came to the United Arab Emirates (UAE) with his
wife and two daughters in pursuit of his dreams. Izat had led a simple life back in Pakistan. Having
completed ten years of schooling in his native village in Pakistan, he shadowed his uncle at a local
garage as a tyre mechanic where he gained knowledge in automobile repair services. Following his
marriage to Javeria, he moved to Karachi where he joined General Motors as an assembly line worker.
When he first heard about vacancies for mechanics in the Emirate of Dubai, he applied for the job, even
though he did not feel qualified for an international placement due to his limited educational
background.
A month later he received notification that he had been selected for a job at Al-Futtaim Motors, one
of the leading automobile companies in the UAE. Within weeks and with the UAE employment visa in
his hands, Izat and his family landed in Dubai filled with hopes for a prosperous future. For the next
several months, Izat worked as a mechanic in the car assembly department at Al-Futtaim Motors.
Although the job paid reasonably well, Izat wanted to start his own business where he could work for
himself rather than for others.

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Succession Management Challenges 117

Pursuing a Dream
In order to realize his dream of owning a business in the UAE, Izat quit his job and decided to make the
most of his one month grace period after which his visa would expire. The UAE rules concerning busi-
ness set up by a foreigner require collaboration with a local partner for the issuance of an investor’s visa.
With his personal savings and a possible bank loan, Izat Raja could afford the initial set up of his garage.
However, as he soon realized, the process of getting the paperwork completed and searching for a suit-
able partner required a lot of time. Izat began taking up freelance jobs to stay in the country and save up
for his business venture. During the day he worked as a driver for a local family, while at nights he kept
himself busy repairing home appliances.
It took a few years before Izat Raja got closer to his dream. In 1978, he was approached by a fellow
Pakistani and ex-colleague from Al-Futtaim Motors, Ali Ahmed. Ali had started a running workshop
while keeping his job at Al-Futtaim, but he was finding it difficult to manage both his business and full-
time job. Since Izat was searching for a good location for his own workshop, Ali proposed that they enter
a more convenient arrangement. Izat could use Ali’s workshop and manage it on his own without having
to go through the process of applying for a trade license, all in exchange for a fixed monthly payment.
Ali could issue an employment visa allowing Izat to stay in the country and get himself known in the car
repairing market. Soon an agreement was signed and Izat Raja commenced operations at the workshop.
The garage was small and possessed basic tools and utilities. Initially, Izat worked with two of Ali’s
employees to provide clients with services such as fixing dents, painting, mechanical and electrical
works for cars, motorcycles and trucks. The central location in Deira (Dubai) and proximity to other
workshops provided his garage with great exposure. Izat had found himself where he wanted: an auto-
repair industry cluster which attracted many motorists seeking such a service. Competition was intense
but Izat was determined and honest. He was known to understand his way around an engine and solve
complex mechanical problems with ease. Such repairs were the most profitable for the workshop.
Customers with knowledge of car functionality appreciated his fast and efficient service, while those
with limited knowledge came to see his work as one of the best in the market. Izat had also gained the
reputation of charging low prices.
A majority of Izat’s clients were walk-in motorists and private taxi drivers. The latter category consti-
tuted the largest share as most of these drivers were of the same Pashtun4 ethnicity. They trusted him to
provide them with excellent repairs at the most feasible market prices. However, by 1983 it was rumoured
that Deira was going to become a residential area since the region saw a huge influx of foreigners.
Dubai authorities gave notices to all car workshops in the area to shut down or relocate. Ali Ahmed
decided to accept the monetary compensation offered to workshop owners and withdraw from the busi-
ness altogether. Izat Raja felt that the time had come for him to materialize his dream of setting up his
own business.

Dream Come True

In his search for a local partner, only one name came to his mind; Nasser Al Shamsi. Izat had met him
back in 1981 when he went to Dubai Naturalization and Residency Bureau to renew his employment
visa. When they started discussing business, Nasser assured Izat that he would visit his garage to service

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118 Martin Spraggon, Virginia Bodolica and Mona Manoussifar

his family vehicles. Nasser soon became a regular client and, on hearing about the shutting down of the
workshop, offered himself as a sponsor. He also offered Izat a piece of land which he owned in Umm
Ramool, in the Rashidiya area of Dubai, which was mostly deserted at that time. Nasser quoted a very
reasonable rent rate so that Izat did not waste much time in building his workshop.
In the year 1985, Izat Raja had finally opened his business which he named Raja Garage Ltd. He built
the garage with his own hands on the land in Umm Ramool which was twice as big as the workshop in
Deira. Izat decided to invest his savings in latest equipments like car paint booths, air compressors and
other tools for providing enhanced denting, painting and mechanical repair services to his clients. To
manage a larger workshop, he also hired three workers who were previous employees at Deira garages
and were looking for jobs. Izat was capable of identifying the most productive workers whom he screened
based on prior experience and knowledge of the new equipment they had installed. He retained most of
his old customers who were already familiar with his work and remained loyal despite the shift.
In early 1989, Izat’s eighteen year old nephew, Waleed, came to Dubai in search of employment. Izat
trained him to work at Raja Garage Ltd. He was delighted to notice that Waleed had a natural knack for
cars and was a quick learner. Waleed did not give up easily and saw himself as one of the workers rather
than the owner’s nephew. Later that year, another one of Izat’s dreams came true. In August, Javeria gave
birth to their son, Kamran, who was to become the future of Raja Garage Ltd.

Raja Garage Ltd: Setback

1989 was also the year when Raja Garage Ltd reached a breakeven point. Till the middle of the 1990s,
the revenues were consistently growing, proof that the workshop was doing well. Most of these revenues
were generated owing to the rising accident rates in the country. As the UAE was developing at a
rapid pace, the number of motorists had risen exponentially leading to important traffic issues and
countless accident reports. Izat’s garage saw a huge demand for denting services which replaced mechan-
ical repairs as the profitable sector of his business. To satisfy this surge in demand, he hired another
worker.
As an owner, Izat Raja was kind and considerate to his employees. What he lacked in educational
background he made up for in experience and an approachable nature. Izat was more involved in the
practical and technical aspects of his business rather than in handling managerial duties and bookkeep-
ing. All he had was a bulky file with handwritten invoices of various jobs they performed and rough
sketches of costs they incurred. He did not separate business and personal accounts and put all his money
in a single bank account. As for Waleed, he succeeded in keeping all the old clients satisfied and drawing
in new ones. He was talented with languages as he now spoke functional Arabic and Hindi which he used
to communicate with customers. Waleed was trained to handle mechanical car services and he had per-
fected them. Soon he was in charge of all incoming mechanical repairs and additional customer-related
services such as picking and delivering cars.
Everything at Raja Garage Ltd went smoothly until 1996 when the Roads and Transport Authority in
Dubai introduced private taxi service companies. This meant that all taxi vehicles could not be serviced
at a workshop of the drivers’ choice, but rather at appointed service companies owned by the authority.
Raja Garage Ltd saw the number of its customers decrease by 50 per cent due to the loss of all taxi car
jobs. This was the first major hit that Raja Garage Ltd had experienced since its establishment.

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Succession Management Challenges 119

In spite of these difficulties, Raja did not lay off any of his workers. Together with Waleed, he contin-
ued to run the workshop trying to get as many customers as they could. One day in early 1997, one of
Izat’s close friends, Hamza Rizvi, came to see him. Rizvi was the sole provider of a big family and he
was going through serious financial issues. He had accumulated numerous outstanding debts and bank
loans that he could not pay anymore as he had recently lost his job. Seeing his friend in trouble, Izat
offered him work at his garage. Rizvi pointed out that he only had expertise in operating metal working
lathes5, which was his previous job at a factory that manufactured casting dies for various industries. He
felt that Izat ought to consider diversifying into the manufacturing sector which was booming as the
UAE became more industrialized. Rizvi had the needed experience and Izat could get the resources.
Although the initial investment was high, Rizvi thought that it would pay off in the next quarter.
Conflicted, Izat Raja turned for advice to Waleed who by then had also become his son-in-law. Waleed
was very skeptical about Rizvi’s proposal, especially because neither he nor Izat had any knowledge of
this field. He argued that a better idea would be to spend the money on more modern machinery that his
colleagues in the market were talking about. He pleaded with his uncle that they would lose customers
once they realized the difference in the service those machines would make. Izat had a difficult choice to
make: on the one hand, there was his friend who needed a job and wanted to diversify and on the other,
there was his son-in-law who wanted to upgrade. With a lot of thought, Izat gave in to Rizvi’s idea. The
two friends verbally agreed to make Rizvi a partner and to equally share profits, so that the lathe engi-
neering division at Raja Garage Ltd would be operating under Rizvi’s management. The purchase of nine
metal working lathes and the hiring of eight new employees was expensive, but Izat trusted Rizvi to
make the new division worth the investment.

Blind Trust
Three years had passed and the car repair business improved with an increase in customer base, while
the lathe engineering division received limited orders that could not cover the costs of investment and
job performance. Alarmed with this situation, Waleed decided to confront his uncle in private and voice
his concerns. Rizvi’s division seemed mysterious to him, the employees were unresponsive and although
they were working, no profits came out of their work. Each time he approached Rizvi to ask how things
were going, a short ‘fine’ was the only response he ever got.
Waleed did not trust Rizvi in his decisions, but his uncle did not share his opinion. ‘I’ve known Rizvi
for a long time and trust him with my life. In fact, I trust him so much that I gave him access to my bank
account,’ Izat once told his nephew. Although Waleed respected his uncle’s non-suspecting nature and
way of managing his garage, he tried to insist. ‘But, uncle, this is a very risky thing to do! Rizvi can’t
even run a division to earn profit after three years in the field!’ ‘My son,’ Izat responded patiently getting
slightly annoyed at Waleed’s lack of judgment, ‘I gave Rizvi full control of this part of the business.
Three years is not a lot for a new division to make profit. Give him more time and I am sure he’ll suc-
ceed.’ Waleed was not convinced but decided to let things go for the time being.
Two more years passed and Izat became less confident about Rizvi’s attempts. Upset about the drain
on workshop resources due to the lathe engineering division, he talked to Rizvi who insisted that they
wait. He explained that he was waiting to hear from a big factory and any day they would receive a big
order from them. One November morning of 2002, Izat decided to withdraw some money from his bank

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120 Martin Spraggon, Virginia Bodolica and Mona Manoussifar

account. No sooner had he placed his card in the ATM than the screen displayed a zero balance. Rizvi
was the only other person with access to the account, other than Javeria who had a habit of asking per-
mission before each withdrawal. Izat immediately called Rizvi, but there was no answer. He drove des-
perately to the workshop and then to Rizvi’s house only to be told that Rizvi and his family had left for
Pakistan the same morning. Izat was speechless—he felt as though the ground had been pulled out from
under his feet.

Only a Family Business

Since the Rizvi incident, things had taken a turn for the worse. The Umm Ramool area in Dubai had
developed vastly and other workshops in the neighbourhood provided tough competition, forcing the
prices down and lowering the profits of Raja Garage Ltd. Rival workshops were switching to the latest
machinery whereas Izat’s garage dragged on with dated tools since it could not afford new ones. The
types of vehicles being manufactured had also changed drastically over the years. Most cars were now
electronically programmed which required state-of-the-art equipment and specialists skilled in mechani-
cal engineering. Izat’s knowledge became less relevant in the industry, while his determination had faded
out as he became discouraged by each event that affected his company which had never really recovered
from Rizvi’s actions.
Earlier, Izat did not waste a moment to report the theft to local authorities. Later, he was notified that
Rizvi had been arrested but the money was gone. He tried to sell the lathe engineering machines but only
25 per cent of invested costs could be recuperated. The years that followed were hard for him and his
family who were left penniless after what Rizvi had done. In spite of financial difficulties, Izat decided
not to lay off any of the workers that Rizvi had hired for his division. ‘What happened was not their fault,
after all,’ he thought. Yet, he remembered that one of his friends had cheated him and he vowed to never
let anything like that happen again. Izat Raja had learnt the hard way that in business you have to be
careful in whom you place your trust. As Waleed continued to put great effort into the workshop, Izat
decided that Raja Garage Ltd could only succeed as a family business. His teenage son had also started
dropping by the workshop to lend an extra pair of hands. To his father’s delight, Kamran was drawn to
the business and had a natural attraction to cars.

All Hell Breaks Loose

By 2007, Raja Garage Ltd had slowly recovered from its losses and reached breakeven point for the
second time since its launch. This recovery was possible due to hard work, loyal customers and very
affordable prices that Izat had constantly kept below the levels set by his competitors. However, just as
things were picking up again, another major event came to challenge Izat Raja’s business. The year 2008
brought with it an economic crisis like the world had never seen in its whole history. Since companies
were under the pressure of rationalizing their resources and cutting costs, people were being laid off and
their employment visas rescinded. By 2009, as the crisis thickened, the job security thinned and many
foreigners had to leave the country and particularly Dubai which was at the heart of the booming UAE
economy. The crisis affected all levels of society and Izat’s circle of friends was no exception.

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Succession Management Challenges 121

One day, one of Izat’s friends came to the workshop to say his goodbyes as he was returning to
Pakistan. Before leaving, he offered his old car to Waleed who started working on it trying to make it
better. In a matter of weeks, the car was unrecognizable as it looked brand new. All at the garage were in
awe of what Waleed had accomplished with the rattled car he had received. Proud of his job, he decided
to keep the renovated car parked in front of the workshop. Later that week, Nasser Al Shamsi came to
visit Izat and mentioned that his daughter, who had just got her driving license, was eager to drive his car
which she wanted painted in a different colour and its interior readjusted to suit her needs. Izat told him
about what Waleed had done and after seeing his work, Nasser was convinced. Waleed started custom-
izing Nasser’s car so that in a couple of days he could reconstruct it. Later that day, Nasser called Waleed
to thank him for his job and inform him of his daughter’s satisfaction with her car.
As the word began to spread about the car customization services at Raja Garage Ltd, more people
brought in their vehicles for special adjustments. Waleed and two other workshop employees started
specializing in car customization to handle the increasing demand for such services. Sometimes, when
Waleed found problems with the mechanics of the car, he would send it over to his workers from the car
repairing side of Raja Garage Ltd. In addition to clients bringing in their vehicles for adjustment, more
people were giving away their cars. Waleed’s team would renovate these cars and utilize some empty
space behind the garage to exhibit them so that customers could eventually buy them. The financial crisis
had made people more lenient towards secondhand cars and the ones Waleed had worked on had the
benefit of looking new. To Izat’s relief, Waleed’s private car dealing and customization brought in new
clients, permitting to partially compensate for the significant loss in car repairing orders. It was his
nephew, a member of his family, who had helped the workshop navigate through rough waters. Convinced
that his company would be stronger with more family members on board, Izat was eager to see his son
Kamran join the family business.

Kamran Izat Raja

Born in August 1989 in the UAE, Kamran was Izat Raja’s only son after four daughters. At the age of
four, he was enrolled in an English medium Pakistani school in Dubai. He used to spend the afternoons
at his father’s garage where he watched workers slide under cars to fix them. When he started to read
English, his after school practice involved translating purchase invoices for his father to understand.
A few months after his thirteenth birthday, Kamran heard about Rizvi’s deception which changed
everything in the Izat Raja household. His family moved to a smaller apartment and he was moved to
another school, away from his friends. But what truly worried Kamran was his father. Like all boys, he
looked up to his father as his role model whom he knew to be a strong-willed person who never gave up.
Kamran knew that his father was not happy about the family’s financial difficulties and saw him change
as each day went by. He realized all this when he started visiting Raja Garage Ltd more regularly to work
alongside Waleed and learnt a great deal about car mechanics and got familiar with the company
processes.
Years flew by and soon Kamran completed his high school earning a scholarship at the American
University in Dubai (AUD), where he enrolled as a full-time Mechanical Engineering student in the fall
of 2007. He fitted into the multicultural and diverse environment of the university with ease and due to
his fluency in spoken Arabic was often mistaken for an Emirati. His academic performance was average,

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122 Martin Spraggon, Virginia Bodolica and Mona Manoussifar

but his involvement in extracurricular activities was extraordinary. After holding positions of Vice
President of Student Radio Club and Public Relations Officer of the Mechanical Engineering Club, he
became President of the Pakistani Cultural Club and was voted Student Council President. Kamran was
half way through his studies when he decided to minor in management. The field attracted him as he
could use the acquired knowledge to become a successful manager of Raja Garage Ltd.
In January of 2012, the twenty-two year old Kamran walked out of the University Hall holding his
Bachelors of Science degree, with his proud father by his side and the rest of the family walking behind
them. Now Kamran could find a job in the industry and lead a stable professional life, but he was his
father’s son. He knew that his father expected him to join Raja Garage Ltd upon graduation and he had
no desire to work elsewhere when he had the family business to manage.

Raja Garage Ltd: 2012

Today Kamran was going to start working full time at Izat’s garage. He was greeted enthusiastically by
his father, brother-in-law and all the workers. His father had prepared him for the position of Assistant
Manager which involved dealing with customers and arranging for all the repair and customization work
to be done through Waleed. Yet, Kamran had a different position in mind. His feelings for the company
had not changed since he was a kid—the workshop was a place where dead, lifeless vehicles were trans-
formed into roaring engines and shiny new cars. He had a passion for cars and everything about his
family business brought sheer joy to him. As his father and brother-in-law lacked education, Kamran
expected some chaos, but what he encountered was nowhere near acceptable.
There was no paperwork to record financial activity. The only evidence he had come across were
random invoices of forgotten purchases scattered around in the storeroom or a handwritten receipt
with details of jobs performed for a customer every once in a while. No systematic procedure was put in
place for tracking incoming revenues and outgoing expenditures. Kamran also noticed a change in his
father’s attitude towards the business and the turning point was without a doubt the Rizvi incident. His
father now ran the workshop differently: he was very strict with workers about their timings, perfor-
mance and wages. They still respected him, but Kamran felt most of the respect stemmed from fear.
Kamran himself had been at the receiving end of his father’s explosive anger when he once forgot to
recheck the car post service. It did not result in a major problem for the customer, but his father was furi-
ous nonetheless.
Yet, out of all things that he found, what really amused Kamran was that his father still blindly trusted
his old friends. Kamran soon discovered that Izat had created a reputation in the market for being trusting
and lenient—naturally all customers liked him and many did not hesitate to take advantage of him. Izat
would still make exceptions and allow relaxed credit payments for people he knew and who were regu-
lars at the garage. And if some of those payments lapsed, his clients would just need to tell him of their
financial misfortunes and Izat would extend his sympathetic ear. ‘Money is just a piece of paper, mar-
garey6! Don’t worry about it. Pay whenever you can,’ he would say. And as it turned out, they could
never pay, and Izat would never ask. Between the two, no profit could be made. Kamran knew that in
order to claim any amount there should be some documented proof, but his father’s trust meant that a
simple ‘I’ll pay when I can’ sufficed. An invoice or signed agreement to pay later never existed. Kamran
could not estimate how much revenue the company had lost due to the lack of record keeping.

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Succession Management Challenges 123

Kamran decided to talk to Waleed who seemed extremely concerned. Although they kept no track of
accounts, he was sure that the business was tawaan7. ‘Whenever I point out that the company account is
showing a really low balance, uncle blames the workers. Or sometimes he just ignores the problem with
the usual “money is paper” response. He does not realize that the exceptions he makes for friends are
killing profit,’ Waleed said in an unhappy voice. Kamran grew more worried, ‘If Raja Garage Ltd is
doing so badly, how are we still running the business?’ Waleed sighed, ‘Your father is borrowing from a
friend every time we run out of money.’ Since it was hard to predict when Izat would lose his temper,
Waleed did not want to confront him and end up upsetting his uncle who was like a father to him. Waleed
himself had trouble dealing directly with customers, negotiating the terms of service delivery and claim-
ing payment for the completed work. He preferred working at the garage, fixing things; this was what he
had known all his life and where he excelled. With the way things were evolving, Waleed could not wait
for Kamran to take the company into his hands.
There were other issues that needed to be addressed. Izat Raja feared investing in new technology
and was using outdated machinery for performing the work. As a result, productivity was low and of
dubious quality compared to the modern market. Most of the workers had been with Raja Garage Ltd
for so long that they felt like family. This was both good and bad. The good part was that they were
trustworthy and familiar with both the nature of the job and Izat’s temperament. The bad part was that
after almost three decades of employment most of them were in their late 1950s, hardly the best age to
work in a garage. It also meant that many lacked the knowledge that some of the sophisticated machines
needed to operate effectively. Half of the employees who were hired by Rizvi were still not fully compe-
tent in the car repairing field. Even Waleed’s private car dealing and customization service was now a
drain on the company resources. After the first few months of profitable activity, all the customers who
had got new looks for their old cars or bought renovated secondhand cars no longer needed Waleed’s
services. The space behind Raja Garage Ltd was filled with dozens of cars that looked good but were
gathering dust.

A Bunch of Fresh Ideas

Kamran had seen enough and was determined to make significant changes. What the workshop needed,
he believed, was a bunch of fresh ideas that a young, energetic and well educated entrepreneur like him
could bring. The garage still had some loyal customers, long-standing reputation in the market and dedi-
cated workers, strengths that, if leveraged correctly, would make the company stronger. Kamran spent
days thinking about alternative ways to manage the business and had finally reached a conclusion. He
was going to take over the family business and lift the weight of work off his father, who was getting old
and needed to rest more. To succeed in implementing all the changes he had in mind, Kamran needed
help from someone who was modern and would think like him.
Kamran would start the company makeover by putting some order in its business accounts and
records. He was convinced that the right person for this was Bilal, his friend from university who had
majored in finance and also had great connections in the UAE. Kamran knew that if they both became
managers of Raja Garage Ltd, huge improvements would be seen. Through his prior job experience,
Bilal had developed strong organizational skills and excelled at keeping books updated. The company
could use Bilal’s countless connections in the country as referrals to increase its customer base. Relying

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124 Martin Spraggon, Virginia Bodolica and Mona Manoussifar

on his network of relationships, Bilal could also facilitate the negotiation of a potential partnership
agreement with car insurance providers who would contract exclusively with Raja Garage Ltd and agree
to send all the car repair cases to their workshop. Further, as the economic situation in the UAE had
stabilized and people became less attracted to secondhand vehicles, Kamran would eliminate Waleed’s
car dealing and customizing services and redirect the company activities back to what it knew best,
namely car servicing and repairs. Kamran also thought that the garage was employing too many workers
relative to the number of customer orders it received. To solve the workforce issue at Raja Garage Ltd,
he would lay off all the less skilful employees and try to retrain those workers who demonstrate great
potential or recruit new hires who would be already trained in the usage of newest machinery for per-
forming the required car repair job. Although Kamran strongly believed in utilizing up-to-date technol-
ogy for boosting workers’ productivity, he was also practical. Considering the current financial situation
of the company, he knew that they could not afford important investment in new technology. Therefore,
Kamran thought that the most viable option in the short run would be to continue pleasing the customers
with the resources that were available, while in the medium run he hoped to obtain a loan from a bank
for acquiring latest tools and equipment.
Exploding with these new ideas, Kamran approached his father one February evening after the family
had finished dinner. As he wanted to be diplomatic and not offend his father, he decided not to criticize
what he had seen. He simply stated that he had visions; he believed that with the right management, the
company could make it again and wanted to take on the responsibility of General Manager of Raja
Garage Ltd. He also thought that his father should start working less and depend on him for running the
workshop.
‘You are just a fresh graduate. What do you really know about running a business?’ Was the rhetorical
question that he heard from his father.
‘It was incredible how one’s education could be an advantage one second and a hindrance the next,’
thought Kamran inwardly. Yet, he did not give up trying to convince his father. He told him about Bilal,
how he could manage the company with him, keep up accounts and help in attracting more clients. In
response, Izat grew more defensive and said that Raja Garage Ltd was a family business and should stay
that way. Bringing in an outsider was out of question as it was the key recipe for company failure.
Kamran thought differently—more and more he lacked understanding from his father. He felt that his
father did not treat him as a knowledgeable adult and just routinely kept on dismissing any of his busi-
ness ideas. Once again, both voices were raised and the conversation ended up in a heated argument.
Kamran lost his temper and rushed outside to take few deep breaths of fresh air and calm himself down.
Walking back and forth in front of the house, he heard how his angry father said something reproachful
to his mother and then slammed his bedroom door shut.

*******

Javeria and Waleed felt nervous. The family had gathered again. Izat and Kamran were now a little
calmer, each looking down in thought. This time, Javeria and Waleed were the mediators and, after talk-
ing to Izat and Kamran individually, they knew that a long talk was needed for both sides to understand
each other. Javeria took a deep breath and said, ‘You are family, father and son! You always disagree
because you are too busy replying to each other. Each of you has something important to say. All you
need to do is to simply listen to each other.’
There was a long moment of silence after which Izat and Kamran finally looked up.

Asian Journal of Management Cases, 9, 2 (2012): 115–126

Succession Management Challenges 125

Annexure 1. Timeline of Events at Raja Garage Ltd

Year Description of events

1975  Izat Raja comes to the UAE with his family
 He gets a job as a mechanic at Al–Futtaim Motors
1976  Izat Raja takes up freelance jobs & starts saving for his own business
1978  Izat Raja starts managing the workshop of Ali Ahmad located in Deira
1983  Ali Ahmed sells his workshop in Deira
 Izat Raja is offered a land in Rashidiya & begins building his own garage
1985  Raja Garage Ltd opens for business & invests in latest equipment
1989  Raja Garage Ltd reaches the breakeven point
 Waleed joins the family business
 Kamran Izat Raja is born
1990  UAE rapid growth & rising accident rates
 Important increase in customer base
1996  Introduction of private taxi service companies
 Significant loss of customers at Raja Garage Ltd
1997  Rizvi joins the company, launches & manages the Lathe Engineering Division
2000  Rizvi’s division fails to make profit after several years of operation
2002  Rizvi escapes with the company money
 Zero account balance at Raja Garage Ltd
2003  Kamran starts dropping by the workshop & lending an extra pair of hands
2007  Raja Garage Ltd breaks even for the second time since its establishment
 Kamran enrolls at AUD as a full-time student
2008  Early signs of financial crisis in the country
2009  Regular clients leaving the country & significant loss in customer base
 Waleed develops private car dealing and customization services
2011  Nonexistent demand for car dealing and customizing services
 Stagnant demand for car repair services
2012  Kamran graduates from AUD with BA in Mechanical Engineering (Minor in Management)
 Raja Garage Ltd at crossroads with an uncertain future
 Kamran joins Raja Garage Ltd & comes up with a bunch of fresh ideas
Source: Case Writer’s Notes and Company Records.

Annexure 2. Structural Changes at Raja Garage Ltd

Years 1985–1988 1989–1995 1996–2002 2003–2007 2008–2011 2012*

Structure Car repair Car repair Car Lathe Car repair Car repair Private car Car repair
services services repair engineering services services dealing & services
services division customizing
Company Izat Izat & Izat & Rizvi Izat & Izat & Waleed Kamran &
managers Waleed Waleed Waleed Waleed Bilal
(Annexure 2 continued)

Asian Journal of Management Cases, 9, 2 (2012): 115–126

126 Martin Spraggon, Virginia Bodolica and Mona Manoussifar

(Annexure 2 continued)

Years 1985–1988 1989–1995 1996–2002 2003–2007 2008–2011 2012*

No. of 3 4 4 8 12 10 2 7 (with
employees Waleed)
Customers’ +20% +50% –50% 0% +30% –60% +20% +30%
% change
Source: Company Records.
Notes: *Potential changes proposed by Kamran.

Notes
1. ‘Wadrega’ is the Pashto word for ‘Stop’.
2. ‘Mor’ means ‘Mother’ in Pashto.
3. ‘Bismillah’ is the Islamic equivalent of the phrase ‘In the Name of God’.
4. Pashtuns are people who live across Pakistan and Afghanistan and are speakers of the Pashto language.
5. ‘Lathe’ is a machine tool which is used for shaping metal or wood.
6. ‘Margarey’ is the Pashto word for ‘friend’.
7. ‘Tawaan’ means ‘unprofitable’ in Pashto.

Asian Journal of Management Cases, 9, 2 (2012): 115–126