Suleman Dawood School of Business 23.070-2017-1 PASSING THE BATON: THE GFC FAMILY tm cary February 2013, Me Maas Iya he CEO sf Genta Fat Company (GFC), Cat, Pitan, nd ‘Ryne a mectng wh tan cool rfeor who als happened fo bean od ed Unie previo (ine, ti agenta of te meng wt ot uty produto aay he ses roma iced art (she competi poly for be ex geertion. ‘Curren, he GEC was asing tough a resfrmson the managment pent we eng ase {ome ubngs (jn ol) to seven cvs jn ht ace is son Nabe! Abra Iya nas be SSRIS ibe cosine having patted forte con's mos pestis sess chook shuld be SSPE Hancvcr iy nan lc soocered al ger Seep (ante cent oe) would grec his rte nd nephews an cate Gharaony athe amy He waned the poesr's pion on hit (GUIRAT FAN CLUSTER “The vgn of th finda tri Gat and Gans (both ces within 50 ike ech ax in ‘Tikal neh, Posto) conbe sce taco te 180 Tis was he he totes ema Mg fay ‘Sid Yee canned Yard MabnmedBulshaigted fo the village Note Vika od sete ‘ite repo, They were cuter by tade and aed enulcturng bas Fook and ar bs mares ‘One the yeu, fg suse of tee tes bre vere alo eblsh waksbops witha couple of be ‘Tutlecsto mance deat shaper ad ses of borane Daring Worl Wart (WWI, Gj vas own i proacing ras rants te Bish army nani Po Strat bas puts sch sce, cp ad anes The Bish ary gave tuk reso sal, ‘nolan eaten snd th deen sical incense fe soppy tse pars. Given th demand, (heme mutes Garg prem pss end upd ther manuictrag techneogy fom mana ihe (neki lo anomatlahe cin Wh he conta be WT Ge sal manufrs aos. ‘Seogy od ences ath be weer, be dand Sr rs ars sian ise, uri pero, th fads in be wean ms sublbed in Ansar, Ha Suan Ai gant of ‘Akal relsed ta be tle tecneogy wed fan nul csing wo sar to at Wed in the ‘AeRcasig of bo prs wich waste aocabe she mschine. He decided end his on, Maar "Nam, tw Ams foam ao fn mance Afar pending aca yea thee, Azam care bck aja aedasemble is, which ack him mot vo otha With expense was able prodace fons aa ps oy. “Te inepeneneof Pakistan in 1947 soe he inmate Pakian for he fan ances in Arsor {Tey Topeowded he porn forbs manufrs Gat md Gana o sat pring ns he. Qe eer se eet aan tc ym oe ead meanalttys spr san com stor tert ee em 102017 Suleman Danood Sebo of sins Labore University of Management Sciences“Pang be Hato To GPC Fmty “They had he chology, and afer 147, he il ao! inthe eon produce as lias, wich nas 2 ‘be ebltnet of WAPOA? 195, adhe seston of Manta Dam athe 160s, clceaton Past Ifremsedy nc eo the den etean in Sera fer ns. Tl provided a mor impute sre he fin rami cher inte region The he or layers wee Cmax Fes Asa Fat and Naina Pau ‘YoUNAS GRour tama Ai os of Mauna Yar nt grant of Mohamad yn) lowed ison family bss sd became a recites. Unorunty, duno a nro nee, be Gd at at clog and bi on, Mba Youn (ya's Fuhr bed heresy of ef ata xl age, Sia © ‘thecal entatrern he Maga inh produced as pars fr he Bish Ary darn the WW by ‘Reng one le chine. He worked eighewn hors dy sven Gaysa week, mnufacre prt oe old ‘uciace at athe acne Ath contusion of ho WWI, he na ole ocho sel wit te abe Imai, Afr pros of Bish Lalla lpn and Pais, Yous nly decided agin ving In he fig manufciag tanner, be chose allow he ly ao of profsing bas Pola nd ster bee armament forth Ptian Army. ie Seung bor Marae Ayo, Jed bin ater ‘molting his igh schol (ce Exhibit | fre fly ts), Yous bows! sabe mee for Apo produce an puts, Ate sue tne hs oun and beter, neal sulere «peal isha a ‘snl abana, ed ona sdb coms to Gut ncn hn he baies as mel. ‘Yous hep Sty peter of the sae fr ims an being sn xtove he anaged ove sion-making, = hcl add Haze Yous set ‘fesseng cna puBLE Jang. Ayub was re aroveted ao rhs ‘nto "man the mactnes" and ok fer poston fe had Swet-fve pert sare). tay, wih freny Sve percent sare, woul send ath oft fe in woveing and wa respec forsee and ‘swoon {he 196, Youn Groep repre big cominent often orth Paks Amy, att ast ‘by ove of he quliy inspector Yoana fad ive al te working cual nth bus thre Was 0 ‘and forth prodit eth eal markt Afer giving hey dou and pnt tothe Pitas Ary ‘Shouigmet wes aly acped. Your gt cere y the below a ees in the ey and chose ‘Sang bases. He oceda Sart rducng fans wih he brand mae Yous Fass. “TRANSITION TO THE THIRD GENERATION [Matar ys competed ie dope in else! engheesng om the Uiveity of Haleeing and "estology, Liters 197, He waste fat engin in oy Soon fer gradation be gta schoep toad oun on lets eign a Geany, Dang th coun, he la ower ns oa try a ofthe nara ining, He cone back'n Pai in 97 ad woke the Wat and Power Desopret [hoy (WAPDA) fr most On hs fiber’ beert. he Gt io a WAPDA asd ate he aly ‘ites ater tht yer 1's els ned Chia ars. thas youngster, Mian a, jie te fly buses ia 1967 afer grain fom college and tok ‘ae ofan in Voss Ft A few mom ene sx Gly ember were lve in sims ‘Yona fips anew fcny ato Yount any these of Mev Fan owas el htc fSnly mambo re foo many tb srking in hese ui ive th hgh demand of he "Vous" bad fume, Meo Fees ao vated producing fare indr the Yousr brat. Te 1975 he sldet so of Mia Iraj Mira tial joed Mer Fas. ee ace credo immdePig ee TREC 11977, You uit ve are houes inthe sme somgoud ote the ami, elo tote tres Foprton ois sharin he usin of Yours base nas vie a much sth asf Dorey ke tn two pra In 97h eel GFC tse ave ire factor fr the he fies.” Sites the GEC ws rn by ole per win bad eid the company in 1954 ral fn ‘Aittacaslng uot. Tower ae 99D sera bern be rte re epi hey ede (Geen nt Given cent expen nuredn blige fay Houses, Youas ado brew R40,000 (fom te datibute network a presse e company. ys moved othe GPC fin and Mia fs ved om ‘Yous Fen Meco nn. By ie ate 1970, Nouns Fans tad esalished a ong brand rae in oto Fj 08 NWFP (2ow known as Khyber Pai) ‘Yous pussed avy in 980. During teste sear, ha Ayub, he oldest son of Murnane ‘Younes Fen a lems Ana. youaest on of Mira Inna joined th OFC fa, GROWTH AND SPLIT During the 1980 he se nn brand (Cae Fans, atonal Fans, ant Asia Fan) closed down as by oo: {tring the eas of mms om one eneraton th next. Thi provided an oppor frees frente ogo in sales The rmieatbrandsthatwere able un signee are bars were ‘Yous Fenn, GP Fun Pa Fane Royal Fane These manufactures ad vexed a machinery wp dation, ‘eed proeciy coe in Topen, red averting in levson and newspapers (omehing nt dove fa ‘Ho inuy peviowl) so fed spc incenive sates ton dibs. Moreover, fr Yous Fatt {ihe GP ny cnine eights so ep manag th growth, YYoums Group insist an come copper nite pnt (1987) fin gu manufcuring unit (198, sd = ‘Spwcemarafcrng unit (192), The Bou expensed exception! owt inh ely 199, Hower, ‘er Younus dst ifrence in ey ies sare sre nog he det. Ayo le at big tbe {ld and the exper in cia ee, he a th ener dhs decisions shoud be respect Oe the ter Stary lett Sing Setar eucted and mae floneed aout ses st, be shoal ave wrest ‘ice. Mowover a Nees ned -Slars werent fd: foe Bouts ca, renee woul ao wast {dete sue Toe wer aan on fi tp hoa and bad property intestate” Hence in 19, {emote yal parmrs to ae rupert compan. tjsoyed othe OFC Fans to work wih his ler rte ly, sd shally, Alan moved to Meto Fas 1 (eat wth is ler ther enn, With te ne oman, Mamma Youns’s aly (Ay pret tare) fn te GFC Fang the capactor plat, md he fn guard plant wheres Matasmad Ay’ wd Mist ‘ej’ amie (vente pret ob ex ot Youas Fas and Met Fas However, agin de ¢lfrncesin uses es, A ad nyataah decide pr va in2000 we he omer ly ging ‘Yeenes Tea snd he Youas band ate anh tars loving Mo Fans ud Re 50 mio! fer [Png op the Younes band sure Mina lina inl mete sembly lst ad are poding Seotitsinotonts Meo fs. Diteenes creed once gn, hitine etweon int nd Ata. They ‘sled tale motores ad fn ui ih aa eng he zoel busines aed Azz eeving the {aa menafnarng boku [Ate te dvs i 198, Iyas an ia ook comple sono afte GEC Fars. thas beers the CEO (Ceponsie Yr sls and ahcting development, abd roduron) and Jaz beame te seca offence (Gremesing puctse ond acount) The conpany xpreced eat growth fom 1996 t 2008, intodacng SShowetve fr todls ad ncrenng the peas nge-wbich nuded cling. pedestal, cama, wal Tehce eur bland exhasfne—-w once dng nd colon each exer ee Exh 2)‘The GFC had slo poneeed te export of ri fans fom Pakistan tyes atended an interaationalexibiios ‘hbsees araged ty te Export Praia Baas end Federation of Cuber of Conner and Inks, ‘Cannguenty in 99H, fe GHC won he Eapert Trophy Award te fn ny, with he export of RE ‘lien ‘The company ln invested in ew tela aang of moder machinery sch as de casing chines, ‘aecton moulding marines, CNC wae arty machnes, sa automatic arate winding chines. AS aot fe msin lo expands pred ln, he GEC pared manfactring wating machines i 1936, Later the Deets cle esd eli uc jt oimraing che, and ening machines, Drag ts riod oop prow, ys and coed oun he copay wi! ay Toma eonpenstio poly. ‘THE FOURTH GENERATION By 200, wen the nxt gene a srt ering te fly buses, be GRC was oe oft top wo in ‘ranching ant n Pastas. Dae te company expansion nd hero aang ge, sad Tah ae te lc astm nthe baie eon of hese manager econ were made bpm enpiyes). Asim nd Nasi oth a ofa (ei 3), jie te GEC 205 and 2006 respecte (bh were previously engged In iret ties) Tey wore atcha ta yas ant je and wer aged the ‘pense of roducton nd purchase specie, As sare oan on te injection lng nde ‘Sing eco whereas Nan vas assign procure. Alinug they were esporsibl fr ei ape oF were mow Redon nag eucing fring was tooe by Tse an Pa Sah te a's second on, Naber complt Be MBA fom s rept business programe ia Labor noid te ‘ely bie 2005 st son Karam vas ning fora pinre company ip ose Nabeel ste ‘tog arin se and marking Aft Nabe aco, fy Dies tes bene ys and Ij sured urice, Dingieanet rele te evdends ant copenion stem bese eo bert ‘sme aparent Nsbes cert the ink of jem (al San eecusig sls, phase, ve fd pod rcrds weenie analy rete) an ince eeean is ber nd wel {ie okey ues elg te company. ‘Ding his MBA programme, Nabe had done most ofthe ute project on eer the GFC ore fin indy Take werde using toe proj, obser Youn Fans, Mate Fant notes who went ow serlomly.{vesise at pops nave crpementy sents oe oy eopuate her ‘otal des, thy go down very ft Forename Uncle Aj 7 song teal ‘Su Younus Fast very pvo pod, bat hy west do bere hey coed no maa ‘Scrmrtang ert snes we Funemore, hen pope etopebr, be leet ‘Bom eorh ter, bt ol hin thy ae couibtng tov than Ws ty ae geting ine, ‘ey tpt, oe hs tke corpo od sci “Conan, bes was sen oar the company tone company ans th hic thar andl separely ‘ound har pol, “om ona tng re Ene PFs 8, Se See Bai, “otene psn on ne ing ie at THC Fay navo0i7 ‘GROWTH OF THE GrC GROUP Nate! was able o reolve many of be ines betes the vo bots and sated hing younger erage it ‘hecompuy: He convinced ihr ad unl fx the ma of ey hat thy cold wie slares ‘ery mon en yel ote of tear working eco Gal he), Hetived a coat fom ‘Guliewaa to implement an TT sytem: He and hs young mansgersat etn were able 1 wpe ot of {heumcrnton olin. Wits doaleeny sccing sffere poe and ll he exh Nowy ncing the ‘Sewing nd dices othe wo other Soci, i sitatonnemaledBetwesn he two bigs. ‘bello sated king» lending rl in th sl and mrtg ofthe company. Dring he et ew ears ‘ReGFC'scapors aswel as acl les ew Gee Exhibit). Ascoring to Net: lows nil beer cit ow management Ere atte ad ofthe monk whens areas Contlow was doe re wold be ruing ar ost datos asking Yr cas payments a ‘vance. "They ner would wk for coun Jot ein ths ght was one Of hemor ‘evone wy ou pos Stared Own ‘Ade joie he GPC in 2008, Aaec he younget jas ou sons, wa at et eo te fy buses ‘Eee “hve wee lady too tay people vote nth compan.” However, was an pen ech te ‘al ssn we tat yan at reneged bea "ahnce Between how any sos fom exch femly mere ievelved inthe bse, “The sew hemopor fst wa se pi 2013 The cpa (Yous Electonics ee Eshiit $) and gard ‘rolartos (Yous Corporsion) st nce cue te min OFC felt ad hace, were managed bY one Fzvn (eae they wee being managed by Adee The pad market wat suse, ad sce they were nrsfened othe CFC on shen, Youn Corporation was opering en very low maria, Howeve thee Aeron two god gully epcior proces nPaistan Thus dep he ct at they werbeing ansfered {De FC ress lower ta he mutt, wes ottabe bases ‘Cureny, tbe GFC Groep as orgie it seven busines uns (be Exhble 6 each with independent ‘person The pas oretooking te production of conne nr, es, washing machines, nd ier home ‘fplances were akon ay conse nt nh aed eves aswell as PAL (ol now) sens. (COMPENSATION ISSUES NEXT GENERATION Moti,’ youngest, was expected o completes MEA in June 2013, fom he se bss sce ‘rer la tends ond he jt the GEC. Fol aly meme of be GEC vp fad reve bee aevely Invstvedinhe busines magne Alnug hy were prt owner ey nvr ally hada the bien (the most fer amily sees a Pakan) From an hence poof ew, mas welbaceeted win Uh fay data mele mebers we ented orishas fSviendsand equ nthe bss a governed blot (Shar. Allcouins sped hat ueder testing contin, th busses sad pte joe amy enters dha emaes Som he iy abo ate snes 2012, yes an is sons moved to Latere Thy sl ep hi hus a Gur and edt while shy wee a the OFC curing te mock The mene was sity det beter eaon fis in Labre fr te ext [focrnon and war so abvcaed by Nabe nd Mobis wives, wh were bot lm Labor Khun, {jars ede son dave pine he GPC dere pete von by hse: He hd Geil purse Npcarcer sa sotare opm in Bein, USA, ut ad eon rumed to Pasta sole ave a ‘ell tras faview hese olan einen oes be GEC trad ome song view onthe ps (ne sould ot have the right to work hy tht shuld wt be poseidon plate 0 ove fimiyneber soul cone in a te sme eve at ny eter employee The oly ‘ehon or et genstion i srvving wh ekg Saye Ceo at is age at heironi a Te GHC Foy psaToa017t arcs er with he. We hou he inn qn rue tn We do ct re carport cue; wehve uo mil ee mares, How lt Bo We oat ae Sora (o eho ow) ty mad profi aba ie oink mene ie abu ee bevel on wher one wats rhe sn of 2% ‘Nai ad hay eile ews: {joe cas bre ete ep ly me eer OSS {joe eas ey fly, a way to hers cour feet welt Co Sem crys cme eave othe ay at 900 eA 2S OEE Bite on ttgh for ema t woul becca a pret, a ave ils fc catia ier pole om ay iy, iki, we ‘Wea re ns Or oqurene Tanta racing rly weber on Sen ea an sd rt when ey eel le, Compension Teste sed on odseston ad eo patito werk, ‘ade alo ad Sear ie: a we tae 0 cite fting proces fr jing the fay buss he Fo et ou fers wre poting OM Rid nw, coment es yon i a el a ado ft 0 te prema of ie BS NE Nea’ views on te topie wae lw wanes told at have tobe cet! wpe adja te ety baie 0 SO {am an ino an on ne: eign Ie ms ed a a6 ata va tte oon ne eles pee ef far act rerio ile i nto veo won eae tel boa many otf. 1 ann wa wou aoe gn ale yous er ayn OTe. tweak ogres nb an we incprnt corpora? Shank we be con He snc non working fy member te sae hows et an nc ee or eal ari. Tee wos 8 OOTY Np dle at lone compile fay et te nde nt, Soe of es me ae soe de to feral we ai arya know wt lon cen we ins soni C2 when ur midmmagst ilo emu one is Mn tpcias tg ower ow wee oie ey mie urn the eting withthe ness school profesor ts ai tam word bn boro reel nex meron naan as end Yas ‘am noid ht ch mor cet rite thew bit oa Sema ear shown cee esa ining he OFC, CMH te ay ie only pnd lly cml ot 6 eisEe SE EE SE eS 2 Se Se Se 2 SoS eS = = e Pasig ee THe GC Fay ssanozo174 contng. My aepv are ot tht ener. Nabe is curently pu spy moe ta is ‘sins et AMBIT, burbs ke ale sigh. He eli me be cn make Re 30000 ‘urd, sce He slay, be cosns wil ak fr ore do ou eae tir Salaries inthe same proporon, they wl be deme, ad ny oer wl io nt fel fod. atorly el ht sare shouldbe based on eatin, and oth my sea are mich Retreat “Thee wer ota on Ips’ mind. Kham dese in se, what nash ied 1? Should eget ‘hes sares his bbe? Were hy being wth ahs? The dager or nates ling {te bul wus ot of he quan fo soil razors but hen as a? The ily planed © ve he ‘dogo ter sor net of he company However, es wondered th ifthe share wa cles ot they he i art fr the sat who ped the company ow?aig Bh SP Fey Exhibie2: Fan Types ~~ Cceling Fn isu Fan ‘Tebleran Soure: Company Documents narea01741 aie a ® ew , ae ee Ext Fan2307020174 dura Att : 2 ashton Computer Sciences om LUMS (1994-197) [pled Teco Boston fe) 8 1997 aged Teco inte USA 2008 SES rant in 2006 wit Teco nee mad iat Bachelors in lil Eainering fom WPI USA (1999-2003) 1 Winotne GEC Ean for ayer (2003-2008) MBA som tus ‘Came tnk gain th Gin 2006 Soret tnng ender yas and tok ever les and mang See ig ars Hk, tad Nasting (ao king wer Arcus and Bars | ‘ Developme) Monin Ama ‘chlos in Mctnis Engineering rr Univers of Watson (206-2010) es ‘lind ee years of work experience ding uncer Chine oo darvor un Tota te Predicts Develop ‘Surel he MBA fom CUMS 01-2013) 1 Beer RaD sini, actto in Manage afomatin Sytem (5) Gom Concord Unies Ibn the GEC in 2005 Dieee Pedction iis ochlr i Management nfrsasion Spe (MIS fom Conon Doin te Grn 2006 Fe oes ankr ix hr Mz lok afi FE ed i oensiswk aese weng acs oP rotcios + Diet Pee dec “+ BS. Hos om Comet 1D omadtne GPC 208 1 Bitte Gad and Cspachor Manafung Ute | siete Saeewee uses snes (208) ea yx now pares wih eof the GFC's caren su Source: Company Decume'sgt oo CHC Fly paneer Exhibit 4: GEC Sales Growth* Sates tons Prone mitins) Source: Company Documents‘se he GC Foy [Exhibit S: _Younas Corporation: Sales Growth pera soe Net ates tons) Net Prof (Rs ines) ‘Younas Etonic: Seles Growth) aoe m0 1000 100 208 Nee Sates (Rios) Ne Prot son)tg Bn TH CEC at near Exhibit 6: The Strategle Business Units (SBU) under GFC Exhlbie7: Satarles* (in Rupees) Nabeettivar | 100000] 109000] 1s9p00 | 15000 | 163,000 208000, ‘Asimtiss | 100000] 100000 | 129000 | 15000 | 145,000 165.000, Nadi jz | 70000] 70000 | oon | 130000 | 130000 185.000 ‘a ue | 2,000 | aa00 | 10,000 T T Mabie tras | I 100600 Soure: Company Docume