Wise Family Business

From its origins as a manufacturer of hospital equipment for the Indian market, Thermax has grown into a multinational corporation operating in 90 countries, offering integrated solutions in heating, cooling, power generation, water treatment and recycling, air pollution control, and chemicals with a focus on ensuring clean air, clean energy and clean water. The founding family, which owns a 61% stake in the firm (the rest being publicly held), has steered the company toward helping speed the transition to renewable energies via the development of greener technologies. In addition, the family has shown unwavering commitment to social responsibility and philanthropic endeavors. The case features a detailed history of Thermax's evolution as a family business, with a particular focus on how the family has navigated the challenges of intra-family succession. The dilemmas faced by owner-managers as they hand over the reins of the family business, combined with the outsize impact of succession on the future performance of a business, have contributed to making succession the single most studied topic in family business research. The Thermax case study illustrates the varied forms succession can take over the course of four generations. It also explores the different ways family members can contribute to the family enterprise system via operational roles in the company as well as involvement in board governance, ownership governance and philanthropic work. The case is based on interviews with five members of the founding family, all of whom hold (or have held) executive and/or operational roles in the company. The dynamics of intra-family succession form the crux of the case. Since the company was created in 1966, each generation has brought different leadership qualities and competencies to their respective roles and has contributed to making Thermax a leading conglomerate in the energy and environment space.

The case looks at the fundamental challenges, tensions and opportunities associated with an internally run venture as opposed to an externally funded startup or spin-off company. It discusses the genesis and context of Kontor, an internal venture funded by Resmed Inc. Resmed is an S&P 500 MedTech company. At the time of the case, May 2024, Resmed was also experiencing increasing external competitive threats and pressure on its margin due to GLP-1s, a class of medicines. Kontor is an internal venture at Resmed trying to find its way through turbulent times. Kontor applies Resmed's class-leading comfort and fit technology to the AR/VR space, thus making these devices more comfortable for the user. Kontor has been running for several years and Erika, the case protagonist, is the newly appointed general manager. The current turbulent situation is causing the executives to question investment in the internal venture. Erika must deal with many challenges, but the fundamental question is whether Kontor will create the most value for Resmed as an internal venture or whether it should be spun out and in what manner. The case compares five strategic possibilities: 1) Spinning out the business and running Kontor independently of Resmed with external investors, 2) keeping Kontor wholly owned by Resmed but, run it off-balance sheet, 3) sell Kontor to a strategic buyer, 4) keep running Kontor internally with operational assistance from Resmed Inc, or 5) wait and see how the venture goes without making a decision in the near term thus preserving all options.

How one family in the life sciences industry leverages business, strategic investments, and nonprofit initiatives to improve health.

A climate of pervasive uncertainty is paralyzing decision-making. Here's what leaders can learn about survival and resilience from multi-generational, family-run businesses.

This case series explores what companies can learn from luxury brands without becoming luxury brands themselves. The video B case features interviews with three Vanzetti Engineering executives: the marketing director, the CEO and owner and the chief commercial officer. With the shrinking of the automobile industry, the company has had to reposition itself in other industrial sectors where it is significantly smaller than the customers. Vanzetti Engineering embraced some of the codes of luxury branding according to what suited it and ignored others. The company discovered that although it was focused mostly on creating functional value, it had to dwell much more on emotional and societal value creation. The process of brand elevation required a complete cultural transformation, and one of the lessons from the case is that a brand is not a slogan but a way of being and of delivering value.

In this edition of Leaders Unplugged, IMD President David Bach and Vestas CEO Henrik Andersen discuss Europe’s energy risks and bold leadership.

This guide examines the industry priorities and outlines five strategic areas of focus for supply chain transformation in 2025 and beyond.

Survey after survey shows that executives think their business is in danger of being commoditized. This means their company is not able to differentiate sufficiently to command higher market prices and profits. Luxury brands, by contrast, are the opposite of commodity. Their whole approach to branding is based on desirability. This case series explores what companies can learn from luxury brands without becoming luxury brands themselves. The written A case gives a short background on Vanzetti Engineering, which is facing intensifying competition in an evolving marketplace, and launches the first question for discussion.

Xiaomi’s rapid EV rise shows how future readiness and agility are reshaping the auto industry – a challenge traditional automakers can’t ignore.

Following on from the ‘why’ of nonmarket strategy, Michael Yaziji sets out a practical framework to get started, with industry examples.