Family Business of Dhirubhai Ambani Harvard Case Solution & Analysis

Career

Mukesh Ambani had joined Reliance in the late 1981 and started his career with certain strong moves, i.e. it was the miracle of his brain that the company had done backward integration of the textile business into polyester and then made its presence in the petrochemicals, production and exploration of oil and gas and the petroleum refining industry. It was really difficult for him to prove his entrepreneurial skills and struggle towards business enhancement in a country like India where the concept of parallel economy prevails. Therefore, he established 60 new and well sophisticated world class manufacturing facilities, which was equipped with modern and diversified technologies that had increased the manufacturing capacity of the company from less than a million tons to 12 million tons/ year. By the end of 2002, the launch of Reliance Infocomm Limited had made his father’s dream come true because he had launched the company with the most complex information and communications facilities of the world. The company had made a number of successful innovations and commercial product launch since its inception and was renamed as Reliance Communications Limited, which is now under the control and ownership of Reliance ADA group. Mukesh was ranked as the 25h most power full businessman of the world and 13th in Asia in 2004 by the Fortune Magazine and got the Asia Society Leadership Award by the Asia Society of USA by the end of the same year. With the boom of IPL in the country, he had also bought the Mumbai Indians Team for the highest bid of $111.9 million. In the year 2010, he was awarded with a number of Awards such as Business leader of the year by NDTV, Businessman of the year by Financial Chronicle, Juran Quality Medal in 2009 by Indian Merchant’s Chamber (IMC), etc…

Problem Statement

Although, Mukesh Ambani is working very well and has achieved wonderful success since his takeover of the business after the death of his father but due to increasing competition and division of the business with his brother; he has faced a number of issues related to the business and his personal life. He observed decline in the Oil and Gas exploration industry in the late 2007 and faced a number of troublesome events regarding the supply of gas from the KG-D6 reservoir. Therefore, he decided to enter into some consumer oriented businesses, i.e. retail business or telecommunication. As Mukesh Ambani has already made his presence in the telecommunication sector, therefore retail business was new for him and he commenced his retail operation in the mid 2007 with the launch of a series of convenience stores with the brand name of Reliance Fresh. The new business experienced a troublesome start in the form of strong political opposition in some states of the country and ran into losses even after the completion of one year period. So the major problem faced by Mukesh Ambani was related to his future decision regarding the expansion of his business and dealing with the current scenario of Oil and Gas industry. He had to decide whether he should continue his retail business or not, and whether he should go for the launch of 4g technology in the country. In addition, he has to decide that whether he should continue his investment in the oil and gas exploration and production industry or he should expand his strategic investment with the British Petroleum company.  All these points should be considered before his future move.

SWOT Analysis of Mukesh Ambani

Strengths: - Mukesh Ambani is one of the most famous personalities of India and most of the young people place him as their ideal to follow in their real life practices. He has astonishing leadership skills that have inspired most of the new and young businessmen and they follow him in the development of their business career. Mukesh Ambani is a strong risk taker and there is a famous saying about him that he is the person who do not find opportunities in business rather he find a business in opportunities. He is the 9th richest man of the world and has a large number of tangible resources. He has been nominated as the 25th most powerful man of the world and 13th of Asia. One of the biggest strengths of Mukesh Ambani for doing business in India is his identity; as he belongs to India and have good relations with the government and other regulatory bodies. He is the owner of the largest conglomerate of India, which has its presence in almost all the significant business sectors i.e. petrochemical, oil and gas exploration and production, telecommunication, retail, etc.................................

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