Question

A joint Hindu family business specializes in producing handcrafted wooden furniture. Due to a lack of online presence, the business is losing customers to competitors who sell through e-commerce platforms. The younger family members suggest creating an online store, but the karta is skeptical about digital platforms.

1. What limitation of the joint Hindu family business is highlighted in this case?
2. Evaluate the impact of modernization and digital transformation on traditional businesses like the one described in the case. How can the karta ensure the business retains its heritage while adopting modern practices?

Answer 1

1. A limitation of the Joint Hindu Family Business is resistance to change, as all control is centralised in the hands of the Karta.
2. Modernisation can help such traditional businesses to reach more customers and increase profits. The Karta can preserve the family’s heritage by highlighting the handcrafted quality of products and using digital platforms to display and sell them worldwide. This way, the business stays competitive without losing its traditional identity.