MDS Plastics: Crafting a Survival Strategy Amidst a Conflict Between Partners

Abstract

MDS Plastics was a small manufacturing business in partnership, located in Noida and established in 2012. Specializing in the business-to-business space of the fan industry, the company produced plastic components used in fans. The managing director-cum-partner, Bhardwaj, harboured ambitious plans to boost sales and increase profit margins within the next three years. Despite having significant growth aspirations, the company faced an unexpected and unprecedented challenge with the recent global pandemic. The sudden and severe impact of the pandemic shook the internal dynamics among the partners. As tough times hit, conflicts of interest arose among them, resulting in differences of opinion, parallel governance, delayed decision-making and inadequate responses to the evolving business environment. The case sheds light on a conflict of interest among the partners regarding the company’s future business strategy. This conflict surfaced when one of the partners proposed adding a new business head during the crisis and threatened to leave the company if his suggestion was not accepted. This put forth a dilemma—Should the company consider a proposal that could potentially divert its focus and create catastrophic effects amidst a crisis? This case delves into the challenges faced by a growth-stage small business, encompassing existing conflicts of interest among partners, generational differences, survival strategies and crisis management.