Balancing Dual Divisions: Key Strategies for Indian SME Success

"The secret of success is to do the common things uncommonly well." — John D. Rockefeller

Balancing Dual Divisions: Lessons for Indian SMEs

Running multiple business divisions is a reality for many Indian SMEs, but doing so effectively requires clear strategy, strong delegation, and distinct management practices. This case study examines the challenges faced by a business owner managing two highly diverse divisions—one a trading division, the other a manufacturing division—and extracts lessons that other SMEs can use to improve their operations.

While maintaining confidentiality, this example illustrates the power of structured thinking, delegation, and the importance of tailoring strategies to suit different business models.

The Context: Two Diverse Divisions

The business owner oversees two distinct operations:  

1. Trading Division  

   This division involves sourcing, marketing, and distribution, requiring sharp negotiation skills and strong client management practices.

2. Manufacturing Division  

   Focused on production, compliance, and government contracts, this division deals with significantly different dynamics, including quality control and complex tender processes.

Each division operates in a completely separate ecosystem, demanding different strategies and operational approaches.

Key Takeaways for SME Owners

1. Recognizing the Need for Separation  

The distinct nature of these divisions creates challenges when managed under one umbrella.  

Lesson:  

Separate divisions into independent entities with tailored goals and leadership.  

- The trading division can focus on streamlining supply chains and enhancing client relations.  

- The manufacturing division can emphasize production efficiency, compliance, and navigating government tenders.

 2. The Power of Delegation  

The business owner personally managed sourcing, marketing, and client relations for both divisions, spreading themselves thin.  

Lesson:  

Identify roles that require your direct involvement and delegate other responsibilities to capable team members.  

- Empower trusted team leaders to handle routine operations.  

- Focus on strategic planning and growth opportunities.

3. Developing a Mission and Objectives  

Neither division had a documented mission or clear objectives, which hampered growth and focus.  

Lesson:  

Establish mission statements and specific goals for each division.  

- A clear mission aligns the team and sets measurable targets.  

- For example:  

  - The trading division could prioritize being a reliable sourcing partner globally.  

  - The manufacturing division might focus on driving innovation and compliance in its sector.

4. Adapting to Customer Dynamics  

The trading division catered to private enterprises, while the manufacturing division primarily dealt with government contracts. These client bases operate with very different expectations.  

Lesson:  

Tailor strategies to meet the unique needs of your clients.  

- For government clients: Ensure transparency, competitive pricing, and compliance with regulations.  

- For private enterprises: Build trust through reliability and consistent service.

5. Learning from Industry Leaders  

The owner was advised to study ethical and efficient companies, such as Larsen & Toubro, known for their clean image and resilience in government-related projects.  

Lesson:  

Adopt best practices from successful companies.  

- Emphasize transparency and ethics in all dealings.  

- Structure operations to ensure longevity and credibility in the market.

 6. Protecting Knowledge and Expertise  

Attrition poses risks, especially in retaining critical expertise and safeguarding business knowledge.  

Lesson:  

- Build a core team for key operations and knowledge-intensive roles.  

- Delegate less critical tasks to a broader workforce to manage turnover.  

- Safeguard intellectual property with strong contracts and policies.

Operational Insights

1. Strategic Documentation  

Having physical and mental clarity about business goals, challenges, and strategies is vital. Create roadmaps for each division, documenting priorities and resources.

2. Supply-Side Dynamics  

The supply chain requirements differ significantly between trading and manufacturing. Recognize these differences to manage suppliers effectively.

3. Government Relations  

For divisions dealing with government clients, maintaining transparency and compliance is essential. A clean and ethical image builds trust and sustains business relationships.

Practical Steps for Indian SMEs

1. Divide and Conquer:  

Separate diverse divisions into distinct entities with independent goals and operations.

2. Delegate Effectively:  

Define roles and responsibilities clearly. Assign tasks to capable team members and focus on growth-oriented activities.

3. Invest in Scalability:  

Plan for the long-term growth of each division. Invest in infrastructure, training, and technology that support expansion.

4. Learn from Role Models:  

Study successful companies and adapt their practices to your context. Prioritize ethics, efficiency, and transparency.

5. Protect Knowledge:  

Build systems that retain expertise while managing attrition risks. Secure key roles within a trusted core team.

Conclusion

For Indian SMEs, managing diverse divisions requires thoughtful planning, strategic clarity, and effective delegation. This case study demonstrates how separating operations, defining goals, and learning from industry leaders can help business owners achieve sustainable growth.  

Every entrepreneur faces unique challenges, but by stepping back, analyzing operations, and leveraging an outsider's perspective, even complex businesses can thrive.  

As John D. Rockefeller said, "The secret of success is to do the common things uncommonly well." By focusing on structured growth and ethical practices, SMEs can unlock their true potential and build a legacy of success.

About the Author:

I’m Bhanu Srivastava, the founder of Bizseer Consultancy, With over 30 years of experience in international

business consulting, I specialize in export strategies, helping businesses expand globally and increase profitability. I focus on building safe, long-term growth through customized market strategies.

Outside of work, I’m passionate about astronomy and quantum biology. 

I’d love to connect and discuss how I can help your business succeed in international markets. Let’s explore the possibilities together.

For discussions, you can connect with Bhanu at +91 98223 93634.