Chapter 14: Historical Perspectives: The 'Long View'

In this case study, the business historian Professor Andrew Popp re-traces the steps of two regional merchants, John Shaw and Henry Crane as they take the first steps in establishing a new enterprise in Calcutta in 1834. Despite their apparently poorly resourced and ill-equipped origins, the partners managed to establish a trading business that continued to operate for more than a century. Continue reading this case study by downloading it in full here: Chapter 14 - Case Studies 

Chapter 14: Questions

1. Why did Shaw and Crane decide to embark on their Indian ‘adventure’?

Guidance answer:

Shaw and Crane decided to embark on their Indian trading activities due to the opportunity arising through their trusted business network and relationships.  The company had deeply embedded itself in business and trading networks in the Midlands and Northern England, which proved to be beneficial in terms of knowledge of and the opportunity to participate in international opportunities.  This network helped Shaw and Crane to rise above their poorly resourced and ill-equipped origins.

2. What external capabilities and resources was the firm able to draw upon in order to put into effect such an ambitious strategy?

Guidance answer:

The Company had a deep knowledge of its domestic market and a reputation for reliability and quality. They were assisted by the in-depth and step-by-step support and mediation of their business partners, Rawson and Holdsworth.

3. Why did Shaw and Crane’s approach to internationalising their business (i.e. first working with an agent and later deciding to establish their own office), prove so successful?

Guidance answer:

While Shaw and Crane had many fundamentals in place, in terms of being a well-run and well-networked business, they also benefited from good timing.  Historical research illustrates patterns and trends in the proliferation of new industries. Generally after an initial rush of new entrants, there is at some point a ‘shake out’ with some early movers failing, others consolidating and new firms able to benefit from the mistakes of the first entrants. In establishing their Calcutta base in 1834, Shaw and Crane benefited from the 1830 -1834 collapse of the leading Calcutta trading houses.

4. What practical lessons might 21st century entrepreneurs draw from this story as they attempt to internationalise their businesses?

Guidance answer:

Practical lessons might include:

  • The importance of strong networks and relationships;
  • Maintaining a good reputation in business;
  • Working with a mentor or mediator to help establish the business in new markets;
  • Being prepared for cashflow and finance issues.
  • Paying close attention to industry patterns and trends.