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Case Studies by Randel Carlock

43 case studies

by Publication Date
published: 25 Nov 2013

  • Topic: Entrepreneurship
  • Industry: Telecommunications
  • Region: Asia

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Abstract:
The objective of this case is to explore how governance can positively support management in developing and implementing a business strategy based on talent development as a competitive advantage. While it has been argued by some that senior leadership (CEO and management) determine a firm's strategy, others highlight the role of governance, or alternatively the importance of shared strategy making. This case demonstrates that talent development is influenced by all of these factors and depends in large measure upon the nature of the relationship between the CEO and board and their interaction in the strategy-making process.

Pedagogical Objectives:
Appreciating the role of the CEO, Chair and board in shaping a talent development strategy; The board of director's contribution to talent development as a part of long-term corporate strategy; The challenge of corporate transformation from a regional to a global strategy; Talent Development as a management tool for leadership development and succession planning; Recognizing corporate social responsibility goals as a part of the firm's strategy; The challenges of having a sovereign wealth fund as a controlling shareholder.

Keywords:
Telecommunication, Leadership, Talent Development, Strategy, Board Engagement

published: 25 Nov 2013

  • Topic: Family Business
  • Region: Asia

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Abstract:
Succession patterns in Asia are heavily influenced by Confucian values and traditions. Liu Bai's father's authoritarian style of management was typical of Chinese families, but his critical and demanding manner made it impossible for Bai to work with him, even in the Asian context. While it may seem aberrant to Westerners, children are supposed to bow to the Confucian ideal of the patriarch, even more powerful than the state as far as the welfare and governance of the family is concerned. Conflicts are settled by the family, within the family.

Pedagogical Objectives:
To explore the impact of gender in family business succession; To recognize the limits of rational business thinking in highly emotional family situations; To appreciate how life cycle influences and motivates succession decisions and actions; To consider careers and succession in a family systemic framework to identify the interdependencies and interrelationships of succession decisions.

Keywords:
Family Business, Business Conflicts, Succession, Business Continuity, Wicfe, Succession, Next Generation, Governance, Parallel Planning, Strategy, Boards

published: 25 Nov 2013

  • Topic: Family Business
  • Region: Asia

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Abstract:
Struggling Sibling Partners deals with the difficulty of creating a sense of fairness in family business relationships. The case explores the challenges of leading and governing a family business equally owned by three siblings. It is used as an introduction to the concept of Fair Process, at the core of INSEAD's work with family businesses. Developing a sense of fairness is the critical goal of family business governance processes, including family meetings and councils, boards of directors and family constitutions.

Pedagogical Objectives:
To demonstrate the value of applying Fair Process to family relationships; To apply Fair Process principles to family business situations; To recognize the value of communication, clarity, consistency, changeability and a culture of fairness; To balance individual and family branch interests.

Keywords:
Family Business, Business Conflict, Sibling Rivalry

published: 25 Nov 2013

  • Topic: Entrepreneurship
  • Industry: Adhesive
  • Region: North America

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Abstract:
In 1970 a 3M chemist, developed a new glue that was not very adhesive. Eventually, other 3M colleagues started using bookmarks made with the unsticky adhesive and were soon asking for more product “samples”. As usage quickly spread within the 3M Product Development Laboratory, it became clear that these unsticky notes were a very useful office product. The Post-it® Note was born. But at first, it generated little customer interest or sales. This case tells the story of how 3M convinced customers that they couldn't do without those little unsticky notes.

Pedagogical Objectives:
How to create a market for new and innovative products

Keywords:
Entrepreneur,, Spirit of Innovation, Innovation, Marketing, Communication, Ideas Sharing, Supporting

published: 30 Apr 2009

  • Topic: Family Business
  • Industry: Packaging
  • Region: Global

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Abstract:
Perfect Plastics was founded in 1969 by Jim Peters to design and manufacture plastic packaging materials for the fast-food industry. The influence of Jim and his family has always been strongly felt throughout all aspects of the company. His son, Steve, who is executive vice president and COO, has been approached by a lawyer – with whom he occasionally played golf – with an inquiry about his father’s willingness to discuss a sale of the firm. Steve is not sure if Perfect Plastics should be sold but he is concerned that no long-term strategy has been developed, and feels a responsibility to take action.

Pedagogical Objectives:
The case goes beyond typical strategic and values issues. The challenge that this family business faces is to decide on a long term-strategy and how to implement it. Through the case it becomes clear that the family's commitment and vision of itself are shaped by the values it holds.

Keywords:
Family Business, Family Business Strategy, Next Generation, Family Values, Family Business, Philosophy, Parallel Planning, Reinvestment Decision, Wicfe, Governance, Parallel Planning, Strategy, Boards

published: 30 Apr 2009

  • Topic: Family Business
  • Industry: philanthropy
  • Region: Asia

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Abstract:
Families across Asia have gradually become more professional in managing not only their businesses but their personal wealth and philanthropic interests, as evidenced by the growing number of family offices and family foundations. The Chen Yet-Sen Family Foundation (the Chen Foundation), run by third-generation heir James Chen, devotes time and resources to literacy initiatives, and to so-called "venture philanthropy" and "social enterprise". The Foundation also allows fourth-generation Chens to rally round and build consensus on how the family should develop its business and philanthropic interests in the years ahead, in line with the motto "To whom much is given, much is expected."

Pedagogical Objectives:
This case provides an overview of the issues and opportunities created by a family foundation. Students will explore the implementation process and develop an understanding of professional practices that support the effective development of a family foundation strategy.

Keywords:
Philanthropy, Family Wealth, Family Office, Social Entrepreneurship, Venture Philanthropy, Next Generation, Family Business, Corporate Governance, Corporate Governance for Family Firms, Wicfe, Social Entrepreneurship, Impact Investing, Philanthropy, Succession, Next Generation

published: 27 Mar 2009

  • Topic: Family Business
  • Industry: Shipping
  • Region: Asia

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Abstract:
In 1955 Pao Yue-Kong created World Wide Shipping Company Limited at a time when shipping was not recognized as a lucrative industry. Under his leadership and later his son-in-law and grandson's, BW Group (renamed after an acquisition) became the largest private shipping fleet in the world. Based on interviews with Dr. Sohmen and his son Andreas Sohmen-Pao, chairman and managing director respectively, in this case we learn how family owners and leaders address the strategic and financial challenges as their company becomes a dominate player in a highly cyclical industry.

Pedagogical Objectives:
This case explores the need to establish financial and governance structures that balance family and non-family ownership demands. It also addresses how business families deal with stakeholders, board members, and management. It considers the influence of family values on balancing the often shorter-term investment horizons held by public investors with the long-term decision horizons maintained by the family.

Keywords:
Next Generation, Board, Family Values, Shareholders, Board Member, Family Communication, Stakeholders, Family Business Governance, Corporate Governance, Corporate Governance for Family Firms, Wicfe, Governance, Parallel Planning, Strategy, Boards

published: 26 Feb 2009

  • Topic: Family Business

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Abstract:
The case describes the challenges of a CEO making the transition from an advisory board to a formal board of directors. Strengthening governance is an important structure to support the transition of family businesses across generations.

Pedagogical Objectives:
The case explores how to strengthen a board of directors. It asks students to consider board composition, qualification, compensation and size. It also focuses on the functions of the board and CEO in managing the company, helping to clarify director and executive roles

Keywords:
Family Business, Family Business Governance, Board Members, Family Board Members, Family Governance, Corporate Governance, Corporate Governance for Family Firms, Wicfe, Succession, Next Generation, Governance, Parallel Planning, Strategy, Boards

published: 26 Feb 2009

  • Topic: Family Business
  • Region: Asia

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Abstract:
Originally from Thailand, Zhi considered himself to be in voluntary exile in London. Years before, he had turned his back on tradition, on his family’s business empire, and on his family, and fled to the West. His father, Liu Hong, had been his mentor but also, in Zhi’s eyes, his tormentor. He had had no option but to free himself from his father’s influence and from the family business. And then, out of the blue, Hong telephoned Zhi in London. He began by reminding his son that after several years of declining profits, Plantation Sugar Trading, the family company founded by Zhi’s great grandfather, was struggling. As Hong had no other sons, responsibility for the family enterprise fell on Zhi. He would have to return to Thailand or Hong would sell the company as quickly as possible. What should Zhi do?

Pedagogical Objectives:
Teaching objective: This case allows us to understand the need for communication in the family business and the need to establish a structure that encourages family participation. It also deals with the next generation's challenges and recognition as well as the character and the leadership style of the owning generation.

Keywords:
Asian Family Business, Chinese Family Business, Chinese Entrepreneurship, Family Conflicts, Family Business Strategy, Next Generation Leaders, Wicfe, Succession, Next Generation, Governance, Parallel Planning, Strategy, Boards

published: 26 Feb 2009

  • Topic: Family Business
  • Region: Global

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Abstract:
A family business is turned upside down by the decision of its owner-manager to 'walk away' . This simulation is based on an interview with a 49-year-old man who abruptly sold the family business without warning either his employees or his family. He told his wife what he'd done and put his mother in a retirement home. He informed his two children and nephew, who worked in the business, that they could stay with the new owners but would have to make it on their own. This interview was completed shortly before Steve was to close the sale but before the long-term consequences of his actions are fully known.

Pedagogical Objectives:
This case explores family business role transitions and the competing commitments of family and business systems. It demonstartes the importance of Fair Process and effective communication in a family business, and the need to establish a structure that encourages family participation in planning and decision-making. It also deals with next generation careers and issues of unplanned succession.

Keywords:
Family Business Roles, Competing Commitments, Family Business Transitions, Fair Process, Communication in Family Business, Next Generation Careers, Corporate Governance, Corporate Governance for Family Firms, Wicfe, Succession, Next Generation, Governance, Parallel Planning, Strategy, Boards

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