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Case Studies by Yupana Wiwattanakantang

14 case studies

published: 24 Mar 2016

  • Topic: Family Business
  • Industry: Sale of food, beverages and tobacco via stalls and markets
  • Region: Asia

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Abstract:
The case highlights the infighting within a Thai family who own and operate a fresh-food market stall business in Bangkok. The case explores the depths to which the Thammawattana dynasty sank in order to keep control of a profitable cash-in-hand business that had made the matriarch, Suwapee Thammawattana, a billionaire by the time of her death at age 65.

Pedagogical Objectives:
After reading and analysing the case, students will be able to evaluate the importance for family businesses of having a long-term succession plan. Against the bloodstained backdrop of a family business in Thailand, students will learn about the challenges of succession in an emerging country. The case enables them to discuss the importance of cohesion among the members of a family business.

Keywords:
Thailand, Family Business, Thammawattana, Ying Charoen, Market Stalls, Linacre, Porntip, King Bhumibol, Corporate Governance, Corporate Governance for Family Firms, Wicfe, Succession, Next Generation, Fair Process, Communication, Psychology, Gender, Education, Entrepreneurship, Leadership, Women in Family Business, Gender

published: 25 Apr 2017

  • Topic: Family Business
  • Industry: Papers and Allied Products
  • Region: South America

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Abstract:
Carvajal traces the 110-year history of one of Colombian’s oldest family-owned firms from a small print shop to one of the largest paper product conglomerates in Latin America. Founded in 1904 by Manuel Carvajal, a Colombian educator and erstwhile politician, the company has contributed to Colombia’s economic and intellectual development ever since. By the 1950s Carvajal was the leading printer and publishing house in Latin America. Although the company benefitted from state protection, a tradition of technical innovation was established – in 1958 it printed the first telephone directory for Bogotá on two-sheet offset press – and thereafter expanded into neighboring countries, diversifying into inter-linked activities. Throughout the 20th century the firm was led by descendants of the founder. In the 21st century, a non-family CEO was hired for the first time.

Pedagogical Objectives:
This strategy-making exercise for a family-run company that has reached a turning point in its 110-year-old history requires students to think about how ‘family assets’ can contribute to the firm during the 21st century. While family firms in Colombia are often associated with conflict and failure, here the challenge is to examine the role of professional management as a force for change. Students also need to consider why many Carvajal next gens have positioned themselves as potential leaders, with skills honed at top international business schools and a deep understanding of the family enterprise. Beyond the leadership issue, discussion can encompass the vision of the Carvajal family as the company expands beyond Latin America. Students of family business in the region will find many lessons to be learned from this exceptional firm and family, and their commitment to its survival.

Keywords:
Carvajal, Carvajal Empaques, Colombian Family Business, Grupo Norma, Publicar, Carpack, Assenda, Propal, Bernardo Quintero Balcázar, Pedro Carvajal, Ricardo Obregón Trujillo, Eugenio Castro Carvajal, Alfredo Carvajal Sinisterra, Adolfo Carvajal Quelquejeu, Wicfe, Succession, Next Generation, Education, Entrepreneurship, Leadership, Governance, Parallel Planning, Strategy, Boards

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published: 29 Mar 2017

  • Topic: Family Business
  • Industry: Papers and Allied Products
  • Region: South America

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Abstract:
Carvajal traces the 110-year history of one of Colombian’s oldest family-owned firms from a small print shop to one of the largest paper product conglomerates in Latin America. Founded in 1904 by Manuel Carvajal, a Colombian educator and erstwhile politician, the company has contributed to Colombia’s economic and intellectual development ever since. By the 1950s Carvajal was the leading printer and publishing house in Latin America. Although the company benefitted from state protection, a tradition of technical innovation was established – in 1958 it printed the first telephone directory for Bogotá on two-sheet offset press – and thereafter expanded into neighboring countries, diversifying into inter-linked activities. Throughout the 20th century the firm was led by descendants of the founder. In the 21st century, a non-family CEO was hired for the first time.

Pedagogical Objectives:
This strategy-making exercise for a family-run company that has reached a turning point in its 110-year-old history requires students to think about how ‘family assets’ can contribute to the firm during the 21st century. While family firms in Colombia are often associated with conflict and failure, here the challenge is to examine the role of professional management as a force for change. Students also need to consider why many Carvajal next gens have positioned themselves as potential leaders, with skills honed at top international business schools and a deep understanding of the family enterprise. Beyond the leadership issue, discussion can encompass the vision of the Carvajal family as the company expands beyond Latin America. Students of family business in the region will find many lessons to be learned from this exceptional firm and family, and their commitment to its survival.

Keywords:
Carvajal, Carvajal Empaques, Colombian Family Business, Grupo Norma, Publicar, Carpack, Assenda, Propal, Bernardo Quintero Balcázar, Pedro Carvajal, Ricardo Obregón Trujillo, Eugenio Castro Carvajal, Alfredo Carvajal Sinisterra, Adolfo Carvajal Quelquejeu, Wicfe, Succession, Next Generation, Education, Entrepreneurship, Leadership, Governance, Parallel Planning, Strategy, Boards

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published: 20 Dec 2013

  • Topic: Economics & Finance
  • Industry: Mining
  • Region: Asia

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Abstract:
This case describes the challenges encountered by Nathaniel Rothschild after making a US$3 billion investment in 2010 in a family-owned business group in Asia. Scion of the Rothschild banking dynasty and private equity fund manager, Rothschild and his business associates created a LSE-listed shell company, Bumi PLC, which acquired PT Bumi Resources and Berau Coal. These were among Indonesia’s largest coal mines and the largest coal exporters in the world, and were controlled by the Bakries, a powerful Indonesian family whose patriarch was a candidate for the presidency in 2014. After losing at least 70% of his investment in three years, Rothschild eventually requisitioned an extraordinary general meeting in February 2013, attempting to remove the Bakries and their associates from Bumi's management team. Despite western-style corporate governance manoeuvres, the PE investors found it challenging to control the politically connected family in Indonesia.

Pedagogical Objectives:
The case is designed for courses in Corporate Finance on the topic of family business and/or raising funds, or courses in International Finance or Investment in Emerging Markets (particularly Indonesia). Alternatively, it could be used in a course on Corporate Governance on the topic of shareholder activism and board monitoring.

Keywords:
Corporate Governance, Family Business, Asia, Reverse Merger, Board Monitoring, Business Groups, Tunneling, Shareholder Activism, Corporate Governance, Corporate Governance Across the World, Wicfe, Education, Entrepreneurship, Leadership, Governance, Parallel Planning, Strategy, Boards, Family Office, Wealth Management, Legacy, Ownership

published: 29 May 2017

  • Topic: Family Business
  • Industry: Apparel
  • Region: South America

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Abstract:
A well-known lingerie retailer in Colombia, Leonisa is a family-owned company that barely survived a second-generation succession crisis. Brothers Joaquín and Julio Ernesto Urrea founded the firm in 1956, and over 50 years built one of the most recognizable brands in Latin America. While they each had an equal stake in the company, their respective families were not of equal size: Joaquín had 11 children including nine boys, Julio had three daughters. While the girls were interested in design and fashion, the boys were keen to create satellite ventures around the core brand. When one of the co-founders died, a family dispute erupted over whether the dividends should be plowed back into the business or distributed to the shareholders. A mediator obliged the warring branches to reach a settlement that would allow Leonisa to survive. The ousted sisters eventually had their own success story by launching a new business based on their core competencies.

Pedagogical Objectives:
The case offers an opportunity to learn from a family-run company that survived a succession crisis, requiring students to think about family differences from a shareholder point of view, and the role of mediators in saving warring family branches from destroying the firm. It underlines the need for co-founders whose families have different interests to have a long-term plan to prevent a clash of clans. In this instance, one branch got out of the original business and constructed a new business based on their fashion and design skills. Students of family business in Colombia and Latin America will learn lessons from a family dispute that was ultimately resolved.

Keywords:
Leonisa, Ellipse, Urrea, Women’s Underwear, Lingerie, Colombia, Brassieres, Ana Patricia Urrea, Urrea Jiménez, Urrea Arbeláez, Fernando Urrea, Carlos Ignacio Urrea, Julio Urrea Jiménez, Wicfe, Succession, Next Generation, Education, Entrepreneurship, Leadership

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published: 03 Jul 2017

  • Topic: Family Business
  • Industry: Apparel
  • Region: South America

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Abstract:
A well-known lingerie retailer in Colombia, Leonisa is a family-owned company that barely survived a second-generation succession crisis. Brothers Joaquín and Julio Ernesto Urrea founded the firm in 1956, and over 50 years built one of the most recognizable brands in Latin America. While they each had an equal stake in the company, their respective families were not of equal size: Joaquín had 11 children including nine boys, Julio had three daughters. While the girls were interested in design and fashion, the boys were keen to create satellite ventures around the core brand. When one of the co-founders died, a family dispute erupted over whether the dividends should be plowed back into the business or distributed to the shareholders. A mediator obliged the warring branches to reach a settlement that would allow Leonisa to survive. The ousted sisters eventually had their own success story by launching a new business based on their core competencies.

Pedagogical Objectives:
The case offers an opportunity to learn from a family-run company that survived a succession crisis, requiring students to think about family differences from a shareholder point of view, and the role of mediators in saving warring family branches from destroying the firm. It underlines the need for co-founders whose families have different interests to have a long-term plan to prevent a clash of clans. In this instance, one branch got out of the original business and constructed a new business based on their fashion and design skills. Students of family business in Colombia and Latin America will learn lessons from a family dispute that was ultimately resolved.

Keywords:
Leonisa, Ellipse, Urrea, Women’s Underwear, Lingerie, Colombia, Brassieres, Ana Patricia Urrea, Urrea Jiménez, Urrea Arbeláez, Fernando Urrea, Carlos Ignacio Urrea, Julio Urrea Jiménez

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published: 27 Nov 2017

  • Topic: Family Business
  • Industry: Radio, Television, Consumer Electronics
  • Region: Asia

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Abstract:
This three-part case covers the history of Samsung from its origins as a small trucking company to one of Korea’s largest conglomerates. Part A, “Drivers of Success, Family Assets and Business Strategy”, charts the growth of Korea’s the export-led economy after the end of Japanese occupation in 1945, driven by a handful of family-owned ‘chaebols’. Founder Lee Byung-chull’s trucking business, set up in 1938, diversified in the aftermath of the Korean War, as he forged a strong political network that enabled him to embed his family’s influence and assets in the business strategy. Part B, “Heart Attack Puts Succession Planning at Risk”, describes how the ill health of the second-generation leader Lee Kun-hee deprived the firm of a clear succession plan. As the de facto leader of Samsung, his son had to build up his power base to assume the role in the context of a complex ownership structure. Part C, “Court calls time out on Lee Jae-yong”, examines how the de facto heir was convicted of bribery and given a five-year prison sentence, prompting speculation that he would run the Samsung empire from his cell.

Pedagogical Objectives:
The three parts can be used together or as stand-alone cases in the classroom. Part A (16 pages) explores the success of a family business with modest beginnings, transformed within a generation into a major conglomerate; the role of the second-generation leader who transformed the export-driven firm into a global company with factories and R&D facilities all over the world; and the role of family relationships that enabled the Lee clan to retain ownership over the sprawling enterprise. Instructors can use the shorter Part B (11 pages) to look at the Lee family and the choices available to the de facto heir after his father’s heart attack; the tax avoidance measures he must have taken (in view of Korea’s hefty 50% tax on estates of this size); and the much publicized merger of two Samsung affiliates that was clearly not in the interests of minority investors. Part C (10 pages) enables discussion of the legal ramifications of illegal behavior and the possibility of reforming aspects of the family-run chaebols, which critics blame for the state of the economy today.

Keywords:
Samsung, Lee Jae-Yong, Korea, Lee Byung-Chull, Chaebol, Lee Kun-Hee, Lee Boo-Jin, Lee Seo-Hyun, Paul Elliott Singer, Elliot Management, Park Geun-Hye, Park Chung-Hee, Samsung Electronics, Conglomerates

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published: 27 Nov 2017

  • Topic: Family Business
  • Industry: Radio, Television, Consumer Electronics
  • Region: Asia

Show details ...

Abstract:
This three-part case covers the history of Samsung from its origins as a small trucking company to one of Korea’s largest conglomerates. Part A, “Drivers of Success, Family Assets and Business Strategy”, charts the growth of Korea’s the export-led economy after the end of Japanese occupation in 1945, driven by a handful of family-owned ‘chaebols’. Founder Lee Byung-chull’s trucking business, set up in 1938, diversified in the aftermath of the Korean War, as he forged a strong political network that enabled him to embed his family’s influence and assets in the business strategy. Part B, “Heart Attack Puts Succession Planning at Risk”, describes how the ill health of the second-generation leader Lee Kun-hee deprived the firm of a clear succession plan. As the de facto leader of Samsung, his son had to build up his power base to assume the role in the context of a complex ownership structure. Part C, “Court calls time out on Lee Jae-yong”, examines how the de facto heir was convicted of bribery and given a five-year prison sentence, prompting speculation that he would run the Samsung empire from his cell.

Pedagogical Objectives:
The three parts can be used together or as stand-alone cases in the classroom. Part A (16 pages) explores the success of a family business with modest beginnings, transformed within a generation into a major conglomerate; the role of the second-generation leader who transformed the export-driven firm into a global company with factories and R&D facilities all over the world; and the role of family relationships that enabled the Lee clan to retain ownership over the sprawling enterprise. Instructors can use the shorter Part B (11 pages) to look at the Lee family and the choices available to the de facto heir after his father’s heart attack; the tax avoidance measures he must have taken (in view of Korea’s hefty 50% tax on estates of this size); and the much publicized merger of two Samsung affiliates that was clearly not in the interests of minority investors. Part C (10 pages) enables discussion of the legal ramifications of illegal behavior and the possibility of reforming aspects of the family-run chaebols, which critics blame for the state of the economy today.

Keywords:
Samsung, Lee Jae-Yong, Korea, Lee Byung-Chull, Chaebol, Lee Kun-Hee, Lee Boo-Jin, Lee Seo-Hyun, Paul Elliott Singer, Elliot Management, Park Geun-Hye, Park Chung-Hee, Samsung Electronics, Conglomerates

Related:

published: 27 Nov 2017

  • Topic: Family Business
  • Industry: Radio, Television, Consumer Electronics
  • Region: Asia

Show details ...

Abstract:
This three-part case covers the history of Samsung from its origins as a small trucking company to one of Korea’s largest conglomerates. Part A, “Drivers of Success, Family Assets and Business Strategy”, charts the growth of Korea’s the export-led economy after the end of Japanese occupation in 1945, driven by a handful of family-owned ‘chaebols’. Founder Lee Byung-chull’s trucking business, set up in 1938, diversified in the aftermath of the Korean War, as he forged a strong political network that enabled him to embed his family’s influence and assets in the business strategy. Part B, “Heart Attack Puts Succession Planning at Risk”, describes how the ill health of the second-generation leader Lee Kun-hee deprived the firm of a clear succession plan. As the de facto leader of Samsung, his son had to build up his power base to assume the role in the context of a complex ownership structure. Part C, “Court calls time out on Lee Jae-yong”, examines how the de facto heir was convicted of bribery and given a five-year prison sentence, prompting speculation that he would run the Samsung empire from his cell.

Pedagogical Objectives:
The three parts can be used together or as stand-alone cases in the classroom. Part A (16 pages) explores the success of a family business with modest beginnings, transformed within a generation into a major conglomerate; the role of the second-generation leader who transformed the export-driven firm into a global company with factories and R&D facilities all over the world; and the role of family relationships that enabled the Lee clan to retain ownership over the sprawling enterprise. Instructors can use the shorter Part B (11 pages) to look at the Lee family and the choices available to the de facto heir after his father’s heart attack; the tax avoidance measures he must have taken (in view of Korea’s hefty 50% tax on estates of this size); and the much publicized merger of two Samsung affiliates that was clearly not in the interests of minority investors. Part C (10 pages) enables discussion of the legal ramifications of illegal behavior and the possibility of reforming aspects of the family-run chaebols, which critics blame for the state of the economy today.

Keywords:
Samsung, Lee Jae-Yong, Korea, Lee Byung-Chull, Chaebol, Lee Kun-Hee, Lee Boo-Jin, Lee Seo-Hyun, Paul Elliott Singer, Elliot Management, Park Geun-Hye, Park Chung-Hee, Samsung Electronics, Conglomerates

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published: 29 Mar 2017

  • Topic: Family Business
  • Industry: Transportation services
  • Region: South America

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Abstract:
One of the biggest logistics services providers in Colombia, Servientrega started out as a one-man courier operation on the streets of Bogota in 1982. Jesus Guerrero, an enterprising messenger boy, set up his own delivery service at the age of 18. After attracting more clients than he could handle, he persuaded his sister Luz Mary to join the company and invest her savings in exchange for half of the shares. Before long, Servientrega was growing so fast that they employed other siblings. Jesus gave one brother a 5% share in the business, expecting his sister to do the same. However, she held on to her 50% and used her majority shareholder position to take over, forcing her brother out of the CEO job. Jesus began acquiring new logistics operations that he consolidated into the Guerrero Group, which today has 39 subsidiaries (including Servientrega) and employs 28,500 people. The lawsuits that plagued the former partners and put their venture at risk ultimately prompted Jesus to launch a competitor to Servientrega, RedServi.

Pedagogical Objectives:
The case offers an opportunity to learn from a family-owned company whose principal shareholders got into a dispute with dramatic consequences for their business. A minor dispute between brother and sister over a 5% shareholding led to a series of lawsuits that put the family-owned firm at risk. Students will be challenged to explain why the brother decided to start a new company to compete with the original company that he founded years earlier. The case illustrates how family conflicts can have unexpected results, such as the formation of a rival business.

Keywords:
Luz Mary Guerrero, Jesus Guerrero, Servientrega, Logistics, Colombia, Bogota, Efecty, Redservi, Latin America, Supply Chain, Warehouse, Courier, Transport, Guerrero Group, Wicfe, Fair Process, Communication, Psychology, Gender

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