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Case Studies by Tom Gleave

2 case studies

by Publication Date
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: 29 Nov 2007

  • Topic: Family Business
  • Industry: Finance Services
  • Region: Asia

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Abstract:
A family office provides professionally managed support in planning, investment and professional advice, reporting and specialized services related to managing the family’s wealth. This case study explores the challenges of a next generation family member in attempting to convince his traditional Chinese father of the advantages and opportunities to be created by establishing a family office to support the family's financial and investment activities.

Pedagogical Objectives:
Business families and wealthy families need to appreciate the investment opportunities created by the creation of a family office. This case provides an overview of the issues and opportunities created by a family office. Students will explore the implementation process and develop an understanding of professional practices that support the effective development of a family office strategy.

Keywords:
Family Wealth, Family Office, Investment Management, Family Investments, Family Business, Estate and Ownership Planning, Financial Performance, Wicfe, Family Office, Wealth Management, Legacy, Ownership

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