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Case Studies by Maria Andrea Trujillo

6 case studies

by Publication Date
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: 29 May 2017

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

Show details ...

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: 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: 25 Apr 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

Related:

published: 29 Mar 2017

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

Show details ...

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

Related:

published: 29 Mar 2017

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

Show details ...

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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