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Family Business

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published: 29 Jun 2015

  • Topic: Family Business
  • Region: Middle-East

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Abstract:
Growing family businesses need to create new governance structures to ensure the alignment of family expectations with the needs of the business, as well as accountability. As the family and business mature, and ownership/management functions are separated, the role of the family is increasingly one of governance. Alignment of family and business governance processes among family, owners and management is therefore an important family responsibility.

Pedagogical Objectives:
This case helps owners, management and boards appreciate the role of family and business governance in decision making and accountability. It also encourages business families to heed the challenges they face in planning and decision making. Family governance is much more complex than business governance because the structures and processes involved depend on the family’s values, characteristics, shared experiences and business situation.

Keywords:
Family Business, Next Generation, Board of Directors, Governance, Philanthropy

published: 11 Jan 1992

  • Topic: Family Business
  • Industry: Retail
  • Region: Europe

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Abstract:
Describes the evolution, expansion and internationalisation of a family-owned company in the area of retail and services. It looks at the role of the family and, particularly, its driving force, Anton Dreesman.

Pedagogical Objectives:
To demonstrate the relationship between personality, leadership style, corporate culture, strategy and structure; to highlight the problems around the succession.

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: 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: 01 Jul 1995

  • Topic: Family Business
  • Industry: Music; Airline; Entertainment
  • Region: Global

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Abstract:
This case follows the development of Richard Branson from his early days as the editor of his own student magazine to his current status as founder and Chairman of the Virgin Group. It focuses on the iconoclastic, yet extremely effective, management style and business philosophy of a man who has become one of the world's best-known entrepreneurs. The broad overview of Richard Branson and Virgin given in the case itself is complemented by the personal interview with Richard Branson and the video interview with Branson and his two managing directors, Robert Devereux and Trevor Abbott.

Pedagogical Objectives:
Virgin is of particular interest as a case study because of the questions raised about leadership in a creative organization. One of the major issues is that of entrepreneurship and the case allows for full discussion of this topic. However, the company also offers insight into a number of other management topics. Among these are the transition from entrepreneurial to more "systematic" management; the formulation of strategy for, and the management of, rapid growth, particularly expansion into unrelated areas and expansion overseas; a corporate culture centred around youth and informality; a preference for promotion of "insiders" who "fit" rather than outside candidates; the personal characteristics of an entrepreneur; the management of creativity and the transition from a private enterprise to a public company and back again to private.

Prizes won:
- 2002 ecch Best-selling Case in Human Resource Management / Organisational Behaviour
- Overall Winner of 1999 European Case Awards
- Winner of 1998 European Case Awards in Human Resource Management / Organisational Behaviour
- Runner Up for 1996 European Case Awards in Human Resource Management / Organisational Behaviour

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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: 30 Jul 2018

  • Topic: Family Business
  • Industry: Heating equipment
  • Region: Europe

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Abstract:
Family-owned firm Brunata, an engineering business and major player in Denmark’s heat consumption market, faces a leadership crisis after the retirement of its charismatic founder. Although his four children have worked in the company, none ultimately have the right stuff to lead, notably the eldest son who is removed by his father three years after taking over the top job. The professional manager who is subsequently appointed lasts only two years. The case includes interview material and highlights the emerging role of the board, whose external directors tried to turn the situation around.

Pedagogical Objectives:
The case offers penetrating insight into the issues of succession and professionalization of management at family-owned firms. It provides information for a lively discussion on the role of founders, owner-managers, next gens, professional managers and board members planning for the long term, as well as the distinctive hurdles that such firms face. It can be used for courses on family business, directors, leadership and negotiation.

Keywords:
Family Business, Board of Directors, Brunata, Danish Market, Heat Meters, Owner-Managers, Negotiations, Succession, Next Gens, Ceo, Founders, Sibling Disputes, Professionalization, Denmark

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published: 30 Jul 2018

  • Topic: Family Business
  • Industry: Heating equipment
  • Region: Europe

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Abstract:
Family-owned firm Brunata, an engineering business and major player in Denmark’s heat consumption market, faces a leadership crisis after the retirement of its charismatic founder. Although his four children have worked in the company, none ultimately have the right stuff to lead, notably the eldest son who is removed by his father three years after taking over the top job. The professional manager who is subsequently appointed lasts only two years. The case includes interview material and highlights the emerging role of the board, whose external directors tried to turn the situation around.

Pedagogical Objectives:
The case offers penetrating insight into the issues of succession and professionalization of management at family-owned firms. It provides information for a lively discussion on the role of founders, owner-managers, next gens, professional managers and board members planning for the long term, as well as the distinctive hurdles that such firms face. It can be used for courses on family business, directors, leadership and negotiation.

Keywords:
Family Business, Board of Directors, Brunata, Danish Market, Heat Meters, Owner-Managers, Negotiations, Succession, Next Gens, Ceo, Founders, Sibling Disputes, Professionalization, Denmark

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published: 22 Apr 2016

  • Topic: Family Business
  • Industry: Commodities
  • Region: North America

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Abstract:
Founded in 1865, Cargill one of the world's largest family businesses but has faced several challenges as it transitions from generation to generation. Business succession is complicated by the involvement of two families; the Cargills and their in-laws the MacMillans. A difficult transition to an in-law in the early 1900s eventually resulted in the Cargills losing control. However, the animosity between the two families focused their attention on building a vision based on shared values of entrepreneurship, fair play and a commitment to long-term family ownership.

Pedagogical Objectives:
This case explores family business role transitions and the challenges of family investment and liquidity. It also discusses the importance of managing beyond the family, the importance of entrepreneurial innovation, and effective communication in family businesses. Finally, it demonstrates the concept of stewardship as an ownership model.

Keywords:
Family Business Transitions, Family Investment, Stewardship, Non-Family Executives, Fair Process, Communication in Family Business, Succession Planning, Family Business Liquidity, Corporate Governance, Corporate Governance for Family Firms, Wicfe, Succession, Next Generation, Fair Process, Communication, Psychology, Gender, Governance, Parallel Planning, Strategy, Boards

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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