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Family Business

by Publication Date
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: 28 Jun 2011

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

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Abstract:
The Resort in Pueblo Valley case describes the story of three generations of a business family, who owned and managed a beautiful resort. The family story includes traumatic events like early deaths, suicide, and remarriages and lack of communication on succession issues. Succession took place in abrupt ways, through the deaths of owner-managers, or the threat to sell by their widows. Case A describes the history of the family and the business until 1996, when the second generation widow confronted the children with her determination to sell the business. Case B (to be used after case discussion) explains what happened afterwards.

Pedagogical Objectives:
The case was written primarily to illustrate the concept of Fair Process in key family business circumstances, i.e. ownership succession and leadership succession. While the mother wanted to sell, the children called for a meeting and family discussion before taking the decision. They ultimately took the decision to sell, but, thanks to a better process, obtained a much higher price, and preserved family relationships. The case also illustrates family dynamics, relationships between step-children and step-mother, repetition from first to second generation, and the sale of the family business.

Keywords:
Family Business, Succession, Communication, Fair Process, Sale of Family Business, Remarriage, Step-Parent, Family Dynamics, Genogram, Wicfe, Succession, Next Generation, Fair Process, Communication, Psychology, Gender

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published: 28 Jun 2011

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

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Abstract:
The Resort in Pueblo Valley case describes the story of three generations of a business family, who owned and managed a beautiful resort. The family story includes traumatic events like early deaths, suicide, and remarriages and lack of communication on succession issues. Succession took place in abrupt ways, through the deaths of owner-managers, or the threat to sell by their widows. Case A describes the history of the family and the business until 1996, when the second generation widow confronted the children with her determination to sell the business. Case B (to be used after case discussion) explains what happened afterwards.

Pedagogical Objectives:
The case was written primarily to illustrate the concept of Fair Process in key family business circumstances, i.e. ownership succession and leadership succession. While the mother wanted to sell, the children called for a meeting and family discussion before taking the decision. They ultimately took the decision to sell, but, thanks to a better process, obtained a much higher price, and preserved family relationships. The case also illustrates family dynamics, relationships between step-children and step-mother, repetition from first to second generation, and the sale of the family business.

Keywords:
Family Business, Succession, Communication, Fair Process, Sale of Family Business, Remarriage, Step-Parent, Family Dynamics, Genogram, Wicfe, Succession, Next Generation, Fair Process, Communication, Psychology, Gender

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published: 30 Sep 2009

  • Topic: Family Business
  • Industry: construction
  • Region: Middle-East

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Abstract:
Very little has been written about women business leaders in the Middle East. Fatima Al Jaber is the Chief Operating Officer of a multibillion-dollar family owned company in Abu Dhabi. The case traces her personal history, highlights the challenges faced by family businesses in the region, and focuses on the distinctive strengths and leadership styles of Muslim businesswomen. The case will prompt discussion about work-life balance, the significance of culture, and the traditional and transitional roles and responsibilities of women in a rapidly evolving geopolitical context. It can also be used more broadly to compare leadership and gender in Western cultures to more traditional Middle Eastern cultures.

Pedagogical Objectives:
The primary purpose of this case is to provide an introduction to the Middle East and an overview of the issues and challenges faced by working women as they seek to reconcile traditional values with professional demands and obligations. The context of the case includes family business issues, and individual and organisational life cycle transitions. The case can be used with different audiences: I. Students or executives familiar with or living in the Middle East a. A discussion of the importance of family values b. The influence of culture on organisations c. Life cycle transitions and succession and the relevance of gender d. Decisions/action in the public sphere (face-saving and social constraints) II. Students or executives not familiar with the Middle East a. Introducing the region, breaking down stereotypes, finding commonalities b. Exploring family business issues and challenges in a traditional context

Keywords:
Family Business, Family Business Leadership, Muslim Women Leaders, Abu Dhabi, Work Life Balance, Women in the Middle East, Adec, Wicfe, Succession, Next Generation, Governance, Parallel Planning, Strategy, Boards, Women in Family Business, Gender

published: 19 May 2009

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

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Abstract:
The Resort in Pueblo Valley case describes the story of three generations of a business family, who owned and managed a beautiful resort. The family story includes traumatic events like early deaths, suicide, and remarriages and lack of communication on succession issues. Succession took place in abrupt ways, through the deaths of owner-managers, or the threat to sell by their widows. Case A describes the history of the family and the business until 1996, when the second generation widow confronted the children with her determination to sell the business. Case B (to be used after case discussion) explains what happened afterwards.

Pedagogical Objectives:
The case was written primarily to illustrate the concept of Fair Process in key family business circumstances, i.e. ownership succession and leadership succession. While the mother wanted to sell, the children called for a meeting and family discussion before taking the decision. They ultimately took the decision to sell, but, thanks to a better process, obtained a much higher price, and preserved family relationships. The case also illustrates family dynamics, relationships between step-children and step-mother, repetition from first to second generation, and the sale of the family business.

Keywords:
Family Business, Succession, Communication, Fair Process, Sale of Family Business, Remarriage, Step-Parent, Family Dynamics, Genogram, Wicfe, Governance, Parallel Planning, Strategy, Boards, Succession, Next Generation, Fair Process, Communication, Psychology, Gender

Related:

published: 19 May 2009

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

Show details ...

Abstract:
The case describes the story of three generations of a business family, who owned and managed a beautiful resort. The family story includes traumatic events like: early deaths; suicide; and remarriages and the lack of communication on succession issues. Succession took place in abrupt ways, through death of owner-managers, or threat to sell by their widows. Case (A) describes the history of the family and the business until 1996, when the second generation widow confronts the children with her determination to sell the business. Case (B), to be used after case discussion, explains what happened afterwards.

Pedagogical Objectives:
The case was written primarily to illustrate the concept of fair process in key family business circumstances, ie ownership succession and leadership succession. While the mother wanted to sell, the children called for a meeting and family discussion before taking the decision. They ultimately took the decision to sell, but thanks to a better process obtained a much higher price, and preserved family relationships. The case also illustrates family dynamics, relationships between stepchildren and stepmother, repetition from first to second generation, and the sale of the family business.

Keywords:
Family Business, Succession, Communication, Fair Process, Sale of Family Business, Remarriage, Step-Parent, Family Dynamics, Genogram, Wicfe, Governance, Parallel Planning, Strategy, Boards, Succession, Next Generation, Fair Process, Communication, Psychology, Gender

Related:

published: 19 May 2009

  • Topic: Family Business
  • Industry: Hearing devices
  • Region: Europe

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Abstract:
The case describes the way in which members of a family owning a business try to put together a family meeting to discuss the future of the enterprise. The case allows a discussion of the question of rules for family members working in the business, ownership distribution, family meetings, reconciling individual interests… all the elements of what family business scholars and practitionners term "family governance". Pedagogical Objectives Keywords

Pedagogical Objectives:
The objective of the case is to allow participants to grasp the issues at stake for members of a third generation family business, using "hands on" communication tools (similar to those suggested to participants for use in their own family meetings).

Keywords:
Family Business, Family Business Governance, Family Meetings, Family Constitutions, Family Business Communication, Family Govertance, Corporate Governance, Corporate Governance for Family Firms, Wicfe, Governance, Parallel Planning, Strategy, Boards

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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

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