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Family Business

by Publication Date
published: 01 Jul 2005

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

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Abstract:
Trouble begins in this Tuscany family business as repercussions of traumas suffered by first and second generation family members affect the third generation. The Baldinis had always worked together in their olive groves to produce the finest quality olive oil, but now, old wounds of which younger family members were barely aware, threatened the future of the business. Using genograms as a tool to help understand family dynamics and relationships, this case challenges students to find solutions to a potential succession crisis in the Baldini family.

Pedagogical Objectives:
Applying learning from genograms to family businesses, addressing issues of: -conflict avoidance -sibling or family competition -difficulties with change or loss -gender stereotypes -power concentration -succession in family business

Keywords:
Genograms, Family Systems, Family Dynamics, Family Relationships, Business Families, Succession Planning, Wicfe, Succession, Next Generation, Fair Process, Communication, Psychology, Gender

published: 01 Dec 2004

  • Topic: Family Business
  • Industry: Heavy industry
  • Region: North America

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Abstract:
As a multi-generational family business with a 100-year history in industrial engineering, the Nash Engineering Company had turned many challenges into opportunities. But in the late 1990s, the market for their products collapsed. The family and executive managers were faced with several options. Should they try to continue as a stand-alone organization? Should they pursue a strategic acquisition? Should the family sell Nash Engineering? There were many factors to consider, among them individual shareholders’ need for dividends and liquidity, and the family’s sense of pride in their heritage. What was the best solution for the business and the family?

Pedagogical Objectives:
Exploring the importance of family involvement in decisions that affect the business Exploring options for the next generation: stand-alone; merge or acquire; or sell?

Keywords:
Family Business, Strategic Acquisitions, Family Legacy, Investment Banking, Shareholders' Rights, Selling Family Business, Private Equity, Investment Partners, Corporate Governance, Corporate Governance for Family Firms, Wicfe, Governance, Parallel Planning, Strategy, Boards

Related:

published: 01 Dec 2004

  • Topic: Family Business
  • Industry: Heavy industry
  • Region: North America

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Abstract:
As a multi-generational family business with a 100 year history in industrial engineering, the Nash Engineering Company had turned many challenges into opportunities. But in the late 1990s, the market for their products collapsed. The family and executive managers were faced with several options. Should they try to continue as a stand-alone organization? Should they pursue a strategic acquisition? Should the family sell Nash Engineering? There were many factors to consider, among them individual shareholders’ need for dividends and liquidity, and the family’s sense of pride in their heritage. What was the best solution for the business and the family?

Pedagogical Objectives:
There were many factors to consider, among them individual shareholders' need for dividends and liquidity, and the family's sense of pride in their heritage. What was the best solution for the business and the family? The teaching objectives are: (1) exploring the importance of family involvement in decisions that affect the business; and (2) exploring options for the next generation: stand-alone; merge or acquire; or sell? An instructors media support DVD '802-035-0' is available to accompany this case series.

Keywords:
Family Business, Strategic Acquisitions, Family Legacy, Investment Banking, Shareholders' Rights, Selling Family Business, Private Equity, Investment Partners, Corporate Governance, Corporate Governance for Family Firms, Wicfe, Governance, Parallel Planning, Strategy, Boards

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published: 01 Aug 2004

  • 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

Prizes won:
- Winner of 2008 European Case Awards, Entrepreneurship Category

Related:

published: 01 Aug 2004

  • Topic: Family Business
  • Industry: Hotel
  • Region: Other Regions

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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, Succession, Next Generation, Fair Process, Communication, Psychology, Gender

Related:

published: 04 Jan 2003

  • Topic: Family Business
  • Industry: General Mechanics
  • Region: Other Regions

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Abstract:
The case describes the dilemma faced by a young MBA participant, Niraj, regarding the decision to join his family’s business in India. Niraj already spent a few years abroad, and feels some pressure to join the business, while uncertain of his wishes. The case also describes foundation and evolution of business and family relationships.

Pedagogical Objectives:
The objective of the case is to foster discussion on the topic of joining the family firm. It is of particular relevance for classes with potential successors, e.g. MBA classes on family firms. The case also demonstrates the need for increased family communication.

Keywords:
Family Business, Family Enterprise, Family Firms, Succession, Communication, Career Choices, Successor Dilemma, Family Relationships

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

Related:

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.

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