Read the three (3) situations in “You Make The Call” see below THE BLACK SHADED
ID: 422491 • Letter: R
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Read the three (3) situations in “You Make The Call” see below THE BLACK SHADED AREA ISNT PART OF THE QUESTION - YOU MAKE THE SITUATON 1 2 & 3
Formulate detailed responses to the questions for each situation. Please type each situaion Question 1 & 2 for each, Thanks!
e In-laws play a crucial role in the family business, either as Family business constitutions can guide a company through times of crisis or change. direct participants or as sideline observers. The role of the founder's spouse is especially important, as he or she often serves as a mediator in family disputes 5-5. Describe the process of managerial succession in a family business and helps prepare the children for possible careers in the family business. Identify management practices that enable a family business to function effectively e Discussing and planning the transfer of leadership is 5-4. difficult and sometimes frustrating. The quality of leadership talent available in the family determines the extent to which outside managers are needed e Good management practices are as important as good family relationships in the successful functioning of a famlly business. e Succession is a long term process starting early in the successor's life e Motivation of nonfamily employees can be enhanced by open communication and fairness. Family retreats bring all family members together to discuss business and family matters The succession process requires actions and effective communication on the part of both the senior generati and the succeeding generation. e Family councils provide a formal framework for the " Transfer of ownership involves issues of fairness, taxes, family's ongoing discussion of family and business issues. and managerial control Key Terms co-preneurs p. 129 cousin consortium p. 124 family p. 124 family business p. 124 am family council p. 136 family retreat p. 135 nepotism p. 126 organizational culture p. 127 sibling partnership p. 124 socioemotional wealth p. 128 transfer of ownership p. 140 You Make the Call Situation 1 Twin brothers Stefan and Dillon inherited the fruit-canning factory founded by their father just before they turned 30. It turned out they made a great team-one outstanding at production and operations, the other a natural at marketing and sales. Over the next three decades, they tripled the size of the enterprise. And they enjoyed each other's company, often acationing together and making sure that their kids grew up more like siblings than cousins The brothers turned to their children for their opinions. For Stefan's son and daughter, this was a no-brainer-take the money and move on. Dillon's son was of a different mind, though. He had always wanted to lead the family firm in its third generation. Stefan liked the idea of financial security and was happy with his children's reaction. Dillon was ready to step aside for a more comfortable life style, but wanted what was best for his son. A series of conversations and meetings began to turn ugly The brothers were in excellent health as they approached 60.They weren't thinking about retirement, but they had spent Question 1 What would you do if you were Stefan? What would time and effort in developing the next generation for leadership. you do if you were Dillon? Then, out of the blue, they received an offer from a multinational Question 2 What advice would you offer to Stefan and Dillon to corporation to buy their business at a huge premium. maintain strong family relationships? 142 Part 2 Starting from Scratch or Joining an Existing BusinessExplanation / Answer
Given Situation 1, had I been Stefan , I would have tried imparting and conveying the idea to my son and daughter that in exchange of a grand amount, the decision to sell away what has been built over ages and involves the blood and sweat of the descendents and dreams arounf building an empire, which has now come true, the selling off is totally an escapist's way to earn easy money which is very futile after all the efforts put over the years. Also, keeping aside the moral part, even if to be thought on a technical perspective, there is no way tha a crossing by MNC would do away paying a one time randsome and reap the results of all the so far hard earned implementations and expansions. Starting from manpower, to the strategies, to the market value, all can not be sweeped onto hands of an external company in exchange of some money.
The only advise to both the brothers can only be to over rule the offer and strengthen their family relationship by not being opinionated in an opposing manner. There can be no room for cracking of the unified wall that took syears to build. Also, both of them should not overlook the fact that their vuisness could be entitled to have potential to earn much more over years than what is offered to them at one time and that their children who havegrown with a mind set of carrying forward the legacy of flying the flag of the family business and grown looking at the level of expertise and leadership styles of their fathers, they might nit be anymore have a rigor to be working as subordinates in another concerns and that can jeopardise their morales, which should not be compromised.
Given situation 2, Morris and Ellen can be advised to put their own sons who are dejected of other places but are specialized in their dedicated skillsets. Turning the available potential resources at home into business delivery excellence and changing lives of the kids and adding up to their lost confidence and spirit is the best that they can do as parents.
Parents who are enrepreneurs themselves can set biggest examples to the off springs in order to reinforce leadership skills in them.
Situation 3
Owning a family business and kids growing seeing the parents run business where they can place themselves and add values to as grown up individuals helps them havinga a sense of security backing teh mins in terms of occupation and also zeal to do value addition to the already prevailing business in order to increase the ROI. Their skills do not get overlooked and generalized in the rat race of the job market.
Organizational culture of a business which has family in it, should not be based on emotions carried back from home and have rooms and scope for liniency . However, the prevailing bonding must be put to use for bringing in the best interest of other people who are so on and so forth included and hired externally and should set right examples of a transparent, coherent collaborative work culture.
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