THE IMPORTANCE OF PLANNING FOR SUCCESSION IN THE FAMILY BUSINESS BEFORE IT IS TOO LATE: A CASE STUDY OF A SMALL MANUFACTURING FIRM

Francisco W. Johnson, Jorge Pelayo Maciel and Marco Valenzo Jimenez

Review of Business and Finance Studies, 2019, vol. 10, issue 1, 25-32

Abstract: The family business discussed in this paper was founded in 1932 and had sustained growth during the first two decades of operation. It had transformed itself from a local to a national business and started to venture into international markets. The founder of the company had one daughter, an only child, who never worked in the company. When the founder died in 1955, the spouse of the only child took control of the business but never owned stock in the company. At the end of the 80’s the company was run by the third generation. The oldest and only of several siblings to work in the business. The oldest son was responsible for managing the business for more than 40 years. His main concern was always the efficiency of day-to-day operations. He never planned the succession process for the fourth generation. The CEO is ready to retire and at present there are no candidates among the family willing and able to succeed the leader of the company. This case requires two hours out of class preparation by students in small groups and one hour in class discussion among individual groups with teacher assistance. The case is intended for undergrad students in business, marketing or finance

Keywords: Family Business; Succession; Family Protocol (search for similar items in EconPapers)
JEL-codes: M1 M10 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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