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Question: Read the three (3) situations in “You Make The Call” see below Formulate detailed responses to th...
Read the three (3) situations in “You Make The Call” see below
Formulate detailed responses to the questions for each situation please use a quote or reference your answer for the web or other sources, why did you formulate the answer. Thanks!
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 vacationing together and making sure that their kids grew up more like siblings than cousins. The brothers were in excellent health as they approached 60. They weren't thinking about retirement, but they had spent time and effort in developing the next generation for leadership. Then, out of the blue, they received an offer from a multinational corporation to buy their business at a huge premium. 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. Question 1 What would you do if you were Stefan? What would you do if you were Dillon? Question 2 What advice would you offer to Stefan and Dillon to maintain strong family relationships? 142 Part 2 Starting from Scratch or Joining an Existing BusinessExplanation / Answer
Case 1
(A) If I were Stefan, I would ask Dillan to buy his ownership of the business from him, if possible for his share of premium money which would be equally shared to his son and daughter. This would ensure that the two children are monetarily secure who are not interested in the emotions or family values of business.
Dillan should buy Stefan share of business for a premium and pass on the entire business to his son who values it and cares about it. This will keep the business intact with one of the founding partners and the other partners children would also be satisfied.
(B) Strong family relations are always built on inherent values and happiness amongst family members. This strategy would keep both partner's family members happy and thus strengthen their bonds even though they would not continue in the business together.
Case:2
(A) It was time for Morris and Ellen to prepare for succession planning wherein they had to decide who was the most talented of their children to keep the company intact on its basics and values. This selection may not necessarily be on the basis of age but purely on managerial skills and apt for valuing the business that the couple built with their heart and soul and expand it further with his business accumen. It was the right time where both the parents could also guide the remaining children to head various departments in the company based on their aptitude and keep supporting the main CEO sibling.
(B) First step is communication: Talk to your children let them first understand your part of the purpose and what you have planned for them. Then hear their views and duly incorporate them into your decisions. Try to strike the best balance so that the children are confortable with your decision only then they would value your decision about the business. Try and give the best skilled departments to the children who best deserves them and motivate them to feel important in contributing to the company in the ongoing times of change.
Ensure them ownership rights so that they feel secure.
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