Plymouth Tube Company: How to Build Ownership Consensus

2016 ◽  
pp. 1-10
Author(s):  
John L. Ward
Keyword(s):  
Family Member ◽  
Family Business ◽  
Fourth Generation ◽  
Board Members ◽  
Business Decision ◽  
Fifth Generation ◽  
Good Investment ◽  
Large Expansion ◽  
The Family ◽  
Generation Family

Plymouth Tube, a family business, was a manufacturer of precision tubing and extruded shapes for aerospace, desalination, medical, mining, energy, and water industries globally. Founded in 1924, as of 2012 it employed 770 people at thirteen plants in seven U.S. states and had sales of about $240 million. The family had twenty members across three generations, including spouses. The board was composed of eight members, three from the family and five who were independent. Stacy, age 30, was the only fifth-generation family member working for the company. Her father, Van, age 64 and a fourth-generation member, had been in the business for forty years and had succeeded his father as president, CEO, and chairman. In early 2013, management presented a very large expansion project that was riskier than previous recent investments to the board, and requested the board's approval. Independent board members asked Van to obtain feedback from the family about the proposal. Van asked Stacy to direct the process for informing the family, asking for their input, and communicating it back to the board. How should Stacy conduct the process? What should be done with the information once it has been gathered? Should family members be involved in this type of business decision? Based on the information given in the case, is this a good investment?

What's in a Family Legacy? Balancing Family Emotions and Business Growth at Luse Holdings

2017 ◽  
pp. 1-14
Author(s):  
John L. Ward ◽  
Ashley E. Luse
Keyword(s):  
Family Business ◽  
Extended Family ◽  
Fourth Generation ◽  
Next Generation ◽  
Business Growth ◽  
Family Risk ◽  
Non Union ◽  
Fifth Generation ◽  
The Family ◽  
First Time

After decades of continuity, Luse Holdings faced a new challenge in 2015. The company needed to pivot in a changing industry context—specifically, Luse had lost a bid to a non-union competitor for the first time—and CEO and fourth-generation member Steve Luse was considering three primary options: (1) continue as is, while also adding non-union services; (2) sell part of the business to reduce family risk; or (3) sell the entire business to fund other family interests. A fourth possible option was a maximization-of-growth alternative. This decision involved more than business considerations alone. The family's legacy as an industry champion and community philanthropist also required considering all relevant stakeholders, including immediate and extended family, employees, and community. Complicating the situation was the lack of an immediately identifiable successor in the next generation of the Luse family, though several fifth-generation members had completed internships with the business including Steve's daughter Ashley, a recent MBA graduate. Students will step into Steve's shoes as he considers what recommendations to make to the advisory board six months from now. Students can also take the perspective of Ashley, a rising next-generation member: should she join the family business?

Attitudes and expectations of shareholders: The case of the multi-generation family business

2010 ◽  
Vol 15 (3) ◽  
pp. 346-362 ◽  
Author(s):  
Jill Thomas
Keyword(s):  
Family Member ◽  
Family Business ◽  
Family Businesses ◽  
Transfer Of Knowledge ◽  
Next Generation ◽  
The Family ◽  
Generation Family ◽  
Structured Questionnaire

AbstractAs family shareholder support is essential for the ongoing viability of the business as a family business, multi-generation family businesses which allow ‘the ownership tree’ to grow need to monitor the attitudes and expectations of the expanding number of family member shareholders. This paper reports on a case study of a multi-generation family business where the shareholder group had grown to 50 individual shareholders. The study explored the shareholders' views about the business and particularly their attitudes to stewardship and whether and under what circumstances, they would hold their shareholdings, pass them to the next generation of family or possibly consider relinquishing their holdings. Data was obtained from a semi-structured questionnaire and follow-up interviews. While respondents indicated that they had immense pride in being a shareholder of the family business, they admitted that their knowledge of that business was less than optimal. Financial returns were viewed as important, but the intangible rewards relating to the heritage of forebears were more so. While they were keen to pass on their shares to their children, they were uncertain about the level of commitment the next generation members would have. Lessons from this case study are discussed for other multi-generation family businesses focusing on shareholders' responsibilities as owners and the board's need to ensure timely transfer of knowledge to the wider shareholder group.

Attitudes and expectations of shareholders: The case of the multi-generation family business

2010 ◽  
Vol 15 (3) ◽  
pp. 346-362 ◽  
Author(s):  
Jill Thomas
Keyword(s):  
Family Member ◽  
Family Business ◽  
Family Businesses ◽  
Transfer Of Knowledge ◽  
Next Generation ◽  
The Family ◽  
Generation Family ◽  
Structured Questionnaire

AbstractAs family shareholder support is essential for the ongoing viability of the business as a family business, multi-generation family businesses which allow ‘the ownership tree’ to grow need to monitor the attitudes and expectations of the expanding number of family member shareholders. This paper reports on a case study of a multi-generation family business where the shareholder group had grown to 50 individual shareholders. The study explored the shareholders' views about the business and particularly their attitudes to stewardship and whether and under what circumstances, they would hold their shareholdings, pass them to the next generation of family or possibly consider relinquishing their holdings. Data was obtained from a semi-structured questionnaire and follow-up interviews. While respondents indicated that they had immense pride in being a shareholder of the family business, they admitted that their knowledge of that business was less than optimal. Financial returns were viewed as important, but the intangible rewards relating to the heritage of forebears were more so. While they were keen to pass on their shares to their children, they were uncertain about the level of commitment the next generation members would have. Lessons from this case study are discussed for other multi-generation family businesses focusing on shareholders' responsibilities as owners and the board's need to ensure timely transfer of knowledge to the wider shareholder group.

El Batraa manufacturers for chemicals and paint

2021 ◽  
Vol 11 (1) ◽  
pp. 1-20
Author(s):  
Ashraf Sheta ◽  
Sandra Wael ◽  
Mariam Soliman ◽  
Nour Abdallah ◽  
Rovan Bahnassy ◽  
...  
Keyword(s):  
Emerging Markets ◽  
Family Business ◽  
Master Of Business Administration ◽  
Business Decision ◽  
Content Type ◽  
Succession Plan ◽  
Academic Level ◽  
The Family ◽  
Future Strategy ◽  
Main Protagonist

Learning outcomes • Develop an understanding of how to institutionalize a family business. • Define the dynamics of the family business decision-making process in emerging markets. • Assess the cultural differences between founders and successors in an emerging markets context. • Identify the role of intergenerational differences in deciding the future strategy of a family business in emerging markets. Case overview/synopsis This case addresses El Batraa Manufacturers for Chemicals and Paints S.A.E., a privately owned family business operating in the coloring paste industry in Egypt. The main dilemma of the case is the existence of different visions about the business between the old and new generations. Also, it addresses the importance of understanding family dynamics to resolve existing challenges. The necessity of having governance in a family business is highlighted, together with a clear succession plan to secure family unity and business sustainability. Sandra the main protagonist within the case is trying to arrive to a resolution that can guarantee a motivating environment for her to join the family business. Her main dilemma is whether to choose to join the family business, with all the existing challenges or not. Accordingly, she proposes some steps to make the family business more appealing. Complexity academic level Under Graduate and Master of Business Administration level. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 3: Entrepreneurship.

Scott Family Enterprises (A): Defining Fair Process for Cousin Owners

2017 ◽  
pp. 1-24
Author(s):  
John L. Ward ◽  
Canh Tran
Keyword(s):  
Family Business ◽  
Large Family ◽  
Board Members ◽  
Fair Process ◽  
Family Expectations ◽  
Family Enterprises ◽  
Scott Family ◽  
Growing Pains ◽  
Generation Family ◽  
Made In

A large family business in banking and ranching is shifting leadership to the next generation and has developed a protocol to select board members by consensus. However, when the selection occurs, it is not made in accordance with the protocol, and a third-generation family member questions why the selection rules were changed by second-generation members without input or vote. Highlights the growing pains of developing fair processes and guidelines for nominating and selecting board members, meeting family expectations, communicating with constituents, and encouraging active roles in governance at the cousin-stage of a family business.

How Australia's Dennis Family Corp. Professionalized Its Family Business

2002 ◽  
Vol 15 (1) ◽  
pp. 59-70 ◽  
Author(s):  
Justin Craig ◽  
Ken Moores
Keyword(s):  
Corporate Governance ◽  
Family Member ◽  
Family Business ◽  
Second Generation ◽  
Governance Structures ◽  
Depth Interview ◽  
Generation Family ◽  
Governance Changes

This paper examines a second-generation family business that recently introduced professional corporate governance structures to its organization. The paper includes an outline of the company and an in-depth interview with the second-generation family member who was responsible for the process. Advice to those who are considering corporate governance changes to their family business appears throughout the interview.

scholarly journals THE DIFFERENCE PATTERN OF SUCCESSION BETWEEN SECOND GENERATION AND THRID GENERATION FAMILY BUSINESS IN INDONESIA (A REVIEW OF THE MEDIUM-SIZE FAMILY BUSINESS)

2019 ◽  
Vol 3 (2) ◽  
pp. 133-154
Author(s):  
Christina Whidya Utami
Keyword(s):  
Family Business ◽  
Second Generation ◽  
Family System ◽  
Medium Size ◽  
Third Generation ◽  
The Third ◽  
The Family ◽  
Generation Family ◽  
Business Succession ◽  
Family Business Succession

The purpose of this study is to find out whether there are differences on pattern of succession between the second and the third generation of family business in Indonesia. Research Design/ Methodology/ Approach: A cross sectional and comparative research design were used in this study, while the data survey was conducted to 41 respondents from the second-generation group and 48 respondents from the third-generation family business; the businesses has run for 5 to 50 years and were categorized as medium size family business. The study used multiple regression test via SPSS to test the hypothesis. Findings: In family business led by the second-generation successor, only personality system affects the family business succession. On the other hand, in family business led by the third-generation, personality, ownership, family, and management system variables affect the success of the family business; meanwhile, family system does not find to affect the family business succession. Research Limitation/ Implication: This study investigates pattern of succession in family business including personality system, ownership system, family system and management system. This study can suggest a solution in the regeneration process of a family business in order to maintain the continuity of the business. limitation: There are some biases found on family’s perspective of the assessment, and the study only focus on medium-size family business. Practical Implications: A right amount of focus on pattern of succession will help the second and the third generation of the family to manifest in business succession. Exploring the second and the third-generation perspectives in regard to succession pattern is the key to maintain the continuity of the family business. Originality/ value: This study offers a pattern of succession from various perspectives, including personal, ownership, family, and management, as well as the relationship to the long-term success of the family business.

Aditya Gandhi and Gandhi jewels: earning a place in the family business (Part A)

2021 ◽  
Vol 11 (1) ◽  
pp. 1-26
Author(s):  
Tulsi Jayakumar ◽  
Aarti Punjabi ◽  
Jyotsnaa Shah
Keyword(s):  
Family Business ◽  
Effective Communication ◽  
Building Blocks ◽  
Fourth Generation ◽  
Next Generation ◽  
Content Type ◽  
Academic Level ◽  
The Family ◽  
Successful Induction ◽  
General Business

Learning outcomes Part A – to identify the challenges of inducting and nurturing next-gen leaders, to outline the building blocks for the successful induction of the next generation into the family business and to spell the importance of mentoring conversations as a tool for successful induction in the family business. Part B – to define the basic tenets of effective communication-goal setting, planning and action using the goals, plans and action framework, to build a “listening” environment through understanding the hearing, understanding, remembering, interpreting, evaluating, and responding mode and to relate the importance of “questioning” in diagnosing a problem and reading both verbal and non-verbal cues in communication. Case overview/synopsis The two-part case describes the role of communication amongst young family business scions and a mentor’s role in shaping such communication. Part A traces the induction of Aditya Gandhi, a fourth-generation scion of Gandhi Gems and Jewels, a 110-year old Indian family business dealing in precious gems and jewels. It deals with the challenges of mentoring and successful induction of the next-generation into family business Part B of the case describes the communication between Aditya Gandhi and the proprietor of Gandhi Gems and Jewels’ key client, Ghanshyam Das. It deals with the tenets of effective communication as should be understood by young next-generation family members. Complexity academic level The case can be used in an executive programme for owners of family businesses or in an undergraduate or post-graduate programme in general business administration or family business management. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 11: Strategy.

Socioemotional wealth in the family farm

2015 ◽  
Vol 75 (3) ◽  
pp. 403-415 ◽  
Author(s):  
Jonathan B Dressler ◽  
Loren Tauer
Keyword(s):  
Family Member ◽  
Family Business ◽  
Research Literature ◽  
Lower Amount ◽  
Farm Income ◽  
Family Farm ◽  
Family Farms ◽  
Socioemotional Wealth ◽  
Content Type ◽  
The Family

Purpose – A family member may work for the family business even though the direct financial benefits he or she may receive in the form of a salary may be lower than what could be earned working for a non-family business. The lower amount may be accepted because of benefits of association with the family business. This psychic non-pecuniary return has been called socioemotional wealth in the family business research literature. The purpose of this paper is to propose a method to estimate socioemotional wealth and apply that technique to a group of family dairy farms to estimate socioemotional wealth for those family farms. Design/methodology/approach – A panel regression method was used to empirically allocate net farm income to the unpaid factors of equity, labor, and management provided by a family member in a family farm partnership. The estimated returns of labor plus management are compared to the market salary earned by farm managers who manage farms. The difference between the higher hired farm manager salary and what the family manager earns in the family farm from labor and management is an estimate of the non-pecuniary return the family member receives from managing the family farm as compared to managing the non-family farm. Findings – Differences in managers’ salary working for the non-family farm and the implied family manager financial compensation estimates indicate that family business managers’ non-pecuniary return from managing the family farm had an implied economic value averaging $22,026 per year over 1999-2008. Assuming that the manager would be indifferent between working for the family farm or the non-family farm if the sum of pecuniary and non-pecuniary returns were the same, the non-pecuniary annual benefits of $22,026 accrues in the form of socioemotional wealth associated as a member in the family business. Originality/value – Although the literature discusses how family members may accept a lower salary working for the family business than they could earn doing comparable work in a non-family business because of non-financial rewards they experience working for the family business, there have been no estimates of the value of this pecuniary benefit. The authors arrive at an estimate using a group of family dairy farm businesses that have multiple family managers.

Family as an institution

2018 ◽  
Vol 26 (1) ◽  
pp. 54-75 ◽  
Author(s):  
Jefferson Marlon Monticelli ◽  
Renata Bernardon ◽  
Guilherme Trez
Keyword(s):  
Family Business ◽  
Methodological Approach ◽  
Historical Analysis ◽  
Family Businesses ◽  
Fourth Generation ◽  
Institutional Perspective ◽  
Cross Sectional ◽  
Content Type ◽  
The Family ◽  
Institutional Forces

Purpose The purpose of this paper is to analyze entrepreneurship in the context of the second, third and fourth generations of family businesses, considering the family as an institution and mapping the reasons and influences to institutional forces across generations. Design/methodology/approach Three focus groups conducted for the study revealed that each generation has dealt differently with issues related to institutional forces, such as legitimacy, business professionalization and succession. Findings The perpetuation and transmission of entrepreneurial behavior has been greatly influenced by the family and this is especially clear when it is seen as an institution that unites and binds its members, while guiding or restricting the choices available to these agents through limits imposed on them. The family exerts a strong institutional influence across generations, both defining boundaries and creating opportunities for its members. Regardless of the generation of family business, the family founders and their successors’ responses are modeled by institutional forces. Research limitations/implications The main limitation is concentration of focus on a specific context, Brazilian family businesses. Therefore, the results are limited to this case. With regard to the methodological approach, the authors employed cross-sectional data collection, making it difficult or even impossible to make a historical analysis of the facts that are limited to the present perceptions of the interviewees. It should also be considered, from the institutional perspective, that the authors only analyze the family as an institution, leaving out of the context other institutions and institutional dimensions such as the political and industrial, for example. Practical implications This study helps to explain entrepreneurship in the context of the second, thirrd, and fourth generation of family businesses, considering family as an institution, mapping the motivations and influences of institutional forces across generations. The relevance of family as an institution as drivers of family businesses, as demonstrated in this study, can contribute to decision making and succession of family businesses. Equally, the results can contribute to avoidance of the possible pitfalls of transgenerational changes and facilitate better management of problems such as legitimacy caused by a lack of norms and procedures or transfer of tacit knowledge. Social implications There have been few attempts to understand the dynamics of the family business as an institution that also consider transgenerational changes. Rather, family business has been analyzed separately from institutions. Institutions are rarely taken into account in studies of family businesses. Consequently, a perspective that aims to understand the relationship between family businesses and institutions, taking account of transgenerational influences should further theory. Transgenerational family businesses are an appropriate object of study in this context, because of the institutional changes they undergo due to the influence of institutional forces over time. Originality/value This study shows the relevance of understanding how these issues are dealt with in different generations of a family institution. Aspects related to entrepreneurship in the context of family businesses have been attracting attention from researchers interested in family businesses and scholars of institutional entrepreneurship.

Sign in / Sign up

Export Citation Format

Share Document