CASE
Managing a Family Business
The Vega Food Company
March 16, 2014
The Vega Food Company case is about the Valle family. Franciso Valle Sr. was the entrepreneur-owner of Industrias La Vega, he was married to Isabel and had they had six kids. Five of their kids are girls Rosa, 47; Ana, 42; Maria, 38; Tere, 33; and Mari, 27 one son Franciso Jr., 45. Franciso Sr. died in 1994 and left Franciso Jr., as his successor. Before Franciso Sr. passed, Franciso Jr. was the President of the company. Franciso Jr. had work in the company for twenty years before his father demised. “Industrias La Vega is a Spanish meat-processing business produced hams, sausages, and other delicacies….” Before Franciso Sr. death, he ran for a Senate seat and won at the age of 72 years young. Franciso Sr. also named Franciso Jr. as his successor for his Senate seat if anything may happen to him. Franciso Jr. took his father’s place in the Senate until there was a permanent replacement. Franciso Jr. had done a great job in the Senate, but his sisters did not believe he can have the same success in the family business. Mari had her own reservations about her brother leading the family company. She had total faith in her father but not her brother. Franciso Jr. and Tere were the only two that worked in the family business. Tere had joined the business a few years prior to her father’s demise. Franciso Jr. had sponsored the first family council in February 1997 since there were so much concern on how the business was ran. Franciso and Tere selected the family-business advisor who facilitated the family council meetings. The advisor had private meetings with each family member individually. Each family member expressed their concerns to the advisor about the family business. The first meeting goals and behavior norms were set. They selected top two priorities: (1) the lack of clarity and organization in the ownership structure, estate plan, and financial
The Vega Food Company
March 16, 2014
The Vega Food Company case is about the Valle family. Franciso Valle Sr. was the entrepreneur-owner of Industrias La Vega, he was married to Isabel and had they had six kids. Five of their kids are girls Rosa, 47; Ana, 42; Maria, 38; Tere, 33; and Mari, 27 one son Franciso Jr., 45. Franciso Sr. died in 1994 and left Franciso Jr., as his successor. Before Franciso Sr. passed, Franciso Jr. was the President of the company. Franciso Jr. had work in the company for twenty years before his father demised. “Industrias La Vega is a Spanish meat-processing business produced hams, sausages, and other delicacies….” Before Franciso Sr. death, he ran for a Senate seat and won at the age of 72 years young. Franciso Sr. also named Franciso Jr. as his successor for his Senate seat if anything may happen to him. Franciso Jr. took his father’s place in the Senate until there was a permanent replacement. Franciso Jr. had done a great job in the Senate, but his sisters did not believe he can have the same success in the family business. Mari had her own reservations about her brother leading the family company. She had total faith in her father but not her brother. Franciso Jr. and Tere were the only two that worked in the family business. Tere had joined the business a few years prior to her father’s demise. Franciso Jr. had sponsored the first family council in February 1997 since there were so much concern on how the business was ran. Franciso and Tere selected the family-business advisor who facilitated the family council meetings. The advisor had private meetings with each family member individually. Each family member expressed their concerns to the advisor about the family business. The first meeting goals and behavior norms were set. They selected top two priorities: (1) the lack of clarity and organization in the ownership structure, estate plan, and financial