Fred Koch Family

One of the most substantial problems of a long-lasting family based business is the procedural transfer of controls and possessions of the corporation amongst the family. Hence, many knowledgeable individuals have documented various elements which are crucial to practical succession. Consequently, many family members and law firms have dedicated significant amounts of energy to comprehend their built-in challenges (University, 2017).However, in the Koch family brother fighting amongst themselves was a well-established practice set by their father, Fred Koch.

Establishing the Power Base
Legitimate power comes from one being elected, selected, or appointed to a position of authority. Such authenticity is conferred by other individuals and also this legitimateness could be terminated from the original granters, their designees, or their successors (Petress, 2017).
The personality of the brothers was constituted by their parents Fred and Mary. However,
Fred selected Charles, and not the non-obeying rules, angry and uncooperative brother, not the
William.
Charles recently returned from the Massachusetts Institute of Technology and a
However, his appointment by Fred establishes his legitimate power. Charles and brother David took the company with a yearly intake of revenue of $250 million, and under their leadership, the business growth increased nearly to 120 billion in proceeds. Therefore, establishing his expert power with the demonstrated growth within the firm. On the other hand, the youngest brother, Bill was better known as a playboy and a yachtsman, the winner of the America’s Cup in 1992 and ranked 377th on Forbes list of world’s billionaires. Charles and David were sixth on the list billionaires (Schulman,