Student
MBA4703 Business Strategy – Shipping & Logistics
Coursework 1: Family Businesses
Your Name: Oleksandr Matsupa
Your Student Number: M00429069
Questions to be answered:
1. What are classic family business issues that all family firms must face? 2. What insights can you gather on how family enterprises compete and think differently? (compare the family business to the non-family owned business) 3. What is your diagnosis or interpretation of the situation they face? 4. From your cultural perspective and your family experience, what recommendations would you offer the Klaveness family? 5. Identify the changes that occurred in the group’s ownership structure, after 2010 6. What effect will these changes have on the group’s competitiveness in the global shipping industry?
Your answers:
Question 1
Consulting the case study of the Torvald Klaveness Group it is possible to draw several issues that family business may face. Family business is usually a creation of one charismatic person, who invested all his time into developing and growing the assets for the future generations. As the time goes the founder has to retire and must prepare a plan for the future development of the company. The following problems may arise and threaten the stability:
* Bad succession planning & qualified future successor – it is necessary to plan in advance how, when and to whom the company will be handed over. This approach requests from founder to involve his family members, who want to join family business to start from the lower levels in company to gain the experience in practice from the ground and naturally grow to the managerial position exploring the experience and future possibilities offered and hidden on different levels of company’s activity. This idea TK determined in the agreement passing “the management and the majority of ownership to Tom Erik over a 12-year period”[1] and also stipulating that “descendants must
Coursework 1: Family Businesses
Your Name: Oleksandr Matsupa
Your Student Number: M00429069
Questions to be answered:
1. What are classic family business issues that all family firms must face? 2. What insights can you gather on how family enterprises compete and think differently? (compare the family business to the non-family owned business) 3. What is your diagnosis or interpretation of the situation they face? 4. From your cultural perspective and your family experience, what recommendations would you offer the Klaveness family? 5. Identify the changes that occurred in the group’s ownership structure, after 2010 6. What effect will these changes have on the group’s competitiveness in the global shipping industry?
Your answers:
Question 1
Consulting the case study of the Torvald Klaveness Group it is possible to draw several issues that family business may face. Family business is usually a creation of one charismatic person, who invested all his time into developing and growing the assets for the future generations. As the time goes the founder has to retire and must prepare a plan for the future development of the company. The following problems may arise and threaten the stability:
* Bad succession planning & qualified future successor – it is necessary to plan in advance how, when and to whom the company will be handed over. This approach requests from founder to involve his family members, who want to join family business to start from the lower levels in company to gain the experience in practice from the ground and naturally grow to the managerial position exploring the experience and future possibilities offered and hidden on different levels of company’s activity. This idea TK determined in the agreement passing “the management and the majority of ownership to Tom Erik over a 12-year period”[1] and also stipulating that “descendants must