The Powerful Family Assets Of The

The powerful family assets of the Mulliez facilitate the family business go through many obstacles and will benefit the next generation, as well as the future enterprise. Actually in the long-term-development, the Mulliez family will face many choices about the ownership and the management right.

The Mulliezs may totally give up its ownership and operation, which means they might sell a firm to the new non-family owner. Obviously, the special family asset cannot be easily copied and submitted to the outsiders. The new owner may use its own value and leadership to direct the strategies since he or she is probably not trained through the Mulliez education system. Although the still-working employee have been emerged in the Mulliez family asset for a long time, the previous value of the Mulliez will fade in a long term without the continuing government of the family people, and all things based on the family charter will vanish. There is an old saying in china, “tea cools down after people leaving”. Even though the belief is not built in one day or one year, family assets, including longevity, networks and the value of the leadership, built up by the Mulliez will be replaced by the new company culture.

For some reasons, the Mulliez may give up its management, for example, hiring an external top manager. In this scenario, the Mulliez keeps the ownership of the firm and has the power to influence the election of external managers. The core value of the Mulliez keeps influencing the whole family even with the external CEO. The risk the family faced is agency problem. Different people have different personalities. Hence, the different style of the external CEO may influence the decision making and the strategy formulation. If the Mulliez keeps involved in operating, the family asset is likely to be transferable. The network of the Mulliez will be maintained or even improved.

But if the family gives up operating the firm, the family asset will not be transferred.