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15 pages
Data source:
Field research
The case focuses on Garcia Tunon (GT), a family firm in the automotive sector in Venezuela. By 2013, the company, led by the 2nd and 3rd generation of the family, was facing a hostile environment, which had brought a contraction of the domestic automotive market, jeopardising the growth plans of the company and its survival in its traditional business. Jorge García Tunon, the founder’s grandson, was considering strategic directions, leveraging on the company and family resources. His main dilemma focused on expanding the current family business through related or unrelated diversification or pursuing his entrepreneurial drive into a venture of his own.
Learning objectives:
1. Understand the evolution and characteristics of a family firm. 2. Examine and evaluate patterns of growth in a family business. 3. Analyze a hostile business environment and recognize opportunities and threats. 4. Understand the sources of sustainable competitive advantage and the role of 'familiness' in a family firm. 5. Grapple with the decision as to what kind of strategy should a family business embrace in order to make the most out of the family firm’s resources and capabilities.
Venezuela, Latin America, Car, 2000-2012, Medium enterprise
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