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Case
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Reference no. E311-135-1
Spanish language
Authors: Ricardo Guzman-Sanza (Universidad del Pacifico - Chile); Carlos Arnado Negrete (Universidad del Pacifico - Chile); Manuel Ruiz Gonzalez (Universitat Lleida); Angel Sessarego Aranda (Universitat Lleida)
Published in: 2011
Length: 18 pages
Data source: Published sources

Abstract

The Latin American business community, as well in most enterprise structures of developed economies, is heavily made up by family businesses. According to the main authors in this field, in France 60.5% of businesses are family owned, in Italy 75%, Germany 82% and UK 76%. In the US, 90% of companies are owned or controlled by a family, and from NYSE listed companies, 42% are family businesses. Family businesses, as well as others companies types, must adapt them to their own environment. One of the problems they face, perhaps the most important one, is the business succession that empirically it has been determined that only few companies can survive its founder. The results of the research indicates that 70% do not pass to the second generation, and the 30% that gets through only 15% remains active in the third generation. The current case, takes into considerations the problem of succession in a large Latin American retail company, and its application has served for intermediate students of business strategy to be able to analyze the issue of succession and locate it as central element of the strategy of family businesses.
Location:
Industry:
Size:
Very large
Other setting(s):
2008, 2009, 2010

About

Abstract

The Latin American business community, as well in most enterprise structures of developed economies, is heavily made up by family businesses. According to the main authors in this field, in France 60.5% of businesses are family owned, in Italy 75%, Germany 82% and UK 76%. In the US, 90% of companies are owned or controlled by a family, and from NYSE listed companies, 42% are family businesses. Family businesses, as well as others companies types, must adapt them to their own environment. One of the problems they face, perhaps the most important one, is the business succession that empirically it has been determined that only few companies can survive its founder. The results of the research indicates that 70% do not pass to the second generation, and the 30% that gets through only 15% remains active in the third generation. The current case, takes into considerations the problem of succession in a large Latin American retail company, and its application has served for intermediate students of business strategy to be able to analyze the issue of succession and locate it as central element of the strategy of family businesses.

Settings

Location:
Industry:
Size:
Very large
Other setting(s):
2008, 2009, 2010

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