The Future of AFG: How Family Attachment Influenced Growth

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Case

Reference no. 813-011-1

Subject category: Entrepreneurship

Authors: Wim Hulsink (Rotterdam School of Management, Erasmus University); Francesco Polano (Rotterdam School of Management, Erasmus University); Eric Eckelmann (Rotterdam School of Management, Erasmus University); Ana Carolina Talarico (Rotterdam School of Management, Erasmus University)

Published by: RSM Case Development Centre

Published in: 2013

Length: 18 pages

Data source: Field research

Topics: Family business; Growth; Investment; Manufacturing; Italy; Sunk costs; Family-ness; Family orientedness; Vertical integration; Make or buy; Entrepreneurship

Share a link: https://casecent.re/p/113871

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Abstract

The case deals with a dilemma the Italian family firm AFG faced after making a significant investment to grow its business. AFG had been a successful commercial dealer of food packaging plastics, but under increased competition and squeezed margins, it bought a defective and underperforming extrusion plant to become a manufacturer of plastic packaging for the food industry. AFG had three alternative future plans, each with different consequences and risks for the family as well as the business.

Location:

Italy

Industry:

Plastics

Other setting(s):

2009