Subject category:
Strategy and General Management
Published by:
Singapore Management University
Version: 2024-01-10
Length: 3 pages
Data source: Generalised experience
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https://casecent.re/p/196519
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Abstract
This is part of a case series. In 2019, the three Do sons, Duc Nam, Anh Hoa and Truong Giang were shocked when their parents, Mr Hanh and Mdm Nghi, announced that they would hand over the joint running of their two companies - Dai Viet (DV) and Chien Thang (CT), to them. Since 1999, the Do family had consecutively founded and operated multiple sanitary and porcelainware factory businesses that included Mdm Nghi's CT in 2002, and the family's DV Group, in 2013. CT and DV were vastly different in their employee base, organisational cultures, and operational processes. Unfortunately, given their proximity at work, cracks soon appeared when family disputes started affecting company operations, and vice versa. This disrupted decision-making at times and escalated to the point of shouting matches in front of employees. Eventually, by early 2019, Mr Hanh and Mdm Nghi were adamant that the brothers had to learn to work with one another to eventually merge and manage the two companies together. Giang however, being the only son who had worked with his father through complex financial and operational challenges, felt the crushing weight of responsibility bearing down on him. He wondered if the two companies ought to be merged despite the cultural, operational, and personal differences. Alternatively, he could hire professional consultants to help iron out the various issues in both companies. The most drastic measure would be to consider selling one of the companies. If so, which of the two companies should the family sell? Their parents had worked hard to grow DV and CT - what would they think if their sons sold off the embodiment of their legacy in the sanitary and porcelainware industry?
Time period
The events covered by this case took place in 2023.Geographical setting
Country:
Vietnam
About
Abstract
This is part of a case series. In 2019, the three Do sons, Duc Nam, Anh Hoa and Truong Giang were shocked when their parents, Mr Hanh and Mdm Nghi, announced that they would hand over the joint running of their two companies - Dai Viet (DV) and Chien Thang (CT), to them. Since 1999, the Do family had consecutively founded and operated multiple sanitary and porcelainware factory businesses that included Mdm Nghi's CT in 2002, and the family's DV Group, in 2013. CT and DV were vastly different in their employee base, organisational cultures, and operational processes. Unfortunately, given their proximity at work, cracks soon appeared when family disputes started affecting company operations, and vice versa. This disrupted decision-making at times and escalated to the point of shouting matches in front of employees. Eventually, by early 2019, Mr Hanh and Mdm Nghi were adamant that the brothers had to learn to work with one another to eventually merge and manage the two companies together. Giang however, being the only son who had worked with his father through complex financial and operational challenges, felt the crushing weight of responsibility bearing down on him. He wondered if the two companies ought to be merged despite the cultural, operational, and personal differences. Alternatively, he could hire professional consultants to help iron out the various issues in both companies. The most drastic measure would be to consider selling one of the companies. If so, which of the two companies should the family sell? Their parents had worked hard to grow DV and CT - what would they think if their sons sold off the embodiment of their legacy in the sanitary and porcelainware industry?
Settings
Time period
The events covered by this case took place in 2023.Geographical setting
Country:
Vietnam