Subject category:
Strategy and General Management
Published by:
IESE Business School
Version: 03.15.05
Length: 15 pages
Data source: Published sources
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Abstract
This is the first of a three-case series (DG-1475-E to DG-1477-E). These cases synthesize the most important events and turning points in the history of Fiat, one of the largest companies in Italy, and deal with the issues the Agnellis family faced to secure their control of the company despite several financial crises and tragic family events. In particular, they can be used to reflect on the typical issues faced by family-owned businesses, such as how to manage the succession to new generations (in Fiat, there are now representatives of the fifth generation sitting on the board of directors); plan the succession; control and manage possible conflicts among family members; avoid dilution of ownership and the loss of control even in tough financial periods; regain effective control from CEO''s and management teams not belonging to the family.
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Abstract
This is the first of a three-case series (DG-1475-E to DG-1477-E). These cases synthesize the most important events and turning points in the history of Fiat, one of the largest companies in Italy, and deal with the issues the Agnellis family faced to secure their control of the company despite several financial crises and tragic family events. In particular, they can be used to reflect on the typical issues faced by family-owned businesses, such as how to manage the succession to new generations (in Fiat, there are now representatives of the fifth generation sitting on the board of directors); plan the succession; control and manage possible conflicts among family members; avoid dilution of ownership and the loss of control even in tough financial periods; regain effective control from CEO''s and management teams not belonging to the family.
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