Case 14 – no notes available
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Case 15 no additional notes available, refer to Case 12.
Notes to Online Cases
Small Family Business: The New MBA
Make Suggestions and Start Looking
Paul Frishkoff
Even if Rudy had more experience, this would appear to be an extremely thankless
situation for him. For reasons of his own financial stability and mental health, I would
strongly advise him to look immediately and seriously outside the company for a long-
term career. Still, because of his family loyalty, and with the slim possibility that he may
turn out to be the family s hero, he might at least propose the following to his father:
Dismiss Duke. He is a spreader of discontent, and, no matter what his skills, he is
Give somebody Rudy, or the controller if Will wavers about Rudy s inexperience
tight and immediate authority over spending.
Initiate honest communication with the employees. They need to understand that an
Rudy Must Clarify His Own Goals
Wendy C. Handler
Members of the next generation often enter the family business without clear personal
goals and expectations. With their undergraduate or graduate business degrees, they may
believe they are equipped to master the challenges of a family business. However,
experience outside as well as inside the family business is the only real training.
Rudy needs to define his own goals and objectives. Ideally, he should have done this
while he was working on his master s degree, asking himself such questions as: What
areas of the firm do I want to work in when I enter? Does this fit with where I may be
needed? Do I have the necessary skills and abilities?
While reflection is important, this is time for action. Rudy needs to stay on his father’s
Real Estate Development Partners, Inc.
Suggestions for Use
This brief case is a platform for a discussion on change in the family business. It
documents an action-research or survey-feedback initiated change effort. The case could
Executive Brief
This is a simple real estate based business that as a result of hard work, the post-war
growth period in the United States, and real asset inflation in the 1960s, 1970s, and 1980s
has been very successful. Growth in revenues and asset value has outpaced the industry,
which also speaks to location advantages, managerial effectiveness, or both. Job
Discussion Questions
1. Based on the data collected and the facts presented in the case, what are the key
issues, problems, or opportunities facing Real Estate Development Partners and
the Randall family?
This appears to be a classic successful entrepreneurial/family business story. The
business has been doing very well but as the transition across generations approaches,
the corporation appears vulnerable. Why?
Nobody knows how much longer Dick Randall will remain the CEO. He
2. How might this feedback process influence future prospects for continuity in this
family-owned business? What constructive changes do you see the Randalls
making in response to the survey?
It might motivate the creation of a family council or the holding of family
meetings.
It might motivate more disciplined and on-
3. What is your prediction of what will happen in this family-owned business over
the next three years? Use the survey data and the facts in the case to support
your prediction.
The willingness that Dick Randall demonstrated to open his company and his
family to outside assessment bodes well for this family and business.
Small Family Business: GlassKing Distributor Company
Remember the Advantages
John A. Davis
Marilyn Green has her hands full contending with family conflicts in GlassKing’s
dealership network and the reluctance of older dealership owners to retire. However, she
should not lose sight of the advantages that family dealerships offer to a large company
like hers.
Marilyn should also encourage each dealer family to create a family council a
discussion group that would explore the family‘s interest in the business and family issues
that arise because they have a business. These discussions are best facilitated by a con–
sultant familiar with family-business issues. Setting up such a program of education and
family discussions is not inexpensive. But how much would GlassKing lose if just one
major dealer went under?
Find Ways to be Supportive
John E. Messervey
Top management of many large companies that depend on independent dealers,
distributors, and franchisees often say, We re one big happy family. And, like real
Marilyn should keep in mind that succession is almost always an once-in-a-lifetime
event, yet we expect the business owner to hit a home run the first time at bat. In reality,
most family-business owners have few models to follow. GlassKing can help by finding
successful succession stories within its dealer network and sharing those stories with all
its dealers. Moreover, GlassKing must be committed for the long haul. Succession
planning is a process that takes years. Marilyn could also create a family-business
succession audit, asking each dealership a few questions: How old are your owners?