THE FAMILY BUSINESS

YOU MAKE THE CALL

Situation 1

Q1 the employees of the family would be demoralized since they can see

the inequality of their disposition. Otherwise, it might seem to them that the

company authorizes the conduct of personal business using company time

since Lou is doing it and no corrective measure was laid.

Q2 for Jessica and Charley, they should make punitive actions against Lou.

They need it so strengthen their company policy. If warnings were already

made maybe a stronger punishment needs to be made. This is to avoid

precedence for other employees who might be tempted to conduct their

own personal business.

Situation 2

Q1 If I were to be one of the sons of Morris and I become the successor I

would be overwhelmed thinking that I deserve it but the dilemma of how to

deal with Tony would be a problem since we have equally shared our

expertise in the company. If I were to be Tony, I would be shocked and

question myself if I dont really deserve the position (this is disregarding his

position as the first born).

Q2 Irma has no role in the designation of successor but to be a supportive

wife and mother. At this point maybe she should make sure that the

relationship of the siblings would be stronger for them to overcome whatever

rift the decision might bring.

Situation 3

Q1 To Sebastian he needs to be transparent with Alfonso. They have both

invested their efforts for the company and they need to sort out any financial

question that may arise. It could become a big problem someday.

Q2 To Alfonso so as to avoid further questions in the future, he needs to be

active in terms of the companys financial status. With this, he could teach

himself to improve on financial statements.

THE BROWN FAMILY BUSINESS

Q1 The ideas embodied in their statement philosophy on family shows that

the company believes in the strength of the whole family rather than a

divided unit. But in terms of working for the family business they have

distinctly specified that job performance and qualifications must be the

primary factors determining whether the family member will be allowed

continued employment. It is somewhat implied that once misbehavior takes

place, even if he/she is a family member, he/she can be terminated or

punished accordingly.

Q2 The specified criteria are all relevant for a management career. I

believe these same is true to other companies. For the personal criteria,

criminal record and drug abuse problems thus pose a threat for future

performance. In the educational attainment it is also important to have a

high school and college degree. I would not change any of the criteria.

Q3 for the family employee development maybe on the policies for entry

instead of annual it could be 3 years interval. For the committee maybe they

could add more members to have more minds in employing a family

member. They could increase it to 5 maybe.