Entrepreneurs in Every Generation: How Successful Family Businesses Develop Their Next Leaders is a seven-chapter book published by Berrett-Koehler Publisher in 2016. Entrepreneurs in Every Generation shows readers how success in family business means assuring next generation entrepreneurial leadership in three dimensions: the business, the owning family, and the organization that nurtures both. Applying the entrepreneurial mind-set to all three dimensions, professors Allan Cohen and Pramodita Sharma define the challenges and the role for leadership; applying the entrepreneurial mind-set in all three dimensions is what sets family enterprises apart. The book not only reviews best practices, but it also urges special attention to the uniqueness of context. It also guides the reader through work sheets on how to understand and adapt to context. In Chapter 3 (25 pages), Cohen and Sharma argue that success over time for a family business must satisfy two conditions. First, the family must persist, and second, the business must continue. For the former to happen, a meaningful involvement of the controlling family in business is critical for its continuity as a family business. For the latter to happen, the products and services offered must continue to evolve to meet the needs of changing markets.
Entrepreneurs in Every Generation: How Successful Family Businesses Develop Their Next Leaders is a seven-chapter book published by Berrett-Koehler Publisher in 2016. Entrepreneurs in Every Generation shows readers how success in family business means assuring next generation entrepreneurial leadership in three dimensions: the business, the owning family, and the organization that nurtures both. Applying the entrepreneurial mind-set to all three dimensions, professors Allan Cohen and Pramodita Sharma define the challenges and the role for leadership; applying the entrepreneurial mind-set in all three dimensions is what sets family enterprises apart. The book not only reviews best practices, but it also urges special attention to the uniqueness of context. It also guides the reader through work sheets on how to understand and adapt to context. In Chapter 4 (20 pages), Cohen and Sharma argue that regardless of the form and focus of innovation, entrepreneurial efforts are necessary for the long-term survival of a family enterprise not only in older economies of Japan or Sweden but also in the emerging economies of countries like Argentina. Enterprising families embrace purposeful and focused change. Yet changing amidst a backdrop of generational success and powerful personalities needs collective familial buy-in and efforts. As the family and its enterprises grow, the family needs to create structures and systems that ensure open communication and accountability while still maintaining family harmony and unity.
Entrepreneurs in Every Generation: How Successful Family Businesses Develop Their Next Leaders is a seven-chapter book published by Berrett-Koehler Publisher in 2016. Entrepreneurs in Every Generation shows readers how success in family business means assuring next generation entrepreneurial leadership in three dimensions: the business, the owning family, and the organization that nurtures both. Applying the entrepreneurial mind-set to all three dimensions, professors Allan Cohen and Pramodita Sharma define the challenges and the role for leadership; applying the entrepreneurial mind-set in all three dimensions is what sets family enterprises apart. The book not only reviews best practices, but it also urges special attention to the uniqueness of context. It also guides the reader through work sheets on how to understand and adapt to context. In Chapter 5 (22 pages), Cohen and Sharma discuss the fact that building a family business that can last past the founding generation by utilizing practices that sustain entrepreneurial thinking and action has its own extra challenges-and some potential advantages. In this chapter, they discuss what is known about design conditions that encourage entrepreneurial initiative from all areas and levels of the organization, thereby raising the odds of generating new products, processes, practices, and structures-and even new businesses. Then then authors apply this understanding to analyzing and improving family firms.
Entrepreneurs in Every Generation: How Successful Family Businesses Develop Their Next Leaders is a seven-chapter book published by Berrett-Koehler Publisher in 2016. Entrepreneurs in Every Generation shows readers how success in family business means assuring next generation entrepreneurial leadership in three dimensions: the business, the owning family, and the organization that nurtures both. Applying the entrepreneurial mind-set to all three dimensions, professors Allan Cohen and Pramodita Sharma define the challenges and the role for leadership; applying the entrepreneurial mind-set in all three dimensions is what sets family enterprises apart. The book not only reviews best practices, but it also urges special attention to the uniqueness of context. It also guides the reader through work sheets on how to understand and adapt to context. In Chapter 6 (35 pages), Cohen and Sharma show that effective redesign of a successful family enterprise and implementation requires careful planning linked to the long-term innovation objectives, understanding the current state of the organization to be sure that changes take current conditions into account, recognizing that not just roles and reporting relationships have to change but also actual practices and policies, seeing that the right people-family as well as nonfamily members-are put in place, and working hard at communicating clearly at all levels and managing the transition. Redesigning a successful enterprise to accomplish new strategic objectives is hard. Enterprising families with a long-term orientation, determined to foster all levels of innovation while maintaining the core business find ways to accomplish this challenging goal.
Entrepreneurs in Every Generation: How Successful Family Businesses Develop Their Next Leaders is a seven-chapter book published by Berrett-Koehler Publisher in 2016. Entrepreneurs in Every Generation shows readers how success in family business means assuring next generation entrepreneurial leadership in three dimensions: the business, the owning family, and the organization that nurtures both. Applying the entrepreneurial mind-set to all three dimensions, professors Allan Cohen and Pramodita Sharma define the challenges and the role for leadership; applying the entrepreneurial mind-set in all three dimensions is what sets family enterprises apart. The book not only reviews best practices, but it also urges special attention to the uniqueness of context. It also guides the reader through work sheets on how to understand and adapt to context. In Chapter 7 (15 pages), Cohen and Sharma argue that only a small proportion of families in business achieve a successful balance between building strong family connections and making decisions that lead to strong financial performance. In other words, they aim for "warm hearts and deep pockets." Maintaining this ambidexterity over time requires wisdom, courage, and patience. Both the family and the business must have inbuilt renewal mechanisms so each can regenerate to remain in harmony with the changes in internal context and external environment. But, what to attend to when is a question of balance and timing. In this chapter, the authors attend to this perpetual dilemma that enterprising families face in their long journey to develop entrepreneurs in every generation.
In 2014, Kraft Foods Canada was working on an action plan for Kraft Singles, the company’s brand of processed cheese slices. Although the product had been targeted at Canadian families for decades, Kraft Singles needed to be repositioned toward Canadian millennial moms (those born between 1980 and 2000). The company faced three dilemmas. How should Kraft Canada make the brand messaging of Kraft Singles compelling to Canadian millennial moms? What product innovations should coincide with the new messaging? How should Kraft Canada ensure that it would not alienate its traditional customer group?
In 2014, the executive director (ED) of India’s Petroleum Conservation Research Association needed to prepare the next phase of the association’s marketing campaign and media plan, which aimed to promote long-lasting and responsive energy-saving behaviours among India’s petroleum users. The ED was eager to incorporate new media into this marketing campaign but knew that the various segments of the diverse and broad target audience had different media preferences and habits. How could he and his team create the right message and the right media mix to achieve this goal? What would be the best way to distribute the campaign’s resources across the various communication channels to successfully execute the marketing strategy?
In January 2007, Metro do Porto, a light rail network, entered into an interest rate swap agreement with Banco Santander Totta on a notional principal of €89 million. The intent was to reduce the interest costs that Metro do Porto was incurring. This was a complex swap agreement that brought immediate benefits to Metro do Porto but proved catastrophic in the long run. Two years after the swap commenced, a “snowball clause” in the swap agreement took effect, increasing Metro do Porto’s liability beyond 60 per cent per annum at a time when market interest rates were low and expected to drop even lower. It was unclear whether the company entered into this agreement out of ignorance, political pressure, or both, but the end result was a lawsuit. Students are expected to analyze the terms of this swap and decide whether the swap constituted good practice from a risk management perspective and whether Metro do Porto should have been able to anticipate the possible losses.
In April 2013, Procter & Gamble (P&G), the world's largest consumer packaged goods (CPG) company, announced that it would extend its payment terms to suppliers by 30 days. At the same time, P&G announced a new supply chain financing (SCF) program giving suppliers the ability to receive discounted payments for their P&G receivables. Fibria Celulose, a Brazilian supplier of kraft pulp, joined the program in 2013, but is re-evaluating the costs and benefits of participating in the SCF program in the summer of 2015. The firm's treasury group must decide whether to keep using the program and, if so, whether to keep their existing SCF banking relationship or start a new relationship with another global SCF bank.
This case describes the innovative strategy implemented by musician Derek. V. Smith (aka Pretty Lights), to penetrate the electronic music market. In 2014, his latest album was nominated for a Grammy in the Best Dance/Electronic Album category, and he now heads a label that produces not only his own creations but also those of other world-renowned artists in that musical genre. A key component of this success was the decision to make digital files of Smith's tracks available free of charge using BitTorrent software. The music could be downloaded using bundles composed of a number of music tracks and a video clip of one of Smith's performances. Although the download was free, part of it was locked. To unlock this part, users had to provide their e-mail address, enabling Pretty Lights to develop a database that could be used to promote his concerts through direct marketing. Pretty Lights pioneered the use of the BitTorrent platform to distribute his creations, but this strategy has since been adopted by music industry stars Madonna, Moby, and Radiohead frontman Thom Yorke. The case serves as a springboard for exploring issues related to the monetization of music, copyright, and the marketing of cultural offerings.
Although a typical public company director might help hire a CEO a few times in a career, PE executives hire multiple CEOs each year. To tap this expertise, Jeffrey Cohn, of the executive search firm DHR International, and J.P. Flaum, of the consulting firm Green Peak Partners, surveyed and interviewed the managing partners of 32 private equity firms about their CEO search process. They drew five conclusions: (1) Experience is overrated; someone who can run with a new situation is often better than someone with years of industry experience. (2) Team-building skills are paramount. (3) Urgency outranks empathy; leaders need to be able to move decisively and without regrets. (4) Resilience is a must; in turnaround situations, leaders are likely to encounter some negative results. (5) Candor is also key; leaders must have the confidence to give their PE sponsors bad news quickly and honestly.
New research on recent graduates of the top U.S. MBA programs suggests that the prevailing wisdom about establishing a specialty may be misguided. Jacks-of-all-trades tended to get more job offers and bigger signing bonuses, the study showed.
In 2011, four Canadian non-profit organizations have a mandate to prevent injuries and face similar and worsening problems. Each organization is spending an escalating amount of time fundraising to support its operations. Key stakeholders are expressing confusion because injury prevention is a crowded space and many non-profit organizations are seeking both dollars and partnerships. Most troubling, the four non-profit organizations are struggling to assess whether they are actually making a difference by preventing injuries and saving lives. The leaders of the four organizations must decide how to proceed — and whether the best solution is offered by collaborative or competitive strategies. Use role play supplements 9B15M122A.
In April 2015, Bharti Airtel — India’s largest telecom provider and a leading global telecommunications company — launched Airtel Zero, an open marketing platform that would allow Airtel customers to access mobile applications with zero data charges. Application developers would pay Airtel to join the platform, but would in turn attract more users to their products. Immediately after its launch, Airtel Zero was subjected to severe criticism on the grounds that it violated the net neutrality principle, which advocated that content should be available to customers without any form of prioritization. Subsequently, in support of net neutrality, Flipkart — a prominent Indian e-commerce company — pulled out of the platform. Was Airtel Zero a potential threat to net neutrality? With the pending decision of the government of India on the regulatory framework for over-the-top (OTT) applications and services, would Airtel Zero stand out as a viable platform?
When Pure Storage did its IPO, in October 2015, the company was six years old and had completed six rounds of private funding. It could have gone public a year or so earlier, and the CEO realized that waiting entailed risks. In fact, the IPO market was cooling, and companies were pulling their offerings as a result. But staying private longer may have significant advantages as well. In retrospect, Dietzen believes that the timing worked out well for Pure. Among the factors that influenced the decision to wait: Sarbanes-Oxley has made it more expensive to be a public company; staying private would make it easier to fend off M&A interest; and the precedents set by Google and Facebook, which waited much longer than venture-backed companies have historically, drove a change in the conventional wisdom. Nevertheless, Pure's customers encouraged an IPO, because many of them preferred to do business with a public company, whose financials are available for scrutiny. In preparation for the offering, Pure gave employees flexibility with their stock options, expanded the board, and hired a strong CFO. Happily, in the months surrounding the IPO, two key competitors were distracted by internal events. Although the company's stock price has fluctuated, Dietzen says, today Pure is a fast-growing and healthy business.
The financial world set a record in 2015 for mergers and acquisitions. It's too soon to have data on how those deals will work out, but the signs are not promising. Last year Microsoft wrote off 96% of the value of the handset business it had acquired from Nokia in 2014 for $7.9 billion. The rule, confirmed by nearly all studies, remains true: M&A is a mug's game, in which some 70% to 90% of acquisitions are abysmal failures. The author has an explanation for this persistent failure and offers a way forward. Acquirers, he notes, tend to look at acquisitions as a way of obtaining value for themselves--access to a new market or capability. The trouble is, if you spot a valuable asset or capability in a company, others will too, and the value will be lost in a bidding war. But if you have something that will make the acquisition more competitive, the picture changes. As long as the acquired company is incapable of making that enhancement on its own or (ideally) with any other company, the buyer, rather than the seller, will earn the rewards. Martin describes four ways to enhance the competitiveness of a target: (1) Be a smarter provider of growth capital. (2) Provide better managerial oversight. (3) Transfer valuable skills to the acquisition. (4) Share valuable capabilities with the acquisition.