Beznoska: Sell Me Your Stocks

<p align="justify">In late January 2020, the chief executive officer and third-generation successor of BEZNOSKA s.r.o., a traditional Czech manufacturer of joint implants, was preparing for an annual shareholders’ meeting with the family business owners. The annual report indicated that the company had experienced its worst financial year in its 30-year history. The company was also facing challenges from new competitors in the market and the need to comply with a new legislation. The chief executive officer was planning to stop issuing dividend payments from the company’s profits to the three owners of the family business, who were his family members. The chief executive officer knew that his decision would be contentious, especially for his aunt who was not active in the company but had criticized his performance in the past. The chief executive officer decided that the best solution to the ongoing problems was for his aunt to sell her stake in the family business, which she would likely reject. But even if she were to agree, how should the ownership shares be restructured?

<p align="justify">The case study has been designed for courses on family business strategy and strategic management (in a module on family business strategy) at the undergraduate and graduate levels. The case can also be used in undergraduate courses to introduce the three-circle model of a family business to the class. After working through the case and assignment questions, students will be able to accomplish the following objectives:<br><br><ul><li>Learn how to apply the three-circle model in a family business scenario.</li><li>Identify different sources of conflict by considering the overlaps of different roles as defined by the three circle-model.</li><li>Recommend proper governance structures for a family business to manage or prevent conflicts identified using the three-circle model.</li></ul>

• family business
• strategic management
• three-circle model
• sources of conflict
• governance structures