• HOMI Foundation: Expanding a Non-profit Family Hospital for Children

    The Hospital de la Misericordia (HM), today HOMI Foundation, is a children's hospital located in Bogotá (Colombia). It was founded by José Ignacio Barberi, Great Grandfather Barberi, in fulfillment of his wife's last wish: to build a hospital for children. It officially opened its doors in 1906. Great Grandfather Barberi conceived HM as a non-profit organization to be led by the members of the Barberi family. After the founder, three generations of Barberi family members have assumed the direction of HM: Rafael Barberi Cualla (Grandfather Barberi), Rafael Barberi Zamorano (Father Barberi), and Mauricio Barberi Abadía. Mauricio Barberi (appointed Director of HM in 1992) had to face a demand-based health system, under which HM was paid according to the amount of patients treated and there were not more subsidies from the State. Therefore, Mauricio had to begin a process of reengineering in HM, in order to become a competitive organization within the health market. HOMI was later impacted by the health system crisis, which delayed the payments it had to receive for its services. The case is established in April of 2014, in the midst of the health sector crisis. Despite the situation, Mauricio Barberi decided to analyze two options to expand the services: to build a Pedatric Center to expand the facilities outward in the north of Bogotá, or to build a Childhood cancer center in the current location. The risky context that surrounds this decision begs for multiple questions about his persistence on this idea and the suitability of said decision for HOMI Foundation. Even more, although Mauricio does not consider to do nothing, as a third option, the case invites to consider it in the last step in the discussion of the case, because this option is also viable from a perspective that does not consider family issues. The answers to these questions lie in the power of the family firm's legacy and entrepreneurial legacy, which is the focus of the case.
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  • The Aristizabal Family: Growth of a Family Firm?

    Mr. Manuel Aristizábal was the founder of San Basilio, a restaurant that began operations in 2001. Angelina, Manuel's wife, started to work at the family firm on trial. Very soon, however, her organisational and managerial capacities meant that she became completely involved in the business. The business' growth was very conservative when Manuel and his wife were in charge. When Martín (their son) returned from studying abroad, he proposed new challenges for the family firm. Martín set up a catering service for San Basilio, led the opening of an additional branch, and began a successful ice cream business. The first two opportunities were leveraged in San Basilio, his parents' business; the new branch and the earnings from the catering service were important economic benefits just for him. Martín is the sole owner of the ice cream business. However, San Basilio's growth started to exceed its operational capacity, and, according to Angelina and Anette (their daughter), its financial performance was at risk. Angelina and Anette were interested in slow growth for the business and in maintaining the family ties, which had weakened due to the Martín's entrepreneurial activities. Martín's proposal to pass the catering service to San Basilio was the straw that broke the camel's back. He had been running it on his own and now wanted his parents to assume control of the whole operation and to give him a commission for the business whose original idea and current performance were the result of Martin's management.
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  • Transmilenio: Crisis in an Award-Winning Bus Rapid Transit System?

    The case describes the service system design of Transmilenio, Bogotá's award-winning mass transit system, in the context of violent riots that erupted on March 9, 2012. From the inception of operations in December 2000, Transmilenio, designed as a bus rapid transit system (BRT), was perceived as a success story. While initially complementing the traditional multi-actor bus system on a few routes, Transmilenio is expected to become Bogotá's dominant mass transportation system in the future. Despite a successful record, on March 9, 2012, a fierce protest against the Transmilenio system shocked the city of Bogotá. This protest turned into violent actions of unprecedented magnitude in several parts of the city, causing approximately US$500,000 in damages, 11 injured and dozens arrested. In the afternoon of March 9, 2012, Mateo Rodríguez, a Transmilenio's member of the board of director, was cited to an extraordinary board meeting in the next morning. It would have the main objectives of analyzing the recent events and making the decisions that Transmilenio was demanding at that moment, to face the riots. Preparing the meeting and set a position imply for Mr. Rodriguez an in-depth analysis of Transmilenio system, Transmilenio SA, and also understand the nature of BRT systems and their expected paths to create value in a context such as Colombia. Whatever Mr. Rodríguez decides, his recommendations can affect not only the continuity of operations in the coming days but also the design of this award-winning service system.
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