Babbbit Ranch Case Study
Babbitt Ranches: Governance and Strategic Planning in Family Business
Jennifer Hocutt
Tiffin University
Introduction
In 1886, five Ohio born brothers ventured to Arizona and laid the foundation to a family owned business that would span five generations to date. Considered to be “one of the largest and most successful mercantile and ranching empires in Arizona and was the twenty-fifth largest landowner in the U.S.” (Majur and Savage, 2010, p. 2. Para.1)
Originally known as the Babbitt Brothers Trading Company, later became Babbitt Ranches, encompassed 700,000 acres and is considered to be a successful and highly respected family-owned businesses in Arizona. Originally a small lumber store, the five brothers successfully …show more content…
The generations to follow the original brothers did not share the same views as their predecessors. While the second generation continued to work hard and invest in the future of the company, the third generation was more fiscally short-minded and did not value the long term investments, rather focusing on short term gain. Not all third generation members shared these views, which made decision-making more difficult. Provided the option to sell their stock back to the company, many family members sought other means to make a living. To regain cohesiveness and collaboration, a constitution was implemented on January 24, 2008 with the assistance of the current company president, Billy Cordasco and The Conversation Council, known as the Board of Directors for Babbitt Ranches. All ten (10) Conversation Council members are Babbitt family …show more content…
Points of Interest
Despite the longevity and loyalty of employees, who are not Babbitt family members, there was no indication that these individuals were granted any investment opportunity within the company. All stocks are family owned and are not offered to the general public, not even the long-term employees.
It took four generations to enact a system of communication and decision-making.
Any other family members, thus making Billy Cordasco a unanimous vote, did not desire the current position of president.
The meeting to develop the Constitution was based on the Abraham Lincoln quote later becoming part of the constitution: “If we could first know where we are
Jennifer Hocutt
Tiffin University
Introduction
In 1886, five Ohio born brothers ventured to Arizona and laid the foundation to a family owned business that would span five generations to date. Considered to be “one of the largest and most successful mercantile and ranching empires in Arizona and was the twenty-fifth largest landowner in the U.S.” (Majur and Savage, 2010, p. 2. Para.1)
Originally known as the Babbitt Brothers Trading Company, later became Babbitt Ranches, encompassed 700,000 acres and is considered to be a successful and highly respected family-owned businesses in Arizona. Originally a small lumber store, the five brothers successfully …show more content…
The generations to follow the original brothers did not share the same views as their predecessors. While the second generation continued to work hard and invest in the future of the company, the third generation was more fiscally short-minded and did not value the long term investments, rather focusing on short term gain. Not all third generation members shared these views, which made decision-making more difficult. Provided the option to sell their stock back to the company, many family members sought other means to make a living. To regain cohesiveness and collaboration, a constitution was implemented on January 24, 2008 with the assistance of the current company president, Billy Cordasco and The Conversation Council, known as the Board of Directors for Babbitt Ranches. All ten (10) Conversation Council members are Babbitt family …show more content…
Points of Interest
Despite the longevity and loyalty of employees, who are not Babbitt family members, there was no indication that these individuals were granted any investment opportunity within the company. All stocks are family owned and are not offered to the general public, not even the long-term employees.
It took four generations to enact a system of communication and decision-making.
Any other family members, thus making Billy Cordasco a unanimous vote, did not desire the current position of president.
The meeting to develop the Constitution was based on the Abraham Lincoln quote later becoming part of the constitution: “If we could first know where we are