BUS 101 03
- Intro Business
- Graeter’s -
10 – 08 – 2014
Graeter’s current management team bought the business from their parents, who did not have a formal succession plan in place to indicate who would do what. Do you think the current team should have such a plan specifying who is to step into the business, when, and with what responsibilities? Why or why not?
The current management team should have a plan that specifies who is to step into the business, especially in responsibilities such as ownership, management and leadership among others. This is because there is a need to have a plan in the management succession, ownership succession, and leadership succession among other responsibilities. Ideally, a family member who have skills and passionate about making the family business an asset worth preserving should take precedence on important decision making positions. Senior generations should have transfer plans to the junior generation in the family.
Graeter’s hired management consultants to help improve its training procedures and expand distribution. “ I think my cousins and I all have come to realize we can’t do it alone,” says the CEO. Why do you think the management team made this decision? Does the involvement of out-side consultants move Graeter’s further from its roots as a family business?
The management made the decision because they want to solve some particular problem that they either don’t have the time or the expertise to solve. Therefore, consultants will be the best to solve the problem of training and also implement the solutions. Consultants may also help the management team to define the problem they encounter and assist them reach their own conclusion. The involvement of the outside consultants does not move Graeter’s from its roots as a family business. This is because the consultants will be brought in to solve some problem in the...
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