Cardon Family Case

CASE STUDY ANALYSIS: THE CARDON FAMILY

CENTRAL PROBLEM

Wil, a Harvard Business School graduate dreamed about a job in Transwestern Investment Company, but instead of taking the job, he decided to join his father’s Real Estate business. Three years after he entered the family business, the first generation wanted to pass the control to the new generation. The main problem discussed in the case relies in the answer to the following questions:

* How do you manage to pass the business from one generation to the other?

* How to structure a business so that the people involved in it get compensated fairly, and the family members who do not participate daily on it feel treated equally?

It should be pointed out that in businesses like this, not only the new generation receives the management responsibility, but also receives family responsibility. It has to be taken into account, that at that time, the family, including grandchildren, was formed by over 100 members.

ANCILLARY PROBLEM

In the 90’s, the company had to take $25 million in debt, due to financial crisis in Arizona. Peripheral business were closed. In the transition process, the business was coming out from a tough period of time in the 90’s.

Another issue is Wil’s career development; he had given up his dream job, and because of committing to family business, he could give up other interests too, such as running for office.

Short term problems:

* Wil’s hesitation regarding his career priorities, and insecurities in how to handle his first moments as business manager.

* To see if everybody, family members mostly, agree with the new organization proposal

* To deal with, and make the proper decisions regarding the Buckeye Deal

Long term problems:

* Not being able to solve correctly the transition problem. If they do not do this correctly they may have serious future in the long run.

WHAT IS THE MISSION OF THE BUSINESS?

The mission of the Cardon family business was to manage Real...