Essay About 22Th February 2017Succession Plan Proposalafter And Family Business Management Metalmex Case

Metalmax Succession Planning
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Family Business Management Metalmex Case – SuccessionBruno Britto PenaLi NaNicolas David VillaKosuke YoshidaVikram S KulkarniBarcelona, 22th February 2017Succession plan proposalAfter we assessed the structural risk and institutionalization of the Metalmex case study, we would like to propose the succession plan of Metalmex company. Considering the business complexity such as lack of institutionalization and relationship among families, we thought it would be better to divide succession plan into short term plan and long term plan. For short term plan, it is focused on the preparation to make stronger family business structure in the future. Therefore, main consideration is who will take over which positions that each of first generations currently own for business operation. And for long term, we considered how those second generations and the retired can work well in new business structure.Short term succession plan:Miguel:We propose Miguel Anguel can take over his father’s position given his capability and longer experience in the company. However, we should carefully design their succession plan due to because their relationship is not good. Therefore, to succeed their work smoothly, it would be better to come up with idea such as intermediation by Rosa or other family members.Enric:We analyzed that Enric is likely to be the first one among four founders to retire due to his age. In our proposal, Carles, the son of Enric, is going to take over the Finance position after his father retires as he has professional business experience in his career. However, given Carles’s relatively young age (30 years old), it is also important that his responsibilities are limited and the position is under Miguel’s, so as to let him perform without difficulties or relationship conflict with Miguel. With this plan, we can maintain the management stability thorough Carles always reports to Miguel in order to make financial decision.Jordi/ JosephAs they are not active managements and they don’t have children who can take over their positions, our proposal is to keep them as shareholders until their retirement, first of all. Then, when they retire the company, company should try to buy back their shares in order to avoid future conflicts in the family. If company cannot buy back their shares, they can stay as board of directors in the company.Long term succession plan:In the long-term succession plan, we feel that the second generation of the family should work together to grow the business further. Since Jordi and Joseph don’t have children who are in the business to take their place, to keep harmony in the company and have a smooth transition as well as operation, we feel Enric and Miquel can buy the shares of Jordi and Joseph so that the 2 families can run the business. This way, the equity can be split between the two equally and the can be passed on further in a similar fashion.