Sigma Motion
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What are the risks if the current status quo is maintained and Ron remains CEO for a few more years?
Ron is 70 years old. He might be too old too hold an important rank as CEO at his age. He is ineligible for an executive role as this one because of health conditions. It would be acting as a “monarch” and lead the members of the company whether they are family or not to leave.
The position Ron would be entitled to would affect the growth of the company if he were to do as he would like to. Indeed he is in possession of all the voting shares. If he decides a wrong decision, or a wrong move in the company he might affect. Specially that at this age, the personality of a person changes a lot, specially toward taking risks, for it wont affect the person, but the followers.
The children have been in the company for many years however none of them has a voting share, which will affect the family members and might push them to leave.
Michael and Bob as seen in the case have gone beyond what was expected by informing directly to their father. This main issue might continue if Ron stays ahead of the company.
Why has Michael decided to quit?
He feels that it would be harmful for him and for the company if he stays and fights for the leadership position.
Michael felt that he was competing with his brother for the leader position and didnt want to get in to any problems with his brother.
Rons behavior of stubborn and acting as a monarch led Michael to leave.
Even though Michael has a good relationship with his brother some tomes they didnt get along very well which decreased Michaels confidence that his fathers plan will work.
Ron wanted his two sons to manage the company together