Case Analysis - The Entrepreneurial Clans in Asia - Camille A. Dela Cruz

ENTREP S20

Mr. Jorge Saguinsin

Case Analysis – The Entrepreneurial Clans in Asia

  

Camille A. Dela Cruz

Situation Analysis (Relevant Facts)

·       The first ¾ part of the lengthy case focused on the businesses established by the three families – the Raiva siblings and spouses, Tunku Abdullah and his royal brood and Ibu Matiara and her grandchildren. I will not go in detail on all the business established by each family since not all is of relevant to the learning and objective of the case. In summary, the relevant facts to be considered are that all families grew each of their first businesses in different aspects. Some went to extend on the same concept of their first business and some totally ventured into a different business concept.

·       The last part of the case focused on the lessons on family conglomerates and how it can be good or bad for the total family business.

II.              Problem Analysis

The problem of the case is that the families were venturing into enterprises that go beyond their competency, strength and leadership style of the conglomerate and its family members. The two families who greatly reflected these were the Tunku Abdullah and his royal brood and Ibu Matiara and her grandchildren. They were venturing for the wrong reasons like seizing whatever opportunities may arrive and creating or acquiring businesses so that the whole family has a share of the pie. For the Raiva siblings and spouses, their case was much different compared to the other two because they were more focused in one business concept and they extended their business by adapting the backward and forward integration strategy.

III.            Alternatives Generation

A.     When growth is in mind, focus on a single business/product concept and establishing multiple lines on that single business/product concept.

When thinking of growing a current business, it is crucial for a person or families to focus first on the initial business concept that was first established. The reason behind it is that it is an advantage to play around on your strengths rather than entering a business venture that you are clueless of and with little or even no market research study.

B.     Be open to change and evolution, by creating new business for new markets.

It is also crucial to embrace change because it is one of the things that will never be constant in the world. There will be always new needs or wants of consumers that must be served and addressed or even new markets that will need to be delighted. However, the learning in the case is not to venture into a different business with little or no knowledge of at all. One must go through the process of market/research study to create a viable business that will have a long life.

IV.            Decision Analysis (Deciding on best alternatives)

In my opinion, the two alternatives must be adapted by the families but in a more proper way or manner. The first right thing to do is to focus on one business concept and after that business is already well established and fixed then new opportunities must be openly considered.

V.              Action Analysis

I take my learning from the case of the Raiva siblings and spouses. The family has always been disciplined into venturing into other businesses. Meaning they will not venture into a new business for the sake of venturing. As mentioned earlier, they were focused in one single business concept and adapted the forward and backward integration strategy. This led to a more business focus organization and cost efficiency.