SENTREP Case Analysis – Entrep Families in Asia – Lea
Olegario
Situation
The case is a discussion of how three families in Asia –
Thai, Malay, and Indonesian – were able to grow their businesses in different
ways. Their approaches on business development were varying but all of them
became very successful. It will start with one person or a couple of members in
the family coming up with a business. Some of the family members will then join
and help out in managing the business/es. Each will have a role and may
contribute new business ideas or a development to the original.
Problem
The concern is how to develop the business of the families,
manage it, and keep the business in the coming years.
Alternatives
Some strategies that the families have done are
1.
Adding similar businesses and change the shops according
to the target market. This is especially true for the Thai family involved in
the food business.
2.
Adding complementing businesses to the existing
business. This was done by both the Thai and the Indonesian families. The Thai
family added ingredient-producing businesses for its bakeshops and restaurants.
The Indonesian family added spare parts and other businesses related to
automobiles to complement and be able to handle on its own the repair of its
fleet.
3.
Adding any other business that may work. This
was how the Malaysian family worked. Whatever opportunity came their way, the
family would venture in it. They sell then other that they can no longer
handle.
4.
Multiplication was done by increasing the number
of branches in great amount as in the case of the Thai family. The Indonesian
family who owns the Blue Bird fleet multiplied in an even increasing manner.
5.
The management of the businesses was divided in
different ways, the Thai family divided according to functions, The Malaysian
family divided their businesses according to industry, and the Indonesian
family into lines of businesses.
Decision
Although all families
were able to accumulate immense wealth due to their businesses, their ways were
different. They were doing the same strategies of growing their businesses but
the application and the details vary. Of all three, the Thai family seems to
have got it together; there are a lot of branches, complementing businesses,
independence of each family member on their own business, and involvement of
the entire family in growing the food business.
Action Analysis
The Thai family was able to reach a big market, increase
profitability by creating complementing businesses, and even provide each
member significant contribution in the business in differing ways like handling
Finances, handling restaurants, handling bakeshops, etc. The matriarch was also
able to hold things together and the family was able to pass the love for the
business to the entire family and to the next generation. They involved the
help of professionals but still kept the main control of the business within
the family.
The other families have some indications that it may
actually not survive the next years or that management of this may no longer be
with the family later on. For the Malaysian family, this seems to be very
evident as the heirs do not seem to be very interested in the businesses. Also,
the businesses are so varied that they cannot really study one in-depth to be
able to grow each one and develop it. Hence, they resorted to selling some of
their businesses. The rest of the family does not seem to be involved in the
business. In the same way, the Indonesian family is facing the same thing in
that the children of the matriarch are not very much involved. Another thing is
that if all children will get involved, there are limited business lines to
divide to the children to divide amongst them such that they will not be
stepping on each other’s toes. This has to be addressed by the matriarch or
else she will always need to be there to look after the business and the
family.
