Table of Contents

Page Number

1. Family business information 2

2. Genogram, Three-circle model, Gersick’s development model 3

3. Structural Model Analysis 7

4. Result of the online questionnaire (results attached in pdf) 8

5. Proposal for improvement (recommendations) 12

6. Checklist 15

1
FAMILY BUSINESS INFORMATION

The Anand Low Price Group is a highly diversified conglomerate comprised of fourteen

subsidiaries, spanning 5 industries: Retail, Food & Drink, Fitness, Hospitality, and Real Estate.

The Anand Low Price Group has been in operation for more than forty years and has since grown

to employ over five hundred people. Our continued longevity in the business field across a broad

selection of markets is made possible by our ability to quickly adapt to the continually changing

needs and wants of our diverse clientele. Our customers and even our industry peers have come

to expect high levels of professionalism and reliability from The Anand Low Price Group.

2
3 CIRCLE MODEL

The Anand Low Price Group consists of:

1: Family members who are not involved in the business. This family member would be my

mother. She has chosen to stay out of the family business therefore she is not informed on most

of the business decisions that take place.

2: Non-family management and employees: Since the company is relatively large comprising of

14 businesses, trust has been instilled in managers who oversee operations and ensure that tasks

are being done in an effective manner.

4: Family owners/shareholders: My grandmother is the founder/ shareholder of the company

however she is not involved in any of the decision making or management of the different

businesses

5: Family members who work in the business but are not owners: My brother and I would fall into

this category. We have both been heavily involved in the management and daily operations of the

3
business. However, we are not owners but someday wish to be.

7: Family members who are owners, management or employees. My father is the one who helped

his mother develop the company and grow it to a large conglomerate. He is a shareholder as well

as the CEO.

NB

This company does not identify anyone fitting the description of a non-family member who is an

owner/ shareholder (3) and non-family employee who is a shareholder (6)

GENOGRAM

Our journey spanning forty plus years, taking us across five industry sectors and countless like-

minded individuals began in 1976 when Sakunti Ramnarine Singh established a small retail shop

in Fyzabad, Trinidad.

Opened using just $2000 of capital acquired through the sale of her jewelry and prized cow, as

well as small loans, this shop was run by herself and her young son, Anand Ramnarine Singh.

Anand, CEO of the now-multi-million-dollar conglomerate. Eventually, Anand’s 2 children began

working in the family business and hopes to see the business prosper in the future.

4
 92
SAKUNTI (Founder)
RAMESAR

CEO

53
53 50
ANAND
NISHA

DIRECTOR DIRECTOR
23 23
NICHOLAS CHELSEA

• Blue shade means they work in the company

• X means deceased
• ll means separation
• The numbers in the squares and circles are ages

5
GERSICK’S DEVELOPMENT MODEL

The Anand Low Price Group currently hosts an ownership dimension whereby there is a

controlling owner. My father acts as the controlling owner but my brother and I have entered the

business and we are working together to grow the family business. We are continuously learning

by gaining experience in the business and by conversing with our father with the aim of gaining

both explicit and tacit knowledge. In addition, he has been assigning projects for us to complete

whereby we share our new ideas and receive constructive feedback. We are taking all the

necessary steps to assure that the baton can be passed on to the next generation with confidence.

6
Structural Model Analysis

Gimeno’s model states that if there is a high level of family business complexity, the structure

must be highly developed to diminish the business’s structural risk.

This company’s family complexity is low as there are only 3 family members involved in the

business. On the other hand, business complexity is high as there are 14 subsidiaries which

employs more than 500 persons. In order to ensure that structural risk is low, steps need to be

taken to professionalize the firm to assure that good decisions are made.

This family business follows the captain model whereby only 3 family members are working in

the business. Currently my father makes all of the decisions and are introducing us into this

process with the hope of eventually passing on this responsibility to my brother and I. In order for

the Captain model to revolutionize and continue over time it is vital to professionalize the

business, develop the competencies of my brother and I and prevent family complexity by not

incorporating new family members in the business.

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 General results
Global result

STRATEGY LEADERSHIP INNOVATION INSTITUTONALIZATION CONTINUITY

Result 1.62 Result 2.54 Result 3.77 Result 2.62 Result 2.85

sometimes encourages

There is a

Leadership discourages

©Fernando Sandoval Arzaga

Monterrey, Campus Estado de México" Contacto: fsandoval@itesm.mx y ferkusan@gmail.com
 Questionnaire

STRATEGY
Answer the follower items on a scale on 1 to 5. Mark from 1 (a little/not at all) to 5 (a lot/completely) as appropriate.

Is the business model of the company set out in the mind of the director or in writing?
2.1 2
To what degree is the business model of the company understood by those in middle management?
2.2 2
To what degree is the company?s strategy focused on low costs or on innovation?
2.3 3
Is your strategic plan focused on achieving short-term objectives or short-term objectives?
2.4 1
Was the strategic plan drawn up with a focus on a formal methodology or an informal one?
2.5 1
In the creation of your strategic plan, did you make use of your own internal analytical tools or did you use
2.6 1
analytical external?
How beneficial has it been for your company to have developed a strategic plan?
2.7 1
Is your operational / commercial plan in line with your strategic plan?
2.8 1
Are you carrying out a continuous evaluation of the fulfillment your strategic plan?
2.9 1
Do the indicators of your strategic plan include the following four perspectives: financial, market,
2.10 1
operations, and human capital?
Is your strategic plan updated once a year or once every five years?
2.11 1
When you have reviewed the strategy of your business, has this brought about a strengthening in your
2.12 4
business model of a change?
Have changes in your business model been by necessity or in order to take advantage of an opportunity?
2.13 2

LEADERSHIP
Answer the follower items on a scale on 1 to 5. Mark from 1 (a little/not at all) to 5 (a lot/completely) as appropriate.

Is the leadership style focused as much on the completion of tasks as on people?s satisfaction?
3.1 4
Is the motivation of personnel based more on control techniques or on inspiration?
3.2 2
Are those in middle management aware that they need to show leadership for their people?
3.3 1
Is recognition of achievements generally given more for individual effort or for group effort?
3.4 1
How beneficial has it been for the company to train and develop its personnel?
3.5 1
In general, is decision-making carried out by the highest authority or by consensus?
3.6 1
In middle management and supervisory levels, is there a lot of freedom to make decisions or little?
3.7 1
At the executive level, is there a lot of freedom to make decisions or little?
3.8 5
In a crisis situation are decisions making by just one person or by a team?
3.9 1
With important decisions, are experience and intuition taken into consideration as much as the analysis of
3.10 5
data and information?
Is top management proactive in taking action?
3.11 4
Has the company?s leadership had a positive impact on the growth of the business?
3.12 4
In decision-making, are social responsibility and respect for people?s dignity taken into consideration?
3.13 3

9
INNOVATION
Answer the follower items on a scale on 1 to 5. Mark from 1 (a little/not at all) to 5 (a lot/completely) as appropriate.

Does the company display a high level of innovation in its products or services?
4.1 3
Does the company display a high level of innovation in its processes?
4.2 3
Is there is a constant concern for quality and continuous improvement?
4.3 4
Is the company aggressive, in a competitive sense?
4.4 4
Generally speaking, does the company take advantage of new business opportunities?
4.5 5
Does the company encourage the generation of new ideas?
4.6 5
Are new ideas adopted by the company?
4.7 4
Has the company invested in the creation of new businesses of the next generation?
4.8 4
Does the company take advantage of the social capital that upper management and members of the family
4.9 5
have established in order to create new business?
Has the company set up systems of continuous improvement, for example, techniques and tools such as
4.10 4
Kaizen or Six Sigma?
Are there any established rewards (prizes, recognition, bonuses) for employees who come up with
4.11 3
innovations within the company?
Is the portion of the budget that is assigned to innovation greater than 5%?
4.12 1
Have innovation and the generation of ideas had a positive impact on the growth of the company?
4.13 4

INSTITUTONALIZATION
Answer the follower items on a scale on 1 to 5. Mark from 1 (a little/not at all) to 5 (a lot/completely) as appropriate.

How informal or formal is the Board of Directors in your company?

5.1 5
Does the Board of Directors in your company work well?
5.2 5
How informal or formal is the Family Council in your company?
5.3 1
Does the Family Council in your company work well?
5.4 1
How informal or formal is the management committee in your company?
5.5 3
Does the management committee in your company work well?
5.6 3
In your company, in general, do those in executive positions have the necessary ability and experience to do
5.7 2
their jobs?
In your company, in general, do those in middle management and supervision positions have the necessary
5.8 3
ability and experience to do their jobs?
Does your company have integrated information systems (ERP, SAP, MCR, etc.) to facilitate the control use of
5.9 1
information?
How formalized is your organization in terms of written rules, policies, and procedures?
5.10 2
How formalized is your organization in terms of written rules, policies, and procedures?
5.11 2
Is there an efficient means of communication between the Family Board and the Board of Directors?
5.12 1
The creation of governing bodies (boards) had a positive impact on the growth of the company?
5.13 5

10
 CONTINUITY
Answer the follower items on a scale on 1 to 5. Mark from 1 (a little/not at all) to 5 (a lot/completely) as
appropriate.

Is there a formal plan of succession for the family business?

6.1 1
Is there a shared vision regarding the future of the family business?
6.2 5
Can members of the family communicate with each other effectively?
6.3 5
Do you take any measures to involve potential successors and to share knowledge between generations (for
6.4 2
example, master-apprentice relationships, storytelling, summer vacation jobs, etc.)?
Can members of the family work harmoniously as a team?
6.5 5
Are there family mechanisms and policies for dealing with family matters that are related to the company?
6.6 2
Have the family?s values and beliefs had an impact on the development and growth of the company?
6.7 4
Is there a plan in the future for the senior generations after their retirement or a new role within the
6.8 2
company?
Are the criteria for the transfer of capital (stock) within the company well defined?
6.9 1
Has the addition and integration of new generations had a positive impact on the growth of the company?
6.10 4
Are there mechanisms in place for the resolution conflicts between family members?
6.11 1
Has the prestige (reputation) of the family had a positive impact on the growth of the company?
6.12 4
Has the succession process resulted in a transfer of stock or a redistribution stock?
6.13 1

11
PROPOSAL FOR IMPROVEMENT

1. Strategy

The Snapshot of a Family business results indicate that this business does not have a strategy in

place to ensure succession and continuity. In order to implement an effective strategy, the family

entrepreneurs need to identify at which stage the successors (my brother and I) are at. We are

currently in the process or learning by reflecting as well as working in the family business. We

have both recently completed our undergraduate studies and are gaining experience by working

closely with our father. After realizing the need for employing an effective strategy, my father

hired a mentor to prepare my brother and I to enter the business. He assigns tasks to us on a weekly

basis which serves to teach us more about the business and allows us to generate new ideas to

solve existing problems. In addition, the strategic plan should be in writing focused both on short

and long-term goals which will then be communicated to middle management so that everyone is

working towards a common goal. While implementing this new strategy, it is vital to perform a

continuous evaluation of the fulfillment of the plan.

2. Leadership

Currently, leadership discourages freedom in decision-making, there is no teamwork and no

recognition at various levels. It is important to move away from being egocentric (central control)

to allocentric (shared control). By doing this, we would be moving from “I” to “team.” It would

be beneficial for the firm to implement a form of transformational leadership which will inspire

and transform individuals, motivating them, satisfying their needs and treating them a as full

human beings, through a visionary leadership.

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 3. Innovation

Our father is open to new ideas generated by my brother and I and encourages us to innovate and

be creative. However, there is no portion of the budget assigned to innovation. I believe this should

change to encourage innovation within all employees in order to assure continuous improvement.

Our innovation level is medium but can be increased drastically once we have the available

resources to test and execute our plans.

4. Institutionalization

This family business is now beginning to institutionalize and has done so by introducing a Board

of Directors. However, more can be done to professionalize the firm. For example, hire a more

competent workforce who are fully able to do their jobs. Currently, the workforce is not

adequately qualified or capable of performing effectively to ensure that the business can run

efficiently and ensure continuity. A family board should also be formed so that the family can

make decisions related to the family and business.

5. Continuity

Continuity in this business ranks low as there is no formal plan of succession. By developing a

family board, this would facilitate and encourage open discussions among the family whereby

they can share their vision regarding the future of the family business. There should also be a

mechanism in place for the resolutions of conflict between family members so that relationships

are not affected negatively.

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• Prediction of the family business model into which it will evolve.

o I think this business has the potential to evolve from a captain business model to a

professional family business model whereby the family will be managing the

business with a higher level of accountability. This evolution can only take place

if a well-developed structure is put in place.

• 2 recommendations for developing the next generation

o My brother and I should have more challenging assignments allocated to us on a

regular basis in order for us to generate new ideas which will help improve the

current businesses

o We should also occupy an innovation and strategic planning-oriented staff position

in the firm. By doing this, we would be able find ways to improve the business and

help it run more efficiently in the future.

• 1 recommendation for forming the family board or the board of directors, as deemed necessary.

o There is currently a Board of Directors however a family board hasn’t been formed

as yet. The family board should be introduced as it a space where family members

can make decisions related to the business. This will also allow the family to

communicate effectively which will promote harmony and the entrepreneurial

spirit.

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Checklist Yes No

1. Includes Genogram, 3-circle Model, Gersick’s yes

Development Model

2. Identifies structural risk, applying the formula yes

and determining the type of company (Captain,
emperor, etc.)

3. Contains the result of the online questionnaire yes

“Snapshot of a Family business” in pdf format.

4. Includes 1 recommendation for each of the 5 yes

diagnostic variables: leadership, strategy,
innovation, institutionalization and continuity.

5. Includes the prediction of the family business yes

model into which it will evolve, 2
recommendations for developing the next
generation, and 1 recommendation for forming
the family board or the board of directors.

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