FAMILY BUSINESS MANAGEMENT

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Answer 1:

The process of determining which roles within your company are the most important and then
formulating plans for potential candidates to fill those roles is what is referred to as
succession planning. The goal of succession planning for a firm is to ensure that the
organisation will always have the correct leaders in place, even if those leaders need to be
replaced suddenly. Your firm may not get a second opportunity if it doesn't adjust swiftly
after a key player leaves the organization or dies because you failed to build an ordered plan
for succession. This could mean that your company will never get a second chance.

Qualifications of his sons:

1. Junior had previous experience working for significant firms and received an MBA
from a top international institution of business education. Luis received the
impression that Junior exhibited a reasonably analytical and cool attitude as a result of
these traits as a result of the fact that Junior possesses strong administrative skills in
the areas of analysis, structure, and planning as a result of these characteristics.
2. When Eduardo got married, he made the decision to quit his job in the Senate and
start working part-time as a professor at the institution he attended. In addition, he
took over the management of the Waterless Division of the Carwash. Eduardo had
completed a number of courses in business, in addition to working toward completing
his master's degree in philosophy.
3. Alejandro Martinez, the youngest of the three Martnez siblings, was attending law
school, and his primary area of interest was business law. He worked as an intern in
the legal department of a law firm in addition to his employment as an internal auditor
at a car wash.

Junior is the individual who most closely meets the requirements for the role of successor;
nevertheless, he has expressed no interest in working in the carwash. However, despite the
fact that his involvement in the business would be limited to that of an owner, he expressed
interest in serving as Chairman of the Board of Directors instead. This is not something that
can be done right now due to the fact that achieving such a prestigious position requires a lot
of hard work and expertise and time in the field.

Therefore, the next name on the list of possibilities is Alejandro. Luis was of the same
opinion that Alejandro was moral and sincere. Luis noticed that Alejandro was a reflection of
himself. On his end, Alejandro was enthusiastic about the prospect of launching a law
practice while continuing to play an active role in the company. The only remaining choice is
Eduardo because Alejandro may potentially be involved in the firm but would be incapable of
managing it.

At the 2013 expo, Luis and Eduardo stumbled across a new product that could clean
automobiles without the usage of water. In my opinion, Eduardo is the most qualified
candidate for this post because of their discovery of the product. Upon Eduardo's return to his
hometown, he took over leadership of The Martinez Carwash's Waterless Division and took
responsibility for its launch. In addition, Eduardo had completed a number of business-related
courses, and if we consider his father's perspective, we can see that Eduardo possessed the
ideal personality and set of skills for personnel management, which Eduardo's father believed
to be the most important factor in effectively running the business. However, Eduardo
believed that his capabilities extended beyond simply being able to manage personnel. He
believed that he could manage the administration, operations, and strategy of the company,
and if you are managing the entire company, it is your responsibility to manage these
elements of the company too.

Answer 2:

Luis is aware that all of his sons are just starting out in their own jobs, and he feels it is
essential for them to have a clear understanding of what responsibilities if any, they will play
in the long run in the family business. Luis had very specific expectations for each of his
three sons in terms of how they would behave if they were in charge of the family business.
For Luis, it was crucial that whoever took over the firm exhibited patience, perseverance, and
dedication, as well as the skills and attitudes, and in order for them to do so, he had to provide
them with extra experiences and training that would enable them to run the business.

For the purposes of learning and technical experience, he should bring all of his sons into the
business and instruct them to evaluate Luis in terms of how he interacts with customers and
how he runs the business. Luis needs to concentrate on teaching these abilities to them as
much as possible.

 Employees: He should know that employees are the most important part of the
business. The efficiency of employees is essential to the entire success of a company,
so it is imperative that business owners hire workers who are capable of carrying out
their responsibilities. The leaders of businesses need to have an understanding of the
major benefits of employee performance in order to be able to design techniques that
are consistent and objective while evaluating staff. Doing so helps assess the potential
managerial inadequacies in the company's business organization, as well as its
strengths and shortcomings.
 Personnel Management: The administrative responsibilities that are concerned with
the employment and pay of an organization's employees are a part of a company's
personnel management system. As a field of study, its overarching objective is to find
and keep the kind of skilled workers an organisation needs to advance toward its
objectives.
 Maturity in life: When running a family business, it is essential to maintain personal
and professional affairs separate from one another at all times. Luis is aware that his
sons do not yet possess the same level of maturity that he does because maturity
comes with time and experience.
 It never hurts to ask: His sons need to ask him whatever question they have in their
minds. It is a part of the experience that they have had. Every doubt has its own
unique worth and can teach us something new.

Also, the eldest son, Luis Jr., is very good at management and organisational skills, but he
is emotionally and affectionately numb, which contributes to his cold attitude. He is the
oldest son. We are aware that being emotional in the workplace is not a desirable feature
because it is not an outstanding quality in a person who operates a firm. However, to
operate a company effectively and efficiently, a person needs to have some form of
emotional state. As a direct consequence of this, staff will quit their job since they do not
want to cooperate with a boss who is not friendly to the employees.

When Eduardo will finish his studies, he is going to be the appropriate candidate for the
business because he will have the knowledge and abilities related to running a corporation
effectively and efficiently.
 Alejandro is now doing law. He is reliable, kind, and ethical; nevertheless, his too
sensitive personality, which occasionally gives the appearance that he is childish, is his
one and only weakness. He is trustworthy, friendly, and ethical. He needs training on how
to conduct himself professionally in the workplace as well as how to interact with clients.

Answer 3:

Luis offers his sons two choices for the future of the family business: one is for them to take
over management of the company, and the other is for the company to be actually owned by
the sons but run by outside professionals. The first alternative is if the company is run by the
sons. There are two possible courses of action in this: the first is to give one of the sons full
ownership of the business, and the second is to split the company into three equal portions.
Eduardo, the second son, was not eligible enough to operate the company, but he was doing
his utmost to engage himself in the company as much as possible, such as by taking business
courses and assisting his father in the creation of new products. If the company were to be
handed to only one son, Luis Jr. would be the strongest choice because he is the most skilled
and his degree would be the most beneficial in operating the company. However, if Luis Jr.
wasn't really engaged in running the business, then Eduard.  The third one, Alejandro, was
the youngest one, therefore he had very little experience with working in the company, and in
addition to that, he is studying right now. Since he was the youngest, he was the one who
worked in accounting. The second possibility was to give equal shares of the company to
each of the sons. Since the youngest son is currently studying law and has an interest in
auditing, the finances might be overseen by him. Since Eduardo is now working toward his
master's degree in philosophy, he is the most qualified of the three to manage the staff. Luis
Jr., being the person with the most expertise who also comes from a business background, is
in a good position to handle the operations. The second possibility is that the sons own the
company but have hired professionals to run the day-to-day operations of the company. If
there is no one in the family who possesses the necessary skills to run the company, we will
have to look outside the family for a manager because there is a good deal at stake whenever
there is a transfer in executive leadership. In today's business world, every family-owned
company is required to give the succession plan and the selection of the company's next CEO
great consideration and special focus. To do so requires first acknowledging that the
succession is a system which changes from time to time rather than a result that is preset.
When recruiting an expert, another dilemma that arises is whether or not the new CEO should
reflect the same opinion and leadership style as the current CEO.