EARL JULES Q.

CORNELIO ES 311 - ENGINEERING MANAGEMENT

3rd Year – BS Civil Engineering December 3, 2023

ISSUE
The four owners – Gloria, Rosemarie, Ligaya, and Rosalie – grew aware that they were getting older
and realized their limitations when managing a company. As they turned into their fifties, managing
the Four Aces Construction and Hardware Supply (FACHS) was getting harder to manage. Along with
the company, they also manage their families as they all have children. They are currently dealing
with company dilemmas which are:

• They want to grow the company, but they don’t have the resources to do it
• They lack funds and manpower for expansion. They are looking for alternatives and options
to solve the issue.

POSSIBLE SOLUTIONS
There are two possible solutions to the company’s problems which can be addressed by the
following:

INHERITANCE OF THE COMPANY

As mentioned, the four owners of the company all have children of their own. One or many of
their children will spark interest in continuing the family business if they are willing to. Letting the
children inherit the business provides a level of stability and job security for them. The children may
have a sense of familiarity with the business operations and can contribute to its ongoing success.

Inheriting a successful business can also provide financial stability and potential wealth for
the next generation. The drawbacks would be that inheriting a business also comes with challenges,
and success is not guaranteed. Their children should have a genuine interest in the industry, a
willingness to learn, and the skills needed to adapt to changing business environments.

PROMOTION OF COMPANY EMPLOYEES

If the children refuse to inherit the company, it's best to find knowledgeable workers from
within the company itself. Promoting employees within a company can be beneficial for developing
a new generation of the company. Internal promotions allow employees to acquire new skills within
the company. This broadens their skill set, making them better equipped to handle higher-level
responsibilities.

Promoting employees strategically is also a key element of succession planning. It ensures

that there is a list of qualified individuals who can step into leadership roles when needed, reducing
the risks and unavailability.

REFERENCES:
Advantages & Disadvantages of Inheriting a Business (N.D.). City National Bank. Retrieved from
https://www.cnb.com/business-banking/insights/inheriting-a-business.html