Groupe Basan: Growing in a sea of doubt

Description

Karim, owner and CEO of Groupe Basan, a widely diversified and growing family business in Madagascar, was satisfied with the 2018 result, and with some of the changes made. I thought this would be the first in a long series of growth, structuring and consolidation for the Group. With business continuity assured, Karim wanted to develop many opportunities that Madagascar offered. What would be the future of your family business that had cost you so much to move forward? Could they find the necessary talent? How would the new generation assume their responsibilities in the company? Would the family business survive when Karim was no longer in office?

Learning Objective

The main objective of the case is to see how the development of a family business is usually linked to taking advantage of opportunities that arise in its historical evolution and how different solutions to succession and generational change are adopted depending on cultural, political and personal circumstances of the different generations that own the company. See how after more than four generational changes the next one is always a different project that must be prepared in advance. The current owner and CEO has two daughters, still students, who at first seem to have no interest in running the company. Will the new generation change their minds in the future? Will they keep the property, but leave all the management in the hands of professional managers outside the family? Is it time to consider selling the company in a few years? ... The case also allows a debate on multiple aspects related to the business, corporate structure and governance or institutional configuration. It will serve to study a business model in the food sector and influence all strategic issues and keys and challenges for the future. The main aspects include the following: • Growth and internationalization: As in a company with many different divisions, you will have to choose, looking at the path and situation of each one of them, which one to encourage and which one to abandon, in which businesses to diversify and how, and in which to internationalize. • People and team: in a poorly developed country where middle managers are covered by expatriates, how to develop talent and company structure? Should the permanent renewal of expatriates be guaranteed or should local talent be developed? It's possible? • How to manage country risk? • Corporate governance and succession: It will be possible to study how the different successions have been in companies, especially the most recent, and see what options they have in the future. The current CEO has two daughters. How and when should the governance and management structure of the company be adapted to the different foreseeable scenarios?

Related Documents

• Groupe Basan: Crecer en un mar de dudas

Keywords

África agribusiness Business Business policy Family Company Structure succession