Managing the Sibling Partnership: The Ong Group
(3 pages of text)
Case (Gen Exp)
In 2016, the oldest member of the family business The Ong Group was concerned about the ailing firm that he and his siblings were running. The business had been started in 1957 in Hong Kong by their father. After the death of the father and one of the siblings, the remaining family members needed a plan for the future of the business. Should all of the remaining siblings and their children be allowed to become directors in the family firm? How could they create a workable governance structure that would help the family make the right decisions? How would they put the business back on track?
This case is developed for MBA classroom teaching, although it can be taught at different levels. It is also suitable for executive audiences of family owners and leaders. The case is intended to help students gain insight into family businesses, particularly those transitioning in ownership from the second to the third generation. After completing the case, students will be able to
- discuss the sibling partnership model and its tendency to create tension in the family structure, which may affect the success of the business;
- explore the lack of strategic business decisions due to an inability to reach consensus, which can lead to inertia; and
- analyze the transfer from second- to third-generation leadership of a family business, which involves defining and clarifying the roles of the various family members as well as the structure and transfer of the business’s ownership.
Hong Kong, Medium, 2016
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