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A Life in Toys (Fictional Tale)

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CASE STUDY: A Life in Toys (a Fictional Tale) 1. Using the case study provided of a life in toys, discuss in groups the main issues that illustrates in family owned businesses. How typical are these issues.
Martyn Roper has a passion for wood work and wood carving and it leads him an idea to open and start a business that is related to his passion. And that’s the birth of the wisdom toys.
Wisdom toys are a type of business that is a family owned business. All of the family members of Martyn including his eldest sister, Jane and external investor, who is Martyn’s friends, help him to manage this business.
Pam and Martyn owned 50% share of the business, his three children Paul, Tom, and Laura owned 5% each of the share, while Jane owns 10% of the share and the other 20% share were owned by some external investor. With the help of Jane’s share it was used to develop new products that cause firms turnover grew rapidly as they began to export their product. While with the help of external investors it helps to bring in capital to start Martyn’s built teams division for making antique replicates. Also with the help of his children and wife it contributes a lot that makes the business growth.
In owning a family owned business the advantage on it is there are lots of possibilities that the member of the family can contribute different strategies that can help to improve the business. But there is also a disadvantage that some of the family members especially if there is an external investors it may arise a difficulty in terms of decision making whether to keep the business or sell it. 2. Complete a report for the CEO outlining the strength and weaknesses of the individuals in the management team.
Individual strength Paul – a design engineer who is managing for the team of designers. Laura – a chartered accountant and was a natural leader as well as a good manager and has a valuable experience working with large companies and variety of industries in international accountancy/consultancy firm. Jane – ally of Laura who put in place human resources development policies to develop the employees and bring on new talent. Tom – graduated with a degree in Marketing and gain experience in Market Research for becoming a Junior Product Manager for a large organization. And making the sale is Tom’s key driver weaknesses.
TOM- was impatient and intolerance of others who do not do things fast enough and they have lost a few members of staff through resignations after dealing with him.

3. Make a recommendation to the CEO regarding the succession in the businesses.
I recommend to the CEO , Mr. Martyn Roper not to sell the business. Even though if the business would gain more than twice for their annual sales and his children will remain working in the business. Yes, they might have the possibility to double their return but there is also a possibility that they won’t gain more than the gain of the new owner if they would sell the firm. They should be contented that their firm is gaining a high profit and it is continuously growing. Without the help of other , they can expand their firm through with their management.

4. Explain potential problem areas to the CEO including the shareholding in the family.
If the CEO would decide to sell the firm, there will be a problem in their family member and with the external investors. Because some of this family member was against on it and some of them together with the external investors were agreed.
If he would decide to keep the firm there would be a problem that may arise if he would retired like : Siblings and external investors rivalry may arise in terms of positioning and decision making process. And nepotism, flotation and rival wishing to buy the business may also arise.

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