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Babbitt Ranches: Governance and Strategic Planning in Family Business

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Submitted By zharrison
Words 1210
Pages 5
Introduction
Ethical decision-making refers to the process of evaluating and choosing among alternatives in a manner that are consistent with the principles of ethics and professional behavior (Blink, 2015). When making decisions, organizations often require commitment, consciousness, and competence. One interesting aspect of ethical decision-making is that they are not only morally “correct” but they are also effective. In other words, ethical decisions generate and maintain trust, demonstrate respect, responsibility, fairness, and caring, and are consistent with good citizenship.
Ethics is effective in guiding the organizations objectives as they relate to the corporate strategy. The case study; is about the mercantile and ranching industry leader Babbitt Ranches for analyzes of the ethics within the family business as it relates to their corporate strategy. It was the challenge of President Bill Comdisco to lead the organization in new business opportunities that were inclusive of the companies long standing values. Mr. Cordasco recognized that the future of the organization was contingent upon meeting the needs of the multigenerational stakeholders. The article highlights several challenges that Babbitt Ranch experience in an attempt to align the organization's objectives with the organizational strategy through team decisions.

Points of Agreement
In 1988, the company was forced to debt finance stock buy from some of the third generation owners seeking liquation of their share of the business. The buyback creates debt for the organization, ultimately forcing the company to sell off most of the retail business in assets. I believe that this was a difficult decision for the stakeholders; yet I agree that it was the only acceptable alternative. Without the stock but out of some of the 3rd generation family stockholders the families ability to make

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