INTERNATIONAL BUSINESS

CASE STUDY 

Family businesses typically have the luxury of passing the torch down to children after parents retire, but in some cases, there are no candidates, or the candidates may not be right for the role. This presents a challenge when it’s time to find a successor, especially if existing employees have assumed that top level promotions would come from within the family.

So the Carlson companies had to put in great effort to find a replacement, looking both internally and outside of the company, ultimately finding an internal candidate who would work well with the family but also offered plenty of experience as an executive in different industries. According to Beverly Behan of Hay’s Group, Carlson should be commended for not only making the right decision in not hiring the heir apparent, but for handling the job search in a calm, effective way.

Answer the following question.

Q1. What strategy was adopted by Carlson in appointing the heir?

Q2. Why the decision of Carlson was right. Comment.