Buenas Diaz – status quo or pivot!

Abstract

Synopsis The family matriarch dies without a written succession plan, leaving her children to determine how to cope with the continuity of the family’s expanding food empire. This becomes increasingly difficult when one of the siblings wants to incur expensive, yet required, renovations to the family’s original restaurant. The situation is further complicated by the fact that the two older siblings are focused on corporate expansion efforts, while the youngest is trying to demonstrate her competence in running the family’s historical restaurant. A central focus of the case is to understand and identify effective strategies that should guide the firm-related choices each sibling makes. Research methodology This case, which was developed from field interviews and personal experience, highlights the array of competing financial and personal objectives and tensions involved in a family business. An interactive tool allows users to conduct multiple scenario analyses to determine if the company’s manufacturing expansion goals can be achieved while simultaneously honoring the family’s restaurant roots. Relevant courses and levels This case was designed specifically for the undergraduate junior or senior business or economics student who has already taken basic finance, economics, strategy, entrepreneurship, or psychology courses. Typically, by the third or fourth year of study in a traditional undergraduate program, virtually all of the core themes, concepts, theses, and theories associated with the case have been addressed in previous business or economics coursework. Theoretical bases The case provides an intentional opportunity for students to demonstrate their emerging financial analysis competencies, while concurrently synthesizing the so-called “soft” skills associated with rational decision making, organizational behavior analysis, business strategy, entrepreneurship, and negotiations.