CASE STUDY: Perdue Farms, running the international business of food and agriculture, was a privately held family run business established with the vision, ‘To be the most trusted name in food and agricultural products'. In 2012, in the markets of the eastern United States, Perdue Farms stood as the third largest poultry company and the number one brand of fresh chickens. The three generations of the Perdue family had followed the same vision in the business, though their approaches had varied. Arthur, Franklin, and Jim, had worked for at least five years outside the family business before joining Perdue Farms; Jim opined that, "You can't find out about yourself and your abilities in a family business as easily as you can in an independent business." The successful succession planning at Perdue Farms from the second to the third generation could be attributed to the fact that during the transfer of ownership from Frank to Jim, a family business consultant was called in to address the transition issues. According to Jim, the major challenges in business succession included persons belonging to the older generation being reluctant to step away from the business, and being unable to provide motivation for the younger generation... In a bid to bring new varieties of chicken into the market, Arthur in the early days of the business crossbred the best available varieties of chicken to produce better quality hybrids. The founder of the farm set up the business based on a vision which was followed by all the generations.
Though all the three generations of the Perdue family had been able to successfully run the family business with a common a vision of quality, integrity, teamwork, and stewardship, there were differences in all the three leaders.. I Under Jim's stewardship, Perdue Farms grew manyfold but it also became the target of various allegations. In March 2010, nonprofit environmental groups like Assateague Coast keeper and Water keeper Alliance filed a suit accusing Perdue Farms and its contractor Hudson Farms of polluting the waters flowing into the Chesapeake Bay. Perdue Farms was struggling to counteract many of the allegations leveled against it such as negative effects of its operations on the environment, exploitation of farmers, and making false claims of producing ‘humanely' raised chickens. Disagreeing with these charges, Jim opined that the company was doing enough in seeking environmental protections; he said, "We're doing a lot (to protect the environment) and we'll continue doing a lot, and I think the rest of the country will benefit from what we're doing and learning here..
Answer the following question.
Q1. Discuss the concept of family business, its advantages & disadvantages.
Q2. Analyze the management style across different generations,
Q3. Analyze the management style across different generations.
Q4. Explain the role played by an entrepreneur in setting up a family business, identifying the opportunities and sustaining the growth of the firm.