Family Business Management Critical issues in succession in family owned businesses in tourism. Observations based on the ...
Agenda <ul><li>About the Brunnwirt </li></ul><ul><li>Process of Succession </li></ul><ul><ul><li>Planning </li></ul></ul><...
About the Brunnwirt <ul><li>Founded in the 15th century </li></ul><ul><li>Currently in its 6th generation </li></ul><ul><l...
Process of Succession <ul><li>Planning </li></ul><ul><ul><li>Decision of Johannes Brandstätter XI to become a cook in 1993...
Process of Succession <ul><li>Executing </li></ul><ul><ul><li>Process over two years </li></ul></ul><ul><ul><li>1999 to 20...
Process of Succession <ul><li>Finalizing </li></ul><ul><ul><li>Official pull-out of parents in 2001 </li></ul></ul><ul><ul...
Critical Issues <ul><li>Long term planning </li></ul><ul><ul><li>Renunciation of inheritance </li></ul></ul><ul><ul><li>Wh...
Critical Issues <ul><li>Economic situation of the Brunnwirt </li></ul><ul><ul><li>Estimation of property value </li></ul><...
Critical Issues <ul><li>“ Management” of family </li></ul><ul><ul><li>Among different generations </li></ul></ul><ul><ul><...
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Family Business Management

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Part of the MCI ePortfolio Module "Family Business Management".

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Transcript of "Family Business Management"

  1. 1. Family Business Management Critical issues in succession in family owned businesses in tourism. Observations based on the example of the Brunnwirt in Fuschl.
  2. 2. Agenda <ul><li>About the Brunnwirt </li></ul><ul><li>Process of Succession </li></ul><ul><ul><li>Planning </li></ul></ul><ul><ul><li>Executing </li></ul></ul><ul><ul><li>Finalizing </li></ul></ul><ul><li>Critical Issues </li></ul>
  3. 3. About the Brunnwirt <ul><li>Founded in the 15th century </li></ul><ul><li>Currently in its 6th generation </li></ul><ul><li>Located directly at the shores of Lake Fuschl </li></ul><ul><li>Decorated with one toque </li></ul>
  4. 4. Process of Succession <ul><li>Planning </li></ul><ul><ul><li>Decision of Johannes Brandstätter XI to become a cook in 1993 </li></ul></ul><ul><ul><li>Apprenticeship at the Brunnwirt </li></ul></ul><ul><ul><li>Stops in Kitzbühel, Italy and France </li></ul></ul><ul><ul><li>Return to parental restaurant in 1999 </li></ul></ul><ul><ul><li>Since 1999 Johannes Brandstätter and his wife Getraud jointly work at the Brunnwirt </li></ul></ul>
  5. 5. Process of Succession <ul><li>Executing </li></ul><ul><ul><li>Process over two years </li></ul></ul><ul><ul><li>1999 to 2001 as transition phase </li></ul></ul><ul><ul><li>Many things brother and sister had to agree upon – not clarified by parents </li></ul></ul><ul><ul><li>Decision on liabilities </li></ul></ul><ul><ul><li>Estimation of property value </li></ul></ul><ul><ul><li>Contracts on long-term issues – planning ahead </li></ul></ul>
  6. 6. Process of Succession <ul><li>Finalizing </li></ul><ul><ul><li>Official pull-out of parents in 2001 </li></ul></ul><ul><ul><li>Both still helping out occasionally </li></ul></ul><ul><ul><li>Issue of 14 years age difference between father and mother </li></ul></ul><ul><ul><ul><li>Offer by mother to stay as manager declined </li></ul></ul></ul><ul><ul><ul><li>She needed to find another job – years for pension still missing </li></ul></ul></ul><ul><ul><li>Young successors – 23 & 24 years old </li></ul></ul>
  7. 7. Critical Issues <ul><li>Long term planning </li></ul><ul><ul><li>Renunciation of inheritance </li></ul></ul><ul><ul><li>What happens in case of divorce </li></ul></ul><ul><ul><li>Right of abode? </li></ul></ul><ul><li>Delicate topics have to be discussed and agreed upon within the family </li></ul>
  8. 8. Critical Issues <ul><li>Economic situation of the Brunnwirt </li></ul><ul><ul><li>Estimation of property value </li></ul></ul><ul><ul><li>High level of debt at point of succession </li></ul></ul><ul><li>High potential for conflict </li></ul><ul><ul><li>Within family </li></ul></ul><ul><ul><li>With suppliers </li></ul></ul><ul><ul><li>With regular guests (traditions) </li></ul></ul>
  9. 9. Critical Issues <ul><li>“ Management” of family </li></ul><ul><ul><li>Among different generations </li></ul></ul><ul><ul><ul><li>Innovation vs. conservation </li></ul></ul></ul><ul><ul><ul><li>Letting go despite emotional commitment </li></ul></ul></ul><ul><ul><li>Within same generation </li></ul></ul><ul><ul><ul><li>Relationship brother and sister </li></ul></ul></ul>
  10. 10. Thank you!

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