Valentina JaramilloGrupoMultinacional de SegurosA Venezuelan Family BusinessHistory„GRUPO MULTINACIONAL DE SEGUROS‟ is an insurance company founded byCarlos Carrero (owner and president of the company) on 1983 in Venezuela. It startedas “Seguros La Guaira” and in 1993 it changed its name to Multinacional de Seguros.After 2 years, Carlos Carrero acquired another insurance company named„SegurosGuayana‟ and five years later “Interbank Seguros”. In 2003; the presidenttook the decision to merge the companies; so it was then when the“GrupoMultinacional de Seguros” was born. Currently, the company is within thefirst 10 most successful insurances company in Venezuelawith more than 1000employees around the country. It is headquartered in Caracas and has branched out to20 cities. It has partnerships with three big insurance companies in the world: MunichRe; Swiss Re and Mapfre. Carlos Carrero is a self-made man who believes inperseverance.He also believes that the learning process is continually ongoing astechnical knowledge and expertise is a competence the company needs to have inorder to remain competitive in the market. Throughoutyears, Carlos Carrerohasbecome one of the most successful entrepreneurs and investors in Venezuela, owninga wide range of companies within other industries. To name a few: hotels; restaurants;radio stations and telecommunication companies.Family and Business’ issuesAs he is getting old, he has wanted his sons to be involved since early ages within thecompany and has made them being trained in all departments. He is sick and wants toprepare a take over within the next three years. His sons are: Carlos Jr. 26 years old;Rafael, 19 years old, and Luis being 17 years old. Furthermore, they do not haveprivileges and are benefited from the same conditions as regular employees.Actually, Carlos Jr.‟s passion is not within the insurance business but to please hisfather he has been receiving training since 10 years ago and 4 years ago was named
the Manager of Sales.He has strong emotional attachments to his father and hasperformed outstandingly making sales increased drastically, although he does not lovewhat he does. On the other hand; Rafael,against his will, is working there as well buthe does not want to have big responsibilities but instead enjoying his life as a 19 yearsold boy. Finally, Luis does not have an official position within the company becausehe is a trainee. Luis feels he did not have an option to even think what he likesbecause since he was a child it has been heard from his father that all his sons wouldbe his successors. Although Luis has not demonstrated resistant; he wants to set up hisown business, following his mother‟s steps- the only one not involved in the familybusiness. On the other hand, the president‟s brother (Juan) also works on the businessand is the Director of Communications and has worked with his brother since thefoundation of the company. While Carlos Jr. thinks selling the company is an optionin order his father can rest and therefore, he could do what he loves; Juan wishes toassume the take over and be in charge of the presidency due to the loyalty he hasdemonstrated to his brother as well as the experience he has got working there sincethe foundation day. Carlos Carrerowants his sons to become his successors.TheoriesThe succession model to be followed is the one stated by Churchill and Hatten(1987)as cited in Handler (1994), which researchesheirs‟ role in their family businesssplit into three different levels of involvement. The first one demands the offspringbeing associated with the business through dialogues with the family or part- timeemployment. The second level refers to involve the offspring into a full-timeemployment within the firm and finally the last level demands the offspring‟sappointment to leading roles and assuming the responsibilities of parents in the firm.According to the business in matter; the owner has followed this model as hisoffspring has been associated to the company since early ages. In addition, they havebeen full-employed and reached high positions within the company except for theyoungest. Furthermore, Longenecker and Schoen (1975)as cited in Stavrou (1999),suggest that there are two more levels: the early succession stage in which the nextgeneration undertakes the presidency and the last level, the mature succession, inwhich the heir manages to be “de facto leader” of the business. In this case, CarlosCarrero is preparing them for the last two stages.
Having reviewed all issues, challenging questions arise: despite the training the sonshave received as well as the positions they are in; are they ready to take over thecompany within 3 years if the insurance business is not their passion? Will theirfather‟s values being maintained and reinforced throughout time? How to ensurecontinued success though lack of interest in business by successor generation?If the owner does not want to sell the company but instead leaving it in familyhands;what would be the best option?Family Business‟ structure: (just 4 members of the family are involved; excluding thefounder)ReferencesHandler, W. (1994) „Succession in family business: a review of the research‟, FamilyBusiness Review. [online] Vol. 7 (2). Available at:http://www.uk.sagepub.com/chaston/Chaston%20Web%20readings%20chapters%201-12/Chapter%2011%20-%2014%20Handler.pdf [Accessed 26 March 2013].Director of CommunicationsJuan Carrero(Carlos Carreros brother)Manager of SalesCarlos Jr.(eldeste son)Coordinator of ITRafaelTaineeLuis(youngest)Founder and presidentCarlos carrero(father)
Multinacional de Seguros (2013) „La empresa‟. [online]. Available at:http://www.multinacional.com.ve/Multinacional/index.php [Accessed 24 March2013].Stavrou, E. (1999) „Succession in Family Businesses: Exploring the Effects ofDemographic Factors on Offspring Intentions to Join and Take over the Business‟,Journal of Small Business Management, [online] Vol. 37 (3) Available at:http://www.questia.com/library/1G1-55413421/succession-in-family-businesses-exploring-the-effects [Accessed 26 March 2013].