Managing Strategic Change in Family Business: The Case of Glopac Chemical

Abstract

This case is divided into two parts: Part 1 and Part 2, each highlighting strategic decisions the leaders of Glopac Chemical, the Makmur family, needed to make. Glopac Chemical and the Makmur family are pseudonyms and the data provided for the case are based on composites of a real family business in Indonesia. Part 1 describes the evolution of Glopac Chemical in its first two decades as it grew from an entrepreneurial startup to a large corporation. The evolution of Glopac as a family business illustrates the economic goal of the founder, Andy Makmur, to ensure a better future for himself and the family. However, family conflict, management issues, and agency problems left Andy Makmur with the dilemma of whether to a sell the company or b invest his time and energy in making Glopac Chemical a sustainable business. To resolve the dilemma, students must identify the goals and data they would use when considering whether to sell a family business. Part 2 explores in more detail the series of evaluations family business owners like the Makmurs need to undertake when faced with such a dilemma. It provides additional discussion material around human capital, non-economic goals, and transparency within a relationship-centric culture.

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