Atherton Clothing Company - Admission/Application Essay Example

Case Analysis Case Analysis Case Atherton Clothing Company) Critical issues in the case Atherton Clothing Company is a family owned business, started off by Atherton Isador Cohen in 1949 as a one-man operation business. During 1980ss the succession passed onto Allen and Ryan who were the youngest sons of the Cohen’s family to join the business. The Atherton clothing company had a tradition that it shared its success equally in the members of the Cohen’s family. Every successor who joined the company aimed to flourish it for the good of the family and for the good of the people-customers surrounded by Atherton’s success (Davis, 2006). Isador Cohen after leading the company for the short aspect of time passed succession to his son Bob who was sufficiently talented to earn the primary name of the family-owned business. Allen and Ryan being talented sons of Bob took charge in 1980, when the company was being recognized in the California region and in the men’s clothing domain. Both brothers had good understanding and had respect for each other’s actions and decisions. This was the strength of the Atherton clothing company, and therefore, it was the concern of Allen, and Ryan that whoever takes the charge should continue with this unity principle to make the family-business grow and flourish (Davis, 2006). Zachary Cohen, the son of Allen Cohen was sought as a next leader of Atherton. Zachary was aware of his grand parents philosophy, which was all about trust and unity within the Cohen’s family. It was a sense of brotherhood, which Zachary acquired from his ancestors and fore fathers. Zachary being talented son of Cohen’s family wanted to take charge of Atherton Company. He was keen to join the family business since from his early childhood days when he sat in his father and uncle company discussions and meetings (Davis, 2006). Zachary primary concern was to change the buy and sell contract of Atherton, which divided ownership and decision-making power in the company after his father Allen has left over. According to the present contract, Zachary would receive only 17% stake after his father passes away. Zachary thought that this minor ownership succession would obstruct him achieves his long terms goals for Atherton, which he had planned for several years for his company. Zachary located problems in the non-family management section. The non-family mangers were weak in their performances specifically in areas of inventory and store management, which were in their control during the uncle and father succession period. Zachary wanted to improve the non-family management section by taking the full charge and control of the company after his father passes away (Davis, 2006). Recommended Course of Action Zachary planned his succession on his own as his father Allen and Uncle Ryan came with slow and inactive response on whatever Zachary proposed for succession. Allen and Ryan should consider of what Zachary has thought and proposed for the future of the company. They should respond to their foreseen successor who is talented, capable and sufficient enough to lead Atherton with its name and identity (Davis, 2006). Zachary should go with the lead by example notion, which is followed by his ancestors and can win hearts of his father and uncle who are much concern of the company’s future growth and progress. Like Zachary has planned, proposed and presented his succession plan, he should also clear out of what goals and ambitions he keep for Atherton in the future (Davis, 2006). Insights gained from the case Unity is a pillar of any family-owned business. It is unity at times of good and at times of crises, which progresses and develops a family-owned business. Atherton clothing company became successful only because of this unity principle. If there were no unity and trust in the Cohen’s family members, the company would have gone so far of where it is today. This is the gist and essence what can be learned and be taken from the Atherton case (Davis, 2006). Case 2 (Kohl Industries) Critical issues in the Case Kohl Industries was a successful family-owned business of James Kohl himself and three of his respective children. Kohl’s oldest son Brad was given the charge of Kohl manufacturing segment, second son Cameron was managing Kohl properties segment and the daughter Erin was the in charge of Kohl’s computer networking business Kohl Net. This was how Kohl industries was distributed in three members of the family where every member was deliberately involved in progress and growth of Kohl ventures (Davis, 2007). Kohl’s competitive decision making came from the board of directors of the three children committee. Each child participated in the corporate decision making of Kohl Industries. There were conflicts and issues, which the board of directors faced during their period of business planning. Likewise, the oldest son Brad and daughter Erin raised the objection on father’s corporation portfolio decisions, which involved the calling of the outside private investors and stakeholders to take charge. This objection was resisted by Cameron the second son as he thought that amendment in the corporate policy would affect his segment the most “the Kohl Properties” which involved several of the private investments throughout (Davis, 2007). Another conflict brought by Brad and Erin was that their father should not waste or risk their liquid assets by investing in different business areas. Cameron the second son who was closest to his father and had a very intimating relationship with his father thought that investment is important to make the business grow and sustain for the future. This is the advice, which Cameron gave to his father, which was vigorously opposed and rejected by the other two children. However, every child of Kohl was determined and keen to make Kohl group grow and prosper (Davis, 2007). Recommended Course of Action James Kohl the main owner of the company should come out strong and deliberate in resolving the conflicts of the company. In his roles as a father and as a leader Kohl could enable him to resolve the conflicts within his children, in their corporate planning, thinking and decisions (Davis, 2007). In the past, Kohl has been successful in joining and bringing together his children, by transforming the authority to every child. The same is to be done by him this time, by allowing Brad, Erin and Cameron think on their own and take decisions that could favor the company and the company’s prospect altogether. If Kohl group of industries grow, it will prosper each and every segment of the Kohl group. This thinking has to be developed in children, and it could be done by the father, who is in the central role of responsibility (Davis, 2007). Insights gained from the case In any business just like a business run by a family, conflicts are part of the process. They are important to make any business grow bigger and make it prosper. The same is true in the case of Kohl industries, where the company faces conflicts of the corporate level, the conflicts, which are natural and important to make the company grow and prosper. Conflicts should be taken positively in any company as they provide the purpose, the mission to serve in any company (Davis, 2007). References Davis, J. (2006). Atherton Clothing Company. Boston: HBS. Davis, J. (2007). Kohl Industries. Boston: Harvard Business School Publishing. Read More