Case Study – Laroche Candy Company

Case Study – Laroche Candy Company

The Key Problem in the Case

The key problem, in this case, is disagreement on company succession. The problem exists because Luc assumed that his sons would take over his company’s leadership without discussing whether they were interested in the proposal. Luc also assumed that because his sons were already working in the company, they had gained enough knowledge and expertise to lead the company after his retirement. Another cause of the problem is Davy’s assumption that the company would fail if a family member took over its leadership. Robert, the younger brother, has already stated that he is not interested in taking over the company’s leadership, so the only person left to succeed the father is Davy. Therefore, Luc wants to convince Davy that he can manage running the company because he wants the company to remain a family business.

Business Research and How It Can Address the Problem

Business research is a systematic, objective, organized, critical, data-based investigation or inquiry into a specific issue undertaken to find solutions or answers. Companies conduct business research to recognize competitors, clients, and markets’ attitudes, needs, and expectations in a competitive, market-driven business environment. In the current case, business research can help address the problem by providing information on why family businesses fail and the most effective measures to maintain the family business’s profitability. Business research can also help Luc and Davy understand the advantages and disadvantages of hiring someone else to manage a family business so that they can outweigh the risks and benefits before making a decision.

The Pros and Cons of Getting an External Research Consultant versus Using an Internal Member of the Company

One of the pros of getting an external consultant is that they do not offer biased guidance since they do not have a stake in the company. They, therefore, focus on providing the most appropriate and helpful advice even though it may not favor the interests of top management. Another pro of hiring an external consultant is that they have expertise in addressing the problem because they have handled similar problems in the past and made improvements to enhance the solutions’ effectiveness. The main con of using an external consultant is that they might miss the point and fail to consider important factors in the running of the company’s operations, such as the history of the company and why Luc is reluctant to let someone who is not part of the family take over leadership.

Steps That Paul Should Take Now That He Has Clearly Defined the Problem That Needs Attention

One of the steps that Paul should take is to review different solutions that can resolve the problem based on their impact on the company. Paul should then prioritize the best solutions and give his recommendations to Luc and Davy to select the one they are most comfortable with. Paul should also hold a meeting with Davy and Luc when presenting the solutions to ensure they understand them and clarify any areas they may not understand. The other step is following up on how Davy and Luc are implementing the solutions to determine whether they are doing it correctly and whether they are yielding any positive results or not.

What Luc Should Do To Assist Paul to Yield Valuable Research Results

Luc should explain to Paul the company’s history and what he has done to maintain profitability so that he (Paul) can understand why he is reluctant to let a stranger run the company. Luc should also inform Paul that his two sons have worked in the company before and have the expertise needed to maintain its profitability. He also needs to inform Paul about Davy’s and Robert’s reasons for refusing the offer to lead the company. Luc should also provide Paul with information about the expertise of existing employees. Understanding employees’ expertise can help determine whether Luc can consider promoting one of his employees to leadership. It is also essential for Paul to get information on any employee Luc trusts besides the family members and who has worked for the company for a long time or alongside Luc.

The Most Appropriate Type of Research for Solving the Problem of The Laroche Candy Company

According to Sekaran & Bougie (2016), business research can be applied or basic. Applied research focuses on solving practical problems, while basic research is a systematic study that focuses on acquiring more knowledge or understanding of the main aspects of a phenomenon and observable facts without specific applications towards products or processes in mind. The most appropriate type of research in Laroche Candy’s case is applied research because the company has already identified the problem and requires specific solutions that are relevant to the problem.

The Best Solution for Addressing the Company’s Situation

The best solution for addressing Laroche Candy’s situation is persuading Davy to take up the leadership position and assuring him that he can rely on his father for guidance on how to run the company until he is confident enough to do it on his own. Davy also needs to understand that succession is a process that needs to be followed before concluding that he cannot lead the company. According to Helin & Melin (2006), the succession process includes the preparation or initiation phase, the integration phase, the joint management phase, and the predecessor’s full retirement phase. Davy may consider benchmarking in family businesses that have maintained profitability after succession to learn what they did and apply this knowledge in running Laroche Candy. Moreover, Erdil & Erbıyık (2019) argue that benchmarking can improve leadership quality by informing leaders about leadership styles they can use in different situations.

References

Erdil, A., & Erbıyık, H. (2019). The importance of benchmarking for the management of the firm: Evaluating the relation between total quality management and benchmarking. Procedia Computer Science, 158, 705-714. https://doi.org/10.1016/j.procs.2019.09.106

Helin, J., & Melin, L. (2006). Succession in Family Business: Succession in Family Business: Communication practices and the role of power Communication practices and the role of power. ResearchGate.

Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach. John Wiley & Sons.

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Case Study – Laroche Candy Company

Luc Laroche has decided to hire an external consultant to investigate a problem in the Laroche Candy Company. For this assignment, review all of the details of the case involving the Laroche Candy Company on Pages 15-17 of the Sekaran and Bourgie text and address the following areas:
1. Identify the key problem in the case and explain why it exists.
2. Describe business research and how it can help address the problem.
3. Discuss the pros and cons of getting an external research consultant versus using an internal member of the company.
4. Which steps should Paul take now that he has clearly defined the problem that needs attention?
5. What can (or should) Luc do to assist Paul in yielding valuable research results?
6. What type of research would be most appropriate for solving the specific problem of The Laroche Candy Company?
7. Using the course readings and other resources, describe the best solution for addressing the company’s situation and support your position with credible sources.