Family Business Case Study: Ferragamo

1127 Words5 Pages
Part 1: if you are not from a family business, what is your impression of family businesses? List and explain both pros and cons.
Pros:
- Shared vision and values: whereas, in a family business, the most effective members are from a family, they generally share the same culture and vision which help them to understand each other better. This will enhance both the communication and cooperation between the departments.
- Work environment: The work environment may be more relaxed. For instance, People may feel more flexibility on their working time schedule.
- Flexibility: people may feel more comfortable making decisions in a family-owned business because these companies usually are more flexible having few layers of bureaucracy.
- Loyalty: family is a loyal foundation which its members usually have certain
…show more content…
The family had built product dedication and brand integrity for creative design of Salvatore. They had created demand and trust to the brand while maintaining the quality. According to Wanda, “we have established a strong base on which to build.”
In other hand, according to Mazzalovo’s report, the company had some problems:
- From strategic point of view, they had some issues in product orientation; product lines didn’t reinforce one another and they were more product-oriented than market–oriented. Also the organizational structure was not ready to expand.
- From organizational point of view, structure was not clear and formalized, interdepartmental communication and coordination was poor, management style was so centralized, human resources were poorly managed, the company culture was conservative and decisions making was so slow.
- From operational point of view, some functions were missing such as marketing and distribution while some other functions were needed to be improved.
• How have family values contributed or detracted from Ferragamo’s success to

More about Family Business Case Study: Ferragamo

Open Document