The Success of Sam Steinberg - Assignment Example

Sam Steinberg and Precista Tools AG Sam Steinberg and Precista Tools AG Sam Steinberg Why Steinberg has been Successful Sam Steinberg was able to transform his mother’s grocery store to be the largest chain in Quebec. In the year 1934, he opened his first grocery supermarket using mechanisms such as effective management of the personnel and mechanization. The main reasons behind his success lie in his determination sound development strategies such as the aptitude to choose optimal areas for his grocery stores. Moreover, from his early age, he was able to learn the ethics of working hard, and had a natural business talent that was entrepreneurial oriented (Bryman et al., 2011). In addition, according to Roberts (1993), Sam was successful because he had a unique retailing talent and was able to work with his family members. To add to this, he had an immense interest in serving customers. He was also able to introduce the American way of retailing to an area such as Quebec; hence, his need to compete was the centre for his immense success. Why Steinberg was able to create an Enterprise in Montreal Out of all the immigrants in Montreal, Steinberg was able to create his grocery enterprise because of his determination. Additionally, unlike him, most of the immigrants were not able to adapt fully to the life in Canada; hence, they preferred to spend their time doing odd jobs. Another major reason behind his success unlike his fellow immigrants can be traced back to his humble beginnings. His mother, Ida, taught him on ways to make money, therefore, encouraged him and his siblings to hawk newspapers, do odd jobs, and spot pins in a bowling alley. Such jobs gave Steinberg an idea of what business was all about, as well as some experience on ways to relate to consumers and ensure a competitive edge. Steinberg also alleges that his mother set powerful values to her children all of whom worked hard in her grocery store and held diverse positions after his father left. Therefore, in some way, his mother’s encouragement, his determination, interest in business, and an opportunity to work made him better than other immigrants (Roberts, 1993). What Success Means to Sam Steinberg Based on the business traits of Sam, it can be argued that success to him was something that went beyond the knowledge derived from books. For instance, Sam dropped school at the age of 14 years, but that did not deter him from pursuing his long-term dream of being a successful businessperson. In that case, success to him was a higher calling that was grounded on hard work, perseverance, involvement of the family members, and a strong sense of commitment as well as self-belief. What Role the Family Played in the Success of Steinberg Steinberg’s mother introduced him to the world of food oriented business; hence, he had an opportunity from an early age to learn on what was required to be successful. In addition, he introduced several of his members, including his siblings into his firm who helped him in the running of the company. Moreover, research shows that he depended on his wife, Helen, who advised him on ways to run the unions and dress for important meetings (Roberts, 1993). Negatives related to the Family Nature of the Enterprise Steinberg was the most dynamic person among his brothers, and dominated the business for many years. He abused his power and acted as the lead sibling; hence, surpassed his siblings in talent as well as business acumen. Moreover, according to his daughter, Mitzi, Steinberg was a dictator; thus, the quasi-parental system proved ill for the continuity of the business. Consequently, family resentment in regard to Sam’s dictatorial leadership style led to the downfall of his enterprise (Davis, McCollom & Lansberg, 2013). The Transition from Ida to Sam Although most family businesses are unable to succeed in the shift from one generation to another, the transition of Ida to Sam was a success. This is because Ida’s parental role translated into an intense commitment to put her family first, and the early experience shaped Sam’s views as well as management style. Moreover, his mother was up to date and was willing to foresee changes in the company and plan for them. In addition, Sam was fully prepared and had the necessary knowledge, experience, and motivation to take the company to a higher level (Roberts, 1993). Family Values and their Impacts Sam’s mother died in 1942, after she suffered from pneumonia. However, her lifetime efforts created affirmative platform for family values on which Steinberg could continue building his family retailing success story. She taught him important values on working hard, patience, dedication, and remaining consistent. Consequently, Sam was able to ensure success and expand rapidly. From an early age, he was taught how to be responsible; hence, grew up being focused and knowing what he wanted to achieve in life (Roberts, 1993). Whether or not Steinberg is a Family Business Steinberg Inc went bankrupt in the year 1992 after seventy-five years of being in business. Subsequently, disagreements about ownership cropped up after the death of Sam and his daughters decided to sell the family company in the year 1993 to Provigo and Metro Richelieu. However, two companies are still operating; hence, it can be argued that to some extent it is still a family business (Vries & Carlock, 2010). The Overlap between Business and Family The overlap between the business and family seems to be relatively benign because the relationship ends up becoming vulnerable in case of family issues and negative entanglements. Therefore, the main goal behind family relationships is to ensure that there is a right overlap, one in which the family is supported and the business is successful. Any minor changes in the business can have an immense impact on the family (Longenecker, 2009). What could Sam have done to Prepare better for the Challenges the Company Face? Despite Steinberg Inc having the structure and size of a public firm, it was still run by Sam who believed that none was better than him. Although he wanted trust and open communication, he failed to realize that his assumptions on the role of the family and proper management were in conflict. He practiced a dictatorial form of leadership; hence did not give others time to air their opinions. Consequently, after his death the company went through a long period of cultural turmoil. In that case, Sam could have adopted a consultative leadership style and empowered others to be better managers. Consequently, after his death, his legacy would have continued and his children would have had better management and leadership skills (Schein, 2010). Issues raised by Succession Various issues arise with regard to the concept of succession. For instance, it is important to understand how succession affects continuity of the business. In that case, one of the main questions is, when it comes to a case of family business, should family members be the main successors or outside members? In addition, what happens when a family member is not selected and an outsider is? Such questions are imperative, as succession is an integral issue that tends to create controversies in families. Therefore, it is important to consult widely when deciding to select and not just rely on personal whims. Who should have been selected as a Successor? After the directors raised the issue of succession, real influence was in the family yet Steinberg did not consider his daughters to be the successors. Therefore, he appointed his son in law; Mel; thus, he continued running the firm. The best person who was placed to succeed him was his first-born daughter, Mitzi, since she could easily adapt to the culture of the company as well as the family (Roberts, 1993). Sam’s Goals/ Criteria in the Process of Succession According to Robert (1993), Sam’s daughters did not get along well; hence they were always competing. This means that if Sam chose any of them to be his successor, he would cause family conflict. In that case, his main goal was to unite his family and avoid future family conflicts. In addition, by choosing his son in law, than meant his other goal was to continue running the company as the sole owner; therefore, he was not ready to let go. What should Sam’s Goals be? Sam’s main goal should have been to ensure continuity of the company even after his retirement and death. Based on this, he should have separated the issue of family and business and focus on first uniting his children and ensuring that he appoints the first-born as the successor. In addition, he should have come up with a strategy to train the people he entrusted the business to; since the people who led afterwards were inexperienced and had no similar skills as those of Sam. Outside Directors and Selection The non-family directors play a major role in the succession process. In that case, it was imperative that they be available to oversee implementation. Moreover, they can help in counseling and preparing the family members that are involved (Aronof, McClure & Ward, 2003). Picking of Mel and Explanations to the non-Family Executives Mel who was Mitzi’s husband was Sam’s favorite candidate. Sam argued that the reason behind his selection was the fact that there was a blood tie. In addition, this meant that Steinberg Inc was to remain a family business (Cooren, 2013). Prediction of Steinberg Inc in the two Decades After the death of Steinberg, the company in Ontario was sold to A and P Canada. In addition, Socanav branch was sold to Provigo and Metro Richelieu; thus by 1992, some of Steinberg’s departments were bought by its competitors. However, there are two of its companies that are still in business, and which include Ivanhoe and Pik-Nik. In that case, considering the challenges that the company went through after the death of its president, it is highly likely that the two companies will continue losing grip in the market due to power struggles and poor management (Vries & Carlock, 2010). References Aronof, C., McClure, S & Ward, J. (2003). Family Business Succession: The Final Test of Greatness. New York: Family Enterprise Publisher. Bryman, A., Collinson, D., Grint, K., Jackson, B & Uhi-Bien, M. (2011). The SAGE Handbook of Leadership. New York: SAGE. Cooren, F. (2013). Interacting and Organizing: Analyses of a Management Meeting. New Jersey: Routledge. Davis, J., McCollom, M & Lansberg, I. (2013). Generation to Generation: Life Cycles of the Family Business. Massachusetts: Harvard Business Press. Longenecker, J. (2009). Small Business Management: Launching and Growing New Ventures. Kentucky: Cengage Learning. Schein, E. (2010). Organizational Culture and Leadership. United Kingdom: John Wiley & Sons. Roberts, M. (1993). Sam Steinberg (A) and (B) Condensed. Harvard Business School, pp. 1-17 Vries, M. & Carlock, R. (2010). Family Business on the Couch: a Psychological Perspective. United Kingdom: John Wiley & Sons. Precista Tools AG Precista Tools AG was founded in the year 1913 by Franz Huebel. The story of the company is one that focuses on family dynamics, conflicts between children and parents, problems regarding management and succession, and the overlap between family and their businesses. In addition, there is an issue of women being overlooked in regard to their leadership qualities. It follows that Huabel as well as his daughter Greta had diverse insights in regard to business after Greta became the manager. During that time, Huabel had an immense attachment to the organization and was hesitant to fully give up control; hence, interfered with Greta’s management style. Consequently, differences in vision, management, and values cropped up, causing conflicts, which led to strained relationships and struggle for power. Their relationship became worse since he wanted his son, Peter, to be the main successor of the firm, causing sibling rivalry. As a result, this destroyed Gretas’ attitude in regard to work and as a woman minority who had no background in engineering, she felt underestimated on the grounds that she was a female and it was believed that only men can make it in the engineering arena. Therefore, in regard to the case, it is important to look at it in the structural frame perspective and the importance of organizing teams and groups to ensure optimum results. On the same note, there is an issue of communication breakdown that caused Greta to resign from the firm. The case gives a clear guideline on the importance of communication and ways in which organizations can ensure equality between both men and women. In addition, there is the issue of succession and the challenges that come with it. It is important to choose a successor on fair grounds and not necessarily because they are male of female (Barnes, 1989). Reference Barnes, L. (1989). Precista Tools AG (A). Harvard Business Review, pp. 1-8 Read More