Please answer the following questions as if you were a Family Business Practitioner (consultant).
Part 1
Question 1:
Other than the need for a family business constitution, what other issues or challenges do you believe need to be addressed? Identify and explain 3 issues/challenges (1 mark for identification, 2 marks for explanation)
(Total marks: 9)
Question 2
Assuming you are being interviewed by Rizwan, how would you address his concerns that they have already tried to hire outside consultants twice and both times failed?
(Total 5 marks)
Question 3
If Rizwan were to ask you if you intend to speak to the women in the family, given their culture, what would you respond? Explain your reasoning – answer as if you are addressing Rizwan directly.
(Total 5 marks)
Question 4
Do you believe that the questionnaires and interviews conducted by Ammir Saddiq are sufficient for your purposes? Explain your reasoning.
(Total 5 marks)
Question 5
There seems to be much disagreement on whether the whole family needs to have a say in the constitution or whether it should be left up to the family constitution committee. If Rizwan asked you who’s opinion you believe is most important when developing the constitution and whether consensus is required, what would you respond?
(Total 5 marks)
(Part 1 Total 29 marks)
Part 2
a) The 3 options to deal with the creation of the constitution are already identified in the case. For each option, explain the option as well as its pros and cons. (1 marks for explanation of the option, 4 marks for the pros and cons)
(Total 15 marks)
b) What option would you recommend? Based on what criteria would you choose this option? (key decision criteria)
(Total 5 marks)
(Part 2 Total 20 marks)
Part 3
How would you implement your recommendation? Please answer the following as a consultant speaking to a client.
a) Outline the steps (the process) you are going to use to implement your plan. Please be detailed and use as many names from the case as possible.
(Total 28 marks)
b) Identify the 6 Guiding Principles that would have the largest impact on the Qadri Group.
o Identify why these would be important to the Qadri Group (2 marks each)
o Please apply the Guiding Principles to the Qadri Group with concrete recommendations (5 marks each)
You will need multiple detailed recommendations to get the full marks – choose your guiding principles wisely.
(Total 42 marks)
c) What governance structures would you recommend for the:
o Family
o Business
o Ownership Group
Identify the structure (1 mark), who would participate (1 mark), the frequency (1 mark), the objective or purpose of the structure (2 marks) as well as the topics of discussion for each (2 marks)
(Total 21 marks)
e) Identify at least 3 risks/challenges associated with your recommended solution and how would you mitigate them? (2 marks for identification and explanation of the risk, 2 marks for mitigation strategy)
(Total: 12 marks)
(Part 3 Total 103 marks)
Part 4
Answer the following questions in line with your Family Business Succession Plan recommendations (Part 3).
Question 1
Irfan Qadri, one of the 3rd generation males, manages Rizwan’s household and is currently being compensated by the business. What are the potential conflicts? How would you address this issue (recommendations)?
(Total 5 marks)
Question 2
How would you deal with the differing opinions on in-laws. There are multiple male in-laws (married a daughter) who work in the business. What about female in-laws? What recommendations would you make? Justify your answers so that the family would understand the reasoning.
(Total 5 marks)
Question 3
Several members of the family have stated their opinion about women working in the Qadri Group. How are you going to deal with the issue of women in your recommendation for your family business succession plan? Justify your answer and keep in mind you are answering the client.
(Total 7 marks)
Question 4
Assuming there are currently 10 Gen 3 male family owners (10% each), however only 4 of those family members actively work in the Qadri Group in a managerial capacity, 2 as employees and 4 that do not work in the business. As a Family Business Practitioner, what would you recommend as the desired ownership structure? Justify your answer so that the whole family would understand why. (Consider including a diagram with your answer.)
(Total 8 marks)
Question 5
What steps should be taken to get from the current ownership structure to the desired one (from your answer in Question 4 above)?
(Total 8 marks)
Question 6
5 years has passed since the Qadri Group has implemented your brilliant new family business succession plan. Rizwan (an owner) has mysteriously and suddenly passed away. What will happen to his shares? Explain the mechanics of what happens at the death of a shareholder. Assume the fair market value of Rizwan’s shares is $5,000,000. The business held $1,000,000 in life insurance for each of the owners.
(Total 7 marks)
Question 7
Given the Qadri’s situation, what 3 Shareholder Agreement clauses would be most important for this family to include in their Shareholders’ Agreement? (1 mark for identifying the clause, 3 marks for explaining why and how the clause will help the family)
(Total 12 marks)
