FsB 2023

Abstract

FsB is a family business that specializes in paper recycling. It was founded in Portugal in 1976 by Sequeira Baptista to provide jobs and financial stability for the whole Baptista family. This case emphasizes the importance of having a clear succession plan and also shows how the decision-making process works in small and medium-sized family businesses.The case study focuses on protagonist José Baptista, the company's current CEO, who is considering who should take over the business once he retires in 2025. There are two candidates: his son, Francisco Baptista, who is 28 years old and completing his master's degree in management but has not been groomed to continue the family business, and his cousin, Tiago Branquinho, age 42, who is the current COO of the company, but has no academic background in business and might not fit the profile for changing the future of the company.The company may not have the financial capacity to survive the next three years, so José wonders what Sequeira Baptista did differently when he founded the company. He realized that the main difference was that Sequeira hired his son to work in the company at the age of 20 and groomed, guided, and taught him until he became CEO, which clearly showed a succession plan in his mind. However, José did not groom his son to follow in his footsteps. With no succession plan in place, should Francisco still take over the company? Should Tiago, who is much older and more experienced, be the one to take over? Or should José finally bring in someone from outside with academic and field experience to the family business?

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