Objectives:By the end of this session, students will be able to:· Describe Alexander Hamilton’s financial program and the reasons for opposition· Describe American foreign policy in 1790’s.· De

GROUP CASE STUDY

LEADERSHIP & MANAGEMENT FUNDAMENTALS - MGMT-6089-01-19W

Simpson Seeds Inc. - Growing the next generation

Due Date: 03/03/19

Submitted to Submitted by

Prof. Clyde Walton Sunil Kumar (0901221)

Joshua Burkholder (0891643)

Aniket Kanawaje (0880777)

Sai Aravind Papineni (0846158)

Table of Contents

Topic Page No.

1. SITUATION ANALYSIS…………………………………………………………………………………………. 2

1.1 ORGANIZATIONAL INFORMATION………………………………………………………………………... 2

1.2 SUMMARY……………………………………………………………………………………………………………. 3

1.3 SYMPTOMS…………………………………………………………………………………………………………… 3

1.4 INFERENCE……………………………………………………………………………………………………………. 4

1.5 ASSUMPTIONS……………………………………………………………………..................................... 4-5

2. PROBLEM STATEMENT……………………………………………………………................................. 5

3. ANALYSIS………………………………………………………………………………………………………………..

3.1 SWOT…………………………………………………………………………………………………………………….

3.2 PESTLE…………………………………………………………………………...........................................

4. ALTERNATIVES……………………………………………………………………………………………………….

5. RECOMMENDATION AND PLAN OF ACTION……………………………………………………………

6. CONCLUSION………………………………………………………………………………………………………….

5.1 Situation Analysis

P#1: Name of Organization: Simpson Seeds Inc.

Location of Organization: Moose jaw, Saskatchewan

Type of Product/Service Provided: Lentils, Chickpeas, Yellow peas, Red lentil- Splitting plant

Industry: Agriculture

Sector: Private

Number of Employees: 85

Unionized or Non-unionized workforce? Non-unionized workforce

List the main characters & their job titles:

2nd Generation:

* Greg Simpson – Chief Executive Officer and Marketing and Sales department

* Tom Simpson – Operations Manager of Family farm

* John Simpson – New Capital projects (Moose jaw, Swift current and Kyle)

3rd Generation:

* Tyler Simpson – Operational Manager

• Elyce Simpson – Director of Marketing and Business Development

• Trevor Simpson – Farm and Seed Program Manager

• Jamie Simpson – Seed Sales Manager

• Nicole Simpson – Director of Quality Assurance

P#2: Summary

Simpson Seeds Inc. was a company established by three brothers: Greg, Tom and John with the help of their father Jim Simpson in 1980’s. There was farmland which was to be distributed among 4 siblings which included their sister Sandra. She was part of Simpson clan but not Simpson Seeds Inc. From being a start-up now SSI has grown into a well-established venture which exports its product to around 80 countries worldwide. Starting up in Moose Jaw, now they were present at Swift current and Kyle locations. There was a proposed new Red-lentil splitting plant to be established soon. The three brothers were growing older and Greg thought that it was time now to involve the next generation into the business decisions. At this point, 5 cousins from the 3rd generation were working in SSI at different levels. It was Greg’s thought to include only those who are working in SSI for passing on the hierarchy of the business. For getting through the complications, as guided by the Company’s advisor a Family council was formed to discuss the issues to be addressed in the coming future. An Advisory Board consisting of 3 independent directors along with 3 brothers and a member from the 3rd generation was formed to discuss the important decisions to be made in the best interest of Simpson Seeds Inc. to ensure they stay successful in the future. SSI’s vision of nourishing the world along with the 4 values is at the core of every one of their business decisions.

P#3: List all the symptoms occurring in this case

• Confusion to sort out roles and direction for the future generations.

• Uncertainty and doubts among the 3 brothers regarding the future of SSI.

• Sharing of business profit. (How it should be dividing among owners)

• Retirement planning for the second generation.

• Salary aspects of the 3rd generation working in the SSI.

• Handing over to next generation in a way which ensures they understand the value of SSI.

• Sandra feeling left out of all the business going on.

• What to do with the cousins who are not working or are not interested to work in SSI.

P#4: Inferences

• Lack of organization, poor decision making, low quality work leads to lower production.

• In situations like this, work quality and mental health deteriorates, arguments occur more frequently in the workplace.

• Poor judgement, bad management decisions and absenteeism.

• Less focus on work, lack of innovative ideas, lack of core values.

• Arguments within family lead to lower family cohesiveness and teamwork.

• Lack of skilled workers could affect the production process.

• The company is in need of a future leader who can make decisions in the best interest of the well-established company.

• To hire more quality workers who can contribute to the growth of company and inspire others to become more knowledgeable in their roles.

ASSUMPTIONS:

1. We assume that Simpson brothers are worried about their lives after retirement and making sure they have the appropriate funds to support these needs because they are getting older.

2. We assume that Sandra asks her brothers to include her kids in the family business in some regard because they may have interest in doing so.

3. We assume that the organization does not have a full-service HR department to mitigate these issues that have come up because there seems to be confusion with the approach to 3rd generation employment.

4. We assume that there was no concrete plan for the future steps of SSI. It was all about tackling the current scenario and now they are meant to figure out the future leaders of the company. This is because they have had difficulty planning the future of the business and the roles to be filled within it.

5. All the brothers are of same view for the involvement of third generation in the business. Those who are working for SSI and are interested to work for the company should be involved. This is because the family would like to help each other and help the 3rd generation provide for their families.

6. An alternative assumption is that John Simpson wants his daughters Jana and Laura to be part of SSI because he has hinted at this in the past.

5.2 Problem Statement

What can the newly formed Advisory board and the Family council will do in short term to address all the uncertainty regarding the current scenarios emerging among the family and business and in the long term who among the cousins will be playing a major role in growing the Legacy of SSI.

3. Analysis

3.1 SWOT Analysis

S

T

W

O

• STRENGHTS:

1. Family Bonding: The biggest strength of company is family bonding. Every individual of family understand each other very well. They know the strengths and weaknesses of each other and support each other as a team. This will lead to progress of the business. Greg gave a speech and he put Family on top in their core values. They believe that family is the fabric of nation. Even Sandra is not involving in the business but still they appreciate their career in health care.

2. Qualification: Education is the base of every business because education gives us the ideas and techniques to establish the business. After graduation, Greg Simpson worked for Agri-Food Canada to develop seed plant industry. He has a strong relationship with Professor at Saskatchewan University.

Sandra Simpson, she completed her training at Oxford University, United Kingdom. She established herself in a wonderful nursing career.

Overall, every individual is well-qualified and they a great knowledge.

3. Practical skills: Practical skills are very important for business. John Sampson, who is the youngest one has a great practical knowledge. He had always been a tinkerer with sharp mind. He designed, installed and organised all equipment that he needed. Tom Simpson has many skills related to agriculture. He also provided management directions.

4. Family Background: They have rich family background. Their grandfather and great grandfather had felt the bad times. They taught their 4 children the value of hard work. They started their business from gathering of eggs to milking cows and plucking chickens.

• WEAKNESS:

1. Chances of conflicts: Family is completely occupied by family members. In future, chances of family conflicts may rise. They are also deciding that they will pass their business to their off-springs (3rd generation). There will be chances of misunderstanding as Greg decided to pass business to 3rd generation but if their off-springs do not agree to do that business than it will be a problem.

2. Selection of New CEO: New CEO of company has become the problem because everyone wants to

be CEO. They have no idea that how to choose new CEO.

3. Lack of management: Company has lack of management skills. They are running the farm as a family

not professionally. This will lead to poor business deals. There are chances that family members may

ignore their duties. They do not know how and when their cousins should involve in the business.

4. Determination salaries: It is difficult to set the pay scale among all family members because there is

lack of management.

5. Sandra is creating problem as she is not involved in the business because she is running her career in

health care. The lawyer of company had also advised them not to mix non-active owners with active

members. Sandra would have made things even more complicated

• OPPORTUNITIES:

1. Export opportunities: Co-owner discussed with their three children and they decided to build new red lentil-splitting plant to capitalize on Canada’s position as one of the largest supplier of good quality red lentils and they have business opportunities in India and Pakistan.

2. There are opportunities for 3rd generation. Greg wants to give leadership skills to 3rd generation. 3rd generation have chances to grab new skills, experience about Red-lentil seeds. Greg had grown to love working with his brothers and family members and shared goals and objectives and it is opportunity to strengthen their relationship and family legacy.

3. Business development: There are many opportunities for SSI as they are launching new business of red-lentil seeds in the market. It will be the extra source of income for them. They are continuously exporting pulses and making their business stronger.

• THREATS:

1. Chances of New Competitor: At present, Greg is planning to pass their business to 3rd generation. First of all, chances of misunderstanding among all cousins may be high and second thing is that they all are new in business and they do not have enough knowledge that they can run the business well.

New competitor can take advantage of this condition.

2. Risk of investment: Greg and his brothers want to make SSI a multi-generational enterprise and wanted a long-term, professionally managed family business. These thigs need a lot of money. It might be create risk of investment in such a huge business.

3. Risk to family legacy: There is a risk to family legacy as Sandra is not involving in the business. The thoughts may occur in the mind of her brothers that it would be unfair to rewarding those people who have done nothing.