Grupo Velázquez

  • Reference: DG-1241-E

  • Year: 1997

  • Number of pages: 16

  • Geographic Setting: México

  • Publication Date: Jul 1, 1998

  • Source: IESE (España)

  • Type of Document: Case

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Description

The founder of the Velázquez family group achieved an extraordinary level of development for its companies over a period of almost 30 years. But his devotion to the businesses was in detriment to the time and effort spent on bringing up his three children. On the founder's death, his children inherited the group, and one of them, Lorenzo, took over its executive management. Lorenzo continued to manage the family business with a certain degree of success, at the same time living at an impressive lifestyle of luxury and ostentation. After some time, he committed a number of irregularities in the group's business management, in order to sustain his lifestyle, and, above all, to cover the expenses generated by the caprices of his only son, who joined the company aged 30, without having managed to finish his university education. There were increasing problems, and tensions built up between the co-owning siblings. Finally, the group has reached a critical state, in which the company's continuity appears impossible.

Keywords

Ethics Family-owned Business General Management Top Management