ZOBELE CASE DISCUSSION (with answers emerged in class)
1. In which stage of development is this family firm?
It is a cousin consortium. Third generation family firm approaching a next generation soon. It is
still a growing business. According to Churchill and Lewis it could be defined as a success on
the edge to turn to a take off.
Existence (1919)  survival (after 2nd ww)  success  (nowadays)  take off
2. Would you define Zobele as ‘adverse to change’, ‘reactive to change’, ‘adaptive to
change’ or ‘proactive to change’? Why? Has it always been like this?
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started as a proactive (low uncertainty, low resource dependence)
moved to adverse for a short time after the 2nd ww
with Luigi moved back to proactive thanks to a brand new product/technology
gradually shifted to reactive for more dependence from Stevenson as a supplier
now in-between reactive and proactive, struggling to become proactive
3. List the major strategic renewals of the company and describe the nature of these
renewals. Which is the role played by family members in such renewals?
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the point is to define the criteria according to which renewals are identified (product,
technology, governance, ownership, family, etc.). In class several criteria emerged and thus
consideration differed a lot.
4. Which have been the main drivers of Zobele’s growth? Are these characteristics
common to all growing firms? Discuss.
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it is in a growing market niche (common)
grows without taking market shares from competitors (common)
resource orientation: focus on core competencies (common)
opportunity orientation: propensity for pursuit of opportunities (common)
family well integrated with business (not that common)
family harmony + good management style (uncommon)
5. Would you say the one of Zobele is an organic growth or an acquisition growth? Why?
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organic growth first
then alternation between acquisition growth phases (based on M&A, joint ventures and
imitations) and organic growth phases when the growth is consolidated internally thanks to
reinvestment of revenues and excellent family competencies.
6. How would you describe the innovation process at Zobele? How are innovations
pursued at Zobele?
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Providing that innovation is “the creation and transformation of knowledge into new
products, processes, or services that meet market needs”, Zobele pursues this process in an
incremental way thanks to acquisitions, imitations and fuelling of new competencies from
family members’ expertise.
o
o
o
o
Investments in R&D
Knowledge of the market and competitors’ products
Analysis of the sources of opportunity
Continuous questioning of current position/strategy
7. How would you describe the technological choice process of Zobele, in terms of
selection, acquisition and exploitation?
Selection:
o new but familiar technologies
o sometimes new and unfamiliar markets (thanks to acquisitions and joint ventures)
risk of selection
o low/medium business exposure
o low/medium technical uncertainty
Acquisition (in decreasing importance):
o mergers and acquisitions
o joint ventures
o internal development
Exploitation:
o internal exploitation
o no unique product
o no patents commercialization
8. Which are the determinants and consequences of the recent renewal Zobele is now
pushed to? How will this change affect the dynamics between the family and the
management?
It’s a high growing environment, very turbulent and demanding (see case page .
Requires several changes in the company:
o New success formula
o More managerial style/mindset
o Family values will have to decrease
o More cousins and more professional linkages among professionals.
o How to finance the growth?
o Recruitment of competent managers from outside the family
o More structured planning and decision making systems
o Board with non family members
o How to continue to exploit the family social capital?
o Need of institutionalization of family values in the organizational life.