Navigating financial distress in family firms : understanding key factors, reactions, and the decision-making approach / Houda Arougay, Alfredo De Massis, and Badr Habba.

Format:

Book

Author/Creator:

Arougay, Houda, author.

De Massis, Alfredo, author.

Habba, Badr, author.

Series:

SAGE business cases.

SAGE business cases

Language:

English

Subjects (All):

Business planning--Social aspects--Case studies.

Business planning.

Physical Description:

1 online resource : illustrations.

Place of Publication:

London : SAGE Publications: SAGE Business Cases Originals, 2026.

Summary:

MBF, a small family-owned business located in the dynamic city of Marrakesh, Morocco, has been run by Sophie since 2012, following a succession phase influenced by her father's (the founder) psychological influence. The company operates in the woodworking and wood sales sector. Despite two decades of success characterized by increased productivity and profitability, the family business is now facing financial distress. This distress has been attributed to a variety of factors, including financial challenges (e.g., dependence on banks for overdraft facilities), cultural influences (e.g., lkelma (i.e., Commitment based on trust and good faith), R'da (i.e., parental obedience), Mektoub (i.e., predestined fate and divine destiny)), organizational problems (e.g., employee turnover and daily task overload), emotional and psychological factors (e.g., psychological control, relief, early grief), and external pressures (e.g., competition, drought). The successor, Sophie, is now faced with a crucial decision: whether to close the company or draw up a rescue plan. The present case study focuses on MBF during this period of financial distress, exploring the underlying reasons for the situation, the methods used to detect the distress phase (i.e., Z-Score and financial distress process), and the decisions taken as part of the turnaround process. It also offers an explanatory focus on the transmission and the relationship between the founding father and his successor daughter. Students will be asked to calculate the Z-Score to select the current phase of financial distress, recognize the factors that led to this critical situation, and identify the importance of cultural and contextual factors in decision-making and in the relationship between founder and successor. Furthermore, they will be asked to examine the identities of founder and successor, and ultimately, they will propose a set of measures for navigating the future based on Lewin's change model.

Notes:

Description based on XML content.

ISBN:

1-0718-9806-X

9781071898062

OCLC:

1569208804

Publisher Number:

T297811