Question: need an intro for this case, do not really know how to write one Case for Analysis The Irving Dynasty to End?* In November 2007,


need an intro for this case, do not really know how to write one
Case for Analysis The Irving Dynasty to End?* In November 2007, there were media reports that the three Irving brothers, J. K., Arthur, and Jack, were going to break up their 125-year-old family business. "The reason, as in most family splits, is a succession impasse."* While the three brothers had been able to make decisions collegially, their five children have not been able to do so. J. K.'s two sons run J. D. Irving Limited, the forestry side of the business. Arthur's two sons run the refinery side of the business and Jack's son, who has a Harvard MBA, "is a bit of an enigma." As the tensions between the cousins escalated, the three brothers were afraid of having the sort of internecine clashes that the McCain family had endured. As part of a planned restructuring, the family members would be offered the choice of cash or business interests. No assets will be sold to outsiders. J. D. Irving established a sawmill in the late 1800s and K. C. Irving founded Irving Oil, both in Boutouche, New Brunswick. In 2008, the town was selected as the only finalist from Canada for the global Tourism for Tomorrow awards. Boutouche, located near Moncton, has a long Acadian history as well as being the original home of the Irving empire.* K. C. Irvings first business was a small service station; he lived in the apartment above the station. In just over 80 years, it has grown into a $6 billion regional energy processing, transportation, retail, media, and marketing company headquartered in Saint John. It is privately owned and has 7,000 employees, 800 retail sites, operations from 13 marine terminals, and a fleet of tractor-trailers. It operates Canada's largest refinery and produces over 300,000 barrels of finished energy products daily.* It has also operations in Eastern Canada, Qubec, and New England. According to the Canadian Business 2007 list of the richest Canadians, the Irvings are the fifth richest family in Canada, after the Thomsons, Edward (Ted) Rogers, the Westons, and Paul Desmarais, Sr.* In 2006, Irving Oil announced that it was planning to build a second refinery in Saint John so that it could double its capacity. While the provincial government has responded positively to the proposed refinery, environmentalists are suing the federal government; they allege that federal government ignored its own laws by restricting the environmental assessment of the proposed refinery.* The lawsuit was launched by Ecojustice for the Conservation Council of New Brunswick, the Fundy Baykeeper, and the Friends of the Earth Canada. Both Irving Oil and the Irvings themselves are part of the lore of New Brunswick. Much of the Irving mythology revolves around the life and times of K. C. Irving [He is seen) as [a] powerful tycoon, a work-obsessed, hard-nosed dealmaker who took no prisoners, who crushed unions and competitors without pity, who would sue anyone who dared touch an errant Irving-branded log, and who used vertical integration as if it were an evil conspiracy. He is seen by some as a man with too much power, a man who couldn't give a square damn about the environment, who owned rather than employed people, and who took his fortune and hoarded it in a Caribbean tax haven. There is even a website--www.irvingsucks.com-which provides a mixture of news and criticism of Irving Oil. To counter its reputation for secrecy about its human resource policies, the company sends its leaders on executive development programs. Kenneth Irving Arthur Irving's eldest son, was one of the first people to take the course and has emphasized the value of such courses for helping managers address issues as varied as refinery operations to email overload. * * The future of the Irving family and its empire remains uncertain. There are 24 grandchildren who may want to work in the various businesses. What is certain is that "(the) ownership structure created by K. C. Irving can't survive." Assignment Questions 1. Why would a family business like Irving Oil generate such antipathy? 2. What changes are necessary if the organization is to continueStep by Step Solution
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