Scenario One: Custom RV Robert operates a successful business customizing vehicles (.e. work vans and camper vans). Customers arrive with an empty van (e.g. Sprinter vans, GMC panel vans and Ford Econoline vans) and Robert orders, builds and installs customized cabinets, shelves, sinks, beds and even solar charging systems to operate reading lights, other electronics and a small refrigerator. Everything is built according to the individual customers' preferences and needs for their vehicles. The company has 42 employees including tradespeople, salespeople, operations and administration staff. Robert has three children. Two of his children, Nathan and Emily, who are relatively inexperienced at working in the family business, are currently training in management positions. A third child, John, does not work in the business at all. Robert wants to scale back involvement in the business so he and his wife can move away and enjoy their retirement years together. He set up family partnerships and trusts and the family's perception is that the business succession plan is complete." A year later, Robert is ready to retire, but cannot because the siblings are floundering in their management development. When Robert finally does pull away, Nathan and Emily assert their leadership in the resulting vacuum despite their lack of preparedness. Several customers leave, sales fall off, and the top salespeople go to the competition. John wants Nathan and Emily demoted or fired to protect the value of the inheritance. Robert worries about the value of his stake as a source of retirement funding. Months later, company operations continue to suffer. The children are no longer speaking with each other and holiday get-togethers are cancelled. Source: Adapted from: Business succession planning: cultivating enduring value by Deloitte Development LLC (2013) A 1 Identify three potential issues that are common to operating a family business that may have contributed to the outcome presented in this scenario. Use examples from the Custom RV scenario to explain these issues. (3 marks) of 1 T. i- B I % Identify three specific strategies that you would recommend a family business owner such as Robert could use to overcome these issues? Explain how these strategies would be effective for Custom RV. (3 marks) Moodle XG Question 12 lot yet niswered Identify three specific strategies that you would recommend a family business owner such as Robert could use to overcome these issues? Explain how these strategies would be effective for Custom RV. (3 marks) Marked out of 200 Flag Jestion 1 FI TI B I iii : G % Leito. 13 Custom RV is considered a small business. Describe a least three characteristics of Custom RV identified in the case that might lead to this classification. Be sure to provide evidence from the case to support your answer (marks) X G - 13 Custom RV is considered a small business. Describe a least three characteristics of Custom RV identified in the case that might lead to this classification. Be sure to provide evidence from the case to support your answer (3 marks) ed out of 1 i- B E RE n 14 What types of competitive strategy options are generally available for organizations? What is the likely source of competitive advantage for Custom RV? Does this source of competitive advantage appear sustainable? Why? Do you have any recommendations odle e A 14 d What types of competitive strategy options are generally available for organizations? What is the likely source of competitive advantage for Custom RV? Does this source of competitive advantage appear sustainable? Why? Do you have any recommendations (7 marks)? out of T: B I & D 15 The family would like to put a value to the business to determine it perhaps they should sell the business as a going concern Briefly x Moodle X C 0 Destion 15 at yet swered The family would like to put a value to the business to determine if perhaps they should sell the business as a going concern. Briefly explain (use an example if necessary to support your explanation) three different methods a business owner can use to value his or her firm (3 marks)? arked out of 0 Flag estion 1 F- TE B I & on 16 What are two factors that should be considered in determining a firm's capitalization rate and what would be the impact of each factor you listed on the capitalization rate? Use examples from Custom RV to help explain what factors might influence the capitalization rate for Custom RV (4 marks), ted Moodle XC A stien 16 yet vered What are two factors that should be considered in determining a firm's capitalization rate and what would be the impact of each factor you listed on the capitalization rate? Use examples from Custom RV to help explain what factors might influence the capitalization rate for Custom RV (4 marks). ked out of 1 F T B I X Flag stion jous page Next page