Case Study Ferre Media Group

The Ferré Media Group Teaching Notes Suggestions for Use This case is a rich display of family culture, family influence in regional economics and politics, sophisticated management practices and a continuing entrepreneurial culture across generations of owners. This case also highlights challenges to the effective governance of the family-business relationship and the unique role of in-laws. It stands in sharp contrast to the Bingham Case, also a newspaper/media company, in its proactive use of best practices for family business continuity. The aim of this case is to promote discussion of best management, and family practices in the service of intergenerational entrepreneurial activity and business continuity. The Ferré Media Group case also aims to promote learning about governance practices that can go into building shareholder loyalty and keeping the family-business relationship healthy. Executive Brief This is a very successful and enterprising family business. El Nuevo Día and Primera Hora newspapers enjoy a commanding share of the news market and receive approximately 70% of all advertising dollars spent in the local market. Five next-generation members of the Ferré Rangel family are successfully leading the corporation, running business units or in leadership positions on the editorial side of the business. The company consists of newspaper and web publishing, digital printing, commercial real estate development, a recycling company and an investment/venture capital company. (Until 2002, the Ferré family also controlled Puerto Rican Cement.) While the origin of the family business could be traced back another generation, a separation of companies and assets among siblings of the second generation to which Antonio Luis Ferré, Chairman, belongs, makes the Ferré Media Group akin to a first to second generation case study. A. L. Ferré effectively bought a small regional newspaper from his father for $400,000.00 in 1968, while presiding over the family-controlled cement company, and turned it into one of the top 45 dailies, by circulation in the U.S. His spouse, Luisa Rangel, held a variety of positions in the newspaper over the years, and was more recently actively involved in the family foundation and the company’s board of directors. She played a very active role in family communications, successor development, and the transfer of power across generations. Family members and key nonfamily employees considered her the “chief trust officer” of the family. In 1993, the Ferré Rangel family began to meet regularly as a family to discuss family and business issues in a multiyear succession process that would last through 2007. In these meetings, they developed a family mission statement and a family constitution, a

The Ferre Media Group Essay

681 WordsFeb 4th, 20133 Pages

The Ferre Media Group The Ferre Media Group case talks about a family business starting out as the Puerto Rican Cement Company in the 1940s, with a grandfather and son, Luis A. Ferre or Antonio’s father. But, Over the years and a few generations on, by the mid- 1960s tension and sibling rivalry started. Antonio Luis Ferre and his brothers divided the companies and their shares rather than to risk further family disharmony. After 8 years one sibling, Antonio Luis Ferre bought his father dying newspaper El Dia, in hoping to turn the newspaper company into the largest and most influential newspaper in Puerto Rice. After 2 ½ years into it, El Nuevo Dia had become an important editorial voice. The Ferre Rangel family represents the fourth…show more content…

Since Antonio was so committed in orderly transferring the power to the next generations, his next priority was to make sure the next generation paid attention the details. Antonio felt that the newspaper business lived and died by those details and by its reputation for responsible citizenship and journalistic independence. In order this to succeed Antonio presented himself as a role model, he believed this was the best way to lead by example to show his work ethics, compassion and love towards his work and to others. To ensure the continuation of the spirit of enterprise and Ferre Media Group’s history of innovation, Antonio should welcome other ideas and values. So, having the family meetings helped tremendously build new ideas and encourage individual aspirations. Antonio said he wanted these meetings to help stop conflicts between the siblings and built strong relationships with one another. Antonio wanted the family to express and listen to other opinions and understand the different perspectives because without it, to him, it was consider a competition. Family unity was the utmost priority and with much communication, listening and compromising, trust was built. And so in collaboration with fourth generation members to continue to grow the family business Antonio helped launch the new paper Primera Hora in 1998 and a Spanish language newspaper

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