Case Scenario 1 IPS Communication Distribution: Claude Guinets Career in Entrepreneurship

This case illustrates that entrepreneurship is not a single action event. Guinet has owned more than one business, and he sold the assets of one business (i.e. print shop) to develop another potentially more lucrative venture (i.e. to develop the existing stationery stores and to develop the communication department). Claude Guinets father was a small print shop owner and he learned skills and competencies in the family firms. The skills, energy, drive and vision of a first generation family firm owner are exhibited. Guinets family culture and experience shapes his relationships with managers, employers, financiers, suppliers and customers. In order to reduce his personal risk exposure, IPS Communication Distribution is involved in activities related to communications and distribution. Philippe Guinet, Claudes son, is a shareholder in IPS and he manages the communications department. Several strengths of family firms are exhibited. The need for Claude Guinet to consider separating the communication and distribution activities of IPS into two separate and independent firms. There is a need for professional management culture be promoted and adopted by IPS and Claude more actively involves his wife, son and daughter in the ownership and management of IPS. Claude should seriously prepare a formal succession plan.

What issue need to be faced by Claude Guinet? (10 marks)

explain in 1000 words