HomeResearch & Knowledgeback to HomeFamily Businessback to Research & KnowledgeCarvajal: Building a holistic family enterpriseback to Family Business

Case Study

Carvajal: Building a holistic family enterprise

By Peter Vogel and Anouk Lavoie Orlick

7 pages

May 2024

Order this case study

Reference: IMD-7-2438

The Carvajal case is based on interviews with four family members and executives of Carvajal S.A., one of Latin America’s leading family businesses. The case focuses on how, over the span of 120 years, the Carvajal family built a holistic family enterprise to govern both its business and its family ownership structure. The system includes the typical governance attributes of a large family enterprise – including a family council, shareholders’ assembly and family constitution – and in addition, it puts special emphasis on entrepreneurship and social and economic welfare. Yet, with the family expanding in size and scattering geographically, the Carvajal family must continue to innovate and adapt their family enterprise model. The case explores the particular challenges related to family governance, ownership and CEO succession. It details how Carvajal established NextGen programs and fostered entrepreneurship as a “glue” to bind the family together. It also shows how Carvajal achieved collective impact by aligning the purpose of the business with the purpose of the family foundation, the family council and the wider family enterprise. From a broader perspective, the case illustrates how to manage family governance issues in a multi-generational family enterprise by understanding and applying the mechanisms that are available, and by maintaining a healthy balance between family leadership and independent governance.

Learning Objective

To explore how to solve complex family governance issues in multi-generational family businesses and master the structural tools that are available to help maintain coherence and unity.
To find a “glue” that will bind family members together and keep them interested in the family enterprise.
To discern how to achieve a healthy balance between family leadership and independent governance.
To observe how a purpose-led family enterprise focused on social and economic development can be built.
To analyze how mature family enterprises continue to grow and evolve.

Keywords

Family Business, Governance, Ownership, Family Office, Family Council, Family Constitution, Succession, Chief Executive Officer Selection, Board, Development, Education, Philanthropy, Entrepreneurship, Next Generation, Conflict Resolution, Decision Making, Environmental Social and Governance, Sustainability, Corporate Social Responsibility, Responsible Production

Settings

South America, Colombia
Carvajal, Manufacturing, Paper and Pulp Products, Manufacturing, Packaging and Containers, Consumer Goods, Furniture, Information Technology
120 years

Type

Field Research

Available Languages

English

Related material

Teaching note, Video

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Keep reading

Article

The anatomy of family business conflict

Understanding conflict in family businesses is a complex but essential study area for practitioners and academics. To enhance theoretical precision and provide practical insights, this article presents a comprehensive framework of family business ...

Customer Centricity Family Business

By Marco Mismetti, Barbara Del Bosco, Cristina Bettinelli and Alfredo De Massis

in Journal of Family Business Strategy

June 2025, vol. 16, no. 2, 100660, https://doi.org/10.1016/j.jfbs.2025.100660

Article

A tribute to the life and work of Jess Chua

Jess Chua was a leading scholar in the field of family business and a major contributor to Entrepreneurship Theory and Practice both as an author and editor. His significant contributions to the field were acknowledged by the Web of Science, which...

Family Business

By James J. Chrisman, Zhenyu Wu, Alfredo De Massis and et al.

in Entrepreneurship Theory and Practice

May 2025, vol. 49, no. 3, pp. 603-619, https://doi.org/10.1177/10422587251315653

Article

Successione e trasformazione, la lezione di Francesco

The death of Pope Francis on April 21, 2025, marks the end of an influential pontificate and the beginning of a new chapter for one of the world's oldest institutions. As the Catholic Church prepares to elect a new pontiff, useful insights emerge ...

Family Business Organizational Change

By Alfredo De Massis

in Il Sole 24 ore

30 April 2025

Case Study

Co-CEOs at Handtmann: Can the family business be led in tandem? (B)

The Handtmann case examines the co-CEO leadership model in the context of family business. Based on interviews with three key executives – the co-CEOs and the President of the Advisory Board – the case focuses on how Handtmann handled the leadersh...

Family Business Corporate Governance Leadership

By Peter Vogel and Anouk Lavoie Orlick

Article

Ethical issues in family business: Toward a deeper understanding and a new research agenda

Family business ethics are uniquely shaped by family influence and a strong emphasis on preserving socioemotional wealth. Although research in this area has grown rapidly in recent years, it remains fragmented and underdeveloped. Advancing the fie...

Family Business Business Ethics

By Elias Hadjielias, Alfredo De Massis, Michael Christofi, Danae Manika and Stefan Brammer

in Journal of Business Ethics

2 April 2025, ePub before print, https://doi.org/10.1007/s10551-025-05989-9

Case Study

Co-CEOs at Handtmann: Can the family business be led in tandem? (A)

The Handtmann case examines the co-CEO leadership model in the context of family business. Based on interviews with three key executives – the co-CEOs and the president of the advisory board – the case focuses on how Handtmann handled the leadersh...

Family Business Corporate Governance Leadership

By Peter Vogel and Anouk Lavoie Orlick

Article

The mixed gamble of competitive dynamics in family-controlled firms

We extend the mixed gamble perspective to explain how family-controlled firms frame and evaluate the difficult trade-off between potential gains and losses in financial wealth (FW) and socioemotional wealth (SEW) when pursuing portfolio-level stra...

Family Business Competitiveness

By Jaeyoung Cho, Alfredo De Massis and Josip Kotlar

in Journal of Management Studies

20 March 2025, ePub before print, https://doi.org/10.1111/joms.13218

Article

Family Enterprises - Building Resilience

Family Enterprises resilience is tested as one family's struggle through multiple crises offers best practices for others facing challenges and uncertainty.

Family Business

By Alfredo De Massis

in I by IMD

Article

CDL saga casts spotlight on succession and why family businesses struggle with it

Decades of stability can unravel overnight, but sustaining both family harmony and corporate success is a perpetual challenge. Succession is among the buzzwords as all eyes are on City Developments Limited (CDL), where a bitter leadership feud has...

Family Business Leadership Organizational Behavior

By Marleen Dieleman

in The Straits Times

6 March 2025

Article

Sfide e opportunità per il futuro delle famiglie imprenditoriali italiane

Italian entrepreneurial families can ensure their continuity through structured governance strategies, effective family wealth management, engagement of new generations, and the enhancement of their legacy. The Objectives-Resources-Governance mode...

Family Business Organizational Change Innovation

By Alfredo De Massis and Josip Kotlar

in Modulo24 Magazine

January-February 2025, no. 1, pp. 97-109

The anatomy of family business conflict

By Marco Mismetti Barbara Del Bosco Cristina Bettinelli and Alfredo De Massis
in Journal of Family Business Strategy June 2025, vol. 16, no. 2, 100660, https://doi.org/10.1016/j.jfbs.2025.100660

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Customer Centricity

Family Business

Browse all topics

Successione e trasformazione, la lezione di Francesco

By Alfredo De Massis
in Il Sole 24 ore 30 April 2025

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Family Business

Organizational Change

Browse all topics

Ethical issues in family business: Toward a deeper understanding and a new research agenda

By Elias Hadjielias Alfredo De Massis Michael Christofi Danae Manika and Stefan Brammer
in Journal of Business Ethics 2 April 2025, ePub before print, https://doi.org/10.1007/s10551-025-05989-9

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Family Business

Business Ethics

Browse all topics

The mixed gamble of competitive dynamics in family-controlled firms

By Jaeyoung Cho Alfredo De Massis and Josip Kotlar
in Journal of Management Studies 20 March 2025, ePub before print, https://doi.org/10.1111/joms.13218

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Family Business

Competitiveness

Browse all topics