Fattal Group: Positioning the next generation of entrepreneurs

BEIRUT, JULY 2012. As the outside world was once again falling deeper into economic and political turmoil, members of the Fattal family arrived for a board meeting in the much-loved Heritage Room at the headquarters of the Fattal Group in Sin El Fil, East Beirut. In this elegantly decorated space, the history of the family and the company came to life, reminding them of their determination to overcome hardships as they had so often done before. For more than 115 years, four generations of the Fattal family have brought international premium brands to every household in the MENA through good and bad times. Establishing a reliable name in the turbulent region, where periods of stability and growth could rapidly turn into uncertainty and decline, was not easy. Fattal has built a solid reputation for honoring its commitments and hence it was highly valued within the business community of suppliers and resellers, as well as in the market for talent management. Faced with renewed uncertainties and unrest, Chairman and CEO Khalil Fattal worried about the future of the business. Just a few years earlier the company had lost its visionary leader, Khalil’s cousin Bernard, raising many questions for the family: How could it ensure the continued growth of the business in an increasingly unstable market? How could it help to prepare the company for future generations? How should the future business model respond to the changing industry landscape in the distribution business and how could the prominent name of the Fattal family be leveraged to differentiate the business from current and future competitors?