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Case Study

Ayala Corporation: One family’s contribution to nation building

By Benoit F. Leleux and Anne-Catrin Glemser

35 pages

December 2014

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Reference: IMD-7-1603

MAY 21, 2014, MANILA. For the first time, the World Economic Forum (WEF) had come to the Philippines. Ayala Corporation, one of the nation’s oldest and most successful conglomerates, hosted an evening reception that brought together the “Who’s Who” of the Philippines. Jaime Augusto and Fernando Zobel de Ayala, the seventh generation chairman and president, respectively, of the Ayala Corporation, were inspiring and natural ambassadors, promoting the Philippines as an up-and-coming market to global investors and potential business partners, investing time and effort in nation-building activities. Just after the East Asia Forum, Ayala’s biannual executive strategy meeting was held, with some eighth generation family members attending for the first time. Among the topics discussed were how to strategically allocate resources to grow the corporation inside and/or beyond the Philippines and how to venture beyond the traditional business models. The next generation had to consider fundamental questions. What were the keys to Ayala’s success over the past 180 years? Would they still be relevant in the future? Would inclusion and nation building continue to serve as reliable pillars for the business? Finally, how should they best prepare themselves to become the next generation of responsible stewards?

Learning Objective

Managing succession in the family business
Nation building
Growth management
Governance
Communication
Conglomerate management
Next generation training
Financing infrastructure developments
Impact investments
Sustainability
Entrepreneurship in large corporations

Keywords

Family Business, Growth Management, Corporate Governance, Succession Planning, Entrepreneurship, Conglomerate, Emerging Market, Real Estate, Telecommunication, Sustainability, Philanthropy, Generational Transition, Family Values, Communication, Inclusion

Settings

World/global, Philippines
Ayala Corporation, Services, Water Supply and Sanitary Services, Services, Telecommunications
2014

Type

Field Research

Available Languages

English

Related material

Teaching note, Video

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2015 EFMD AWARD WINNER (Family Business)

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