Reference no: EM133019945
Elizabeth has just replaced her father as the new CEO of Svenson & Sons. The company is a manufacturer of professional footwear in Sweden with a strong position both nationally and internationally. Elizabeth represents the third generation of the family and feels well equipped and motivated to takeover. She worked in the firm when she was grew up during the summer breaks, did her exam project on internationalization in her firm, and is active in the family council. For the last five years, she has been the company's marketing director. Her father will stay on the board and also be around to support Elizabeth. All personnel have been informed and they are happy that the firm is staying within the family.
During her second week at work in her new position, Elizabeth realizes that changes have been made in the production plan some days before. A scheduled order has been postponed for 24 hours. She is told that there were some problems with another customer who wanted to be prioritized, and the production manager has turned to her father since "[her father] knows all about our production and our customers." Elizabeth of course gets upset that the production manager didn't turn to her, and that her father intervened. When she complains to her father, he doesn't understand her frustration since he only wanted to help and feels that she would have done the same as what he advised the production manager to do. Besides, he mentions, Elizabeth was not around.
Two months later, in a board meeting, Elizabeth argues for increased sales efforts in South Asia. She has made careful preparations, including a market plan suggesting a production plant in Taiwan. The board members are putting some hard questions to her and before Elizabeth is able to respond, her father takes over and fills in the answers for her. Her father interrupts saying. "My dear Elizabeth, I don't think you know what you are talking about. You know that the firm's values have always been to keep production domestic, and to especially favour our local community. Your idea is not in line with our ownership policy." Elizabeth gets surprised and humiliated but doesn't want to show her hurt feelings in front of the board. The board expresses satisfaction with Elizabeth's marker plans; however, it is not willing to agree to the production plant. The decision is postponed.
During the following weeks, Elizabeth's father is around a lot trying to "bring Elizabeth to her senses." He can understand her with to "show off"; however he continuously refers to the company values that as a family they should take responsibility for the local community, be in control and not risk any redundancies. He claims that it is in the interest of everyone, including her, to remain in the home city. Being the company's third generation CEO, as well as mother of two small children, Elizabeth's father feels she should certainly understand this, Elizabeth's father also stresses that establishing a production plant abroad would decrease her credibility among the personnel.
Six months later, Elizabeth sits in her office, looking out of the window and reflecting. She is far from the confident CEO she started out as. She wonders how and where it went wrong. She is on the verge of leaving her job were it not for her responsibility to carry on the firm to the next generation.
1. What sources of power are at play in Svenson & Sons?
2. What sources of power are not at play in Svenson & Sons?
3. What different influence tactics can you detect in the case?
4. What might the influence outcomes be for Elizabeth is she continues to propose a new production plant in Taiwan?