Chapter 6: Digital Transformation: ESK Hardware & Machinery at the Crossroads

This case involves a family-owned business that dealt with industrial tools and equipment and was experiencing strife between the first and second generations. The family firm was founded by two brothers, who later named their children to oversee the managerial side of the enterprise. The case serves as an example of how a family business can achieve new levels of success by adopting the appropriate tactics and carrying them out effectively among family members. The case also illustrates the need of succession planning in family businesses, involving the second generation, is regarded as a strategic move that will change the game. But a poorly executed or overly simple succession plan might also be problematic. Besides, the case also exemplifies miscommunication in family relationships, as seen in the argument between the uncle and nephew and its effects on business. Nevertheless, the issues must be resolved in order for the family business to proceed towards digitisation.