Anheuser-Busch and Nepotism
Nepotism ist defined as “the showing of favoritism toward relatives and friends, based upon that relationship, rather than on an objective evaluation of ability” (Wiki).
Family businesses, per definition, are kept in the family, meaning the ownership is passed from one generation to the next. Especially for small and medium-sized companies, “ownership” also goes hand in hand with “management”. Often, this is not in the best interests of the company since junior may not be as skilled at leading a company as the first generation was. Those born with silver spoons in their mouths tend not to be such great entrepreneurs. Some inheritors of businesses are smart - they hire a good manager and stay in the background.
Interestingly, as companies get larger and their activities become more global in nature, family-run companies, even those which have been successful over generations, have a more difficult time managing the globalization. International business is a tricky thing to handle and family CEOs who have inherited their position instead of earning it just don’t have the credentials or experience.
This was exactly the case with Anheuser-Busch and CEO August Busch IV. After decades of good company management, the brewing company had stagnated in the past five years. In the business world, if you are not growing, you are dieing.
The nepotism at Anheuser-Busch is over. The control is passing over to experienced managers who plan to take Bud around the world. Let’s hope they know what they are doing.
Image from uscg.mil
Reference:
IHT, July 15, 2008
Other posts on AB:
Here Comes the King of Beers
Bye Bye Bud
Can Budweiser Go Global?
Save Anheuser-Busch?
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