MNE3704
Assignemnt 6 TEST Semester 1 2026
Unique number:
Due Date: 29 May 2026
QUESTION 1
1.1
Family businesses often struggle with the question of whether power should remain inside
the family or move to professional outsiders. In the Pick n Pay case, some shareholders
questioned whether members of the Ackerman family should continue leading the company,
because the business had grown into a large listed retail group that needed strong
professional management. This shows the tension between family control and business
competence, especially where stakeholders may fear that family status is being placed
above ability and performance (Poza and Daugherty, 2018:107).
A second challenge is that the founder’s influence can remain strong even when formal
leadership has moved to the next generation. Raymond Ackerman shaped Pick n Pay’s
values, culture and strategic thinking for many years, which made it difficult for the new
leadership to prove that it could lead independently while still respecting the company’s
history. Family businesses can become trapped by the founder’s shadow when the older
generation does not fully release power or when employees keep comparing the successor
Terms of use
with the founder (Poza and Daugherty, 2018:123). By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, +27 81 278 3372
QUESTION 1
1.1
Family businesses often struggle with the question of whether power should remain
inside the family or move to professional outsiders. In the Pick n Pay case, some
shareholders questioned whether members of the Ackerman family should continue
leading the company, because the business had grown into a large listed retail group
that needed strong professional management. This shows the tension between
family control and business competence, especially where stakeholders may fear
that family status is being placed above ability and performance (Poza and
Daugherty, 2018:107).
A second challenge is that the founder’s influence can remain strong even when
formal leadership has moved to the next generation. Raymond Ackerman shaped
Pick n Pay’s values, culture and strategic thinking for many years, which made it
difficult for the new leadership to prove that it could lead independently while still
respecting the company’s history. Family businesses can become trapped by the
founder’s shadow when the older generation does not fully release power or when
employees keep comparing the successor with the founder (Poza and Daugherty,
2018:123).
A third challenge is maintaining employee confidence during the change from one
generation to another. In the case study, employees were worried about whether
Pick n Pay would continue with its founding values of customer service, employee
loyalty and ethical conduct. This matters because employees may lose morale when
succession looks uncertain, especially in a business where the founder’s personal
values became part of the company identity (Poza and Daugherty, 2018:124).
A fourth challenge is pressure from the external market during the leadership
change. Pick n Pay faced stronger competition from Shoprite and Woolworths while
it was also dealing with succession issues, which meant that the new leadership had
to manage family expectations and business performance at the same time.
Succession becomes more difficult when the market is changing quickly, because
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
of any part of this document, in any form or by any means, is strictly prohibited.
Assignemnt 6 TEST Semester 1 2026
Unique number:
Due Date: 29 May 2026
QUESTION 1
1.1
Family businesses often struggle with the question of whether power should remain inside
the family or move to professional outsiders. In the Pick n Pay case, some shareholders
questioned whether members of the Ackerman family should continue leading the company,
because the business had grown into a large listed retail group that needed strong
professional management. This shows the tension between family control and business
competence, especially where stakeholders may fear that family status is being placed
above ability and performance (Poza and Daugherty, 2018:107).
A second challenge is that the founder’s influence can remain strong even when formal
leadership has moved to the next generation. Raymond Ackerman shaped Pick n Pay’s
values, culture and strategic thinking for many years, which made it difficult for the new
leadership to prove that it could lead independently while still respecting the company’s
history. Family businesses can become trapped by the founder’s shadow when the older
generation does not fully release power or when employees keep comparing the successor
Terms of use
with the founder (Poza and Daugherty, 2018:123). By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, +27 81 278 3372
QUESTION 1
1.1
Family businesses often struggle with the question of whether power should remain
inside the family or move to professional outsiders. In the Pick n Pay case, some
shareholders questioned whether members of the Ackerman family should continue
leading the company, because the business had grown into a large listed retail group
that needed strong professional management. This shows the tension between
family control and business competence, especially where stakeholders may fear
that family status is being placed above ability and performance (Poza and
Daugherty, 2018:107).
A second challenge is that the founder’s influence can remain strong even when
formal leadership has moved to the next generation. Raymond Ackerman shaped
Pick n Pay’s values, culture and strategic thinking for many years, which made it
difficult for the new leadership to prove that it could lead independently while still
respecting the company’s history. Family businesses can become trapped by the
founder’s shadow when the older generation does not fully release power or when
employees keep comparing the successor with the founder (Poza and Daugherty,
2018:123).
A third challenge is maintaining employee confidence during the change from one
generation to another. In the case study, employees were worried about whether
Pick n Pay would continue with its founding values of customer service, employee
loyalty and ethical conduct. This matters because employees may lose morale when
succession looks uncertain, especially in a business where the founder’s personal
values became part of the company identity (Poza and Daugherty, 2018:124).
A fourth challenge is pressure from the external market during the leadership
change. Pick n Pay faced stronger competition from Shoprite and Woolworths while
it was also dealing with succession issues, which meant that the new leadership had
to manage family expectations and business performance at the same time.
Succession becomes more difficult when the market is changing quickly, because
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
of any part of this document, in any form or by any means, is strictly prohibited.
