ENG

How Can a Family Business Cope with the Influence of Family Conflicts?
Case of the Aluminum Flagship: Aluminium du Maroc

Authors : Azzeddine Allioui , Badr Habba &Taib Berrada

Synopsis

This case deals with the leader of Aluminium in Morocco: Aluminium du Maroc. It is a Moroccan family business created by the El Alami group in 1976 and listed on the stock exchange since 1998. It is the first Moroccan company specialized in the manufacture of aluminum alloys profiles. At the beginning, a small company, with a capital of 0,1 MDH, the El Alami family made of its company one of the most successful cases of the Moroccan economy.

Thus, in this same logic of development, and to face the fierce competition that the sector of aluminum in Morocco knew, the top management of the company, chaired by Abdelouahed El Alami opted for the diversification thus benefiting from the opportunities offered by the sectors of the building and the hotel trade while exploiting Europe and the rest of Africa thanks to its policies of export. A strategy that has allowed the company first to grow considerably and then defend its position as leader and promote its competitiveness against foreign importers.

However, these diversification orientations did not please the entire board of directors of Aluminium du Maroc! In 2016, the historical leader, Abdelouahed El Alami, was dismissed and replaced by Jawad Sqalli, a leader from outside the family, following the request of Abdesslam El Alami, son of Mohamed El Alami and therefore nephew of the former leader. From then on, the family conflict is exposed to the economic public and the company is on the verge of implosion. That said, this case aims at proposing a development plan to solve the emblematic situation of Aluminium du Maroc.

Key Concepts / Keywords

Family business, financial analysis and diagnosis, business strategy, family conflict, governance divergence, diversification.

Learning Objectives

Regarding the specific character of family businesses, the resolution of the Aluminium du Maroc case will allow participants to:

  • Understand the relationship between the family character and the strategic orientations of family businesses.
  • Identify the causes of family conflicts within family businesses.
  • Understand the effect of conflicts on the performance of companies.
  • Propose a development plan to ensure the resolution of family conflicts.

Target Learning Group

The case can be administered to students of master’s degrees in financial management as a synthesis of courses in finance and master’s degrees in corporate strategy.

It can also be used to train executives and managers working in family businesses as part of professional certification training.

Prerequisites

Basic knowledge of financial analysis and diagnosis, strategic diagnosis (SWOT, PORTER), basic knowledge of corporate strategy, strategic management, corporate finance.

Case Caracteristics

  • Number of pages of the case: 7 pages
  • Number of appendices: 2 pages
  • Number of pages of the teaching note: 18 pages
  • Other documents: Excel sheets for case and teaching note

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