Abstract

The case describes three generations of owners of the Salisbury-based Perdue Farms, a chicken processing family-owned business, and how each generation handled the business in their own style. The almost 95-year-old family business evolved under different leaders over three generations, each transforming and growing the business. The case discusses how a home grown poultry business developed into a world-renowned chicken processing company and highlights their business modus operandi. Under the first and second generations, the business earned a name for itself for its quality products, but the market driven focus of the third generation owner tarnished its reputation. Its business practices were alleged to be inhumane and a threat to the environment. The case also explores the issues the family business was facing under the third generation and what the future of such business could be under the given conditions. Another aspect covered in the case is the successful way in which succession was done at Perdue Farms over three generations and the future transition of business ownership from the third to the fourth generation. The case describes the sustainability aspect of the family business of Perdue Farms.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• To discuss the concept of family business, its advantages & disadvantages.
• To analyze the management style across different generations.
• To analyze the importance of succession planning in family business.
• To understand role played by an entrepreneur in setting up a family business, identifying the opportunities and sustaining the growth of the firm.
• To study entrepreneurial orientations/abilities across generations involved in the family business.

Keywords

Perdue Farms, Poultry Business, Family Business, Family Values, Arthur Perdue,Frank Perdue,Jim Perdue,Succession Planning, Family Constitution, Environmental issues, Contract Farmers