Conflict over Leadership and Succession at SJM Holdings: Can Stanley Ho`s Casino Empire Survive the Crisis?
| Case Code: BENV046 Case Length: 14 Pages Period: - Pub Date: 2022 Teaching Note: Available |
Price: Rs.400 Organization: SJM Holdings Industry: - Countries: Macau Themes: Family Business, Succession Planning |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
The Feud
STDM, the parent company of SJM, controlled most of Ho’s assets. The wealth of Shun Tak, SJM, and STDM put together, which was controlled by the Ho family, stood at $ 22.2 billion . Ho indirectly controlled SJM, which owned 20 of Macau's 33 casinos. He had a majority stake of 33.7% in STDM. His interest in SJM was valued at about $2 billion. His total worth was estimated to be about $3 billion, which also included his other businesses – department stores, luxury hotels, and real estate projects, ferry services, etc..
The Challenges
With four office bearers at the top, the new structure of SJM Holdings was a complex one. There were many concerns over harmony and unanimity in decision making. That experts concern about the uncertainty over SJM’s future was evident from their remarks and ratings. Fifteen out of 20 analysts monitored by Reuters ranked..
The Road Ahead
The cluster of challenges like SJM’s flat growth, loss of its monopolistic control over the market, family complications, complex management structure, license expiry, growing competition, regulatory restrictions, and opening of markets to the global players posed serious questions for SJM’s future...
Exhibits
Exhibit I: SJM Holdings – Five Year Financial Summary
Exhibit II: Ho’s Family Genogram
Exhibit III: Position / Share held by Stanley Ho’s Wives and Children
Exhibit IV: New Office Bearers at SJM
Exhibit V: Pansy Ho’s Holdings
Exhibit VI: SJM Losing Out to Competition
Exhibit VII: Competitors’ Market Share
Exhibit VIII: Casino Gaming in Macau
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