Abstract

Macau based casino giant SJM Holdings (SJM) reported a 16% plunge in its annual profits for the year ended 2017, while the market-wide casino gross gaming revenue (GGR) across the region witnessed a rise by 19.1%. SJM’s performance showed that the erstwhile casino monarch was on a declining course. As the only casino house in Macau for over four decades, SJM had ruled the business. Of late, however, it had been feeling the heat of competition since the Macau casino market had been opened up to the world. Evidently, it was losing its share of business to the competition. Once the only horse in the race, it found itself placed fifth among the six major casino companies in Macau. On June 12, 2018, Stanley Ho, the co-founder, had formally retired as chairman and executive director of SJM, after an association of nearly six decades with the company. SJM’s family feuds, delayed business projects, and sluggish growth pushed it into a downward spiral. The challenges were compounded by the tightening regulatory noose and rising competition, which made SJM’s future a matter of concern for the investors. The board and the top management needed to act nimbly to set things right and bring SJM back to the top of the game.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Examine and evaluate the Family Business Life Cycle
• Examine the attributes of an enduring family business
• Describe and evaluate the critical elements for the success of a family business
• Elaborate on the various challenges of a Family Business
• Elaborate what a Family business Model is

Keywords

Family business; succession planning; Family Business Life Cycle; Family business Model; Stanley Ho; SJM Holdings; Macau; ownership of business; business continuity; family complexities