Iaccarino & Son Company Analysis

Iaccarino & Son is a Massachusetts based architectural millwork company, specializing in moulding for doors and cabinets. It was founded in the 1950s by Raffaele Iaccarino, an Italian immigrant. It remained a family owned business for 83 years. Iaccarino & Son had a transfer in ownership in the 1970s, naming Carl Iaccarino sole owner of the company. Carl maintained ownership of the business along with his son, Francis Fran Iaccarino, who joined the family business in the 1990s to assist with management operations.

Pros and Cons of Joining the Family Business

At the time Fran joined his father’s company, he was the sole proprietor of a successful picture framing business. He felt the need to help his father and carry on his family legacy. Although he had other options, he accepted the risk and sold his picture framing business to join his family’s business. Fran could have hired someone to manage his business while he remained the primary owner. This would have allowed him the flexibility to aide his father in is failing business while maintaining his ownership of his successful business.

As family businesses typically do, Fran and his father reached a point when they did not agree on the direction and the operations of the business. Ultimately, leading to the demise of the company.

Pride in Ownership or Power Trip?

Carl ran the business independently for nearly 30 years. He built the business customer base and reputation for his generation. He maintained the legacy of his father’s company and kept it afloat during two recessions, while facing public discrimination and managing family disputes.

Get quality help now

Writer Lyla

Verified

Proficient in: Economics

5 (876)

“ Have been using her for a while and please believe when I tell you, she never fail. Thanks Writer Lyla you are indeed awesome ”

+84 relevant experts are online

Hire writer

Although, he desperately needed Fran’s help in saving his business, he did not want to relinquish ownership and control of the business. The problem seems that while Carl was able to build the company’s reputation during this 30 year time frame, he was not able to adapt to the changes with time and evolution. Fran was a great asset for the business. He understood technology, business development, marketing, analytical tools and financial strategies. If Carl had been open minded to changing with the times, he might have been able to save his business.

Preparation is Key

Although no one really knows when a recession will hit, it’s something every business should have on their radar and be prepared for. Preparation and having a plan is key to survival during an economic recession. The Great Recession of 2008 is what started the demise of Iaccarino & Son. Considering that Carl had already gone through two previous recessions, a good business manager would have implemented a business plan in the event it happened again. This could include everything from the minimum number of employees needed to operate at minimal costs to the amount spent on supplies and inventory. If Iaccarino & Son had been prepared, they could have implemented their plan when the recession began in 2008 and may have been able to cut costs early enough that they were able to operate on a smaller margin to stay in business.

Conclusion

The Iaccarino family business was founded on hard work, determination and constant evaluation. Ralph changed with the times. He built boats, refrigerator cases, and moulding. He adapted to whatever the need was in order to keep his business going and profitable. The interesting thing is, what ultimately caused the downfall of this 83 year old business was Carl’s unwillingness to change his processes; operating under old school ways in a new school market. Although it’s labeled as a family business, the family values and legacy that founded the business was somehow lost along the way.

Works Cites

1. Evans, Michael. 5 Ways to Prepare Your Business for an Economic Recession Website (2014)
2. Pilon, Matt. Boylston’s Iaccarino Filed for Bankruptcy Website (2013)