Family owned businesses are normally faced with several challenges such as accusations of nepotism. Another major challenge is the pressure felt by new generations to avoid running the family business into the ground and the responsibility to previous generations who strived to build it. New business owners may also feel torn between implementing new and popular methods of conducting operations and holding to traditions. Older generations should know that change, especially in business, is inevitable, and they should be willing to let younger leaders make changes to improve the business.
Flavio Maluf is a great example of an executive who knows the best way to run a family owned business. Mr. Maluf is the president of Eucatex, a Brazilian company that manufacturers paint and wooden panels. He worked in the trade area of the company when he joined them in 1987. Ten years down the line he was allowed to proceed his uncle as the president of the company. He had proven to be the most appropriate candidate for the role and had shown interest in running the family business.
For more than 30 years now, Flavio has led the company to great success. Today Eucatex Group is one of the leading companies in the construction industry that produces paints, modular partitions, doors and laminate floors. Eucatex is also one of the largest producers of Tamburato, MDP and wood fiber plates, all of which are manufactured with superior technology and 100% eucalyptus wood.
In 2010, Eucatex opened a new industrial plant in Salto, Sao Paulo. The factory produces T-HDF/MDF (Thin High-Density Fiberboard and Medium Density Fiberboard). Under Flavio’s leadership, Eucatex pioneered the implementation of the first wood recycling line in South America.
Flavio Maluf is a Fundação Armando Alvares Penteado (FAAP) graduate who holds a degree in mechanical engineering. He also lived in the United States for almost a year where he studied business administration at the New York University. Mr. Maluf also serves as the president of GrandFood Group, a company that owns Golden and Premier Pet feed brands.