Velan Inc., founded by A. K. Velan was incorporated in 1952. With an innovative strength and an engineering know-how, A. K. Velan came to Montréal to begin his business which was first based on a device to remove condensation from steam piping. Throughout the beginning years, Velan showed dedication, hard work and motivation by working numerous hours selling, developing and bettering products for the future to come. Velan’s success was partly due to the fact that A. K always captured windows of opportunities and therefore always remained as a big competitor in the market. His first opportunity arose when he began developing valves for the nuclear power industry which led to him establishing sales organizations across oceans. While recognizing the importance of targeting other markets, Velan Inc. began expanding internationally and domestically to accommodate the growing product line. In the 90’s, the industry in which Velan was operating in began emphasizing standards that needed to be met leading to him being the first to have four North American plants qualifying for the ISO 9001and 9002 standards. Over time, Velan Inc. has seen itself grow and prosper under A. K’s supervision to becoming the largest steel valve manufacturer in North America and second world-wide behind KITZ of Japan. Now at the age of 79, A. K. Velan must target some important strategic and operating issues regarding the future of the company so that it can maintain it’s position in North America and reach it’s goal of becoming the largest manufacturer in the world. Although the future is unpredictable, Velan Inc. nonetheless hopes to remain superior in the domain of marketing, designing and manufacturing of industrial valves.
Putting in motion a succession plan, A.K. Velan should reveal the contents of his plan to the public. Since Velan Inc. prides itself with the fact that it is a family run business, and that currently it has many employees that have been with the company for quite some time, A.K, has many options available to choose from in determining who may be the best successor for the company. The ideal choice would be either one of his three sons since all three grew up within the company and witnessed the development and growth to what it has become now. Ivan, the eldest son, has been with the company since 1970 and now holds the position of Executive Vice-President of North American Sales, Quality assurance and MIS. Peter, A.K’s middle son, began working at the company in 1968 and currently holds the Executive Vice-President of Engineering and Production position in the company. Thomas, the youngest son, has been with the company since 1974 and currently holds the Executive Vice-President of Export Sales and Overseas Operations position. Although each son began at a lower position in the company they each have acquired the ability and knowledge of the company and industry needed to move up the ladder and to obtain executive positions within the company. This illustrates that probably either one may be capable to replace their father as the head of the company.
A symptom will occur if A. K. does not release the information regarding the succession plan. The fact that A.K. has now reached the age of 79, he will not be able to remain in the business for much longer holding such a crucial position in the company, therefore, it is important to let go of the company and pass it on to someone else who may be capable. It is best to do this before he retires so that he has the time to train that person to best benefit the company. Mr. Velan should indicate who that person is therefore allowing him to have certain expertise, knowledge and advice passed on to him so that he can run the company at the same level as it has been operating since the beginning. Easing in the new leader allows him to ask questions and discuss matters of importance and at the same time