FAMILY BUSINESS TIMES

12 March 2013

Donald Trump's Sons On Not Blowing The Family Legacy.

Trumps three adult kids are active in the family business. Although Donald Jr. has
been part of the showbiz element through The Apprentice, the Trump men tend to be more in the background while daughter Ivanka has been a more public persona. Still, Donald Trump has a penchant for taking on the limelight. My father has a personality that no one I can think of has ever rivalled, son Eric said. Is there pressure in carrying out the legacy? Absolutely. The man has incredibly large shoes to fill. He doesnt know how to fail. Eric joined the family business in 2006 and has been immersed in purchasing new golf courses and opening and managing new hotels around the world. While there certainly is pressure, says Eric, his advantage is that hes been groomed from a young age to step into this role. Donald Jr. says that a part of their success is the familys ability to genuinely enjoy spending time together whether its in the office, an airplane or around the familys Thanksgiving table. Its the Trump genetics, we love what we do, said Eric. Were all a product of our father and the four of us think the exact same way. When the three kids are cced on an email, sometimes you get three identical responses. That said, while we think alike I think we each have our own style. Donald Trump is first to say that if and when his kids mess up he wont let them forget it. Recently I stopped the kids from going into a certain area that would have been pretty bad, he told me. It got hit pretty hard by the depression. I dont let them forget that I didnt let them do it. I think they learned. The Trump kids say they also had the benefit of watching their dad learn from his own mistakes, especially in the 1990s, when Donald Trump nearly lost everything hed built.

FAMILY BUSINESS TIMES

12 March 2013
Donald Jr. says hes been able to apply the lessons he learned to the most recent downturn: I learned an element of being conservative from my father during those times and watching the way he has adjusted. He was able to play in the game but mitigate downside risk. Both Donald Jr. and Eric agree that they tend to be more conservative than their father, partially because of the pressures of carrying out the Trump legacy. As a combination of my dads history, watching him go through the 90s growing up, I think that makes us more conservative, said Eric. Its our obligation to be more conservative as the next generation because we do have the next shoes to fill and were not going to blow this. If you want to know more, please visit: www.trump.com

JOKE! J J J J J J J J J J J J J J J J J J
Father: I want you to marry a girl of my choice. Son: "I will choose my own bride!" Father: "But the girl is Bill Gatess daughter." Son: "Well, in that caseOK" Next Day: Father approaches Bill Gates. Father: "I have a husband for your daughter." Bill Gates: "But my daughter is too young to marry!" Father: "But this young man is a vice-president of the World Bank." Bill Gates: "Ah, in that case OK" Finally Father goes to see the president of the World Bank: Father: "I have a young man to be recommended as a vice-president. " President: "But I already have more vice- presidents than I need!" Father: "But this young man is Bill Gatess son-in-law." President: "Ah, in that case OK" This is how business is done!! 2

FAMILY BUSINESS TIMES

12 March 2013

Why I Fired My Father From the Family Business

I started sweeping floors at the family company, Arkay Packaging, when I was fifteen. After I graduated college in 1989 I moved to a position in planning and customer service. Seven years later, my father made me president. But the promotion was in name only; my father was having a hard time giving up control. He remained CEO and continued to make a lot of the decisions. My father and I have different styles of management. He is more interested in technology, equipment, and the practical work of making boxes than in cutting overhead and growing revenues. I am the opposite. He is very authoritative and prefers giving orders to listening to suggestions. I am interested in listening and learning from my associates. When our company faced a crisis, it became clear that our two styles were incompatible. To lead our company into the future, I needed to take control -- even if that meant pushing my father out of the way. I Took Control In 1999, I gain the courage to tell my father we needed to stop spending money on the label press and focus more on our core business. To my surprise, he acquiesced. I also knew it was time to change the company's management style. When I first stepped into a senior role at the company, I mirrored my father's behaviour. When bad news arrived, I pounded on the table and screamed. It didn't take long before I realized that reaction intimidated employees and kept them from sharing information. So I tried a softer approach. Once a week, my employees gather and share vital company information related to sales, productivity and turnover. During one of these meetings, we discovered a glitch in our computer system. Our computers were counting deliveries that were up to seven days late as on time. As a result, we had been unaware that 66% of our deliveries were late. We also discovered by reviewing data collected in a system that when we did deliver boxes, orders were often incomplete. Within a few months, 90% of our deliveries were on time and complete. It was my first major achievement at the company. 3

FAMILY BUSINESS TIMES

12 March 2013
I Fired My Father By 2004, things had gotten more or less back on track, and corporate culture had changed dramatically. But there was still uneasiness among management about the split chain of command. One night I got a call from our COO. My father had called him into his office while I was away and ordered him to transcribe a dictation for a letter. The COO told me he didn't appreciate being treated like an assistant when he had a company to run and that he was resigning. I knew he wasn't the only one having problems: The entire staff was finding it impossible to work for two men with such different visions for the company. I knew I had to act. I called my father. When he picked up, I berated him for his treatment of the COO and then I told him he would either have to buy me out, or he was fired. It was the hardest call I've ever made, and I was speaking through tears, expecting my father to be angry and hurt. Instead, he told me, "I am so proud of you. You're right. It's time for me to leave." I was surprised, but I think he respected how difficult it was for me to make that call. We're Still Friends Since my father retired in 2004, Arkay Packaging has kept going strong. The COO stayed on after my father left, and our revenues have been holding at $50 million annually. It was a difficult transition for both of us, but now we are able to laugh about our past differences. We go on weekend trips together and our relationship is stronger than ever. He is still my sounding board when it comes to tough business decisions. Want to know more about Arkay Packaging? Visit: www.arkay.com

FAMILY BUSINESS TIMES

12 March 2013
v Europes Top 5 Family Businesses and Leaders: 1. DeLonghi: DeLonghi has firmly established itself as the maker of quality household appliances in Italy. 2. Gebrder Weiss: One of Austrias oldest family businesses, it traces its roots back more than 500 years. Much credit has to be given to the Weiss and Jerie families, who have led the company through big changes. 3. Herms Group: Established by Thierry Herms in 1837, the Paris-based firm is one of the oldest fashion houses in the world, famous for its beautiful leatherwork, for example the Birkin and Kelly handbags, and of course its scarves. 4. Lego Group: Since its humble beginnings in 1930s, Denmark based Lego Group has become one of the most famous brands in the world it was ranked amongst the 10 most recognisable companies globally by Reputation Institute this year. 5. Ottobock: In its 90-year plus history, Ottobock has relied heavily on two things entrepreneurship and the family. And this continues to pay off for the German prosthetic and wheelchair-maker, which was founded in 1919 by Otto Bock in response to the large number of amputees returning from World War I.

FAMILY BUSINESS TIMES

12 March 2013

THANK YOU,
Suhaila, Alex, Steven and Elin (SESO GROUP)