Viação nordeste: What will become of us?

Abstract

This teaching case looks into the situation of Viação Nordeste, a family-run road passenger transport firm founded in 1965 in Natal (a state capital in Northeastern Brazil). The case is centered around dilemmas of succession planning, generation conflicts and investment decisions during a financial crisis caused by poor management and lack of strategic alignment between directors. The case is intended as a support for small and medium firms (especially family firms) in need of urgent professionalization and succession planning. It also shows the importance of clear short-and medium-term financial policies based on accounting data to guide corporate planning and investment and funding decisions, thereby minimizing family conflicts and ensuring survival and sustainability. Using primary and secondary data, the case was designed for undergraduate Business, Economics and Accounting students and for graduate students in the disciplines of Corporate Finance and Management of Family Firms.