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Regents College London

The case of Lukashs PCS company

An essay in EMG464 Family Business For Ed Gonsalves By Alexey Lukash S00502488 03/04/2013 London, United Kingdom

Word count: 1088 History:

Fedor Lukash was born in Novosibirsk, USSR in 1963. His father Alexey Lukash, Ukranian Origin, was the First Deputy of the Secretary in the Communist Party in USSR. Fedors mother, Antonina Knippenberg, was a school teacher from Hamburg, Germany. In 1979 Fedor Lukash moved to Moscow to study in Moscow Architectural Institute (1979-1985). After the graduation my father worked in Central Project Institute of the Defence Ministry (USSR). In 1991 after the collapse of the Russian Union he started working in International Project Engineering Consult company who took place in creating Marco Polo and Palace hotels all over the world. After he had worked there for three years, Fedor became the Chief Architect of the heavy Machinery Ministry. The company ''Lukashs Personal Creative Studio supported by Moscow Architect Union was established by Fedor Lukash in 1994. The core business is the Architectural Activities, Project, Exploration and Survey Organizations." The company started operating in collaboration with Russian "Institute of Sport Projects" which was one of the leading commercial organizations in the USSR, who were completing government projects, creating best sport facilities, mostly each of them received government awards. The company is operating both in the field of construction and design, providing sufficient collaborations with different universities and companies all over the world to implement the most interesting, technological, harmonious and functional solutions. Our architectural company has been providing vivid and memorable works, professionalism and creative thinking. We are seeking to create original and innovative projects that will look harmoniously with surrounding space. The company "Lukashs PCS performs the following activities (according to the NACE codes as specified during registration): Activities in the field of architecture, design engineering, exploration and geophysical, geodetic and cartographic activities, activities in the field of standardization and metrology hydrometeor activities; Activities in the field of architecture, design engineering in the industry and construction; Architecture activity.

Through the years the companys executive started to provide individual designing services. Our company carries out a full range of services in design of any objects, starting from single room flats to large space offices. We had several contracts with European and Japanese design and architectural companies, which helped us to provide our clients with the most remarkable design projects, that we are using today in our companys portfolio. We have sent our best employees to these countries for one month to study and gain experience, while working with the best international design companies of different origins. Since 1996 the company has created more than 100 unique projects, including office buildings, real estate projects, football stadiums and sport arenas for Olympic Teams sportsmen, schools, hotels, churches and temples. Current situation: In 2009 due to the financial crisis, the investors, who provided the company with the orders, started to loose money and the most quantity of projects were frozen. That led to reduction of company's employees. For nearly a year the company had to operate on a very low level, working on small projects, which provided small revenue. Having a strong background of working abroad, in 2010 the company's executive decided to go international and started searching for projects from other countries. The main difficulty was to get the official license to design Unique Architectural Objects of Large Scale and meet mandatory provisions. The company succeeded in getting both national and international admission to work on high-complex construction projects. The company succeed in winning tenders in different countries all around the world: - Russian Orthodox Church in Schladming, Austria. (2010-2013) - Real estate complex in Los Angeles, USA. That project was created several years ago for the Russian Market. (2011-2014)

- National Football Stadium in Baghdad, Iraq. We started preparing construction calculations and project documentation, but unfortunately today the project is frozen due to the unstable political and economic situation in the country. (2011- )

International projects are the main priority for the company today. We still have 3 operating projects in Russia.

Family and Business: My brother and I represent 2nd generation of our family business. As was said above, our company is expending internationally, so after graduation from MSU, I have chosen to study International Business. My father wants me to come working to his company on regular bases, but still he requires working experience of at least 6 years to entrust work and orders to me. Ive been involved in companys operations since my 2nd year in MSU. I did some low complexity work, which required management and construction knowledge. After studying in London, Im going to work in a different construction company to gain experience. My small brother, Fedor, is 13. He is studying in the design school and he is preparing to enter Architectural University in Moscow with the future opportunity to study abroad. Weve always been in good relationships. Today my brother helps me with the projects, that Im working on in London. Our mother, Elena Lukash, is a chief of Finance department. Our father wants us to take his place and not to sell the company. Instead, he plans to open a new company under the same brand, which will represent his own works of art. The main issue here is if this diversification is needed today. Fedor is already getting orders for paintings, however a lack of time gives him no opportunities to complete them.

Theories: When my father was thinking about letting my brother and me to work in his company, he left the emotional part and started speaking professional. The Marion and Uhi-Bens (2001) theory of leadership represents my fathers position. Fedor is looking for valuable resources for his company, though intellectual and human capital (Hughes Jr. and Hughes, 2004) is a great importance for him. My father wants us to become not only the employees, but to give us shares. For that he wants to see real leadership practices from his sons. The company needs to develop and grow, though he requires not only the knowledge and experience, but valuable interactions between my brother and me. Fedor is looking for creating organizational effectiveness and high-operating level. There is a great question of expectations and my fathers position on when it will be the right time to leave the company. He sees the successor generations interest and training to take his position. Will the successors generation be able to maintain his values and continue developing them?