Managing Family Owned Business - Essay Example

Comments (0) Cite this document
Summary
The purpose of this research is to identify the barriers and effective practices emphasised by consultant who provide services to family owned businesses. The percentage of family owned business who ignored input from the consultant range from 7% to 75%…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.7% of users find it useful
Managing Family Owned Business
Read TextPreview

Extract of sample
"Managing Family Owned Business"

Download file to see previous pages From this research it is clear that family businesses are created for a variety of reasons, but a common belief among founders of family businesses is that working together as a family unit can be more profitable than working alone. Family businesses, whether they are small, local enterprises or large, national companies have unique concerns, such as interrelationships between family members, the question of succession in the next generation, maintaining talent, ownership and finance, in addition to all the problems that other businesses face. A family business has the challenge of balancing both the family and the business. Many times these two systems are in conflict with each other. Power struggles, resolving conflicting vested interests, leadership and mergers are other issues that arise on a daily basis. The importance of the consultant in supplying the guidance and expertise in the area of managerial skills is often overlooked in the family firm either because of lack of financial resources or the erroneous belief that an outsider does not know the business and thus cannot offer effective solutions. As resources and energies shift from transaction based to value-added activities, there is mounting pressure to improve traditional measures of business efficiency (Javier & Low, 2003). A family business has the challenge of balancing two distinct and often conflicting systems: the family and the business. Despite family business' significance in the economy, researches are showing that most of them are struggling to survive beyond a single generation. (Krebs, 2001; Carlock & Ward, 2001). According to Theune (2000) “stories about family businesses that failed due to mismanagement or family conflict are very common.... [and] only three out of ten family businesses survive into the third generation” (p. 1). Researchers are concerned that the biggest factor in the success or failure of family businesses are the relationships between family members. There are many things to consider including personal well being, family life, financial security and even standing in the community (Hubler, 1998). The implications are that each generation can either bequeath the business and the business skills to the next generation or choose to let the emotional, psychological or relational issues destroy the business (Kets de Vries, 1996). The challenge for trainers to overcome is to synchronise individual visions of the family and the business. It is this creation of a shared vision that is the work of the planner or trainer before designing and implementing any technical succession plan that sets up a family business for success (Theune, 2000). Siblings vie for positions within the company over power, status, influence and prestige. There are conflicts over succession with siblings, conflicts over succession with parents, as well as intergenerational conflict. Issues such as how a female successor deals with male resentment and domination and gains respect have also surfaced. Family businesses suffer from the complications of hiring unqualified ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Managing Family Owned Business Essay Example | Topics and Well Written Essays - 3500 words”, n.d.)
Retrieved de https://studentshare.org/business/1392831-report
(Managing Family Owned Business Essay Example | Topics and Well Written Essays - 3500 Words)
https://studentshare.org/business/1392831-report.
“Managing Family Owned Business Essay Example | Topics and Well Written Essays - 3500 Words”, n.d. https://studentshare.org/business/1392831-report.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Family Business
...? FAMILY BUSINESS Registration Number: Degree: Module Word Count: 2185 words FAMILY BUSINESS Introduction The family business is an enterprise governed and managed for the purpose of pursuing and developing the vision of the business “held by a dominant coalition controlled by members of the same family or a small number of families” (Shepherd & Haynie 2009, p.1245) for its potential sustainability across generations of the family, sometimes in business association with some of its extended families. Most definitions of...
8 Pages(2000 words)Essay
Family Business
...? The Proposal Form Programme:. B.Sc. Business Management. Academic Year: 11 Project Governance issues in a family business. Overall Aim: The research paper intends to discuss governance issues in a family business considering the conflicts and advantages involved. Specific Objectives. (Research objectives, tentative hypotheses/research questions.) Effective governance in a family business is what makes that business successful. It is vital for the family and the owners of the business to implement efficient governance through policies, meetings, and...
1 Pages(250 words)Research Proposal
Family Business
...is observed not only in the United States and in Europe, but it is also an event that has become perceptible in China, Japan and other Asian countries (Steier et al., 2004). As such, it can be claimed that there is a pervasive participation of families in the establishment and management of economic institutions that redefines the role of families in economic organisations and activities as well as in organisational life (Aldrich & Cliff, 2003; Morck & Nakamura, 2003; Steier et al., 2004). In this context, family owned business (FOB), just like non-family owned business, requires...
44 Pages(11000 words)Research Paper
Family Business
... successful, or even fail based on different criteria as mentioned earlier. Family Governance Family governance is the first criteria through which family businesses relative success is measured, in which the measure lies in how the wealth of a family keeps growing or deteriorating in relation to proper management and poor management respectively. This measure manifests itself from one generation to the next, in which case it is based on economic factors of different generations and their prevailing economic conditions, which then allow academics to judge how well the businesses are doing (Davis, 2001). It is as a result of this that every generation is expected to play its own key role in running the family businesses and ensure... that it...
8 Pages(2000 words)Essay
Family Business
...FAMILY BUSINESS Introduction There are many forms of businesses. A business can be sole proprietorship, a company, or with other forms of ownerships. A family business can be described as a company or any other business which is owned, operated and controlled by family members. The family here can be one family or several families it can be a nuclear family or an extended family. 1A family business can be defined as a business the is governed and managed on a sustainable and potentially cross generational bases in order to ensure that the business achieved a formal or implicit vision that has been held by the family member. 2This means that a family business is based on a vision that is held by all the family members. History has... on...
7 Pages(1750 words)Essay
Family business
...In a family business it is essential to measure the performance o individuals both belonging to the family and non family members for many reasons such as succession planning, hiring of management at the top level etc. At Benson Electrics when the CEO and founder, Buck Benson passed away, he did not make a proper succession planning as to who out of his three children from two different wives, would succeed him. It was due to performance indicators such as skill based performance financial performance under each child and their interpersonal skills; the company was able to decide who would be the next CEO of the company (Harvard business...
13 Pages(3250 words)Essay
Family Owned Business
... hamper the reputation of the family name. Moreover, these enterprises are chiefly controlled by family members or may be family owned. However, they may form strategic partnerships wherein family members hold key positions in the management of the company. Lastly, the key to success in such firms is by gaining competitive edge, valuing organizational culture and allowing a diverse workforce in order to benefit from diversity. References Al Masaood, 2012 Welcome to the Al Masaood Group’, viewed 5 March 2012, from http://www.masaood.com/ Ibrahim, H. & Samad, F.A., 2010, ‘Family businesses in emerging markets: the case of Malaysia’, Africal Journal of Business Management, 4 (13), 2586 – 2595....  Family...
5 Pages(1000 words)Essay
Business Management (Family Business)
...people in the family business” (para 5). The author continues that the structure of the family business has to necessarily fit the purpose and the current environment of the business. At the start up stage of the business, the firm maintains a simple operational structure by which all the employees report to the owner. However, as the business grows, this basic structure has to be properly amended in a way different functions are clearly defined and distributed among the staff. As Schneider points out, successful family business maintain structures like family council...
6 Pages(1500 words)Essay
Family Owned Real Estate Properties in London
...Family businesses are entities purely owned by members from one family. The top management of such entities is normally comprised of familymembers who undertake the daily roles of running business activities of the organizations. This study focused on family owned real estate businesses that are located within the City of London. Among the most prominent real estate companies that are family owned, include the Grosvenor Estate, the Cadogan Estate, the Howard de Walden Estate, and the Portman Estate. These companies have a big shareholding in the London...
38 Pages(9500 words)Dissertation
Family Business
...presentation of three key factors; owner, potential successor and environment, and their effects in family business transfers that guarantees continuity. Wise management of these three factors will ensure elimination of key challenges hence ensuring business continuity. From the study, there is an indication that family businesses in Austria operate on long-term orientation with the objective of passing on the business from one generation to the next within the family lineage. This makes issue on business succession an important process of greater importance to families....
3 Pages(750 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic Managing Family Owned Business for FREE!
Contact Us