Sigma Motion Inc. Application #4 - Essay Example

The founder of the company, Ron Burton, is an experienced businessman in the linear motion products environment and he inherited the skills running family business from his father. The impression from the case is that, the Burton family incorporated nonfamily management in its desire for the company’s success. Alderson (95) points out that engagement of nonfamily management in family business is an important practice in ensuring continuity of business activities in case the successor is not fully prepared to assume the top leadership position.

In reality, for a family business to be successful, there must be proper coordination between the family and the external workforce. According to the case, Sigma Motion Inc had several competitive advantages that gave room for its continued success. These competitive advantages included its small size, competent engineering team, high quality of products, customization of services, a wide product line and a proficient management team. Essentially, the small size of the company facilitated apt reaction to customer requests and market changes.

In addition, with a well established and competent engineering team, the company was able to diligently handle technical issues and give prompt advice to customers. In essence proper handling of customers has the impact of developing customer loyalty and consequently providing a wider market. Provision of high quality products and a five year warrant plan by the company contributed to its better performance than its competitors. The establishment of a deep production line facilitated rapid business growth and sustainable product development.

Consequently, establishment of a proficient management team composed of internal family members and external mangers was a significant step to ensuring long stay of the company in the linear motion