Nobody downloaded yet

Family and Non-family Business - Assignment Example

Comments (0) Cite this document
In the paper “Family and Non-family Business” the author discusses differences between family and non-family businesses, which are often related to the management of these firms. Among these is that the CEOs in family businesses tend to be older than those in non-family businesses…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.7% of users find it useful
Family and Non-family Business
Read TextPreview

Extract of sample "Family and Non-family Business"

Download file to see previous pages Family owned businesses tend to feel that the business environment around them is not secure enough for them to venture into the unknown (Cromie et al. 1995, p.11). Lyman Orchards is an example of such a family owned business venture which, despite having existed for more than two hundred years and been run by multiple generations of the Lyman family, it has not been able to grow into a multinational conglomerate as has been the case with non-family businesses such as McDonald’s and Target.
Moreover, unlike non-family businesses, family businesses do not rely on formal planning and instead, their management systems are based on less formal control as well as fewer incentives. The informal nature of such businesses is often based on their being wholly owned and managed by members of the same family and these do not need personal incentives to work in the business because they work for themselves. In family businesses such as Toyota and Samsung, members of their founding families have been active members since they were founded and this has been as a result of the long tradition as well as personal interest that has been established over the years.
When it comes to financing, non-family firms have the advantage because they can easily gain finances by making offers at the stock market (Coleman and Carsky 1999, p.73). This is not the case with family firms, which if the owners do not have ready finances to invest in the business might bring about financial ruin. Therefore, while family-owned businesses are more likely than not to achieve greater profitability than non-family businesses, the latter has an advantage because they achieve higher growth levels. A family business such as the Trump Organization faced some financial problems in its history as a result of being internally financed by the owners and such a scenario. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Exam essay Example | Topics and Well Written Essays - 750 words”, n.d.)
Exam essay Example | Topics and Well Written Essays - 750 words. Retrieved from
(Exam Essay Example | Topics and Well Written Essays - 750 Words)
Exam Essay Example | Topics and Well Written Essays - 750 Words.
“Exam Essay Example | Topics and Well Written Essays - 750 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Family and Non-family Business

Family Business

.... However, there are identifiable trends in defining family business, and in differentiating between family firms and non-family firms, thereby addressing the existence of family firms, the factors that support their survival, growth, and the creation of long-lasting economic and non-economic value. Habbershon (2006) as well as Chrisman, Chua and Litz (2003) reiterate that the family business exists because of the reciprocal economic and non-economic value created through the integration of family and business systems. The joining of the...
8 Pages(2000 words)Essay

Family Own Business

...rights to the family members only. It shall also sate that as the non-family shareholders will have no voting right, their obligation for any kind of risk taken by the leaders will be the minimum. This in turn will secure the shareholders’ profit and their interest to avoid risk. Thus, the investor belonging to the group of risk averters will be attracted in investing in the firm. Inclusively, as the production process of the firm will be limited in its home town Florence and under the supervision of its owners directly, only the Italian shareholders can be targeted. This shall provide the opportunity to secure the Italian ethos preserved by the family in their long 600...
14 Pages(3500 words)Essay

Family Business

..., like all other non-family businesses, involve more or less the same issues like personalities, passions, power, deadlines, resources, supervisors and subordinates. Conflicts can be avoided and resolved if arise because of good governance strategies that govern not only the business but also the family that runs that business. Many large and medium sized family businesses are running in the Middle East today that contribute a great percentage of GDP to the region. But most businesses survive only until the third generation and very few pass on to the fourth generation because of...
1 Pages(250 words)Research Proposal

Family Business 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 effective governance for the firm to...
44 Pages(11000 words)Research Paper

Family business organizational change

...02 May 2007 Strategic Human Resource Management Application Exercise How will you negotiate the win-winimplementation of your position The success of an organizational change often relies on the commitment of everyone in the company to embrace the change and face the challenges which accompanies the needed transition. Recognizing the internal problems and the potential solutions in the management of Acico's human resource, it is my ardent desire to carry out the transformation in the organizational structure by ensuring the dedication and cooperation of other executives and lower level employees. Through its existence in the industry, Acico has been entirely run as a family business with the...
3 Pages(750 words)Personal Statement

Family Business

...culture and the involvement of family and not family members will be important in determining the success of the strategy. Let us look at the process closely. Setting goals and objectives 11Due to the nature of the business, the formulation of goals and objectives are likely to be different from the one of non-family business, this is because the process is likely to incorporate well defined goals of the family which in most cases are defined by the owner of the business. Though these businesses may not look like monolithic units, we cannot ignore the role that is played by the head of...
7 Pages(1750 words)Essay

Management Research and Consultancy

...Management Research and Consultancy What is the setting for this study (background and context) Comment critically on the research posed in the project. The present study is devoted to the analysis of the Human Resource Management (HRM) in relation to small and medium firms (SME), as well as family and non-family businesses. The background of the research lies in the fact, that first of all, family business is the most widely spread kind of business in the United Kingdom. In addition, family business usually involves different kinds of human relations, as the relations between...
6 Pages(1500 words)Essay

Identify and discuss the criteria that academics and other use to assess the relative success of a family business. Discuss how these differ from those used to assess the relative success of the non family business

...Identify and discuss the criteria that academics and other use to assess the relative success of a family business. Discuss how these differ from those used to assess the relative success of the non family business. There are marked differences between family run businesses and non family businesses due to the fact that the decision making capabilities in the former are confined to a specific group of people i.e. the leading family members who control the reigns and force their personal ideas downwards in the hierarchy. In non...
6 Pages(1500 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 Business

...Conclusion This paper examines family business succession in relation to business continuity, thus resulting into previously designed conceptual framework on succession. From the study, it can be deduced that, successful family business transfer is affected through contributions by owner, successor and family environment. Additionally, the study reveals that successful transfer ensures existence of good relationship between owner, successor, environment and transfer to future generations. Family business is considered as a crucial component of economic development as well as economic transformation (Kuratko and Hodgetts, 2004). The paper focuses on how successful transfer will ensure family business continuity. There is detailed... ...
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 Assignment on topic Family and Non-family Business for FREE!

Contact Us