Managing for the Long Run - Book Report/Review Example

 Managing for the Long Run When going through Managing for the Long Run: Lessons in Competitive Advantage from Great Family Businesses, one will not fail to recognize the emphasis on profitability and the aspects of all the parties benefiting, because it is one of the major themes that runs throughout the book. According to (Miller 2), a family controlled business is any form of venture where families controls the largest block of shares. Similarly, it refers to a business venture where one family has one or more of its members occupying very senior positions within the company. This essay seeks to provide more insight on some of the reasons that make family controlled businesses outperform their non-family owned counterparts in regard to Managing for the Long Run: Lessons in Competitive Advantage from Great Family Businesses. Miller takes into consideration the ideologies that have been put forward by other stakeholders when he asserts that some authors have dismissed the thought of family controlled business being viable role models in spite of the fact that in several occasions, they have managed to outperform their nonfamily owned equals and out survived the difficult and unpredictable market. The authors attest to the fact that family controlled businesses accelerate globalization and play a far-reaching role in the economies of the United States and other nations of the world as well. To support their arguments, the authors refer to the S and P 500 as well as the Fortune 500 where family controlled businesses occupy more than a third of the positions. In an attempt to drive their message home, the authors make special references to the situation within the United States where family controlled businesses employ more than half of the work force and at the same time provides more than three quarters of new jobs that are created annually. Similarly, they refer to the manner in which family controlled businesses dominate the market share as well as how they generate superior financial returns when compared to their nonfamily equals. The authors share the belief that for the family controlled businesses to have covered such strides within their various sectors of the market, they must have strongly adhered to the four C’s rule. This includes putting in place the right change of command, ensuring that there is continuity, being the guardian angels of the community of stakeholders who make their business stand out as well as ascertaining that there is continuous connection with the external environment. In like manner, the authors emphasize that it is always of great significance for business managers to work towards building their brand always as it assures of trust between the company and the market, which is made of majorly the consumers. The imperativeness of artisanship as well as putting in place superior operations as compared to the other parties is similarly discussed in the text. The authors similarly pay homage to innovations as it makes organizations stand out as well as the aspect of deal making, which refers to the practice of getting things sorted out in the most desired way. (Miller 165) points to the fact that it may not be possible for an organization to implement all the four C’s mentioned in the above section. This is majorly because it may result in conflict of ideologies. Instead, it is imperative for organizations to harmoniously combine their applicable C’s to their business strategies. This is because such a move nurtures the ideal environment for them to accomplish their objectives as outlined. Whenever the wrong decisions are implemented, the family controlled businesses may register significant slump in their income. The authors hold the opinion that such an event may take place in case the management is accorded too much authority as well as when negligence is allowed to crop in within the organization. The aspect of continuity, which implies not taking one’s eye off the goal, is one of the major recommendations that should be adopted by entrepreneurs. This is because family controlled businesses that have embraced it in the past have managed to accomplish most of their set objectives. In going about this, Miller recommends that businesses owners should passionately and enduringly commit to their respective missions (Miller et.al 32-34). Similarly, Miller advises that they should settle on important missions, and work exceptionally well towards accomplishing them. Miller holds the opinion that for family controlled businesses to be great, the owners should channel deep investments, as this would ensure that everything needed to attain the mission is availed. Amidst all this, the owners should not forget careful stewardship of resources. This is because it comes in handy in ensuring that short-term tactics are not employed, as embracing such moves would be challenging for the future leadership. The ideology of uniting all stakeholders involved in ensuring that the product or service is provided efficiently is another far-reaching recommendation put forward by Miller. This is because it helps in ensuring that a community with one aim is established. To this effect, Miller recommends that the community should be founded on a clan like and cohesive team, which encourages each stakeholder involved towards embracing strong values (Miller et.al 35-41). At the same time, the team should work towards rallying everyone towards what is important, as this would ensure that all the far-reaching aspects involved in production or service delivery are factored in. Family controlled businesses with the aim of being great are similarly advised to ascertain that they pamper their employees. This is because such a move would result in the employees joining hands with one another, being loyal to the company and taking their own initiative towards solving some of the challenges that the company or venture would be facing in the future. The aspect of forming a strong bond with the larger society, thereby being in good books with the community is another practice that family businesses with the desire of being great should work towards. Miller argues that in forming the relationships, the businesses should leave them open-ended and at the same time ensure that they are mutually beneficial. Another recommendation in this category is that the relationships should not only be formed with business partners, but with customers as this ascertains that a large customer base is formed. Miller similarly recommends that no time limits should be provided within which the relationships should be formed, as some of the relationships may prove beneficial towards the future. The practice of acting and adapting with discretion and freedom, also known as command is similarly one of the major practices Miller recommends for family controlled businesses that have the desire to remain relevant for a considerable duration. To this effect, Miller advises that such businesses managers to act independently, though at the same time should consider the ideologies held by other stakeholders. On the same note, such project managers are advised to always act in original ways whenever there is a problem with the running of the business. In like manner, Miller presumes true the fact that in the face of problems, the managers should act swiftly so as to renew the firm and save it from the tribulations it is facing (Miller et.al 63-67). Amidst all this, it advisable for the project managers, to ensure that they nurture the culture of communication within the firm. This is of great significance, as it provides all the employees with the opportunity to relay information and communicate amicably. Similarly, it ensures that they freely take part in the process of decision-making thereby bringing on board significant contributions that help them in finding their way out of the challenges that they might be facing. We all attest to the fact that there are several retail stores within the market. None of them is however as productive as Walmart. The difference comes in that Walmart is family controlled whereas the others are not. The Walmart story is shared by many other organizations such as the New York Times, Hallmark, Fidelity, Coors Company, IKEA, SC Johnson as well as Cargill. Going through Managing for the Long Run, one will not fail to recognize the practices that have been employed by the family controlled businesses that have been discussed across the book. Even though the businesses have different ideologies because of the fact that they trade in different goods and services, they share certain practices. This includes the fact that any entrepreneur should follow his or her passion, because that alone will keep him or her going in the middle of various challenges that will come their way. Work-Cited Miller, Danny, and Breton-Miller I. Le. Managing for the Long Run: Lessons in Competitive Advantage from Great Family Businesses. Boston, Mass: Harvard Business School Press, 2005. Print. Read More