Management Issues For The Family Run Business - Case Study Example

MANAGEMENT ISSUES FOR THE FAMILY-RUN BUSINESS - SHIRLEY PLANTATION Introduction It has been shown that family business is one of the most importantforms of business in the world. Many of the business that are successful now and which have grown to be multinational today have all originated from a family business that has been well management and growing to acquire that status of a multinational business. Family business have been shown to be some of the most successfully businesses due to their style of management and the relevance that is attached to the business by the founder and the members of the family. A family business is started, owned and operated by members of one family. The management primary involves family members though there may be hiring of external labor on special cases or when the business has expended and the family members cannot meet the labor demand of the business. Therefore in this case the business may hire the work of other experts to assist in running the business more so in areas where it feels that it cannot raise enough labor to meet the demands of the business. For example the business may hire experts on the areas like accounting where it cannot have the expertise in the family. But generally a small family business will use the labor force from the family. (Bork 2003, p. 76) Many of the family business that had started off as small business usually grow over the years and acquire an international standard. Most of them however are usually acquired by other people or they enter into partnership with other multinational companies in order to enhance their management. Therefore at some time, in their lifeline a family business may enter into partnership or get acquired by another businesses altogether in order to enhance their growth. Family businesses do not only reflect the source of income for the family but they also represent important values for the family as well. They communicate an important message about the values and believe of the family and they also show the aspirations of the family. Therefore the way in which these businesses are managed is very important as it determines the way in which they are going to serve and continues. Therefore the management of family business is one of the most important factors in running the business. However management of family business is more complex compared to management of other business due to the fact that there are some emotional bonds that area attached to the running of the business. Therefore one of the challenge that family business faces is the way in which decisions are made as far as the involvement of all the family members is concerned. The management becomes more complicated easily when it comes to the issue of making succession in the business from one generation to the other and the way in which these successions are to be hanged and management. Shirley Plantation Shirley Plantation is one of the oldest family run businesses in the USA. Shirly Plantation first plantation was in 1613 and was recorded as one of the economic engine of the new world. This was after 6 years when the founder John Smith had settled in the town of Jamestown. After that the crown granted carving of Shirley Plantation out of virginer farmers. The business was well established between the period where the settlement in Jamestown was happening and the period between the American independences from Britain in 1776. For all that time it was under the leadership of one family and has been able to survive the Indian uprising, Bacons rebellion, the revolutionary war, The Civil Wars and the Great depression all which has been enabled by efficient management of the company and its resources and the way in which it has been adopting to the changing technology in the world. (Shirley Plantation, 2008a) The company is recorded as the oldest family owned business in North America which dates back to 1638. The construction of its present mansions began in 1724 when Elizabeth Hill who as the great grandfathers of the first Hill was married to John Carter who was the eldest son of the Robert Carter. The mansion was completed in 1738 and it is the original state which is owned and operated by the family of Edward Hill. The family business reflects a succession of more that eleven generations of the American history. It has been classified as one of the most intact 18th century estates in Virginia. Up to date the company continued to function as a private family home, a growing business. It is also national historic landmark which links the past and the present. The company is privately owned and does not receive any assistance from the government or any foundation. The revenue that is collected from the admission fess is used as support preservation for the unique American heritage. Business line of Shirley Plantation The business serves as an archeological site of the American history. Therefore its line of business is tourism and visitors can learn about the family history and at the same time enjoy bird watching. Although the line of business of the family is centered along the rich history of the family, the business also provide other memorable moments in the American history and therefore it has put in place a collection of artifacts that reminds anyone who visits the business of the rich history that American has passed through. It has several activities include international which animals that are found in the farm. There is also a gift shop in the business which will give you difference gifts which are wrapped in different styles which has been used in the history of the American people. It has also put in place student group programs that help student to visit the site as subsidized frees and enjoy the nature in the place and learn more about the history of American people. Therefore the line of businesses of this family business is purely historical tourist information. It is a reflection of the culture of the American people. The business has come to be referred as peoples place due to the focused that it has been having on history, education, tourism and archeology. It is the oldest family business in America and may for some more years after surviving eleven generations since it was started. But what has been the secret behind this succession Management of the business The business has been well management by all the generations that have been entrusted to run it. It has been passed from one generation to the other not just as a form of business but as a part of family history and also as a part of family value that need to be guided with all might. Therefore the good management practices have been one of the most important principles that have been passed from one generation to the other. According to the current manager of het business Carter, the reason of the long survival of the business has been based on its management practices which have been focus on planning, conflict resolution, and effective communication between all those who are involved. He stressed the long term planning and preservation of the family values have also been an important part in the running of the business which have enabled it to stand all these years. On the structure of the business, it is purely managed as a family affairs with involvement of all those in the family. The succession structure has been based on the ability of each and every family member and there is no automatic succession based on the birth right but rather it is base on the ability of the family members. (Shirley Plantation, 2008b) In the currently management structure, Carter who is the oldest in the family heads the business. The other brother Randy is the directors of marketing and project. His sister Harriet is the former operation management but has now opted out to run her own business. The management of the family business has been enabled by the way each generation has been reinventing itself form one generation to the other according to the changes that have been happening in its operation environment. The business has been able to transform itself from an agricultural farm to a tourism farm which is attracting many people. This has been achieved through careful planning that has been on long term goals for the company. Therefore one of the most important approaches that have been used by the business all the years means there has been a lot of invention in the running of the business. Since 2003, the company has been able to revived itself as Shrily Plantation LLC which Charles Hill Carter III as it managers. Management change in the business Like any the business, it has been faced by various management changes in the course of its operation. There have been many instances when the business almost came to a ground halt but each time there has been way of dealing with the impending problem. The success of the business as we said before has been based on proper management of its operation which has been based on sound management skills of those who are involved in the management. One of het challenges has been the way in which it has been managing changes in the leadership as it is handed from one generation to the others. This has been one of the most trying times in the business. But the prevailing principle has been that any time there is need to implement a change in the top leadership of the business, there has been need to ensure that the change is well handled to prevent a fall out in the family. For all the consecutive generation, one of the most important principles that have guided change from one generation to the other has been based on some principle. First it has been ensured that the entire member for the family has been involved in the running of the business. There has been systematic way in which all the family members are given roles to play in the business but which is gauged on their capacity to work, their talents the their qualification. As a result the management of the business for the eleven generation has been handled by those who are capable of implementing a working atmosphere for the family and one who is capable of resolving conflicts between different family members. (Caggiano, 2008) Succession from one generation to the other has been well managed which ensures that there are reduced incidence of conflicts which could be one of the causes of a possible fall out in the family. The fact that that business is closely intertwined in the family values means that all the family members have been working to ensure that the business is well managed and this has been achieved through involvement of all members. In cases where the family members decide to leave and form their own business they are not exclusively excluded from the family and they are also given a share in the decisions making process of the business since it is a family property. This has been one of the most important ways that has been used in order to resolve conflicts between the family members. From time to time, there have been disagreements arising from the management of the business especially when they have to decide on the future strategies that have to be used by the business. As a result effective communication has been taken as one of the most important tool that has been helping those in the management to resolve their defenses and make proper decision for the business. But the business has not come up with a plan to expand and establish other branches or other business which has been used by many family businesses as one of the way to management the growing family. Shirley Plantation has stayed with their original business but it has been undergoing periods of change which are meant to increase its resource in order to meet the needs of the growing family. Corporate strategy Corporate strategy defines the strategic process through which corporation are able to position themselves and prepare for the future operation. A corporate strategy acts as a plan that maps the growth strategy for the business and which acts as a guide for it future operation. A corporate strategy sets out targets that the business needs to archive in the future and also plans for the objectives that the business has to operate and achieve. A cooperage strategy can be termed as master plan that helps to take the business where it wants to be. It lays the road map which the business will follow in all it operation in order to go where it wants to be. A corporate strategy is an important management tool since it shows the future of the business and can be used to determine the future position of the business in the market. A corporate strategy will give the business and most especially the management a guideline under which it can operate in order to ensure that it achieves all what it has planned. It is an all inclusive strategy that shows how the business while manage all the resources that are at its disposal in order to achieve a desired goal in the future. A corporate strategy as outlined is an important tool in succession of the management in the business since it gives the new management an idea of where the business wants to go and where it has aimed to reach its operation. Therefore with a proper formulated corporate strategy in place, the new management is able to know how to use capital and human resources in order to help the business to grow. Therefore it is an important management and operation tool that helps the business especially a new management to archive the objectives to the business. The company has been putting in place a well formulated cooperate strategy which is well defined by the family values on the business. The value that the family has been attaching to the business has acted as a good corporate strategy that has been inherited from one generation to the other and that has helped the company to grow through eleven generation. However since 2003 the company has come up with a new corporate strategy which is apparently aimed at positioning the company in the chaining environment in order to help it to remain viable. As it fortunes in agriculture continue to dwindle due to the change that have been taking place in the environment, the business has been coming up with a strategy of turning the farm to a tourist attraction in order to reap from the growing tourist market. (Terrence, 2001) Creativity Creativity is one of them so important factors that have been driving business around the world. Creativity is most important to the management that has to give the direction that the business has to follow from now and then. A management that does not involved creativity in running the business may fail to deliver the expectation of the business. In its operation the management of the company has been involving creative decision that has helped to propel the business forward to its present status. This has been through ensuring that it to come up with good management ideas that can help the business to operate in the changing environment. The current management of the business has been able to integrate creative decision of changing the line of operation of the business from an agricultural farm to a tourism attraction in order to help it to remain relevant in the changing market. Creativity has been one of the most important values that have been a source of growth for the company in all its operation. Bibliography Bork, D 2003, Family Business, Risky business, Bork Institute, Aspen Caggiano, J 2008, The Family Business: Shirley Plantation seen as model for passing down ownership, Retrieved from http://www.inrich.com/cva/ric/news/business/more.apx.-content-articles-RTD-2008-04-07-0016.html on 8th May 2008 Shirley Plantation, 2008a, Timeline for Shirley Plantation, Retrieved from http://www.shirleyplantation.com/timeline.html on 8th May 2008 Shirley Plantation, 2008b, About Shirley, Retrieved from http://www.shirleyplantation.com/aboutshirley.html on 8th May 2008 Terrence, J 2001, Save Shirley Plantation, Retrieved from http://findarticles.com/p/articles/mi_qa3827/is_200104/ai_n8931186/pg_2 on 8th May 2008 Read More