Family Business: challanges and opportunities

Family Business : challanges and opportunities Term 17 hours 36 minutes

language Should contain

1 . Intro (why is this relevant

2 . Summary of the ideas read in the sources

3 .Examples

4 . Discussion (your ideas

5 .Conclusion

6 . Bibliography

Wikipedia

Family business

A family business is a company owned , controlled , and operated by members of one or several families . Many companies that are now publicly held were founded as family businesses . Many family businesses have non-family members as employees , but , particularly in smaller companies the

top positions are often allocated to family members

Family participation in a business can strengthen the business because family members are very loyal and dedicated to the family enterprise However managing a family business , and particularly succession planning , can present some unique problems . Often family interests conflict with business interests , for example hiring a family member who is less competent than a non-family member or keeping an underperforming family member in a position when their performance is hurting the company . Psychologists are often consulted to help families successfully manage issues that affect both the family and the business

An example of the conflict that can arise is demonstrated in a story about Stew Leonard 's Supermarket in Connecticut , about a family business owner whose son 's performance was deemed unsatisfactory by his supervisor . The father told the supervisor that he would take care of it . The father asked his son to come to the family home for a talk in the hot tub . When they were settled in the tub the father put on a hat which he said was his 'Boss ' hat and told his son that he was fired . He then removed that hat and put on another calling it his 'Father ' hat Then he said "Son , I 'm very sorry to hear that you lost your job . Is there anything I can do for you

Examples of family businesses Cargill Ford Motor Company Koch Industries Matthew Algie Mills Fleet Farm SC Johnson Company Tetra Pak William Grant Sons Vanee Foods Company

FBAB 1 : no /minimal

effectiveness

The owner (s ) keep his own counsel using a small group of trusted

advisors individually on an as needed basis . Board is on in

reality

FBAB 2 : minimal /nominal

effectiveness

The owner (s ) meets with a group or team of trusted insiders or

advisors (employees , former employees , peers , family members

etc ) periodically or sporadically . Executive Committee format

FBAB 3 : nominal

effectiveness

The owner (s ) meets with a group or team of trusted insiders or

advisors (employees , former employees , peers , family members

etc ) for regularly scheduled discussions . Executive Committee

format

FBAB 4 : active participation

increased

effectiveness

The owner (s ) recruits one or more outside , non-affiliated risk taking

peers to assist in thinking and planning future direction . The family

remains firmly in the majority

FBAB 5 : energizer and

catalyst / great

effectiveness

The owner (s ) recruits one or more outside , non-affiliated risk taking

peers to assist in thinking and planning future direction . The

outsiders are in...