ne that has its ownership having 50% and above shares owned by a certain family though most are those that are completely owned and controlled by a single family entity (Gordon 2008 p 7). The success of these businesses faces various challenges which have been discussed in this essay. Also, they have their advantages over nonfamily businesses especially in attracting customer loyalty as well as other factors that have been discussed. Succession also has been identified as a key issue that results to conflicts especially in the process of passing the business from one generation to the other. This essay is an evaluation of the criteria that academics and others use to assess the relative success of a family business.
A family business is one whereby a family owns 50% or more of its property. It could be an inheritance from previous generations in the family linage or it could be an investment of the current generation in the family. Family businesses are faced by various challenges which may determine their success. Some of these challenges may arise due to the emotional attachments that family members may have on the business (Fleming 2002 p 67). For example, a case of divorce or separation may tamper with the administrative roles that the partners may hold. This may result to poor communication which is an essential tool in the well being of the business. As such, the formulation of policies and strategies may be hindered thus leading to the downfall of the business. Successful family businesses are those which disintegrate family issues with business. Personal differences should be solved in different avenues other than in business meetings and also business issues should not be discussed in family gatherings such as weddings and parties. If this is not checked, it may interfere with the well being of the two institutions which may result to constant conflicts. Any time wasted through poor interpersonal relationships between the family members should be ...
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This paper has highlighted family business, and investigated various aspects of the concept. This research aims to evaluate and present the theory of family business; the vital role of the family system in family business; the sustainable family business theory (SFBT); leadership transition in family firms using executive coaching.
It is as a result of this that methods can be observed, recorded and assessed, as well as evaluated in that they all hold a common agenda and ground in looking after the functionality of family businesses. Consequently, these criteria can be identified and discussed to determine the successes and failures of family businesses, as we seek to find out.
1A family business can be defined as a business the is governed and managed on a sustainable and potentially cross generational bases in order to ensure that the business achieved a formal or implicit vision that has been held by the family member. 2This means that a family business is based on a vision that is held by all the family members.
However, without good manage it can also lead to major problems, ranging from conflicts over payments to poor communication. (Rosenblatt, 1995)
This study report seeks to examine the shortcomings of family members being directly involved in the business; the report will define what family business is outline Business management of family business, The character of Family Ownership and examine the core part which is family ownership theory; pyramidal theory will be reviewed and finalize with highlighting management difference
ined as a business corporation where one or more members of a single family have a notable ownership interest in the business and have some level of control over strategic decisions. In a family business, usually one of the family members may be the controlling shareholder, that
However, in some cases, family business often fails after the death of some important member of the family who also played critical role in the family business. The failure often results from poor management and
The success of the any business organization is depended on many factors that have to be carefully integrated. Business managers have to keep analyzing the internal and external environment to ensure that any emerging issues are well taken into consideration to meet the expectations created
13 Pages(3250 words)Essay
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