Hi, I need help with essay on Business Management (Family Business). Paper must be at least 1500 words. Please, no plagiarized work!
Many of the world’s leading publicly listed corporations are operating under the category of family business. For instance, the corporate giants like Walmart, Samsung Group, Tata Group, and Foxconn are some of the well known family businesses in the globe. This paper will discuss what defines a healthy family business from the perspective of scholars and practitioners.
From the view point of the family business consultant Schneider, there are eight major elements including purpose, structure, organizational culture and relationships rewards to shareholders, potential mechanisms in the organization, leadership, strategic and operational performance outcomes, and financial performance outcomes influencing the development of a healthy family business (para 4).
Purpose is the factor determining the existence and long term sustainability of a family business. The major reason for the failure of many family businesses is that there exists ambiguity and lack of agreement on the vision, priorities, and goals of the business. Hence, a healthy family business will be characterized with clearly stated business goals and priorities. In addition, it is commonly seen that many family business ventures do not survive beyond the generation of the founders due to lack of foresightedness. In contrast to this, a strong family business will have a well defined family philosophy that facilitates the continuation of the business beyond generations and sets a framework for the future operations of the company.
According to Schneider, “structure is the architecture of grouping people in the family business” (para 5). The author continues that the structure of the family business has to necessarily fit the purpose and the current environment of the business. At the start up stage of the business, the firm maintains a simple operational structure by which all the employees report to the owner.