Case Analysis of?Family Business

發布時間:2020-06-03 12:57

下面ESSAYLW教員組為大家整理一篇優秀的代寫范文- Case Analysis of Family Business,供大家參考學習。這篇文章講述的是家族企業是指資本或股份掌握在家族手中,家族成員作為企業的主要領導職務。家族企業作為世界上最常見的企業組織形式,在世界經濟中起著舉足輕重的作用。無論是在發達國家還是在發展中國家,家族企業都具有發展壯大的堅韌性。全球約70%的企業是家族企業,40%的財富500強企業是典型的家族企業,如沃爾瑪和寶馬。據統計,家族企業創造的價值占美國當前國內生產總值的50%,占美國就業機會的50%


Case Analysis of Family Business


Family business means the capital or shares are in the hands of a family, the family members act as the main leadership positions of the enterprise. As the most common form of enterprise organization around the world, family business plays a decisive role in the world economy. In both developed and developing countries, family business has the tenacity to grow and develop. About 70% of global businesses are family businesses, and 40% of Fortune Global 500 is typical family businesses, like Wal-Mart and BMW. According to statistics, the value created by family business accounts for 50% of current US GDP, and contributes 50% of employment opportunities in US.

<标题> This essay will firstly discuss the advantages of family business. Then, it will analyze the defects which will become the imprisonment of enterprise development and obstacle to the sustainable development of enterprise. Finally, it will focus on the proposed measures towards the problems. 

The advantages of family business

Family business has its particularity in all forms of enterprise organization. The particularity lies in the fact that the ownership of the family business is controlled by family members with ties of blood and kinship, but it cannot be inferred that family business is an inefficient form of enterprise. Instead, as an institutional arrangement, its own existence shows the rationality of its existence.

First of all, family business has the advantage of quick decision-making and strong execution ability. Simon says that management is decision-making. The process of enterprise management is a process of a series of decision-making, implementation and feedback. As for the enterprises with family business management pattern, human rights and property rights are generally firmly controlled by one or a few people, which accelerate the control of the enterprise. Decision-making is generally centralized, which is fast and suitable for rapidly changing market. This arbitrary behavior can quickly respond to the rapidly changing market, which is essential for the startup family business. Family members have formed a deep emotion through a long-term common life; they have a high degree of identity and sense of unity. Therefore, they can more effectively implement the decision.

Secondly, a highly related interest is conducive to produce a better incentive effect. In the early development of family business, the ups and downs of enterprises is closely related with the benefits of the family. The main business managers will work voluntarily for business and family members, the power generated from the spirit is difficult to do for non-family businesses. The consistency of benefits reduces monitoring cost, so that enterprise need not have to spend high cost hiring management personnel outside, which help reduce internal management costs, as well as making the family business obtain a competitive advantage in a very short period of time and complete the primitive accumulation of capital faster.

<标题> Thirdly, high degree of trust can effectively reduce the cost of organization. In the process of social change, the risks and uncertainties are quite large in the transaction. For the sake of security, it is advisable to build a strong and comprehensive trust relationship by virtue of the blood relationship, affinity, geography and correlation between family members which can quickly establish a new group identity for the reason it can not only ensure the effective operation of the organization, but also reduce the organization's costs.


The defects of family business

The particularity of the family business also leads to a number of inherent defects. When the enterprise achieves to a larger scale, the disadvantages of family business will be increasingly exposed.

To begin with, family business will inevitably encounter shortage of talent. For one thing, the rapid expansion of enterprise scale leads to a growing demand for human capital, while the supply of family members under the influence of the natural population growth rate is generally far below the rate of human capital demand. For another thing, the expansion of enterprise scale and the complexity of management lead to the growing demand for high-level human capital, but as for the family members group, this probability of talent is very low.

<标题> In addition, it lacks a good corporate culture. Corporate culture is the basic values and behavior standards; it is advocated and must be put into practice by enterprises. Corporate culture is the internal source of vitality. However, in family business, the centralized decision-making system lacks effective supervision, feedback and restraint mechanism, which is not conducive to scientific and democratic decision-making, and it is also easy to cause decision-making mistakes.

Last but not least, the internal relations are complicated, conflicts are difficult to handle. Due to the interrelationship of kinship, the internal structure and relationship of the company will become complex, various interest groups will be formed inside the enterprise. On account of the complicated emotional relationship, the leader will be in a dilemma in dealing with the interest relationship.

Proposed measures

<标题> Family business has the rule of no rich than three generations in the life cycle. According to a study by a US family business college, around 70% of family businesses fail to reach to the next generation, 88% fail to reach to the third generation, only 3% of the family business in the fourth generation and later still operating .

Family wars and conflicts are common in family business. So in order to make family business go fast and stably, not only the right road to sustainable development should be chosen, but also family conflicts should be dealt with.

<标题> First and foremost, it is most difficult to trust the family business leaders will take over the family business from their predecessors successfully , to ensure the sustainable development of family enterprises and the coordination and harmony between personnel. Even close relatives need to show the behavior in the trust construction. (Bowen, M., 1978) Therefore, it is necessary to establish a complete and sound inheritance mechanism and choose to train heirs. In order to achieve sustainable development, the key is to attract and retain the talents needed by the enterprises. And the most fundamental characteristic of human capital is the effective incentive.

Secondly, re-shape the corporate culture; re-establish the values of the enterprise. Corporate culture is a cultural image which is consist of the organization values, beliefs, rituals, symbols, ways of doing things and other components. However, home culture has become the core content of the family enterprise culture.Carlock& R.S. & Ward, J.L., 2001So, the separation of management rights and ownership should be<标题> achieved, a fully modern enterprise system and a standardized management system should be established. For example, to promote family to give up the management. In addition, a patient and an effective communication is also needed.


In conclusion, each coin has two sides. Family business has both its own advantages and a number of inherent defects. In the enterprise system construction and enterprise spirit building, home culture is difficult to keep up with the development of modern enterprises, corporate culture lag will seriously weaken the core competitiveness of enterprises. Through the change of mode of the family business management, family business problems can be resolved, and embarked on a path of sustainable development.