...xiii x Part I Structures for Family and Business: Family Business Governance 1 Chapter 1 Maximizing Success through Professional Family Business Governance 3 Alexander Koeberle-Schmid Interview: Dr. Jürgen Heraeus, chairman, Heraeus Holding, Germany 3 Family enterprises are special 7 Sound family business governance 9 Best-practice recommendations 16 Important definitions 17 Chapter 2 Challenges to the Governance of the Family Enterprise 20 Ernesto J. Poza Interview: Mr. Bruce T. Halle, chairman, Discount Tire, USA 20 Family business governance is critically important 25 Challenges to family business governance 25 Which hat to wear: parent, owner, or CEO? 32 Simultaneous optimization of family-ownership and business 33 Best-practice recommendations 35 v PROOF Contents Chapter 3 Evolution of Governance Structures and Systems Ernesto J. Poza Interview: Julio Cazorla, managing director, family office, Grupo Landon, Spain 36 Evolution and sustainability 42 Effective governance is more than just structures 43 The long term 45 Evolution by design 48 The founder exits; a family office is started 50 The family assembly 52 The annual general meeting 52 Best-practice recommendations 54 Chapter 4 Responsible Ownership in Family Enterprises 56 Denise Kenyon-Rouvinez Interview: Franz M. Haniel, chairman of the board of directors, Haniel, Germany 56 Interview: Karl-Erivan W. Haub, chief executive officer, and Christian Haub, chief family officer and CFO, Tengelmann, Germany...
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...Family Business Self-Assessment Family firms, even if often underestimated, are the backbone of the worldwide economy: it is estimated that in U.S. and Canada, the 90 percent of all the businesses are family-owned and the majority of the world’s most successful medium-sized companies are also family firms1. They employ the 48 percent of the work force and produce the 50 percent of the total GDP2. The reasons of the success of this type of business are numerous and different but it is crucial to understand that, the most of the time, it is the family itself the key factor which defines the outcome of the company. Family and business are tightly interconnected and have clear effects on each others, as the first is a precondition of the other: family has influence on the firm’s vision, behaviors, perpetuation, and growth. The dynamics inside the family shape the ones inside the business and it is easy to visualize the opportunities that this added value can create in a working environment: sharing the same values, entrepreneurial culture, mission and beliefs, having a common goal and a long-term commitment can really make the difference in the management of a business. These internal features create something that is perceived also externally, something unique that non-family businesses simply cannot replicate: that feeling of integrity and commitment, that confidence that costumers have in a family name and in a person, that sense of personal involvement....
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...Our group's choices for a business info system to create include these businesses: -Travel agency -Clothing retail shop -Small bed & breakfast chain -Motor-oil delivery company -Dried nuts store The top choice that we have decided on is the travel agency, and the motor-oil delivery company is our second choice. The travel agency is ideal because it is a family business that is trying to implement more technology to improve efficiency and effectiveness. Many of the office's data are hand-recorded and this method can be improved upon. Ideas for this business include a data-entry and retrieval system, which could hold customer information or payment records among many other data-entry system possibilities. Our second choice, a motor-oil company, is a local inventory-based delivery organization. Our idea for this company's system is to create an inventory-tracking system. The dried nuts store is not a preferred option because of the non-cooperation of the management. Specifically, they are not interested in an info system and are not convinced that it would be worthwhile and would not significantly help their business. Furthermore, the clothing retail shop is not a top choice because our group had no interest in the ideas for this business, which included sales records to show high or low-selling products. Finally, we did not choose to create an info system for the small bed and breakfast chain because they are currently looking for an online reservation system, which...
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...Successful Family Business 1 The competitive advantages of family business in the business industry compared to non-family business By Kateleen Louise L. Reyes En12 (Communication in English II) School Of Management March ,2013 Running Head: Successful Family Business 2 Family businesses are vital in every country and have an important role in our global economy. In many countries, family businesses control significant parts of the economy as well as the economic structure. Family businesses are icons of countries that show their hopes, dreams and entrepreneurial spirit; moreover they aim for self-sufficiency and wealth. Family businesses’ importance and significance were recognized recently but they are considered to be the most prevalent and pervasive form of business. Family businesses are businesses owned and controlled by families that also have at least one of the following characteristics: the business should have three or more active members, family control of 2 or more generations and the current generation intends to pass the business to the next generation of the family. Family businesses having three or more active members is one of the characteristics used to differentiate them from non-family businesses. Family members are more active in the involvement of the enterprise’s everyday activities whether it is the formal or informal employment of family members. Some use the terms “employment”, “involvement” and “activity” of family members or...
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...The Two Sides of the Family Business The Two Sides of the Family Business Many people may think it would be wonderful to run their own business. They can imagine the freedom of being their own boss, making the decisions in the day to day running of their company, and keeping the profits for themselves instead of spending their blood, sweat, and tears for someone else’s benefit. And if this was a family business? That can make it seem even more attractive. Working with loved ones, sharing in the fruits of your labors together. But this can be a very romantic notion, especially when we look to business outside of the United States. It is true that being part of a family business can have the advantages as stated above, but it also comes with its own list of hardships that may not be suffered by a non-family run company. There can be many pros and cons to both types of businesses, and with that means different types of strategies to overcome individual obstacles. This takes looking at both types of companies from the outside with an objective eye and seeing what the advantages of each are as well as the pitfalls. In the United States it can be decidedly easier to start up a business than in other countries. We have more access to capital than many other places, as well as things such as crowd funding, or even just working and putting money aside until we have enough funds for a startup. This however is often not the case in more disadvantaged areas, particularly in African...
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...objective. Our first challenge was finding an interrelated theme for family business, that wasn’t too obvious or researched too much already, as we actually want to fill a small knowledge gap with this research. Therefore we choose innovation, because there is a lot of controversy to it about the innovativeness of family businesses. Also, innovation intrigues us very much, as it often determines the succeeding or failing of a company. After brainstorming we came up with the following research question: “How can we explain that family businesses, in comparison to non-family businesses, tend to be more innovative than is often assumed?” This question allows us to investigate the strengths of family businesses and...
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...Ethics is effective in guiding the organizations objectives as they relate to the corporate strategy. The case study; is about the mercantile and ranching industry leader Babbitt Ranches for analyzes of the ethics within the family business as it relates to their corporate strategy. It was the challenge of President Bill Comdisco to lead the organization in new business opportunities that were inclusive of the companies long standing values. Mr. Cordasco recognized that the future of the organization was contingent upon meeting the needs of the multigenerational stakeholders. The article highlights several challenges that Babbitt Ranch experience in an attempt to align the organization's objectives with the organizational strategy through team decisions. Points of Agreement In 1988, the company was forced to debt finance stock buy from some of the third generation owners seeking liquation of their share of the business. The buyback creates debt for the organization, ultimately forcing the company to sell off most of the retail business in assets. I believe that this was a difficult decision for the stakeholders; yet I agree that it was the only acceptable alternative. Without the stock but out of some of the 3rd generation family stockholders the families ability to make...
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...Family business is a business in which, one or more members within the management team are drawn from the owning family. Family businesses can have owners who are not family members. Family businesses may also be managed by individuals who are not members of the family. However, family members are often involved in the operations of their family business in some capacity and, in smaller companies, usually one or more family members are the senior officers and managers. Many businesses that are now public companies were family businesses.Family participation as managers and owners of a business can strengthen the company because family members are often loyal and dedicated to the family enterprise. However, family participation as managers and owners of a business can present unique problems because the dynamics of the family system and the dynamics of the business systems are often not in balance.The interests of a family member may not be aligned with the interest of the business. For example, if a family member wants to be president but is not as competent as a non-family member, the personal interest of the family member and the well being of the business may be in conflict.Or, the interests of the entire family may not be balanced with the interests of their business. For example, if a family needs its business to distribute funds for living expenses and retirement but the business requires those to stay competitive, the interests of the entire family and the business...
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...Mention “family business” and one might assume you’re talking about shops and restaurants around the corner or your local dry cleaner. But the vast majority of businesses throughout the world (two thirds of all businesses around the world )—from corner shops to multinational publicly listed organizations with hundreds of thousands of employees and best known brands like Novartis, Walmart, Facebook, Samsung Electronics, Volkswagen, Mars, are rooted family businesses. Kongo Gumi, one of the oldest Japanese construction family businesses funded in 578 till today with the 40 th generation. Prince Shotoku got Kongo family members to Japan from Korea more than 1,400 years ago to build the Buddhist Shitennoji Temple, which still stands. Over the centuries,...
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...Family business models This page intentionally left blank Family business models Practical solutions for the family business Alberto Gimeno Associate Professor in Business Policy and Director of the Advanced Management Program (AMP), ESADE Business School, Spain Gemma Baulenas Family Business Knowledge S.L. Joan Coma-Cros Family Business Knowledge S.L. © Alberto Gimeno, Gemma Baulenas & Joan Coma-Cros 2010 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2010 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue...
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...Unit 2 Assignment: Family Business Case Lizzeth Wise Kaplan University Family Business Case The Family Business case clearly shows Jane the Payroll Department Manager, Eddie the General Manager, Greg the Service Technician and Brad the Owner of R&S Electronic Service Company are the stakeholders. According to Investopedia.com a corporate stakeholder can affect or be affected by the actions of a business as a whole. Which in this case all of the above could be affected by the actions of the others. Let me explain how. On my research I came across the U.S. Equal Employment Opportunity Commission (EEOC). Which it enlighten me with a lot of information for this case. The EEOC is “responsible for enforcing federal laws that make it illegal to discriminate against a job applicant or an employee because of the person’s race, color, religion, sex (including pregnancy), national origin, age (40 or older), disability or genetic information” (www.eeoc.gov). The part that I found that can be apply for this case “is that is also illegal to discriminate against a person because the person complained about discrimination, filed a charge of discrimination, or participated in an employment discrimination investigation or lawsuit. Most employers with at least 15 employees are covered by EEOC laws” (www.eeoc.gov). Since R&S Electronic Service Company has 75 employees, this company is cover under such. For this particular case the Equal Pay Act comes to mind. In the U.S. Equal Employment...
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...Family Business Case LS 312-02 Ethics and the Legal Environment Kaplan University 4-27-14 INTRODUCTION The stakeholders in the “Family Business” case are Brad the owner, the employees, R and S Electronics, Eddie the General Manager, Greg the service technician, and Jane the head of the Payroll Department. The interests of the stakeholders are to run a smooth, profitable business. Jane’s interest is to insure the employees get paid correctly and to manage payroll. The employee’s interests are to perform the assigned worker orders timely and efficiently. Eddie’s interest is to assign work order correctly, and that they get done in the order he describes. Brads interests are to make sure the business runs smoothly. Greg’s interests are to perform his assigned duties and complete work orders correctly and timely. The interests of all employees are to work ethically and legally. LEGAL ANALYSIS The employment at-will doctrine applies to this case study. Most often businesses face wrongful termination lawsuits. However, businesses can get sued for improper promotions, hiring practices, and favoritism of work assignments (eGuide, n.d.). In this case, Eddie altered the work orders when he divided them. Greg received easier assignments with higher commissions while the other employees got the harder ones. Eddie would have violated the policy regarding ticket assignment in his treatment toward Greg his brother. When Eddie gave Greg a special list of tickets, favoritism...
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...performing their expatriates’ assignments than men and the literature not supporting issue will discuss about advantages over male side rather than women in expatriates assignments. These both literature issues will be discuss and compare on details in perspectives expatriate gender between male and female. The previous study have found, suggest that women often have great success in performing their foreign assignments, certain have stated that women and men performance expatriates equally same and also certain found that men will be much better perform expatriate task rather than female expatriates manager. 1.0 INTRODUCTION Business firms are increasingly becoming aware that the key to success in the marketplace rests with their ability to mobilize and utilize their human resource talent in formulating and implementing new global business strategies. To achieve that, many medium-sized...
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...Castle’s Family Restaurant Business Plan: Stage III DeVry University Executive Summary The purpose of this business plan is to understand the restaurants business and its operations to improve its customer service and its employee relations. The Castle Family Restaurant has eight restaurants that operate under one regional manager that also acts as the Human Resource Manager for the restaurants. The goal is to develop a plan that can decrease the travel time of the regional manager so; that he, Jay Morgan, can save on gas due to high gas prices since each restaurant is located in the northern California area. The objective is to introduce a HRIS application and one vendor that can assist in the developing of the HR department and ease the transitioning of one individual HR manager to multiple employees. There are restaurants with profits in mind and provide the same food and service while the Castle’s Family believes in family, partnerships and developing relationships with one another for a great customer service. Introduction The Castle’s Family Restaurant has eight restaurants in northern California with about 300-340 employees. Most of the employees are part time with about 40% of them full-time. This business plan is to determine strategies that will eliminate the Human Resource position from Jay Morgan, so that he can reduce his travel time to all eight locations and to develop an HR department for the restaurants. In addition, the business plan is to enable...
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...Castle’s Family Restaurant Business Assessment Vidalena Rascoe DeVry University Introduction Castle’s Family Restaurant have expanded in the northern California region with eight actively open restaurants. Jay Morgan concurrently holds the titles of operations manager and Human Resource manager for all eight restaurants commuting weekly to each store handling all managerial operations. With roughly 300 to 340 employees currently working in the eight restaurants approximately 120-136 are full time employees and 180-204 are part time employees. With the economy changing and the price of gas increasing, changes need to be made to accommodate the growing rate of Castle’s Family Restaurants and the employees they attain. An outside referral in the human resource department is necessary to help structure the interworking’s of Castle’s Family Restaurants and equip the company with positive changes that will improve the work flow. Items to review for improvement will be responsibility of operations manager, responsibility of HR manager, restaurant employee to management ratio, employee turn around and staffing, billing and payroll. Theory It is our intentions as HR consultants to minimize overhead travel expenses, incorporate better communications between management and employees and how to better organize the responsibilities of the HR manager from a central locations while still meeting the needs of the employees and the restaurants as a whole. BUSINESS ASSESSMENT ...
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