...Alex Vanarthos 11/26/2014 America's Most Successful Family Businesses Family businesses make up an incredible 34% of the S&P 500 Index, meaning over 170 of our nation's 500 largest companies are family owned (Caspar, Christian). To some, this figure is extremely surprising, as it shatters the commonly held misconception that family firms are simply "mom and pop shops." Although it is clear that family businesses are capable of incredible widespread success, exactly why this is the case is far less obvious. One way to gain some valuable insight into how and why so many effective family businesses exist is to closely examine the three in our nation that have had the most success: Cargill, Ford Motors, and Wal-Mart. In many ways, these businesses could not be more different; for instance, they operate in separate industries, and the levels and types of family involvement in the firms vary. Extensive analysis of these three corporations did, however, reveal that while no family, business, or family business is perfect, each company's achievements are directly attributable to its commitment to the common vision and identity instilled in the firm by the family. Cargill Cargill is a private corporation that works with "farmers, customers, governments and communities" to provide "food, agriculture, financial and industrial products and services to the world ("Cargill:...
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...Hoy por hoy se puede observar que las empresas más grandes son o fueron empresas familiares, observándose así que tener una empresa familiar puede llegar a ser un éxito. Pero llegar al éxito implica que ésta debe ser bien manejada ya que una empresa familiar es mucho más complicada de llevar que una no familiar. Y es que cerca del 70% de empresas familiares desaparecen en el paso entre primera a segunda generación y solo el 13% sobrevive a la tercera generación. Como ya se mencionó antes, llevar una empresa familiar es mucho más complicado debido a que en ella se sumergen intereses personales que van más allá del plano laboral. Si bien es cierto se observa que el patriarca de la familia es el “sacrificado” y el que saca a la empresa adelante, los hijos son los que disfrutan esta bonanza y llegado el momento en que esta segunda generación asume la dirección de la empresa, lo que aquellos hacen es continuar con lo que dejó encaminado el patriarca de la familia. Sin embargo muchas empresas suelen fracasar en esta segunda generación debido a que los puestos de alto rango, aquellos puestos claves para la empresa son elegidos a dedo y familiares de la empresa son los que asumen dichos cargos sin siquiera tener la experiencia necesaria, es ahí donde la empresa empieza a fracasar, ya que la dirección está mal enfocada. A veces y debido a situaciones externas estas empresas familiares suelen pasar la segunda generación llegando a un declive en la tercera generación donde los nietos...
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...economy and the importance of family-owned groups The Economy of India is the ninth largest in the world by nominal GDP and the fourth largest by purchasing power parity (PPP)[1]. The country is one of the G-20 major economies and a member of BRICS. The country's per capita GDP (PPP) was $3,408 (IMF, 129th in the world) in 2010, making it a lower-middle income economy[2]. As a result of the financial crisis of 2007–2010, coupled with a poor monsoon, India's gross domestic product (GDP) growth rate significantly slowed to 6.7% in 2008–09, but subsequently recovered to 7.4% in 2009–10, while the fiscal deficit rose from 5.9% to a high 6.5% during the same period[3]. India’s current account deficit surged to 4.1% of GDP during Q2 FY11 against 3.2% the previous quarter. The unemployment rate for 2009–2010, according to the state Labour Bureau, was 9.4% nationwide[4]. As of 2010, India's public debt stood at 71.84% of GDP which is highest among BRIC nations. The latest GDP growth figure slipped to 6.9% and industrial production numbers just released, on December 12th, showed a decline of 5.1% compared with the previous period[5]. Inflation and capital flight are two clear factors that have hurt the Indian economy. First, inflation has stayed over 9% since December 2010, and wage inflation is also on the rise. The Reserve Bank of India (RBI), the country's central bank has been hiking interest rates since March 2010 to curb inflation[6]. Family owned groups constitute the backbone...
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...The family owned business is the backbone of the world economy. By some estimates, over 90% of all business enterprises in the United States are family-owned and 60% of all employees are in family owned businesses (Ibrahim and Elis, 1994; Colli, 2003). In the UK, approximately 76% of the largest 8,000 companies are either family owned or controlled (Gallo, 1994). Among the largest corporations in the US, approximately 30-40% are estimated to be family owned (Anderson and Reeb, 2003; Anderson, Duru and Reeb, 2009) Researchers have found similar statistics for family firms around the world (Dreux, 1990; Martinez, 1994; Owens, 1994). Therefore, a better grasp of the unique characteristics of family firms is a basis for understanding a significant part of the world’s economy several papers have been written about the unique characteristics of family businesses and their performance compared to that of non-family businesses. Most research done in the field focused on corporate governance measures, family relationships, succession, and performance indicators of family owned businesses. This research article also deals with capital structure & performance of family businesses in India. Article 1: (Kim & Gao) Does Family involvement increase business performance Family involvement in business management attracts much scholarly attention in the field of family business. This paper's main objectives are answering two questions. They are 1) how does family involvement...
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...5 Tangible Benefits Governance challenges For Family-owned businesses Implementing Tangible Benefits Motivation Implementing Purpose Alignment Family Business Challenges Planning What To Do Family Business Challenges What To Do KEY MESSAGES To an extent, family control yields benefits. Academic research and experience from many companies and investors all show that a certain degree of family ownership/control provides positive benefits to the family business and its shareholders. Family-owned firms face unique challenges. However, many failures of family-owned companies indicate that such firms also face a multitude of challenges which risk destroying shareholder value or even the business itself. Corporate governance measures lead to long-term success and keep peace in the family. Corporate governance measures at the family and business levels provide good solutions to family ownership challenges and often are indispensable to the long-term success of the family business nd peace in the controlling family, especially with succeeding generations. —a “…We have two options; there is no right or wrong decision, nor one that is better than the other. But whatever is to be done, will be definitive. There is no turning back. We can continue being a family business, like in my grandfather’s and father’s days, or become a professional company with a strong and clear capital market strategy.” —David Feffer, Suzano, Chairman of...
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...to arrive. paul, on the other hand, is painted as a father who keeps on running his errands and businesses and rarely has time for his kid. as he arrive, he tries to joke around with the daughter as a way of making up for the missed recital while busy in business meeting. this action is, however, not reciprocated by lisa as awkward tension resurface between the two characters. as the stripy...
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...WK 2: Community Profile In a community there lives a diverse group of people. These people are what make a community a home or a neighborhood. This neighborhood needs to be respected and protected in order for people to thrive and carry-on with their everyday lives. My community is made up families raising their children and just going with everyday life. We take pride in living for our children. Sports and education is big in the community, during school and during the summer months as well. When the adults are not working they take their leisure time going to basketball games on Friday nights during the fall or baseball games during the summer. Also during the summer months my community has a farmers market. The farmers market supports local farmers and also brings other small businesses out. The farmers market always brings out the community and brings people together. It is also a great way to contribute to small businesses and give back. Some other wonderful, fun things we have during the summer months that brings the community together are car shows, a day in the park and the jubilee. A reason we can have these things is because of the workforce in the community. The workforce ranges from industry to clerical to fast food to medical. We are very diverse in what needs to be done. The community used to be mostly industrial but a lot of factories were shutdown due to the economy. The community still has a couple of bigger industrial factories that are in production but...
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...Schools should not switch to a four day school week. A four day school week will cause families and businesses not to move into the community. A four day school week decreases costs at the expense of the staff. It will leave children unattended. Students of low income families may not have food at any time but school. A four day school week would take away another meal from them. Instead of 5 meals a week, they would be getting 4. According to Marcia Morris, families will not move into the community because they will have the extra costs of finding a sitter for their children. If they can not find a sitter for their children, they will have to stay at home to make sure they don’t get into trouble. This will still cost them money because they will not be at work making money. Businesses will not move into the community because their workers will either have to have a day off, or be payed more to cover the costs for a sitter....
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...goods. During the past 20 years the American family has undergone a deep transformation. The American family, like all families in the western industrial countries, is now different From what it has been in the past. The household has less children, both working parents and mothers producing their children at older ages. In the fairly recent past, families gathered on a nightly basis to dine together and chat. Dinner, often prepared by females working inside the home, was a nightly gathering for which time was prioritized by families. As both spouses comprising the household began working outside of the home, the way in which individuals gathered for meals changed dramatically. The last quarter of the twentieth century was characterized by greater numbers of people claiming that it was difficult to find time to prepare meals. That led to more fast food, ready meals goodies ( more convenience ) The bottom line is ; our consumable purchases with foodstuff being on top of the list has dramatically changed. How would Procter & Gamble market shampoo to Young Transitionals differently than Start-up families? A large firm such as Proctor and Gamble that desires to reach several different target markets has to make sure that the different brands compete with competitors’ brands rather than each other . For instance, They will target the young transitionals market with different products than start-up families to gain the biggest share of the cake instead...
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...1. What effects have the changes in family structure had on businesses thus far? Think of the products that have been designed for couples with no children and for individuals living alone. Think also of the working woman phenomenon. What does that mean in the long run for businesses? From the point of view of the couples with no children, the businesses can target this segment with luxury and stylish goods. Goods of conspicuous consumption will have acceptance in this segment. Stylish products and products that made a statement about the affluence of the persons using it should be targeted at this segment. Moreover, the businesses that are targeting this segment should position their brands as premium. The promotion communication should stress on images luxury and opulence. New products in these segments have potential for high profitability. The working woman phenomenon means that products targeted at the working woman like clothes, cosmetics and cars for women have good potential. In addition, as she can spend less time at home, there is market for products like instant food products and day-care for children. 2. What is the significance of the fact that two of three of the married couples with no children at home are over 50? What market opportunities does that create? This means that this market segment has high disposable income but is aged. This means that the products must be designed for people that are old and feeble. Products may also be targeted at persons have...
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...histories of multiple countries. Vancouver’s mission statements being “to make sure that all of our citizens – regardless of background – have complete access to civic services, and live free of prejudice and discrimination” allows all it’s citizens to feel safe and accepted into the community. I’m lucky to be born with grandparents who had the chance to start a new life oversees, away from all the high paced labour work. Coming from a family of Taiwanese descent who were early immigrants of Vancouver on my father’s side, my family was extremely poor and was found unable to support themselves countless times. As time passed, my father and uncle were able to further explore the Greater Vancouver area and had met other fellow Taiwanese in the community. Gradually, the amount of Asians started to increase and suddenly, being unable to speak fluent English was not a problem anymore. As my father had explained, not only did he have Caucasian and Chinese friends, he was able to make connections with the Punjabis, Japanese, Italians, and many more. My family had adapted to the multiculturalism and has become completely comfortable with the diverse community around them. As a city filled with entrepreneurs, Vancouver is able to satisfy...
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...Saving Strategies in Household MRO’s Businesses all have different goals, some are simply trying to make a profit; others are trying to make an impact in their environment. However, the bottom line is that they all need revenue to continue to operate. This revenue is used for all sorts of things from manufacturing, procurement, employee wages and so forth but there is one area that most people do not fully realize and that is the day to day cost of maintenance, repair and operations (MRO). In simple terms MRO is basically the things that are needed to keep the company running from toilet paper and cleaning products to things needed to perform repairs on their machines. However this situation is very similar to how households are run since as in businesses things break down, food runs out, and floors need to be kept clean. Using strategies that global businesses use to help keep their MRO’s in check are also important strategies for households to consider. One of the most important techniques that business’s use is to understand how they spend their revenue. They use what is called spend analysis to gather information about where and how their money is going and from this they can utilize some risk management skills to help alleviate some poor spending habits. A great example of this is to help control maverick buying which is unauthorized buying decisions (Avery, 2009). In a household this also holds true. Typically there is the nuclear family setting where two parents collaborate...
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...Texas town of Fort Stockton, Texas, population 8500. Although, it is a small community, local residents are very proud of a few things there; it’s history, the ever-present roadrunner statue, local team sports and keeping the community a clean and safe place to call home. Both sides of my family have deep roots in Ft. Stockton and it is a place that I am proud to say I call home. However, the best part is knowing that my family (and a part of me) will forever be a part of its rich history and involvement in political issues. My maternal grandfather, who was raised in Mexico but born in the US, he met and lived in Ojinaga, Mexico with my grandmother and his family. He wanted to give his children an opportunity for a better life, so in the early 1980’s, he moved the family across the border to Fort Stockton. He worked as a ranch hand for many years while my grandmother stayed at home with the kids. In the early 1990’s the family opened up a restaurant, Bienvenidos Mexican Food, which quickly became a local favorite. The restaurant has doubled in size and remains a local hotspot to this day. All three of their kids graduated from Fort Stockton High...
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...16 March 2015 (PT) International Journal of Entrepreneurial Behavior & Research Factors influencing family business succession Michael H. Morris Roy W. Williams Deon Nel Article information: To cite this document: Michael H. Morris Roy W. Williams Deon Nel, (1996),"Factors influencing family business succession", International Journal of Entrepreneurial Behavior & Research, Vol. 2 Iss 3 pp. 68 - 81 Permanent link to this document: http://dx.doi.org/10.1108/13552559610153261 Downloaded on: 16 March 2015, At: 05:58 (PT) References: this document contains references to 42 other documents. To copy this document: permissions@emeraldinsight.com The fulltext of this document has been downloaded 5908 times since 2006* Users who downloaded this article also downloaded: Barry Ip, Gabriel Jacobs, (2006),"Business succession planning: a review of the evidence", Journal of Small Business and Enterprise Development, Vol. 13 Iss 3 pp. 326-350 http://dx.doi.org/10.1108/14626000610680235 Robert N. Lussier, Matthew C. Sonfield, (2012),"Family businesses' succession planning: a seven-country comparison", Journal of Small Business and Enterprise Development, Vol. 19 Iss 1 pp. 7-19 http://dx.doi.org/10.1108/14626001211196370 Yong Wang, David Watkins, Neil Harris, Keith Spicer, (2004),"The relationship between succession issues and business performance: Evidence from UK family SMEs", International Journal of Entrepreneurial Behaviour & Research, Vol. 10 Iss 1/2 pp. 59-84 http://dx...
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...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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