1. Why have you opted for a course in family business management? Are you part of a family business? Tell us a little about it.
My siblings and I intend to establish a business together, We want to leave our own footprints in our country. However, I do not have much knowledge about the structure of family business. Hence, I decided to enroll in this class.
2. What business benefits might accrue to the business from you enrolling in this family business module?
As a business, it is inevitable to encounter challenges along the way. So, by being enrolled in this class, I will gain more insights on how to deal with such issues without hurting or dividing the family as a whole.
3. How can you contribute to learning about family businesses?
I hope to share some of my sentiments about the reasons one may choose to separate themselves from the original family business as I am part of a family business started by my father.
4. Why you think there has been an increasing number of family business courses over the last 2 decades?
Through a couple of researches, I have noticed that in certain countries such as Germany and the UK family businesses have increased because they tend to contribute to the growth of the economy even in moments of crisis as they continue to hire individuals while others lay off.
Question :
Do you think it is strategically efficient for family business to continue hiring their family members even in times of crisis? Will it not contribute to a failure of the business as a whole ?
Great post Gracia! I am also part of the family business formed by my father. I am, however, an only child, thus making me feel more inclined to carry on the business (ideally in my own way, of course). Responding to your question, I think it is possible for a family run business to be strategically efficient with examples like Lavazza (History of Lavazza), which has been operating their coffee business under their family for over 100 years (with the third and fourth generations serving as the current administrators of the company today). I believe that it is crucial for companies like Lavazza to maintain this, in order to produce consistent results and to maintain the image of the company, as Luigi Lavazza was one of the first people to introduce the world to a coffee blend. Even in times of crisis, family business as big as Lavazza should have planned contingency plans for whenever events such as that occurs, with the current CEO not being a Lavazza himself. I think that there will be a point where a family business has to compromise as the business grows bigger than the family themselves could handle, as long as the main executives and the family traditions/goal/mission statement are maintained. As the video below addresses, having a strong structure (in this case, a monarchy system) is crucial for a family business to keep running.
Wonderful post @Gracia , thank you and a great question! Why not share some of the research that brought you to some of your above propositions here. There is increasing evidence that family member participation in the management of the business can be either detrimental or beneficial to the business depending on their levels of business experience, professional credentials and areas of practice. Here for example is a study that places your question in the context of the effects of family influence, measured through power, experience and culture on business performance, in Portugal. The jury is out: some family influence has a +ve associations in this study and others -ve associations with performance. Looking forward to how this generates the right questions for the "problematiques" faced by our community's family-owned businesses as well as other examples of the effects of increasing family members influence in the management of a family-owned business