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Detecting Challenges in family Business | STMGT201

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University of Waikato

   

Detecting Challenges in family Business (STMGT201)

   

Added on  2020-03-13

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STMGT201 - The following essay is going to delve in to the challenges that are cohesively found to have been affecting the growth of family business. As a matter of fact, this has remained impactful in terms of decision making process and implementation of innovative business model. Number of challenges has been detected that would hinder certain growth of the family business.

Detecting Challenges in family Business | STMGT201

   

University of Waikato

   

Detecting Challenges in family Business (STMGT201)

   Added on 2020-03-13

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Running head: DEVELOPING FAMILY BUSINESSDetecting Challenges in family Business Name of the StudentStudent ID:Name of UniversityAuthor Note
Detecting Challenges in family Business | STMGT201_1
2DEVELOPING FAMILY BUSINESSThe following essay is going to delve in to the challenges that are cohesively found tohave been affecting the growth of family business. As a matter of fact, this has remainedimpactful in terms of decision making process and implementation of innovative business model.Number of challenges has been detected while conceptualizing the futuristic efforts of businessgrowth that has already been in existence. Preoccupation of those challenges and incorporationof nurturing idea ought to be developed while considering the revamping process. Due todifference in perception of driving the business, individual choice and perception needs to beventured with effectiveness. Family owned trading is being talked about. Family businesses are considered to be one of the most traditional modes of conductingbusiness within the private sector business industry (De Visscher 2016). Though such typeswere earlier considered to be the weakest link in the span of business conduction, many familybusinesses have been proven successful with their successful business venture and marketrecord. Beginning of the twenty first century has witnessed certain rise in the importance offamily business with effective structural change. Globalization has acknowledged the value ofsuch business practice with the help of proper understanding of the fact, how the core conceptwould focus on the basic changes within and outside the family decisions. In case of tradingseveral business clauses ought to be taken into consideration since they involve the acceptance ofdifferent challenges in the differentiation of viewpoint. Due to realization of the economiccontribution of the family businesses, the structural changes are to be fortified with the flow ofgeneration. The challenges undoubtedly vary with the contextual characteristics of the countriesand the domestic economies (Benavides-Velasco, Quintana-García and Guzmán-Parra 2013).Most of the businesses views are perceived with different concepts the challenges become more
Detecting Challenges in family Business | STMGT201_2
3DEVELOPING FAMILY BUSINESSprominent. Following challenges have been detected that would hinder certain growth of thefamily business:i)Visionii)Growthiii)Control of Operationsiv)Training v)Paternalistic Approachvi)Differences in Communicationvii)Informality viii)Tunnel visionix)Lack of written strategyx)Systematic thinking xi)Compensation Problem for family Membersxii)Retirement and estate Planningxiii)Exist strategyxiv)Business Valuationxv)High Turnover of non-family MembersDetection of the setbacks of family business has to be incorporated through the idebtificationtools. In this regard, this has to be taken into certain consideration that the entire shortcomingought to be revamped with strategic planning and recommendation. (Neubauer and Lank 2016).As a matter of fact, as a next generation entrepreneur the responsibility falls upon an individualpertaining to the effective changes of the company and the business process. The problem lies inthis fact that most of the family businesses are run on the ideologies set by the precursors rather
Detecting Challenges in family Business | STMGT201_3

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