Public Business and International Markets

This assignment presents a questionnaire designed to assess the experiences and perspectives of employees working for public businesses operating in international markets. The questionnaire probes various aspects, including challenges faced (e.g., cultural differences, management issues), competitive advantages, performance measurement tools, key factors for success in international markets, and comparisons between public company performance and family-owned businesses on a global scale. Additionally, it delves into the impact of costs, government assistance programs, market knowledge, and firm characteristics on internationalization decisions.

Differences between
public and family
business when going
into international
market.

Table of Contents
Executive summary..........................................................................................................................1
Background......................................................................................................................................1
Methods ..........................................................................................................................................1
Findings and conclusions.................................................................................................................1
Recommendations ..........................................................................................................................1
CHAPTER 1: INTRODUCTION ..................................................................................................3
CHAPTER 2: LITERATURE REVIEW ........................................................................................7
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................18
Introduction...............................................................................................................................18
Types of investigation: .............................................................................................................18
Research philosophy: ...............................................................................................................18
Research approach....................................................................................................................19
Research design:........................................................................................................................19
Data collection: ........................................................................................................................19
Sampling...................................................................................................................................20
Data analysis.............................................................................................................................20
Ethical consideration: ...............................................................................................................21
Research limitation:..................................................................................................................21
Validity and reliable..................................................................................................................22
CHAPTER 4: DATA ANALYSIS................................................................................................23
CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................44
Conclusion ................................................................................................................................44
Recommendation ......................................................................................................................47
Personal development....................................................................................................................51
References......................................................................................................................................54
Appendix .......................................................................................................................................58

Executive summary
Background
Family owned business is that business which is carried out family from generation to
generation. On the other hand public business is that business which is carried out by the
government and all its operations are carried out by government. The family business is carried
out in most of the countries and they are mostly known as independent private companies.
Methods
In the present report researcher will used the qualitative technique for carrying out the
study. For collecting the data both primary anf secondary information will be used for
completeing the present dissertation. To collect the information from primary sources survey
will be conducted. On the opther hand for collecing the secondary information researcher will
used books, journals and articles. The literature work which is done by different authors will
form the basis of the secondary data collection.The sample selection for this present study can be
probabilistic nature. The every unit in the population will have the equal chaces for being
selected. Random sampling method will be used under which questions will be asked from 50
employees of both the public and family owned business. The questionnaire will be used for
getting the view points of emplopyees realted to effectivess of business in an international
market.
Findings and conclusions
It is analysed that cultural differences is mostly seen issue in the international market. As the
difference in the culture are mostly seen whenever a company wants to operate in the
international market. They have to make sure that they are not hurting any cultures sentiments
while establishing their business. Another issue what they face is the government rules and
regulations in the in international market, as they have to go by the laws of the government in the
market.
Recommendations
It is recommended that stakes are very important at the time of when it comes to
succession planning for the business. There are effective planning which creates opportunities
for the family owned business to accomplish success in the international market. Therefore, it is
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important for the firm to define and address a company strategic goal and challenges. The can
also avoid conflict situation which can be take place due to family issues.
2

CHAPTER 1: INTRODUCTION
Background of study
Family owned business is that business which is carried out family from generation to
generation. On the other hand public business is that business which is carried out by the
government and all its operations are carried out by government. The family business is carried
out in most of the countries and they are mostly known as independent private companies. This
can be stated as oldest common form of economic organisation (Holmes, Hoskisson and
Holcomb, 2016). Public business is significantly different from the family owned business. As
there is different in culture, strategy, capabilities and business model. Further it can be stated that
as compared to public organisation, family owned business have a more centralised business
models. While public business have more decentralised organisational structure. The role of
family ownership in international entrepreneurship has largely overlooked. It is identified that
there are many issues and difficulties family business face at the time of crossing national border.
The involvement of family in the business show it effects the management positively in
internationalization while they also do not agree on the effects which have family ownership.
Rationale of research
The present study will provide information relate to conflict or problem faced by the
family owned business and public business at the time of going in international market. The
study contributes to family owned business and international entrepreneurship literature under
which it explains the way family ownership affects internationalization (Minichilli, Brogi and
Calabrò, 2016). Family business are those who operated in domestic markets but they basically
find themselves more responsible to over their business at international level. There is significant
difference in internationalization of family owned business which is different from public
business. There
Aim: To explore the differences between public and family business when going into
international market.
Objectives
 To ascertain the existence of any competitive benefit for family owned businesses while
entering international market.
 To measure the performance of both public company or family owned company at an
international level.
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 To analyse the main elements of family owned business.
 To identify the level of issues faced by public company while entering the international
market in comparison to family owned businesses.
 To recommend ways in which the identified problems can be resolved for a better
performance of family owned businesses and public business at an international market.
Research questions
 What are the competitive benefit for family owned businesses while entering
international market.
 How to measure the performance of both public company or family owned company at
an international level.
 What are the main elements of family owned business.
 What are the level of issues faced by public company while entering the international
market in comparison to family owned businesses.
 What are the ways in which the identified problems can be resolved for a better
performance of family owned businesses and public company in an international market.
Purpose of research
There are many family owned business who are facing problem in carrying out the
business activities at international level and they are completely different from public company.
The present research is conducted so that it become easy to understand the difference between
public and family business when going into international market. Family business at present time
is performing well and they are expanding their business at international level (Calabrò, Brogi
and Torchia, 2016). Therefore, it is important measure the performance of both public company
and private company who are operating the business at international level. So that it can
determine which is performing effectively and efficiently.
Chapter structure:
At the time of undertaking the research to follow the sequential pattern by following the well
defined structure. Therefore, this chapter can be followed by the following series which is as
follows:
 Chapter 1: Introduction: It is clear cut framework of the selected topic of present
research which will be provided by this chapter. Therefore, it will consist the overview
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of topic and followed by aims and aims objectives. This chapter consist purpose of the
research and at the rationale of the research topic.
 Chapter 2: Literature review: In this chapter, there is detailed outline the significance and
the concepts of the research. There is the existence of any competitive benefit for family
owned businesses while entering international market is explained. The performance of
both public company or family owned company at an international level is measured.
The main elements of family owned business is explained. At last the level of issues
faced by public company while entering the international market in comparison to family
owned businesses is identified. There is different area of research study which is
undertaken for reaching the aim of present research. All the secondary research covered
in this chapter will be based on the published work and article which is written by
different authors.
 Chapter 3: Research methodology: The research methodology is the chapter which cover
different methods of selection of the techniques which take research in a right direction.
There are different tools and techniques which is used for taking dissertation at the right
direction. Further this chapter will consist the limitation and ethical consideration and all
the resources which is used by researcher.
 Chapter 4: Data analysis and finding: In this chapter all the collected data is analysed
with the use of tools and techniques.
 Chapter 5: Conclusion and recommendation- This chapter will present the findings and it
derived out after the analysis of collected data. After this recommendation is provided by
the scholar
 Framework and analysis
It is important step which is required at the time of collecting the information from the
right sources. This help in making right decisions so that proper conclusion can be get for the
same.
There are some steps in this regard which are as follows:
Design of research: In the present dissertation explanatory research design will be used
for carrying out the study. Further this design will help in getting the information which is
effective meaningful related to the present topic.
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Research approach: In this report inductive approach will be used and focus will be on moving
from specific to general. The present report is based on the exploring differences between public
and family business when going into international market. . This will lead to the identification of
its impact of operting business in an international market.
 Research philosophy: Interpretivism research philosohy will be used.
 Techniques of research: In the present report researcher will used the qualitative technique for
carrying out the study.
 Method for data collection: For collecting the data both primary anf secondary information will
be used for completeing the present dissertation. To collect the information from primary sources
survey will be conducted. On the opther hand for collecing the secondary information researcher
will used books, journals and articles. The literature work which is done bu different authors will
form the basis of the secondary data collection.
 Sampling technique: The sample selection for this present study can be probabilistic nature. The
every unit in the population will have the equal chaces for being selected. Random sampling
method will be used under which questions will be asked from 50 employees of both the public
and family owned business. The questionnaire will be used for getting the view points of
emplopyees realted to effectivess of business in an international market.
 Analysis of data: For analysing the collected data qualitative techniques will be used. Here
thematic approach will be undertaken for investigating the impact of the differences between
public and family business when going into international market. Here different themes will be
prepared on the basis of whic collected data will be interpreted.
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CHAPTER 2: LITERATURE REVIEW
Introduction
Literature review is the second chapter of dissertation which provide different types of
information related to the present aim of study. It helps scholar in gathering the large amount of
information and apply the same so that it can produce valid outcome. The present study is based
on the differences between public and family business when going into international market.
This helpful in collecting the large amount of information which are based on objectives. Further
this chapter it prepared on the basis of aims and objectives which make easy to carry out study in
a right direction. Further themes are prepared on the basis of aim and objectives so that
information can be collected effectively and efficiently. The level of issues faced by public
company while entering the international market in comparison to family owned businesses is
also identified
To ascertain the existence of any competitive benefit for family owned businesses while
entering international market.
According to the view of Bannò and Sgobbi,( 2016. ) There are some specific advantage
of working in the family business which provide them competitive advantage in international
market. There are some strength of family business which help them in gaining competitive
advantage at the international market that is human resources practices, flexibility in decision
making, honesty etc. The staff retention is one of the best method successfully carry out their
business at international level. It is important to hire employees who are highly skilled and retain
them for longer period of time. As because if employees can perform effectively within the
organization then it becomes easy gain competitive advantage in international market. There is
loyalty among the family member which lead to extend the relationship with non family staff
members along with this suppliers and staff members. Ramos, Buck and Ong, (2016) state that
the structure of family business is tended to be enable progress, decision making and flexibility.
Here it can be stated that flexibility is critical in the present time due to which there is change in
attitudes of customer and staff members. Here it can be said that those who can react can easily
survive.
As per the view of (Boellis, Mariotti and Piscitello, 2016) There are some personnel
approach which can be used for doing business and develop strong relationship with client in a
international market. This lead to help family business in gaining competitive advantage. As
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because they can respond to the needs of business fast and foster long term relationship. There
are more values family business have such as honesty, straightforward and integrity which are
deeply embedded with the family and the business. They basically hold soft issues in a hard time
which help in maintaining stability. Further it can be also said that family is also sourced of
commercial reinforce which become for them a source of competitive advantage. The family is
strengthened of the sense of passion and commitment with the stakeholder and family member
who work in a business and they create their own exciting opportunities. Hence it can be stated
that this all factors provide chance to the family business to expand it in international market and
gain competitive advantage.
According to the Minichilli, Brogi and Calabrò, (2016) family business are important part
which contribute to the great amount of the economy of any country . They contribute to 60% of
UK and USA market and provide 50% of job opportunities. For years this family business is
overshadowed by big public owned companies but now they are coming forward n making great
difference in global market .
Calabrò, Brogi and Torchia, (2016) explain that Family business get edge over public
companies in many way with the blade of global finance crises over there head the company is
most in need of stability . As in family business there are hardly any fight for head and the time
period of it relatively long result in stability as the leader stay in highs position unless and until
something happen . As its scene that despite economic turmoil family business keep growing .
Marques, and Couto, (2017) state that the business in international market is quite
different from the local market as it has to deal with many risks in entering the international
market. But it has many benefits to while entering the international market as it goes on
increasing its productivity, brand image, relations with international market. Some of the benefits
for the family owned business are :
 Before competing in the international market one should know where it is going to
compete and what ate the situations. It has to access to new customers in the international
market where he can keep a strong point and catch his customers and focus on the new
customers needs and wants.
 Lowering the cost may give the business a boost and it may get a strong response from
the market. The cost cutting is a good idea to get new customers in the international
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market. This may lead the firm to get a good response from the market and provide the
substitute in the market which can bring popularity to the product.
 Diversification of business is a better way to enter the international market as it will not
only run on the economy of one country. It will bring many business investors in the
international market and the competition will decrease accordingly.
 New cultural benefits will bring change in the market and and eye opener for the local
business will provide a support to develop in the international market. Cultural difference
might get new opportunities for the business to expand through new business policies.
According to the view of Holmes, Hoskisson and Holcomb, (2016) internationalization is
known as the process through which business can increase their awareness of both the direct and
indirect power of international transaction on their future and abolish and conduct transaction
with firms in other. Further there is grown in the awareness of the importance of family owned
business has led to increases in research and understanding of this business in last few years.
There are some problems which company face at the time of operating its business such
as increasing the conflict between family members lead to impact the entire business. There are
some misunderstandings at the home which can be bring up in the business that lead to impact
business relationship. As per the view of Kotabe and Kothari, (2016) Due to crossness in
business lead to create poor performance as because family members work more comfortably
without understanding the problem which can take place due to delay in business activities.
Further through appointing family member as if they are lack in experience can lead to suffer the
business from loss. For instance most of the time appointment in business of family member is
taken place due to emotional blame and sentiments lead to create problem in carrying out
business in an effective manner. Apart from this it can be stated that if there is openness between
family member then it leads create bordem in the business and due to this reason they are unable
to give 100% result in a business.
Jaskiewicz, Block and Combs, (2017) argued that the family is a stakeholder om a family
firm which play significant role at the time when it explains the decision making process across
the country. The type education which family member gain led to make choice in expansion of
business at international level. The family firm is carried out from first generations here capital is
tended to be more concentrated than the firms which have been progressed from several
generations at the time from their starting. The business is controlled by the family member and
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different strategies can be designed and carried out as per accordance to the charismatic
leadership or through the decision making process which are centered on the firm leader.
According to the opinion of Kim and Patel, (2017) there are some benefits of the family
business which help them in achieving competitive advantage at international market. Family
member understand feeling of each other and respect their vies and opinion which help in
carrying out business in a systematic manner. Family not only focus on making profit but they
work and stand for each other provide them strengthen to stand in tough situation. The
organizational structure of the firm is also simple and effective which make easy to manage all
the business activities. The reason behind this is that business hierarchy is simple which started
with owner, manager and employees. Further they are also committed toward their business
which lead to carry out business successfully in international market. Laufs and Schwens, (2014)
state that it is not easy to operate business at international level and to gain competitive
advantage therefore for this purpose family member provide effective informal training. There
are many leaders of the family business who are trained by their parents or grandparents. For
example Gareth Ackerman of who is at present chairman of pick n pay company had work
different division then it becomes chairman and sit at the place of its father. This is the reason
due to which business have similar leadership which add something new in the business.
Basically company lose their competitive edge.
There are some risk which is associated with the international market which can directly
impact the company. There are many family firms who gain some benefits in an international
market. As they grew fastest overall and they also diversify their revenue. Non family business
basically tried to hit the goal on the other side family business thinks and then set the goal for
long year. They keep some patience and long term perspective which allow them good strategy
and decision making. At last it can be stated that family member use their own profit for making
sure long term success in the organization. This can be contributing capital and taking pay cut.
This help them in managing the tough time and provide them competitive advantages.
To measure the performance of both public company or family owned company at an
international level.
According to the view of Bamiatzi, Cavusgil and Sinkovics, (2014) it can be stated that it
is important to measure the performance of both public and family owned business at the
international level so that it become easy to identify which business is performing well the
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international level. To measure the performance of public company it is important to compare
the result of initiatives to objects and evaluating the way it met the targets. At this process here
financial indicator can be used compare it with family owned business. There are some valuable
methods for measuring the company performance in an objective way at the international level.
Firstly, for measuring the performance it is essential to watch its sales and profitability. This
show that the sales which company achieved at international level is same which is predicted by
them. Along with this it can measure the sales from its competitor that it high or low. In
international market the overall performance is important it depends on company performance at
particular area of activity while it cane be state that performance in the marketplace determinant
profitability. One of the important factor for measuring the performance in particular area is to
look out their customer base which is high or low.
At the international level for measuring the performance it is important to see the changes
in import and export figures, increase in market share, foreign exchange earning etc. This all are
the effective tool that assist organisation in measuring the performance of business. The
consumer satisfaction survey and other client feedback are one of the effective tool for
measuring the accurate performance. For measuring the trade strategies the balance score card is
one of the new tool that can be used by public company. This methodology help in measuring the
performance in four areas that are customer analysis, financial analysis, learning and growth
analysis and internal analysis. In the customer analysis company look at the customer at the
customer satisfaction level and retention. Further, in financial analysis public company look out
the return on investment and operating cost. One of the issues faced by company in measuring its
performance is known as size. As because of the size might have an impact on post initial public
offering performance.
According to the Colli, García-Canal and Guillén, (2013) it can be stated that private
companies are more efficient as compared to publicly traded ones as per accordance to their size
and groups. For different business performance show the measure of outcomes, aspiration and
goals which is vital to different organisation stakeholder. Therefore, performance is known as the
essential research variable. The family business is different from the non family business as for
developing the performance measure scale it is holistic which consider the entire set of family
business goals that can be both financial and non financial which considered as individual nature
of family owned business.
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Family owned business is a business where two or more family members are involved
and they have the most number of shares and control the business themselves. While measuring
the performance of the company one must have the complete knowledge about the companies
ROI. The techniques used in evaluating the performance of the business have come along like
IRR, CFROI, and DCF. Out of these ROE has proven to be enduring. The performance of a
company is measured through its work culture, if the employees of the company are frequently
moving with the it then it is assumed that it is taking care of them accordingly as well.
Schepers, Voordeckers and Laveren, (2014) To evaluate the performance of them it is
expected to know the employee retention and their successful ongoing. Sales and profitability are
the operational criteria to evaluate the performance. To know at what extent have they achieve
their targets as planned in the companies profile. Their market supply and demand ratio and hold
in the business to produce and deliver. Their market performance is estimated by the market
shares and market ranking according to sales. Customer satisfaction is the important factor to
survive in the business. The repeat orders and consumer possession indicates the growth of the
company. The superior company performance is evaluated on the assumption of quality
products. The returns on the product and warranty claims shows the quality of the product.
A family owned business is said to be well structured in the market if it is able retain its
older employees. The job satisfaction from the artisan shows that company is performing well
and its training levels also. Employees return is also estimated on companies performance and
their ability to deliver to its customers.
As per the view of Benavides-Velasco, Quintana-García and Guzmán-Parra, (2013) The
numerical factors like shares, profit margin, return on investment, international rate of return also
shows the growth rate of the company which is completely assisted in the financial terms. The
solvency ratio and the liquidity also helps in evaluating the companies profile. The social factors
of the enterprises at the international level clearly states the performance of the business owned.
The market hold of the business in the international market shows that the firm is performing
well and they are capable to compete in the international business. The performance is evaluated
on the basis of the income earned by them while substituting the investment. The performance is
based on the type of responses earned by the enterprises from its customers. The interest of the
shareholders in the business shows that the company is performing well. Innovate ideas of the
company makes it most suitable to survive and bring huge amount of eyes to it. The
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involvement of personnel in the cultural structure of the company shows that they are
cooperating with the firm. Creative ideas of the business in the international market to make a
hold in the market. Outputs in the form of return or employees job satisfaction also indicates the
satisfactory performance in the international market.
The main elements of family owned business.
According to the Segaro, Larimo and Jones, (2014) family business have important role
in the world economy. There are many studies which show that three tenth of family business
which are transferred to the generation to generation. The average life of family business can be
state as 24 years that is not much longer. Family influences, content and purpose are can be
stated as common aspects of the family business. The family business pass from their
entrepreneurial beginnings where they have to face some unique performance and governance
challenges. For the success they need to face some challenges for accomplishing strong business
performance and keeping the family to committed to and capable of carrying on as the owner. In
a family business conflict can be take place due to money and poor management is the result of
nepotism and infighting as because to get high authority between the generations. Therefore, it is
essential for the family to take care of regulate its important role as manager, shareholders and
board members.
There are some elements of family owned business which are important for running the
business that are creating and sharing of personal vision statement which is written document
outlining what is want from life at the personal level and the personal goal for which an
individual is working in accomplishing the life. Here family business help in accomplishing the
goal which is set. It is not only essential for leader of the family business all the employees who
are family members to help in achieving the goal. According to the Fu and Deshpande, (2014),
hiring and firing is one of the another elements of family business. There are some time
problems occur due to bad hiring decision which is taken by owner of the firm. It mostly happens
that hiring employee from family member may not have much experience due to which company
face loss. Therefore, policy related to hiring and firing the family employees. This must take into
consideration that is family member eligibility, ground for family members and evaluation of
family member performance. Further, compensating family member employees can be quite
complex and it viewed more subjectively with compensation provided to non family members
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who are employed (Chang and Shim, 2015). Sometime compensation can become complicated at
the time when there are multiple members who became the employees of the family business.
For managing the expectation it is important for the owner of the family business to clearly
discuss the business economics with them for managing the expectation. It is important to select
the family member for the success. A family business can die it there is no proper plan developed
by the firm. Providing training and development facility to family employees is important so that
their skills can be developed and they can work effectively and efficiently.
For aligning the culture of the family business with the company vision. In context to the
company culture it creates different meaning as because they have all the cultural dynamics
which non family business have meshed in with family ever-changing. It is very important for
the leader of the business to maintain the family control and influence at the time of raising fresh
capital. As per the view of Lee, Glasscock and Park, (2016) the recruiting, retaining and
inspiring non family employees is also important for the family owned business. One of the
challenge faced by the company is recruiting and retaining the right talent with the business.
However, the added factor of the family dynamic it can be said that there are more barrier which
family firms faced in hiring and holding the right talent who are non family members.
Family can influences the favourable and unfavourable influences over the business. A
family business can be fruitful in achieving the great growth. Due to the emotional support it
becomes easy and attainable to achieve the organisation targets. There can be various elements
that have the impact over the operations of a business (Bresciani, Thrassou and Vrontis, 2013).
A family business which is regulating from many years can have an emotional attachment in the
family members toward the firm. There can be many conflicts in the members and many
obstacles while running the business. Members are having their own understanding and they
know better to manage the relationships as compare with other businesses. Ownership of an
family can be transferred to generations by generations. The most active and talented family
members who manages the relationships as well as the operations of the entity can be a better
owner or leader. The business can have the good governance from the most effective workers or
family members. The success can belongs to two factors which are mainly the long-term
governance by couples with the effective dynamic strategies. The owner of the family knows the
capacity and ability of their members and they will make the favourable strategies to them as to
help them in maximising wealth. These can be related with the salaries and remuneration allotted
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to them. Talent of family members can be managed and they will be assigned to the attainable
tasks (Breton‐Miller and Miller, 2013.). There must be proper management of work and duties
allotted to the members and they must be fruitful asset to the business. The founders of the
family business has the vision of achieving the favourable aim. There can be appointment of
family members as per the requirements of the entity and the emotional attachments of the
owners. It keeps the members committed to firm and provide their essential efforts to help in
achieving the targets.
The level of issues faced by public company while entering the international market in
comparison to family owned businesses.
According to the González-Cruz and Cruz-Ros, (2016) when going global, public
company face many problem, the one they have to look foremost is the legal issue before settling
there business in any country its necessary to know what type of law and regulation that country
have while dealing with foreign trade. They must know about the law, and regulation whether it
provide them with security, or the benefits they could get from them. Human Resource is a
necessary part of any business, while going global its important to know that whether you will be
able to have enough manpower, can your company attract enough people to work for you on
your own condition, will it lead to more investment as every country have there own labour
requirement.
Tariff and tax are also crucial part of every country and have there own tax system and tariff
planes, its better to see that which countries provide best taxation policy which satisfy your
business requirement.
As per the opinion of Schiff and Warren, (2017) Its essential to know the Correct place
for better investment, to understand that which country is most suitable for your business and end
with better productivity. Do they have good market, better human resource, supply of basic raw
material which your company need. Culture is major factor to keep an eye on, its important to
know the culture of place where you are starting your new business. As its to create your
customer base if the product you gonna launch hurt there cultural values it can turn to be the
reason of your shutdown.
Currency Rates with shifts in the value of currency it can bring imbalance to your business. If
you are paying with higher currency to suppliers and selling it to market of lower or fluctuating
one it will lead to small margin profit or loss.
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Distance can also be a problem for you as opening business in other country it get
difficult to keep constant eye to it even though the internet, telecommunication all has been
advanced but still without proper supervision can create more loss. Political problems can put
stop to your business. Involving in any political issue that result into defamation of your
company and bad publicity.
As per the view of Ramadani and Gërguri-Rashiti, (2017) Issue faced by family business when
entering international market are as follows
Family business also have to go through all the problems which any public company goes
through, they also have to choose a proper place where they can establish there business which
provide them with all the needs which is necessary for any startup, to check through the legal law
of the country which can provide them with better benefits and security. For any business human
resource are there need for success like public company they also struggle with having enough
manpower on their own requirement (Richter, Sinkovics and Schlaegel, 2016). Culture and
language are the barrier everyone have to face, making sure that they do not harm or disregard
there culture values while keeping there business working, having language problem can lead to
many misunderstanding, if a translator is not good enough with u may missing many important
point while making deal can result in chaos. But other than that public company does not have to
go through the internal conflict which family business go through. The reason for the failure of
many family business is not the external issue but the internal conflicts. The family business
main issue always have been the transferring of power there is always a debate on whom to pass
all the power many times someone inadequate were given the power which result to it downfall.
They are also reluctant in hiring the executive from outside the family, which may lead to there
downfall in international market as its necessary to have expert view for better success.
They are also reluctant to accept something new or out of box innovation.
According to the view of Garcés-Galdeano, Larraza-Kintana and Makri, (2016).They
also lack in planning which can lead to long term success. Most of the time they are stuck with
plans which had given them good result in past but they forget to realize that every strategy have
to improvise to provide the need of present time. Without a good vision and strategy nothing can
be done.
The founders are the one who with there great ideas, vision, and determination lead the
company to success its not necessary that other members are also same. So when this company
16

decide to go global the one who lead it may or may not be the founder and any other person who
is not capable enough can result in loss of company.
Public company does not need to balance business and family together. They are not obliged to
hire a family member for them talent is more important. They dont think before terminating
anyone or keeping in mind not to hurt them. In international market you need your own people
on whom you can put your trust while family business does not have any trust issue, public
company suffer from it. If the shareholder decide that they cannot trust you then a bid against
you and all the power can transfer to them.
17

CHAPTER 3: RESEARCH METHODOLOGY
Introduction
Research methodology can be stated as the study of different methods and tools which
can be used in the present study in an effectual manner. Therefore, from the research point of
view there is set base through illustrating all the tools and techniques used to carry out entire
dissertation. In current study investigator focus on exploring the differences between public and
family business when going into international market (Tai and Chuang, 2014.). Hence, for
collecting the wide range of information it is important for the use right and reliable tools and
techniques. For the present study there are some research method which are inculcated.
Types of investigation:
There are two type of investigation which is taken into consideration that is qualitative
and quantitative. This is used in the study as per the nature of research. Quantitative types of
investigation is considered at the time when there is demand of statistical methods that are
standard deviation, regression and correlation (Meyer, Ding and Zhang, 2014). While on the
other hand qualitative type investigation is undertake at the time of theoretical aspects. The
present report is based on explore the differences between public and family business when
going into international market therefore qualitative investigations undertaken for carrying out
the present study. One of the main rationale behind selecting this techniques is that it carry out
depth analysis which assist researcher in developing deep understanding related to the present
study. This is also proven effective in reaching the valid outcome and provide valid conclusion.
Research philosophy:
Basically it defines that value and beliefs which researcher have toward the present topic.
At the time of selecting philosophy is it essential for the investigator to pay attention because it
help at the time of analysing the collected data in a appropriate manner. There are two important
type of philosophy that is interpretivism and positivism. The present report is based on to explore
the differences between public and family business when going into international market
therefore interpretivism philosophy has been used. The main reason behind using these
techniques is that help in lay focus on the qualitative observations (Ming, Ximei and Lilin,
2014. ). It is effective for the present study as because it focuses on figure and followed by
different facts. Therefore, is feasible in determining the difference between public and family
business when going into international market
18

Research approach
Research approach is the way of conducting the entire study. Along with this it can be
stated that it is a method or strategy which is employed by researcher for increasing the validity
of present study. There are two types of approached that is deductive and inductive (Altbach,
2015. ). In inductive approach focus on collecting the specific and the generalization of the same
is done while in deductive researcher emphasize on general and then collect the specific
information. In this regard for evaluating the difference between public and family business
when going into international market inductive approach has been selected as because it helps in
collecting the general information first and then focus is on specific.
Research design:
Research design is also essential part of research methodology as because it defines the
blue print of study which assist in creating the base. Along with this it provides detail outline of
the study. Also provide information related to the way through the help of which investigator is
emphasis on carrying out the dissertation. Research design is consisted of different types that is
explanatory, descriptive and exploratory etc. Exploratory design focus on investigatimg the facts
and figures on the basis of which findings can be gathered. On the other side in explanatory
design focus on providing explanation of facts and figures and on the basis of same finding are
presented (Moon and Blackman, 2014. ). As per accordance of the current study, descriptive
research design is used which is concerned on explaining the selected topic in a theoretical
manner. Along with this it also helps investigator in making in depth analysis on issues faced by
both public and family owned business in an international market.
Data collection:
Data collection process is important as because without gathering information and data it
is not possible to get appropriate findings. Therefore, collecting of the information is lay great
importance for the scholar (Chowdhury, 2014. ). There are two sources from where data can be
collected that is primary and secondary. Both the sources are effective and have great importance
in the present study. Primary information is that information which is new and fresh as because it
is collected first time while secondary information is that information which is old and published
by different author in articles and books. For carrying out the present study in an effective
manner it is important for the researcher to collect both primary and secondary informations.
19

For collecting the primary information researcher can used different methods that is
survey, questionnaire, interview etc. while for gathering the secondary information there are
some sources that is books, articles, library, internet etc. The present report is based on to explore
the differences between public and family business when going into international market for
carrying out primary research questionnaire method is used in which questions will be asked
from both public and family business employees related to the effectiveness and issues faced by
them in international market (Keutel, Michalik and Richter, 2014. .). On the other hand for
collecting the secondary information researcher used books, journals and internet from where
information can be gather which is published by different authors. The main reason behind using
these techniques is that it help researcher in gathering wide range of data on the selected topic.
Sampling
The main reason behind selecting the sampling in the study is that it assist scholar to
study less and essential elements which is stated as sample. Sampling is known as the process of
choosing the target audience from the entire population from where researcher can collect
information which is valuable and reliable (Tebbit, 2017. ). As per the nature of present study
random sampling will be selected in which employees are selected so that equal chance can get
respondent from entire populations. Here, 50 employees of both public and family owned
business have been selected to gather information related to the issues and effectiveness of both
the firm faced by them in international market. With the help of this research can select the
desired people for the present dissertation and provide valuable result on the selected topic. The
sample size is 50 employees of both pubic and business firm.
Data analysis
After collecting the data it is important to analysis them so that finding can be presented
in an appropriate manner on the basis of which recommendation will be provided. For analysing
the collected data it is important to use effective techniques for getting suitable finding. Under
this section organized application of statistical and formal techniques is completed. There are
two methods for analysing the gathered information that is qualitative and qualitative (O’reilly
and Parker, 2013. ). Therefore, in a qualitative analysis a specific phenomenon is studied in a
depth manner. On the other side in quantitative analysis there is used of different tools and
techniques which provide hypothesis and relationship between the variables. In quantitative
techniques all the collected information is analysed in a numerical form. Further SPSS, chi
20

square test. While, in qualitative techniques the presented information is presented in numerical
form.
As per accordance to the given topic focus is on to explore the differences between public
and family business when going into international market. For this topic qualitative techniques is
selected which help in generating the reliable and appropriate manner (Curtis, Izzo and
Lawrence, 2015.). Here thematic perception will be taken into consideration under the
qualitative techniques. There are different themes which is prepared on the basis of which
interpretation is done.
Ethical consideration:
For conducting the research there are some ethical issues which scholar have to come
across which can effect the reliability of entire study. Here, at the time of conducting the present
study it is important for researcher to undertake ethical consideration (Tang and Zhang, 2013. ).
The main purpose of the ethics to use appropriate guideline which help the researcher in
protecting the personal information which is provided by the respondent.
There are some ethical consideration which is taken into consideration by researcher such as
 Prior approvals: In the current study researcher focus on collecting both the primary
and secondary information. At the time of conducting survey researcher does not force
respondent to take participate in survey (Roosta, Ghaedi and Asghari, 2014.). Along
with this, reason behind conducting the survey is clear stated in front of participants. On
the other side the secondary information is properly cited and authentic sources is used
for referencing.
 Confidentiality: For protecting the demographic information of respondents which is
considered as another ethical. Therefore, researcher make sure that all the information
provided by researcher is kept safe and secure and used for only research purpose.
Research limitation:
There are many limitations which is associated with the present research which can
impact the study and create obstacle in execution of the research (Li, Cheng and Wen, 2013. ).
There are many challenges which are faced by the investigator that are as follows:
Prolonged process:
To carry out study is known as the lengthy process as because there are different
chapters which are associated with it. Therefore, it is important for the researcher to complete the
21

section in a sequence as because they are linked with each other (Tai and Chuang, 2014. ). For
the present study investigator face different issues in collecting the data as because of less time
duration. For highly advance researcher there are lots of time required. Hence, limited time effect
the reliability and suitability of the dissertation.
Insufficient secondary information: In the present report secondary information play
significant role. But there are many sites which is restricted which create problem for the
researcher in collecting the information.
Validity and reliable
For raising the validity and reliability of the present study there are different aspects
which are taken into consideration by the researcher. Therefore, for carrying out the research in
an appropriate manner all the information is collected from authentic sources (Meyer, Ding and
Zhang, 2014.). The reason behind this is that collected information is copyright protected and it
offers highly reliable information. Further different themes are prepared on the basis of the
collected information. Therefore all the themes are prepared on the basis of research aim. These
aspects reflect that accurate data has been collected by the scholar for the current research.
Furthermore, the latest books and information have been undertaken by the researcher
with the aim to understand the issues faced by both public and family business while entering
into an international market (Ming, Ximei and Lilin, 2014. ). There are the several research
tools and techniques that are used by researcher and are highly reliable. Along with this data are
analysed with the used of thematic perception test as per the type of investigation which are
undertaken. There are different tools and techniques which are logically undertaken with the use
of research type and design to the large extend.
22

CHAPTER 4: DATA ANALYSIS
Introduction
Data analysis is essential chapter as it play significant role in entire dissertation which
assist them in getting valid outcome and reach the aim of the study. The present research is based
on qualitative technique where thematic analysis is undertaken by investigator. There are
different questionnaires are prepared including the options. This is very effective for the scholar
for carrying out entire study in a well structured form which make easy to accomplish the aim
and objectives. Along with this, questionnaire method is adopted and themes were prepared for
each questions which has been constructed for providing detail analysis. Here, each theme is
supported by proper evidence.
Data analysis of Business family owned business
Theme 1: Most of the employees are employed from family.
1.) Have you been hired externally or
represent a family member?
No. of
respondent
Family employed 15
Hire externally 10
25
23

Interpretation and analysis: From the above chart it shows that there are 15 respondents who
state that they are hired from family. On the other hand there are 10 participants who said that
they are hired externally.
Therefore, it can be analysed that in family business most of the employees are hired
from the family member. In family business candidates are less recruited from other sources. It is
so because firm can trust on their family member and they help in accomplishing the goal and
objectives of the business in international market. If employees are from family business then
firm can easily make decision with their support.
Theme 2: Conflict between family members is the issues family owned business face at
international level
2.) According to your opinion what
issues family owned business face at
international level?
No. of
respondent
Conflict between family members 13
Unskilled employed family member 10
Inappropriate management 2
25
24

Interpretation and analysis: Aforementioned chart show that there are 13 respondents
who state that conflict between family members is the issues which family owned business face
at international level. On the other hand there are 10 respondents who replied that Unskilled
employee who are selected from family is the reason of issues. While, there are 2 who said that
inappropriate management is one of the issues which is faced by family owned business face at
international level.
Therefore, it is analysed that at the time of operating business in international market
conflict between family members lead to create different issues. It is important for the family
owned business to take some steps and avoid conflict situation. In family sometime conflict take
place as because of profit which they earned from business. Further, conflict take place due to
problem related involving family in decision making process. Hence, in family owned business
need to take some step so that conflict can be avoided.
Theme 3: Yes, conflict between family member impact family business at international
level.
3.) Does conflict between family
member impact family business at
international level?
No. of
respondent
Yes 18
No 5
Do not know 2
25
25

Interpretation and analysis: The aforementioned chart show that there are 18 participants who
said that conflict between family member impact family business at international level. On the
other hand there are 5 who replied that conflict not impact business while 2 do not know about it.
Therefore, it can be stated that most of the respondent agreed that conflict impact the
performance of family business at international level. As because job of operating a family
owned business is often serious complicated by conflict arising from competition involved a
father and his son, and other family member who possess the high position in the business or
earn income from company. There are ways to learn and live with their curious situation.
However, the real solution is that to move toward professional management. Consequences of
conflict can be destructive to both the family and the business. As it can also frustrate adequate
planning and rational decision making. Another reason which is identified when owner and
manager of family business are involved in the determination their families interaction with a
wide range of family members beyond the work setting then it leads to give rise to conflict.
Theme 4: Financial ratio use for evaluating your business performance at international
level
4.) Which standards of financial
performance, do you use for
evaluating your business at
No. of
respondent
26

international level?
We do not use any financial standard 2
Use profit and loss statement 5
Use of balance sheet 8
Use of financial ratio 10
25
Interpretation and analysis: From the above chart it shows that there are 10 respondents who
state that financial ratio is the method which is used by family firm for measuring the
performance at international level. On the other hand there are 8 who state that balance sheet is
used while 5 replied that profit and loss statement. Further there are 2 out of 25 who stated that
they family owned business do not use any financial standard.
Therefore, it can be stated that most of the respondent state the family business use financial
ratio for measuring the performance. While, it can be stated that in financial ratio it show
different ratio of profit, loss, expenses etc.
Theme 5: Skilled family employees are the success factor of business, which is considered
the most at international level.
27

5.) There are many factors of the
success of business, which factor do
you consider the most at
international level?
No. of
respondent
Personal initiatives 10
Unique service 3
siblings 1
Skilled family employees 11
25
Interpretation and analysis: From the above chart it shows that there are 25 respondents out of
which 11 said that skilled family employees are considered to be most success factor at the
international level. On the other hand 10 said that employees with personal initiatives are most
successful. Other than these 3 of them believes that employees with unique service abilities are
more successful, and 1 respondent said that member from the family can be most successful in
the international market.
Therefore, it can be analysed from the above Data that personnel from the family who
are highly skilled are to be most successful in the international market. And hiring employees
28

from the family with best skills are said to take the business at the higher level. Whereas the
employees with personal initiatives and a unique style are also capable of taking lead in the
business and are helpful for the business.
Theme 6: A non family member is allowed as a shareholder in family owned business
6.) According to your view, who is
allowed as a shareholder in family
owned business?
No. of
respondent
A non family member 15
A family member 10
25
Interpretation and analysis: In the above data it is interpreted that out of 25 respondent 15 said
that it is not necessary to be a family member to be a shareholder in the family owned business.
On the other hand 10 respondent said that only a family member can be a shareholder in the
family owned business.
29

Therefore, it is analysed from the data that to become a shareholder of a company one
does not need to be a part of the family. Any personnel outside from the family can hold the
shares of the business. But apart from this one does not have the power to run the company and
be a part in the decision making process of the business. All the other functioning of the
company are seen by the Family members or the personnel hired to look after the business. They
are given equal dividends in the profit sharing of the business.
Theme 7: All hiring should be depend on who is best qualified for the job is the thinking
regarding children in the family business.
7.) Which statement most closely
reflect your thinking regarding
children in the family business
No. of
respondent
should be allowed to work in the
business 5
only employed if they meet the
same criteria as non family business 8
All hiring should be depend on who
is best qualified for the job 12
25
30

Interpretation and analysis: From the above chart it shows that out of the 25 respondents, 12
feels that the children should be only hired in the family business if they are best qualified for the
job. They should be hired only if they meet up the qualifications required for the business. Or
they should be hired on the case when they are eligible to meet the criteria same as the non
family business. On the other hand 5 of them feel that they should be allowed to work in the
business.
Therefore, it is analysed that the hiring in the business should be made only if the
candidate or the children of the family owned business are highly qualified for the job and can
take up the responsibilities. They can also be hired if they are able to meet the criteria what
public business are using in hiring. They should hired in the business only if they are capable of
leading the business in the right path. They should not be allowed to work until and unless they
are not qualified to work in the business. Responsibilities should be handed over to the personnel
who is best to utilise it and deliver good results.
Theme 8: Strongly disagree that owner’s background and motives affecting
internationalisation decision.
8.) Are owner’s background and motives affecting
internationalisation decision?
No. of
respondent
Highly agree 3
31

agree 6
Neutral 2
Disagree 6
strongly Disagree 8
25
Interpretation and analysis: From the above chart it can be state that there are 8 respondents
who are strongly disagreed while 3 that owner’s background and motives affecting
internationalisation decision. On the other hand there are 3 participants who are agreed while
there are 6 who are strongly agreed that owner’s background and motives affecting
internationalisation decision. While there are 2 respondents who are neutral they are not agreed
neither disagreed.
Therefore, it is analysed that experience and background of owner and its motives assist in
improving the resources of the organisation and they are also known as the essential for entering
into foreign market. As it can be said that owner background is not important in for entering into
32
5
8
12
should be allowed to work in
the business
only employed if they meet
the same criteria as non family
business
All hiring should be depend on
who is best qualified for the job

entering into foreign market. As because there are many firm who export product and have less
knowledge related to the work. Therefore it is analysed that background and motives does not
play significant role for entering into a international market for the family owned business.
Data analysis of public business
Theme 1: Different culture issue faced by public company in an international market
1.) What are the issue faced by
public company in an international
market?
No. of
respondent
Different culture 10
Inappropriate management 3
different government policy 7
Unskilled employees 5
25
Interpretation and analysis: Aforementioned chart shows that there are 25 respondents, out of
which 10 said that issues which public companies face the most inn the international market are
due to cultural difference. Other than this Government policies also gives major issues in the
33

international market. 5 believes that Unskilled employees is also an issue in the international
market as the employees without prior knowledge will create problems. Lastly 3 of them said
that inappropriate management issues are also faced in the market.
Therefore, it is analysed that cultural differences is mostly seen issue in the international
market. As the difference in the culture are mostly seen whenever a company wants to operate in
the international market. They have to make sure that they are not hurting any cultures
sentiments while establishing their business. Another issue what they face is the government
rules and regulations in the in international market, as they have to go by the laws of the
government in the market.
Theme 2 Yes there is competitive advantage public business have while entering into an
international market.
2.) Is there any competitive
advantage public business have
while entering into an international
market?
No. of
respondent
Yes 15
No 7
34

Do not know 3
25
Interpretation and analysis: From the above mentioned data it is seen that there are 25
respondent, and 15 said that yes the public business have the advantage while entering in the
international market. As they are new in the market and have all the opportunity to make a mark
in the market. On the other hand 7 believes that they don't have any advantages while entering in
the international market as they have to face many issues before establishing the business. Where
3 of them don't know the exact situation related with it.
Therefore, from the data provided it is analysed, the public company while entering in the
international market have many advantages like establishing to focus on the new market. Have
the opportunity to deliver to any generation and take full utilisation of it. They are free to pricing
and labelling of the product according to their choice.
Theme 3 Key performance indicator is the tools company used to measure the performance
at international level
3.) Which tool your company used to
measure the performance at
international level?
No. of
respondent
Key performance indicator 13
Return on investment 4
Customer responses 8
25
35

Interpretation and analysis: In the above mentioned data it is interpreted that there are 25
respondent and out of them 13 said that they use key performance indicator to evaluate their
performance at the international level so as to develop in the market. On the other hand 8 said
that they take customers responses to evaluate their performance and customer loyalty is their
tool to check their performance. 4 respondent said that return on investment is the tool which
helps them to check their performance in the international market.
Therefore, from the above data it is analysed that more priority which public company
gives to check their performance is through key performance indicator, which gives them a view
to check the areas to develop and get new techniques to perform. Apart from this customer
loyalty and responses also makes it easier to develop and check the performance in the
international market. Return on investment is the other way which shows by what percentage has
the company grown and is helpful in checking the performance of the company in the
international market.
Theme 4. Political and legal factor are the factor of public company must consider in
international market
4.) What are the factor public No. of
36

company must consider in
international market? respondent
Highly skilled employees 5
Cultural factor 6
Economic factor 3
Political and legal factor 8
25
Interpretation and analysis: From the above chart it is interpreted that there are 8 participants
who state that political and legal factor must be consider by the firm while operating business in
international market. On the other hand 6 respondents state cultural factor and 5 replied highly
skilled employees. While there are 3 who said that economic factor must by considered by the
public company.
It is analysed that political and legal factor play significant role so company need to follow all
the policy which are important in an international market. This assist company in carrying out
business in a successful manner.
Theme 5. Does public company perform well in international market as compare to family
opinion
37

5.) Does public company perform well
in international market as compare to
family opinion?
No. of
respondent
strongly agree 4
agree 3
Neutral 1
Disagree 12
strongly disagree 6
25
Interpretation and analysis: From the above chart it shows that there are 12 respondents
strongly disagree and 6 are only disagree that public company perform well in international
market as compare to family opinion. On the other hand there are 4 participants who state that
38
Highly agree agree Neutral Disagree strongly disagree
0
2
4
6
8
10
12
14
4
3
1
12
6 Column B

they are only agree while 3 state that they are strongly disagreed with the statement. While one is
neutral neither agree nor disagree with the statements. Therefore, it is analysed that family
business in accomplishing success in international market as compare to family owned business.
Theme 6: Cost create barrier, and government assistance program affect the public
business to internationalisation
6.) Do cost create any barrier, and government
assistance program affect the public business to
internationalisation. No. of
respondent
Highly agree 7
agree 10
Neutral 1
Disagree 4
strongly disagree 3
25
39

Interpretation and analysis: From the above chart it can be interpreted that there are 10
respondents who are highly agreed while 7 who are only agree that cost create barrier, and
government assistance program affect the public business to internationalisation. On the other
hand there are 4 respondents who are strongly disagreed while there are 3 who are only disagreed
with the statement. Further, one is neutral who is neither agreed nor disagreed with the statement.
Therefore it is analysed that cost create barrier for the firm as many respondent stated it. There
are some risk associated with the company if it is not properly committed with the foreign
market. Some of the major challenges which company is face at the time of exporting such as
financial problem and other problems. They also should have ability to communicate with people
outside the country.
Theme 7: knowledge of foreign markets helpful in internationalisation of the firm
7.) Is knowledge of foreign markets helpful in
internationalisation of the firm?
No. of
respondent
Highly agree 10
agreements 7
Neutral 1
40
Highly agree
agree
Neutral
Disagree
strongly disagree
0 2 4 6 8 10 12
7
10
1
4
3
Column B

Disagree 4
strongly Disagree 3
25
Interpretation and analysis: From the above chart it can be interpreted that there are 7
respondents who are highly agreed while 10 who are only agree that knowledge of foreign
markets helpful in internationalisation of the firm. On the other hand there are 4 respondents who
are strongly disagreed while there are 3 who are only disagreed with the statement. Further, one
is neutral who is neither agreed nor disagreed with the statement
Therefore, it is analysed that there are most of the respondent who state that there are
most of the respondents who state that there are many people who state that knowledge of
foreign markets helpful in internationalisation of the firm. As because there are much
information which company need to gather at the time of carrying out the business in
international market such as taste and preferences of customer. Along with this they also need to
41
10
7
1
4
3
Highly agree
agreements
Neutral
Disagree
strongly Disagree

ensure that product which they made for does impact their ethics. Further they need to consider
cultural factor so that it become easy to carry out business in international market.
Theme 8: Firm’s and product characteristics have an effect on its decision to
internationalise
8.)Do firm’s and product characteristics have an effect
on its decision to internationalise?
No. of
respondent
Highly agree 12
agreements 8
Neutral 0
Disagree 2
strongly Disagree 3
25
42
12
8
2
3
Highly agree
agreements
Neutral
Disagree
strongly Disagree

Interpretation and analysis: From the above chart it can be interpreted that there are 8
respondents who are highly agreed while 12 who are only agree that cost create barrier, and
government assistance program affect the public business to internationalisation. On the other
hand there are 2 respondents who are strongly disagreed while there are 3 who are only disagreed
with the statement.
Therefore, it is analysed that there are many respondents who state that firm’s and product
characteristics have an effect on its decision to internationalise. If firm's characteristics create
impact at the time of carrying out business in international market. Product characteristics can be
level of technological superiority and research and development intensity of a product lead to
help company at the time of entering into a international market.
43

CHAPTER 5: CONCLUSION AND RECOMMENDATION
Conclusion
In this chapter conclusion is provided on the basis of objectives
The first objective of the study was "To ascertain the existence of any competitive benefit
for family owned businesses while entering international market" on which outcomes gained are,
family business provides competitive advantage at the international market. Together they have
presentable views which make them withstand the competitive internalization. Along with this,
when integrity is there benefits and mind set of the person increases. There are many advantages
of having the family business at the international level as it provides flexibility in decision
making, HR practices. Further, from the primary analysis it can be easily shown that there are
many employers and employees that operate business from family. However, it also showed that
at times there are cases where misunderstanding level also increases in such business which leads
to the increase in the conflict level. This clear states that the family business has changed with
period of time as the business grows. Moreover, as family conflict will increase there are less
chances of getting competitive advantages. They will be busy in resolving their own issues and
problems which will lead to loss of the business. Along with this, in actual practise in UK and
USA people allow them to work so that they can have less conflicts in the organization and their
business values can be increased. The only possible solution to this things is to resolve all the
personal conflicts and if family members are getting businesses at the international level they all
should have same perception and though. Further, they should make strategies and planning that
they will be facing when they withstand the global market. Having misunderstanding at such
level the consequences of the firm will increase and they will be unable to perform better in the
market. However, there are advantages to this methods, as family owned business can provide
great financial support. The next generation level and capabilities also increases which help to
rise the business and its standards.
The second objective of the research was "To measure the performance of both public
company or family owned company at an international level" from which following conclusion
can be gained that family owned business is more profitable to for the business. This is because
as there family members can easily console the person to take decision that are appropriate for
the company however, in public firm this is not seen. When decision are taken with the people
that are not familiar to the person then there are more chances of getting conflicts. Further, there
44

are various examples that can show that family business are more famous and help to earn more
than public firms. For example, The Koch Brothers, The Walton Family, The McMahon Family
are the family oriented business which are getting earning of more than billions every year.
Further, the strategies and planning they are making are every effective and that helped then to
expand the business at the international level. Analysis from the primary data collected shows
that whether it is public or private the difficulties level that are faced by them are similar.
However, it can be seen that public organisation have to make more planning in understanding
the culture and tradition which keeps them aside then the family business. As stated by the above
authors that public business has greater performance is completely wrong. There performance
level decreases as they cannot take such competitive decision without consultation of the other
members of the organisation. However, these decision can be easily taken by the person having
the family members working in the organisation. As family members remain together so they get
more time in making strategies and planning related to the getting international.
The third objective was "The main elements of family owned business" from which
following outcomes can be gained. As family oriented business have unique challenges so they
have more capabilities to solve the problems. They have business values but due to their personal
vision statement they are able to achieve more at international market. Further, they have better
policies related to hiring and firing which maintains the eligibility level of the company. They
are effective and efficient in making decision related to the business. Other than this, they use the
culture which is followed by their family members and implement them in the firm's vision.
Through this ways, family oriented business can easily perform multiple role challenges and can
clearly vision towards the business time and personal time. However, there are certain negative
outcome of the family owned business which is faced by the organization in their inspiration,
recruiting and retaining part. They face barriers in terms of the development opportunities,
employment security and hostility over preferential-treatment. There are also issues related to
choosing the successor among the family members as this could create the chances of conflicts.
The key elements that were identified through the secondary research are that family business are
transferred to the next generations which it is brought by the next generation. Other than this,
they have personal vision statement, goals, hiring decision, compensating family member
employees, company culture and vision. These are all the elements that can affects and promote
the business. If these things are maintained by the family oriented business owner then there
45

possibility of getting success increases at the international level. Moreover, it improves the
ownership and governance level and helps to develop effective wealth management and
foundations. Also from the primary analysis the outcomes that are mentioned above are
considered as important and decision related to them must be made through proper planning.
The level of issues faced by public company while entering the international market in
comparison to family owned businesses.
From the above context, researcher come to the conclusion that while entering the
international market both the businesses have to face many problems. The problems related to
both the business are almost the same, as they have to take consideration all the major
requirements of the market and the ways ton survive in the market. The issues what they have to
take into account includes the manpower , the taxes and tariff plans as all the countries have their
different structure for them. They have to find the most suitable place to run their business.
Focus is on what kind of generation to attract and invest correctly while keeping these necessities
in mind. The issues also relates, are they going to get the right kind of human resource required
for their purpose.
Both the business have to keep in mind not to disrespect the cultural values and beliefs of
the persons of the country, knowingly or unknowingly. They have to go through the problems
related to the currency rates shifts as it is different in every part of the world, which can bring
imbalance to the business. Another problem which may create a pain is the distance difficulties
as they have to think whether whom to trust and give responsibilities to run the business in the
foreign market. They have to deal with the political parties as well and make sure that they get
enough support to run the business. Language problem is also one of the issues in developing the
business, as it will create problem if they do not get a good translator for them and this will miss
out a deal.
Regardless of the above issues the public company is safe from many problems which the
family business has to face. The issues like conflicts between the family members any many
internal problems. They have always been suffering from the problem of transferring of power.
There is always a fear of transfer of power in the wrong hands, which may bring a downfall in
the business. Due to this reason they have always lacked the succession of the long term plan.
Many time they are left with the plans which brought success in the past but lacks in the near
future. They need to develop a good vision and mission for the success of the business. Its
46

always found that if the founders had a good vision and mission and ideas top reach the top the
next generation would be having same.
Public company has always been clear that while entering the international market they
do not have to take both family and business together. For them, talent has always been the
priority and can terminate anyone for their wrong business ethics. Altogether in international
market the trustworthy person is required to run the business, and family business is safe in that
proportion whereas public company need to think about it. Every decision is left with the
shareholders of the company if they decide to take powers back they can do it.
Recommendation
From the above Data Analysis it recommended that conflict between the family
members is also an issue that they face in international level. From the study it has been shown
that out of 25 respondent 13 said that conflicts is the reason where they face problems. 10 out of
which concluded that hiring of unskilled employed members is also a major issue what the
business face in the international market. Issues like seniority problems, rivalry among the
family members, Their misunderstandings will create problems in the business. Ideas may not
match and which may create issues regarding the business. Their way of thinking may create
differences which may lead to loss to the business. Profits earned from the business makes
differences. Authority of decision making process also leads to issues in the business..
As shown in the above interpretation that most of the respondent agreed that conflicts
between the family members shows an impact at the business in the international level. The
business which include hiring of family members or giving power to the family member and they
do not use the opportunity adequately always lead to the failure of the business. The decision
making power always create differences between the family members. The conflicts arises is the
cause of the secrecy which either one of the members could not keep upto. The seniority
problems may also hinder in the cause of issues. Conflict between the family members is a major
destructive issue for both of them.
Use of financial ratio is the best possible way of evaluating the performance of the
business at the international level. Most of the business entities use this method to evaluate the
performance of the business. To evaluate the profit margin of the business which shows the
business performance in the market. It clarifies the return on investment through the profit
maximization ratio. The financial condition of any business is calculated by the profit margin of
47

the business, which shows the performance of the business in the international market. In the
above interpretations it has been mentioned that many business entities use this method to
analyse the performance of the business and evaluate the current market situation of the business.
Every business need skilled employees to make it stronger and competitive in the market.
So to make a family owned business a recognised and popular business in the market they must
hire the skilled family members. The business needs employees who can run it with ease and
understand the needs of the business and the market. They must be capable of understanding the
market fluctuations and companies needs. From the above Data Analysis it has been cleared that
most of the respondent feels that hiring the skilled employees in the business will always give
profit to the business. They will always make sure to make decisions in the favour of the
business. The employees need to work on the profit maximisation of the business. Skilled family
members knows the requirement of the market and take decisions according to the requirement.
To be the shareholder of the business one does not need to be the member of the family. As
shown in the above Analysis 15 out of 25 respondent thinks that one do not need to be the
member of the family to become the shareholder of the business. As in the family owned
business powers of making decision goes in the hand of the family members only, but to be a
member of the business one can be out of the family also. The role of the shareholders in the
business is to be an equal dividend of the profit earning. All the shareholders re equal members
in the profit sharing but are not allowed in the decision making process of the business. The
rightful decision for the business are taken by the family members.
From the Data Analysis it notes that more of the respondent suggest that all the hiring process in
the business must be according to the qualification of the members. The employment should be
given to the family members only if they meet the requirements of the business. The hiring
should not be made only the blood relation but they must be chosen accordantly on their
qualifications. The responsibility must be given if they are able to meet up the qualifications
required for the position. Some of the respondent feels that employment criteria should be same
as non family business. Their should be no partiality while selecting the personnel. It should be
as same as other business and priority should be given among the best. They can be hired from
outside the family also, if they meet up the conditions required.
Furthermore, it is suggested that stakes are very important at the time of when it comes to
succession planning for the business. There are effective planning which creates opportunties for
48

the family owned business to accomplish success in the international market. Therefore, it is
important for the firm to define and address a company strategic goal and challenges. The can
also avoid conflict situation which can be take place due to family issues. Along with this,
employees can be trained so that they can easily work in an international market. Knowledge of
foreign market is very helpful in internalisation of the firm as because if owner have idea of
information then it can easily modify its product according to the needs and wants of customers
in foreign market. There are some government assistance programs which affect the family
owned business so company need to focus on those program at the time of carrying out business
in international market.
Recommendation for public owned business
As shown in the above Data Analysis it is recommended that most of the companies face
issues related to cultural difference. While establishing and working in the international market
they have to take care of the sentiments of the people. They have to maker sure that they are not
hurting their values and working accordingly. Another issues what they face mostly is the
different government policies, as the policies and regulations are different in other countries. So
to abide by the laws of government and work accordingly is what they have to go through.
From the above Data Analysis it recommends that the public business usually have a competitive
advantage while entering in the international market. As they have the tendency to launch their
product at the lowest cost and deliver it the maximum number of people. They have the
opportunity to grab as many as customer and in different age group. They can target whomsoever
they want. They can put the pricing of the product accordingly so as to give competition in the
international market.
At the international level the public business uses KPI (key performance indicators) to
check the performance of the business. As it has been indicated in the above Analysis that most
of the business entities at the international level prefers KPI, as gives the best picture of the
companies profile. It helps in evaluating them to reach their goals and targetting the areas for
success. Customer responses is also a priority for them to evaluate the performance of the
business. Customer loyalty indicates the positive response against their performance.
From the above mentioned Data it recommends that they should focus on the political and legal
factor in the international market. As the rules and regulation are different there so it is most
49

important to look at the laws and abide according top them. After these the crucial factor for
them to look at is different culture in the market, they have to make sure to not hurt any ones
sentiment and work without taking the cultural issues in between.
Taking responses from the Data provided, it concludes that a majority of respondent disagree to
the point. It shows that Family owned business are highly recommended to perform well in the
international market. As there are many issues which both the business have to go through like,
there are problems of trust issues in public business. They have to think before employing or
giving the important position in the business. Yes, it is clear from the recommendation that the
company need to consider the political and legal factors before operating in the international
market. As the factors are quite different in the international market and they have to abide by
the laws of the government. It is important to have a prior knowledge about it. They should go
with the rules and regulations so that in near future they don not have any problem or causes to
breakdown the business.
Before entering the global world its important to know what is going on in international
market, as its necessary to know whether the company can stand against the competition which
he gonna face after going global. The first thing to know is that if your product will sell or not in
targeted place. for e.g. If there is technology based company then the developing countries will
be more accepting of you rather then developed countries who have better technology than you
launching your company in such place only lead to loss. So its better to know about the country
where you are trying to establish your business. Its also essential to know what facility that
country can provide you for e.g. American Govt. is most welcoming for foreign investor, so its
easy to settle a business there as it also provide with security measures. Through planning data is
collected through which its gets easy to predict that by settling business in that particular country
can provide them with maximum benefits. For e.g. If the company is knowledge based company
then, skilled labour its most important demand of it, at that time its better to estb. Your company
in that place which can provide the organisation with skilled labour at lower price. Its also
important to know if its good to send old team of executives to new place or the whole teams
should be made through local people, its recommend to send the higher executive to new place
for better and smother working of organisation instead of depending on totally new person.
50

It better to be cautious instead of impetuously entering global market which can lead to your
downfall, developing a business planning help a lot in identify target market, that which country
will be most suitable for your company, Planning also help to get basic data that if company can
get potential sources, market or customer when going international. Its essential to know about
local market especially if your company have to deal with them regularly. Its also important to
know about culture and local system, planning in advance make sure that, culture, political,
economic condition does not affect the organisation. By socialising with local distributor
organisation get to know what they want, and how you can accommodate some changes to reach
there demand like changes in manufacturing of material according envt. Of the country. With
marketing planning company can adjust additional cost by making import and export strategies.
Marketing, transportation shipping cost can also be controlled as every nation have there own
trade rules.
Over-communicate Communication is an important need for international market.
Communication is necessary part of any business. Its not possible to go to foreign countries for
every problem and also having face to face interaction every time, at that time media plays an
important role. Through social media such as facebook, skype communicating with people of
other side become easy. Companies can even make small deals online, instead of going to other
countries . Problems can be also solve through the option of video chatting.
Communication also help in improving the relationship wether its between two business or of
business to company. With good communication and relationship it can end with a collaboration
with that foreign company which will help your company in future.
Language has always been a barrier to international marketing, its important to know whether
you can communicate with them or not its better not to be lost in translation and loss important
point.
Communication does not only end with talking but it also take basic etiquette in concern,
its important to know about the culture of the community so that you can communicate
accordingly without hurting there culture.
Personal development
At the time of carrying out this research I face lots of problems but I carried out in an effective
manner. There are different skill which is developed while carrying out this research such as
51

decision making skill, problem solving skill, time management skill etc. Further I face problem
in making decision that which techniques I can use for completing this project at the time I make
effective decision of using qualitative techniques. Along with this I learned the way of presenting
work in an effective manner. I face problem at the time of carrying out primary research because
it is not easy for the conduct to construct the questions as per accordance to the given research
questions. Here I take help from mu tutor so that I can make decision related to preparing
questionnaire. I also developed my understanding related to the different methodology which are
used and important for carrying out the present research in an systematic manner.
52

The first problem I faced was that I was unable to manage my time, not able to complete
my work on time has always been the issue through out the project, later my mentor make me
realize that where I make mistake, and how i can improve it. My mentor tell me how I spend
most og my time on researching the topic try to look through so many thing. He also tell me that
time passes through me because I am very slow. Throughout the research I try to solve that
problem instead of finding answer through so many thing I try to search for the authenticated
one, I also tried to improve my speed of work so I can finish my work more on time and
efficiently.
This research help me in improving my problem solving skills, during research, it come
in notice of my supervisor that I couldn't solve problem because I don't realize what actual
problem is, he make me look through my work and make me realize where the problem lies after
knowing the root problem it was easy for me to find effective solution to it which help me in
working smoothly.
I also learned the way to carry out secondary research which is very helpful in creating a deep
understanding related to the present topic. The experience of making this research is good as this
research creating a good understanding related to the topic that is different between public and
family business when going into international market.
For my MBA program there are many skills which is developed and help in carrying out for
further studies. Along with this it also help at the time of working in an organisation.
53

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Appendix
Questionnaire for family business employees
Name
age
1.) Have you been hired externally or represent a family member?
Family employed
Hire externally
2.) According to your opinion what issues family owned business face
at international level?
Conflict between family members
Employed unskilled family member
Inappropriate management
3.) Does conflict between family member impact family business at
international level?
Yes
No
Do not know
4.) Which standards of financial performance, do you use for evaluating
your business at international level?
We do not use any financial standard
Use profit and loss statement
Use of balance sheet.
Use of financial ratio
5.) There are many factors of the success of business, which factor do
you consider the most at international level?
58

Personal initiatives
Unique service
siblings
Skilled family employees
6.) According to your view, who is allowed as a shareholder in family
owned business?
A non family member
A family member
7.) Which statement most closely reflect your thinking regarding
children in the family business
should be allowed to work in the business
only employed if they meet the same criteria as non family business
All hiring should be depend on who is best qualified for the job
8.) Are owner’s background and motives affecting internationalisation
decision?
Highly agree
agreements
Neutral
Disagree
strongly Disagree
1.) What are the issue faced by public company in an international
market?
59

Different culture
Inappropriate management
different government policy
Unskilled employees
2.) Is there any competitive advantage public business have while
entering into an international market?
Yes
No
Do not know
3.) Which tool your company used to measure the performance at
international level?
Key performance indicator
Return on investment
Customer responses
4.) What are the factor public company must consider in international
market?
Highly skilled employees
Cultural factor
Economic factor
Political and legal factor
5.) Does public company perform well in international market as
compare to family opinion?
Highly agree
agree
60

Neutral
Disagree
strongly disagree
61

Questionnaire for public business employees
1.) What are the issue faced by public company in an international
market?
Different culture
Inappropriate management
different government policy
Unskilled employees
2.) Is there any competitive advantage public business have while
entering into an international market?
Yes
No
Do not know
3.) Which tool your company used to measure the performance at
international level?
Key performance indicator
Return on investment
Customer responses
4.) What are the factor public company must consider in international
market?
Highly skilled employees
Cultural factor
Economic factor
Political and legal factor
62