FAMILY & SMALL BUSINESS MANAGEMENT 13 Management February 17 2020

The individual report assesses a student’s ability to: substantially explain subject specific theories, frames and concepts; demonstrate focussed synthesis and analytical skills; write concisely and decisively; and identify situations and provide recommendations-advice. In the individual report: First, you are required to choose a particular strategic management theory in the academic field of family business [i.e. RBV or SEW], review the academic literature and substantially explain aspects with regard to your chosen theory [approx 1200 words]. Second, two family businesses [Reliance industries and Tata sons] and compare and contrast their strategy-making – that is – apply your chosen strategic management theory to each family business and detail similarities and differences [approx 900 words]. 

Reading Head: FAMILY & SMALL BUSINESS MANAGEMENT
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Management
February 17
2020
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FAMILY & SMALL BUSINESS MANAGEMENT 1
Contents
Introduction................................................................................................................................2
Strategic Management................................................................................................................2
Aspect of Approach................................................................................................................5
Reliance industries.....................................................................................................................6
Business model.......................................................................................................................6
Tata Sons....................................................................................................................................8
Business Model......................................................................................................................8
Future of Resource-Based View................................................................................................9
The implication of RBV in future........................................................................................10
Reliance Industries...............................................................................................................10
Tata Sons..............................................................................................................................11
Recommendations....................................................................................................................12
Conclusion................................................................................................................................12
References................................................................................................................................14

FAMILY & SMALL BUSINESS MANAGEMENT 2
Introduction
Family businesses are also considered as the cornerstone of nations economics. They
are also helping the nation in generating employments and also promote innovation. Family
business consists of a value system and vision of the future as they want those values which
can help them in achieving long term targets (Iqbal, Pendergast, & Herrera, 2020). There are
different types of strategic plans which are being used by different organizations. Family
Business adopt strategies which can help them in taking long term decisions with the help
and involvement of all family members that are involved in a business. Resources are very
important for every organization and major decisions are taken on that basis.
Resources create competitive advantage for the organization. Resources must meet
criteria of value, rarity, imitability, and organization (Musa, Ghani, & Ahmad, 2012). For
organization resources and capabilities are considered as the valuable factor and both of these
factors can exploit opportunities and threats. Therefore, these factors are considered to be
important for the success of organization (Madhani, 2010). There are competitors in the
market that might possess more resources. Resources should be valuable and should consists
potential so that it can be sourced in competitive market (Mweru & Maina, 2015). Therefore,
these sources should be kept developed and internal. But there is more concern that
competitors might copy valuable resource that is possessed by an organization (Taher, 2011).
In this discussion, the main focus is on business strategies. There will be a comparison
between different business models of the organizations.
Literature Review
The main objective of Family and small business is its strategic management. Policies
are formed earlier so that they can work accordingly and achieve their targets on time.

FAMILY & SMALL BUSINESS MANAGEMENT 3
Strategic policies are formed on the basis of the performance of previous year of the business.
Family business is the concept in which business not just survives for today but it will pass
on to future generations.
Therefore policies which are being implemented in these types of business needs to
focus on long term goals/ achievements (Jurevicius , Strategic Management & Strategic
Planning, 2013). Since capital is also the vital objective of any type of business. The success
of these types of business is attached with five resources such as Human capital, Social
capital, Patient finance capital, Survivability capital and lower cost of governance.
The Resource-Based View (RBV) is an important Strategic Management Theory.
This theory enhances the understanding of outsourcing decisions. A resource-based view
particularly assists the analysis of organizational capabilities. This also links with
organizational performance and it also provides a competitive advantage. This theory can be
related to competitors and suppliers as well.
According to Resource-Based Review, a company can perform and eliminates its
competition if it will combine its different resources such as technical, human, and any other
resources (Porter, 2011). Employees of every organization are considered as intangible assets
and with their effort company can maximize their capabilities and knowledge (Kraaijenbrink,
Spender, & Groen, 2009).
The starting point of this theory in family business is assessed by Habbershon and
Williams with the title, “A resource based framework for assessing the strategic advantages
of family firms”. In this paper it is suggested that there are bundle of resources available in
the market that may or may not fulfil requirement of a firm. As a result of that there generates
a need for involvement. This is identified as “familiness” of the firm. Familiness is also
considered as first step in identifying resources of the organization. Further, familiness also

FAMILY & SMALL BUSINESS MANAGEMENT 4
helps in influencing the capabilities of the respective firm, this will led organization towards
achieving competitive advantage. Finally, it will transform performance of the organization
(Nordqvist, Melin, Waldkirch, & Kumeto, 2015).
There is one more paper which is presented by Habbershon. This paper suggests that
there is a unified system to explain family business. There are many factors which contribute
towards success of the organization such as resources, employees, performance of business
and many more. The main purpose of the family business is to create wealth by which they
can assess to valuable resources (Nordqvist, Melin, Waldkirch, & Kumeto, 2015).
Rau has also given a prediction theory, that the bundle of distinct resources of the firm
stemming from the family’s involvement will lead to competitive advantage and finally to
superior performance (Nordqvist, Melin, Waldkirch, & Kumeto, 2015).
According to Eddleston, innovative capacity and reciprocal altruism stem from
interactions between family and its members. In this research it is showed that family
business that is involved in innovations and fosters family relationships re able to build
competitive advantage in the market (Nordqvist, Melin, Waldkirch, & Kumeto, 2015).
Carney followed by Le Breton-Miller and Miller (2006) proposes that in family
business there are many drivers of family business which affects the economy and these
resources are influenced by family influences resources. It is also suggested that family
business can build competitive advantage based on resources and capabilities of the
organization. This is done especially when firms concentrate on long term goals; this is the
step which non business firms will not get involved in (Nordqvist, Melin, Waldkirch, &
Kumeto, 2015).

FAMILY & SMALL BUSINESS MANAGEMENT 5
By critically examining this theory there are chances that organization might exploit
their capabilities. Even though any firm will have plenty of invaluable resources but then also
there are chances that they can exploit the market. It is also been argued that organization
which are controlled and owned by a single individual had created a competitive advantage
from their resources and capabilities. The strategy should build a bridge between the firm’s
external and internal resources and capabilities. The reason for selecting this theory is that
RBV focuses on the firm’s resources and capabilities that the company is using to enhance its
competitive advantage (Arora, 2010). This approach will also develop an understanding that
firm is using its resources to sustain in the market.
Aspect of Approach
For Family business, this approach can be proven correct as it is the most influential
perspective of the organization. It also gives a framework to identify competition in the
market which is an advantage for a family business as they are making policies for the long
run (Kellermanns, Walter, & Crook, 2013). Family business requires an approach that can
have family involvement. They want that family involvement should enhance the
performance of the organization. Using families’ model will help in assessing competitive
advantage and it will also overcome the problems that are associated with business. Family
business always had an competitive advantage over others.
There is one major challenge which is faced by family firm is the process of
succession of planning. The reason for this challenge involves the ability of the successor to
maintain and improve organizational performance in future. By applying RBV theory
problems can also be overcome by the business because this theory transfers the knowledge
from future generation. Passing on knowledge is considered as a benefit for the business
because of that past experiences can also be learned by the owner and they will not those

FAMILY & SMALL BUSINESS MANAGEMENT 6
loopholes again. This is the main advantage of the family business over the non-family
business (Abellera, 2011).
Resources are the main factor of the organizations’ growth, precious and valuable
resources it creates an extra advantage for the business. Family businesses are at higher
chances of getting these benefits as their business is from generations. So they know from
where they will get these valuable resources (The Importance of Human Resource
Management, 2018). Family businesses are more aware of market preference and so they will
launch a product which can fulfil requirement. For newly established business this is an
important task as they will be new in the market.
Family business
Reliance industries
Reliance is an Indian multinational company. Reliance is a family business as it is
started by Dhirubhai Ambani in 1960. And now, it is owned by Mukesh Ambani. Business
is involved in petrochemicals, clothing, telecommunications and many other sectors. It is
known as one of the fastest-growing companies in India. The company is also listed in the
Fortune Global 500 list and ranked 106th. It is also the first Indian Company to exceed $100
billion market capitalization. The head quarter of the company is located in Mumbai,
Maharashtra (Reliance Industries Limited, 2020).
Business model
Business Model is the model which describes the facts that how an organization
creates and delivers product and capture values. The process of construction and modification
of business is known as “Business Model”. Business Model is also useful in the development
of a business strategy. There is a broader aspect of the business model as it deals with

FAMILY & SMALL BUSINESS MANAGEMENT 7
business, including the process of business, target customers, development of infrastructure in
the organization, operations and many more (Ovans, 2015).
The business model which is used by reliance industries is “Value Creation” and the
strategy which is used by this company is driving innovation, consistent growth, delivering
value, and sustainable transformation. “Value creation” is the business model in which value
is created for the environment. The core value in which this model is formed is a distinctive
competency (Reliance Industries Ltd., 2020). Reliance industry is choosing this model so that
they can have a competitive advantage from others, they can identify the complex
interpersonal relationship, the flow of resources and finance can be maintained. This model
is also helping them in creating and formulating effective strategies (Byrne, 2018).
Implementation of Resource-based model can also be proven successful for Reliance
industries as it is dealing in many sectors. Resources are the main sources of every business
and maintaining that valuable resources is also important. If Reliance chooses this model it
can eliminate invaluable resources and this will result in cost-saving for the company. By
applying RBV strengths of the Company can also be identified and the company can also
observe the strength of competitors’ strength and this will provide a competitive advantage to
the organization (Jurevicius , Resource Based View, 2013).
There are some similarities and differences between Value creation and Resource-
based view. Values-based create sources for resources whereas RBV maintains resources of
the firm. Value creation helps company in cost-saving and RBV also helps in the cost-saving
of the business by eliminating less valuable resources. Value-based is centred on distribution
and evaluation while RBV is more involved in the economics of the business. But both of
these approaches are used to analyse the strengths of the organization and the strengths of
competitors (Kokemuller, 2020).

FAMILY & SMALL BUSINESS MANAGEMENT 8
Tata Sons
Tata Sons is also considered as Indian Multinational organization. It was formed by
Jamsethji Tata in 1868. This company operates in motors, chemicals, accessories, beverages
and many more. This is a family business as it is passing on from generations. Ratan Tata is
the current CEO of this company. The majority of its share is held by the Tata Group of
Companies. The company is also involved in Corporate Social Responsibility. Headquarters
of Tata Sons is in Mumbai, Maharashtra (Tata, 2020).
Business Model
The business which is used by Tata Sons is “Innovation”. Innovation is considered to
be an art that can enhance advantage and value is also created by making simulations and
mutual support. This model can change both a preposition of customers towards organization
and changes in the underlying operating model. These changes can target choice segment,
product or service offering and revenue model. The main focus of this model is on how to
earn maximum amount of profit, competitive advantage in the market, and value creation
through decisions. There are different types of approaches to this model such as the
Reinventor approach, Adapter approach, Maverick approach, and adventure approach (Tata,
2020).
Resources based view can also be implemented in Tata Sons. This firm is
concentrating on maximizing the profits of the organization. This model can also cut
organizations’ unnecessary cost and maximize organizations profit. RBVs model also
supports innovation as it enables the organization to find out valuable resources this can
provide firms with a competitive advantage over its competitors in the market. Value can also
be created by the organization in its products because of the valuable products they are
launching in the market and giving to their customers (Kamasak, 2015).

FAMILY & SMALL BUSINESS MANAGEMENT 9
RBV and Innovation are two different models and both of them have some
similarities and differences amongst them. Innovation can only deal with practical aspects of
the business but RBV can deal with both practical and theoretical aspects of the company.
The main aim of innovation is to develop new products to maximize the profits of the
company but the main aim of RBV is to enable company to find valuable resources and
eliminated invaluable resources. But there are some of the similarities which can be observed
in both the business models such as both models can maximize the profit of the organization,
both models deal with resources of the companies, both models can provide a competitive
advantage to the organisation in the market, both models deal with a long run. The long-run is
one of the most important aspects of the family business as this type of business pass on to
generations. To maintain and improve organizations situations these strategies are
implemented in the organization.
Future of Resource-Based View
Resource-Based theory has an important position in the business model as it deals
with the most important aspect of an organization. If any organization will implement this
theory they will be successful in the future. In the future, there will be a requirement of
proper resource management as valuable resources are lacking in the market. So to preserve
them there will be a requirement of planning which can enable the proper usage of resources.
This can provide a competitive advantage to the organization.
In the future, the Resource-based View business model will become maturity theory.
There are many factors that will contribute to making this theory more successful. Factors
that will contribute to the success are as follows: inter-linkages and other prospective, the
process of resource acquisition and development, the micro foundation of Resource-based
view, the sustainability of this theory and method and measurement of issues. By enhancing

FAMILY & SMALL BUSINESS MANAGEMENT 10
and developing these factors Resource-based theory will become more successful.
Implementation of this theory will make the business more successful (Barney, Ketchen , &
Wright, 2011).
This theory is generally used by managers in project management because this theory
gives an insight on how to use resources. It will also drive the organization towards success
in a competitive market (Almarri & Gardinar, 2014). The implication of the business model
also requires discipline in the organization such as economics, computer science, psychology,
and general management. This will make RBV a more successful theory.
Implication of RBV in future
If an organization such as Reliance Industries Ltd and Tata Sons will apply this theory
they will also overcome the hurdles they are facing in success.
Reliance Industries
Reliance industries are looking forward to expanding their business and for that, they
will require plans, anticipation, and project estimation and intent of employees. The company
requires a strategy by which will help a company in growth, product development, and
improvement in the financial condition of the business. Since Reliance industries is a family
business it requires a strategy that has to enhance combine decisions and involvement of all
family members in it. The expected and current result of the organization differs and they
want a theory that can fill those loopholes. Application of Resource-Based View will solve
all these problems (Sanjai, 2020).
RBV approach can solve this problem which the organization is facing. For future
growth Reliance will require valuable resources so that they can sustain in the competitive
market. Therefore resource management is one of the most important factors for Reliance

FAMILY & SMALL BUSINESS MANAGEMENT 11
industries. In future reliance wants to adopt approaches which will be customer-centric so
that they can earn the maximum amount of profit. Reliance can adopt this approach because
this approach will set a background by which a company can communicate with customers
and build a healthy interpersonal relationship with them. Mukesh Ambani wants to double the
size of the company by 2025 (SURENDAR, 2020). And Company does not want to develop
in only one sector he wants to develop all the departments/sectors of the company. The
establishment of Jio is also one such example of creating relations with customers. Reliance
industries are moving towards the e-commerce sector and for that, they will require the
availability of resources and new and innovative ideas.
The company should adopt this Resource-based approach as this approach will
provide the support for mutual decision making as it is a family business involvement is a
crucial part. The company wants to double its size by 2025 and for that, they will require
proper management of resources. This approach will provide a company with proper
management of resources and help in growth (Kalyanaraman, 2019).
Tata Sons
The current business model which is used by Tata Sons is “Innovation”. Tata sons
want their future in digital marketing. Digital marketing is considered to be one of the most
rapid-growing sectors. Digital marketing will also help the company organization to create a
wide ecosystem. This will enable the company to connect with the market, competitors or
other businesses, creating new patterns of consumption and many more. The company
requires a business model through which ideas of employees and family members which are
been involved in the organization. The company also requires a strategy that is concentrated
on a need basis. RBV can help the organization in attaining all these factors of the business.
RBV will provide organization in attaining a competitive advantage in the market. Moving

FAMILY & SMALL BUSINESS MANAGEMENT 12
into digital world company will also require industry structure view, resource-based view and
dynamic capabilities approach. Because creating policies according to assumptions will lack
the validity of the business. The company also wants a business model that can challenge its
underlying competencies (Koch & Windspenger, 2017).
The company should adopt Resource-Based View as this approach will fulfil the basic
requirement of the organization i.e. network view. A network view will be created by
connecting through different businesses and connecting with different technologies. This
approach will also provide to attain knowledge of different concept which can help in the
growth of the company. Digital marketing is the modern concept and the RBV approach is
enhancing its areas to capture all those modern concepts. So that it can be termed as effective
implementation of the business model in the organization (Tata, 2019).
Recommendations
Resource-Based View is recommended for both the organization i.e. Reliance and
Tata Sons. This business model will provide them a competitive advantage in the market
which will give the organization more success and it also helps in eradicate competition from
the market. This approach is also best suited for the family business as it will accumulate
innovative ideas of people and it also enhances teamwork in the organization. Knowledge
about new and different concepts can also be learned by this model. A resource-based model
is also recommended as it will provide the organization with valuable resources. This model
will provide an advantage to develop the organization and its employees (Almarri &
Gardinar, 2014).
Conclusion
The family business is the old concept. The family business helps in generating
employment in the country and it also enhances the development of the country. The family

FAMILY & SMALL BUSINESS MANAGEMENT 13
business works more effectively them other types of business as they have different types of
advantages such as accumulation of knowledge, innovative ideas, recognition, knowledge of
the market condition, strong customer base, effective planning and many more. There are
different types of models which are adopted by different types of business to achieve
organizational success.
In this discussion, there are analyses of two family business i.e. Reliance Industries
and Tata sons. Both of these organizations have different approaches and they apply different
business models in their organizations. Both of these organizations want to enhance their
organization in the future and for that, they have adopted some of the changes according to
the requirement of the market.
Resource-based view is also one of the business models which basically deal in the
management of resources of the organization. It also helps the organization in providing
valuable resources that can be helpful for them in attaining the priority of customers in a
competitive market. This theory also helps in cost reduction as it eliminates the usage of
invaluable resources in the organization. This approach also believes in combining the deals
of different people who are involved in the organization.

FAMILY & SMALL BUSINESS MANAGEMENT 14
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