Family Businesses Assignment

Added on - Nov 2020

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Family businesses have been key features of the business world for centuries and are stillrelevant today (Colli & Rose, 2008). Family business also makes up a large part for oureconomy in Asia.Rivalry, conflict and related challenges of the family, such as excessive emotions andpersonalisationRivalry, conflict and related family issues such as excessive emotions and personalisation ofmattersConflict is common in family businesses as it is an amalgam of individuals which involvesevery members in the business who are more likely to hold opposing views on a matter thatleads to differences on strategic or tactical questions (Levinson, 2014). In reality, if there isno dispute, it represents that people do not think or attempt to change, or that they have nopower to say. Conflict may occur from many areas within the company, but it is especiallyacute in a family business as the business expands and the number of stakeholders increases,it is hard to address everyone’s needs and expectations (PricewaterhouseCoopers).I have found out few sources of conflict. The first one would be conflict of direction for thefamily business. For example, the failure to share shared vision and values frequently leads toconflicts between family members. If the company is not aimed at a collection of commonstrategic goals, disagreements will occur (Wayne, 2015). The second sources of conflict willbe communication issues between the family members. For example, there may be acommunication barriers and credibility gap between different generations. The disparitybetween owner and manager and specialists in goal whether is short-term or long-term goalalso brings rise to conflict. Failure to communicate can be emotionally burdened but the mostimportant is it will damage relationships between key family members which eventuallyaffect the company. The third conflict will be finances. Money-related issues also becomesignificant sources of family conflict. In cases where there is little or no difference betweenindividual and business assets, these disparities are compounded.1.Business cultureThe second issues that Asian family business cannot ignore is the business culture. Getting alaid-back atmosphere is a positive attribute for many companies (Colli & Rose, 2008),
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