Family Businesses Assignment
3 Pages640 Words75 Views
Added on 2020-11-30
Family Businesses Assignment
Added on 2020-11-30
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Family businesses have been key features of the business world for centuries and are still relevant today (Colli & Rose, 2008). Family business also makes up a large part for our economy in Asia. Rivalry, conflict and related challenges of the family, such as excessive emotions and personalisation Rivalry, 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 involves every members in the business who are more likely to hold opposing views on a matter that leads to differences on strategic or tactical questions (Levinson, 2014). In reality, if there is no dispute, it represents that people do not think or attempt to change, or that they have no power to say. Conflict may occur from many areas within the company, but it is especially acute 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 the family 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 common strategic goals, disagreements will occur (Wayne, 2015). The second sources of conflict will be communication issues between the family members. For example, there may be a communication barriers and credibility gap between different generations. The disparity between owner and manager and specialists in goal whether is short-term or long-term goal also brings rise to conflict. Failure to communicate can be emotionally burdened but the mostimportant is it will damage relationships between key family members which eventually affect the company. The third conflict will be finances. Money-related issues also become significant sources of family conflict. In cases where there is little or no difference between individual and business assets, these disparities are compounded.1.Business cultureThe second issues that Asian family business cannot ignore is the business culture. Getting a laid-back atmosphere is a positive attribute for many companies (Colli & Rose, 2008),
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