Stakeholders Of The Family Firm Essay - 1690 Words

Stakeholders in Family Firms The greatest threats to the progress, success and endurance of the family firm are familial relationships. Stakeholders which are mainly considered in the planning process are spouse, children, employees and their families, vendors, suppliers, consumers and the community. It is important to ensure that if there is going to be a transition in leadership, the people who are selected are well-qualified enough. Not only are the employees to be considered, but their families who are dependent on them should be considered as well. The success of customers, suppliers and vendors is entirely dependent on the degree of success of the family firm. They have an indirect investment in your company. The community is dependent on your financial as well as social deeds. Contribution of services and manpower, charity, and taxes make you an important part of the community, and the community comes to depend on the organization. Succession in Family Business In family businesses, the owners of the company are very concerned with building a legacy for their successor. Succession planning involves the decision of leading the company in the next generation. Less than one-third of family firms endure the transition from the first generation to the second, and 13% of family firms remain in the industry for more than 60 years. There is no time spent in preparing the company and its people for the change. There is very little thought imparted to the process ofShow MoreRelatedFactors Affecting Global Business Environment1589 Words   |  7 PagesAs one of the most dominant organisational forms in global business environment, family businesses have been drawing attention among management scholars with a strong focus especially on â€Å"succession, performance, and governance† of these companies (Astrachan Shanker, 2003; Zahra Sharma, 2004). Although the first attempt to conduct research on family businesses can be traced back to Trowâ⠂¬â„¢s (1961) empirical study entitled â€Å"Executive succession in small companies† in which he investigated the factorsRead MoreFamily Firms : The Most Common Types Of Businesses820 Words   |  4 PagesFamily Firms are the most common types of businesses in the world. They are dynamic and play an important part in the world economy. The earliest forms of family business were farms. In the U.S., 90 percent of American businesses are family firms. These firms provide employment for half of the population and account for around half of the GDP. The composition, management and ownership of a family firm is a complex and complicated process that involves specialized knowledge and skills in order toRead MoreA Public Relation Plan For Child Cancer Foundation1419 Words   |  6 PagesEstablishment and promotion of organisational communication .†¦. 4 8. Stakeholders in the Organisation †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 4 9. Communication with the stakeholders and feedback †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 4 10. Possibilities to Change management strategies to promote culture change in the organisation †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 4 11. Communication Strategies †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.... 5 12. Effective technologies to communicate to the different stakeholder interest group †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 5 13. CoordinationRead MoreCase Manchester United Fc Exploring Strategy1384 Words   |  6 Pagesmight lead to different expectations. Stakeholder expectation is the third influence on the purpose and strategy of an organization. Thats a challenge because there are likely to be many stakeholders, with different expectations. Therefore, managers need to take a view on: 1. which stakeholders will have the greatest influence; 2. which expectations they need to pay the most attention to 3. to what extent the expectations and influence of different stakeholders vary (Johnson et al., 2011: 139-146)Read MoreAdvanced Accounting Theory Project Essay1596 Words   |  7 Pagesprovide shareholders and stakeholders with useful information on corporate social and environmental performance or are they merely a public relations vehicle? Answer this question by reference to a variety of accounting theories. There are many definitions to Corporate Social responsibility(CSR). One most common definition is that CSR is the consideration and response of the firm to issues that are beyond the regular technical, legal, and environmental requirements of the firm. From this definitionRead MoreThe Adelphia Scandal Essay1114 Words   |  5 Pagesrun as a family style business which led to fraudulent acts among family members and upper level executives. The family has been accused of stealing $3.1 billion from Adelphia and is now facing criminal charges. Adelphia was forced to file chapter 11 bankruptcy and as of April 24, 2004, the new board of directors made the decision to break up the company and sell it. The Adelphia scandal is morally wrong because the Rigas family coerced and exploited employees, harmed all stakeholders as well asRead MoreBusiness Law and Ethics Case Study1141 Words   |  5 Pageshas remained unemployed since. Tom’s father has also not been doing well financi ally, as his business has not been doing well as of lately, which would lead to less income for the family. Tom’s parents would be better off financially, as they will no longer need to support Tom if he were to be hired by the accounting firm. †¨Another party that would achieve happiness from Tom’s actions would be a child of a developing nation that Tom has committed to sponsor when he earns full time wage. Because TomRead MoreGovernment Contracts and Stakeholders1709 Words   |  7 PagesAs illustrated in the photo below, this train has a front car, a passenger car and a caboose. Stakeholders, in my opinion are the â€Å"passenger car† of this train and should not be forgotten in the middle. [Year] Tasha Corbin [Company name] [Date] As illustrated in the photo below, this train has a front car, a passenger car and a caboose. Stakeholders, in my opinion are the â€Å"passenger car† of this train and should not be forgotten in the middle. [Year] Tasha Corbin [Company name] [Date] BUSINESS-It’sRead MoreStrategic Human Resource Management689 Words   |  3 PagesStrategic HRM Google was selected because the firm has some of the best HR practices. This has resulted in employees showing greater amounts of loyalty and helping the company to enter new markets. Evidence of this can be seen with some of many benefits provided by the company including: free child care, legal aid services, an in house physician, a gym, lunch room and gourmet meals. According to the firm, their focus is, Designed to take care of the whole you and keep you healthy, whether physicallyRead MoreWalmart and Its Associates Efficient Operator or Neglectful Employer1479 Words   |  6 Pages(The Economist, 2004). Lastly, severely opposing formation of the union formation within the organization which include aggressive policies for union avoidance. Employee compensation issues (Wages) Wal-Mart failed to follow the stakeholder theory, in which the firm should possess moral and ethical responsibility over its employees. The lower salary to the workers for their prolong work was never justify under the management action. Kantianism states that pushing the labourers to work beyond their