Name – Ireen Ekka
GDGWI ID -140107
Essay Question: Consider the primary stakeholder involved, discuss the major challenges and issues that family firms during the succession process.
Introduction The Family firm has been important features of the business landscape for centuries and remains important today. They can be small, medium or large and has been seen in all sectors and in all three industrial revolutions. Throughout they have played the main role in employment, income generation and wealth accumulation. A family business can be defined as “a corporation that is entirely owned and managed by members of single family”. The family business is ideal in nature as they are loyal to the principles of the …show more content…
The transition may also include family assets as part of the process. The family member typically plays a controlling role in both the management of succession as well as the ownership of succession. The succession process in family firms has been determined to a most critical stage in the family business life-cycle and characterized as the period in which many family firms fatalities occur mainly due to conflicts within the family. Conflict during succession planning can emerge when no written plan exists, and when the stakeholders connected with the enterprise, including the founder and family members are unknown of the significant changes associated with the shift in power and authority.The purpose of this paper is to find out the issues and challenges faced by the family firms during the succession process will be discussed with an example and we will also focus on the various stakeholders in detail in the context of a family business who play an important role during the succession …show more content…
The Indian family business enjoys many advantages expected to their intrinsic characteristics and social culture that assist to their structures. However, the advantages can ruin if the family is not united; as the family expands the challenge is to keep a sense of unity. These are the set of typical challenges that Indian family businesses face today:
The Next Generation The biggest challenge is the gap between family generations. A business founder is used to do their work by themselves .Thus the development and unique culture are present in Indian family business. By seeing, the owner-centric, smaller scale, and with the restricted view and conservative mindset. This culture ultimately becomes difficult in the absorbing outsiders. The same culture also causes a major challenge in absorbing the next generation family members. Different generations’ looks the world differently is supposed to work together. It is the difficult thing as many of the young generation is often in a hurry and has big ambitions while their elders are more into the conservative and