Essay on The Concept Of Family Business
The phrase family business as defined by Ward (2011) refers to a business entity in which decisions are made by people who are related by marriage or by blood. According to them, in a family business majority of middle and high level management positions are held by member of the same family. The people who operate family businesses are connected to each other because of leadership, ownership and the technical knowhow that they give to the business. Similarly, Mathews (2015) defines the terms strategic planning refers to the process of making a business profitable both in the short-term and long-term time horizons. When doing strategic planning for family businesses, it is important to incorporate family preferences and concerns into the business strategy that has been proposed. Failure to incorporate such concerns may lead to reluctance from some families, hence limiting the aggressiveness of some families in the operations of the business (Matthews, 2015). This research paper will conduct an in-depth investigation about the concept of family business, more particularly concerning strategic planning in family businesses.
Strategic planning issues in family business
According to Ward (211) strategic planning in family owned businesses is centered on four primary issues namely. First, succession planning – this entails preparing people to hold higher management and middle level management positions upon the demise or retirement of the existing organizational…