Reflection Of Family Business

1373 Words6 Pages
As with all family businesses, our family business is more than just a business. It opens opportunities for developing a future vision based on family tradition and the orientation towards values associated with this tradition. Families plant trees, by creating things and structures which outlast their founders. Family businesses can and should serve as lighthouses in society and pave the way into the future . Having said that, I will analyze my family business that has a portfolio of investments and own and manage properties in the hospitality industry which evolve with cultural differences, conflicts, resilience to change, and to dynamically adapt to the new generations. Naturally, as the family business advance in its generational timeline,…show more content…
Therefore, learning how to manage the family component early on in the evolution of the family business will pay dividends down the road. To avoid the dictatorship and the absolute control struggle with one ownership and the conflicts that arise among family members, the intergeneration created the Board of Directors, the reason being that having a large and solid family businesses tends to have strong governance. Members of the Board avoid the principal–agent (owner) issue by participating continuously in the task of company decision making, where they control and monitor performance meticulously and possess a deep hospitality industry expertise and knowledge gained through a long family history with different multicultural…show more content…
Because we think that in pursuance of success, family businesses usually forecast robust long-term growth and performance in order to avoid risking the family’s wealth and control of the business. This wealth management and private equity tends to protect them from any emotional decision making which many corporations had taken the easiest path in maximizing short-term profits at the expense of long-term corporation healthy ratios. A longer-term planning horizon and more moderate risk taking serve the interests of debt holders as well, therefore family businesses tend to have not only lower levels of financial leverage but also a lower cost of debt than their comparable corporations do. In that sense the power of masculinity is a positive mindset for the old generation comparing to the new generations that their thinking in order to grow in a much faster pace is trough financial loans or private entities. For example, leveraging and financial ratios are very healthy for the owner thanks to the payment of dividends. Sometimes we need to foresee a synergy between the intergeneration in order to take the family business into a whole new

More about Reflection Of Family Business

Open Document