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This is the third in a series of casebooks on issues faced by families owning and managing a business. This volume focuses on the management of growth, decline, and transition in such firms. These cases are clustered together because family firms grow, decline, and grow again, often transforming themselves several times in the course of their existence, as they face succession issues, financial constraints, and changes in market demand. Managing change also has significant impact on the firm-owning families and their individual members, especially when making decisions under conditions of uncertainty. The eight cases presented in this volume, as those in the previous two casebooks, were developed as a response to the lack of a diversity and selection of cases on family business. The cases emerged by engaging students to help develop them as a part of the curriculum for teaching family business to both graduate and undergraduate business school students in the United States, Canada, Australia, and Finland. However, their utility goes beyond the classroom and should be informative to consultants to family firms and family business owners and members as well.
Many of the challenges faced by family-owned businesses develop after the firm has reached a stage of maturity, when the first generation is faced with issues concerning the role of their children in the business and the long-term future of the enterprise. This collection of case studies from around the world demonstrates how governance of both the business and the family (or lack thereof) impacts succession of leadership in the firm and the inheritance of ownership and wealth.It is the role of governance and how it impacts both family and firm that link these family business cases together with succession and inheritance. These topics have been clustered together because the social systems of the family and the management system of the firm have significant impacts on the success, or failure, of succession plans. All the planning in the world for succession and inheritance will not succeed if the firm does not have a well established and functional governance system. Likewise, if the family does not understand its role in the governance of the firm and the mechanisms for making sound decisions, succession choices may not be accepted by family members. Most family firms fail because of succession issues, not economic ones.This volume features nine in-depth cases of family-owned business from a variety of industries to illuminate the dynamics of governance, succession, and inheritance. Each case illustrates the complexity of issues and, through interactive exercises and questions, offers readers approaches to solutions, which may include less-than-optimal compromises or even selling the business as the only viable option. The examples and insights will prove valuable for students and members of entrepreneurial and family-owned firms, as well as consultants, investors, and other professional advisors.
Family-owned and managed firms are often beset by a variety of crises that can impact the firm's very survival. These may include changes in technology, deaths of critical family members, competition within an industrial sector, shifts in market dynamics and product mixes, economic turmoil, political upheaval and revolution, firm growth, succession, and selecting new firm leadership. Such crises may be internal to the firm or a function of the external environment, and several may occur simultaneously; all of them contribute to a context of uncertainty, risk, and change, presenting particular challenges that are unique to family-owned businesses.This volume presents eight in-depth case studies of family-owned firms that represent a variety of industries and situations. Each case explores the dynamics of managing in chaotic environments and how family leadership responded to crises. Lessons learned from these experiences will help readers understand how to solve problems under conditions of uncertainty and how to avoid failure, when the survival of the firm is at stake. Featuring questions and learning notes designed to engage the reader directly, this volume will be a valuable resources for students and members of entrepreneurial and family-owned firms, as well as consultants, investors, and other professional advisors.
In this volume, the authors challenge some long held assumptions about entrepreneurial firms held by academics, public policy makers, investors and even entrepreneurs themselves. The first is assumption is that growth is what really differentiates an entrepreneurial firm from a small business. The second is that growth is always good. Third, if growth is rapid, and/or high growth, it is even better.Drawing from a fresh review of the literature, their own primary research and experience in entrepreneurial ventures, the authors argue that the relationship between growth and firm performance is, in fact, inconclusive. Despite the strength of contemporary bias, there is strong evidence that the growth-profitability relationship is problematic. For example, rapid growth may lead to considerable organizational challenges that can seriously constrain a firm's ability to generate sustainable profits. Also, it is not uncommon that a growth firm becomes a victim of its own success.Using examples from industries as diverse as airlines, accounting, biotechnology, information technology, personal products, wineries, and food establishments, the authors highlight limitations to research due to variations in the choice of growth indicators, the calculation of growth measures, the measurement periods, and whether objective or subjective measures have been used. Moreover, researchers have equated growth with high growth and almost automatically assumed that this also means high technology, while policy makers appear to have interpreted this as high employment.Armed with more precise definitions and understandings of key concepts and the nature of their causality, the authors consider the implications of restoring profitability to the core of entrepreneurship for future research, firm strategy, financing, organizational structure, resource allocation, and public policy.
This is the complete, up-to-date guide to creating a successful new venture. Using real-life examples, it helps you assemble every piece of the puzzle: you, your team, your opportunity, your business concept and revenue model, your resources, and your successful launch, execution, and growth. The authors illuminate entrepreneurial mindsets, motivation, attitudes, and leadership, and cover the entire process of starting a company, from idea through your first four years of operations. You'll learn how to recognize, define, test, and exploit opportunities; transform ideas into revenue models that earn sustainable value; demonstrate viability to funders; establish a strong ethical and legal foundation for your concept; and build a thriving team to execute on it.