Bus 337 Family Business Paper
University of North Carolina at Greensboro
Bryan School of Business and Economics
Department of Business Administration ENT/BUS 337 Family Business M-W 2:00pm - 3:15pm – (Room 216 Bryan Building) Professor: W. Noah Reynolds, CPA MBA Email: wnreynol@uncg.edu Office: TBD – after class Home: NA Phone: (336) 971-1600 Fax: NA Office Hours: By appointment Credits: 3:3 Prerequisites: None CATALOG DESCRIPTION: This course is designed to provide an overview of family business, including what is required for family harmony and business continuity. STUDENT LEARNING OUTCOMES: This course is an upper level elective designed for students interested in pursuing a career in …show more content…
a family business environment. Upon completion of the course, the student should be able to: 1. Identify the social and economic impact of family business. 2. Explain family business dynamics in terms of three elements – the individual, the family, and the business. 3. Apply the specific practices and skills of effective family businesses. 4. Integrate entrepreneurial and professional management concepts for strengthening family business organizational performance. COURSE OBJECTIVES: This course explores the challenges and opportunities facing individuals and families involved in family business relationships. The course uses a systems model of the family and business to demonstrate the interrelationships and connections among the key stakeholders. Some of the specific topics include the family system, culture, entrepreneurial influences, conflict and negotiation, career planning, ethics, governance, succession and strategic planning, professional support relationships, and survival skills as a son or daughter in a family business. Students are encouraged to invite a parent or other significant relatives from their family business to attend and participate in the course. University experience has demonstrated that families participating in this course report improved family learning and development. This course is designed to provide an overview of the planning and management process required for family harmony and business continuity.
The course is structured as a seminar on family business success factors. Each student group will select a family business and complete four exercises exploring their own selected family business situation. The first exercise will provide an overview of the family history and culture with three additional exercises addressing family participation, leadership development, and strategic planning. These exercises represent a foundation for the development of a comprehensive planning process for a family business. The learning activities include lectures, assessments, exercises, guest speakers, family projects, videos, case and class discussion, text readings and outside reading assignments. The study of family business is a multidisciplinary academic topic and consequently, guest speakers will be used to provide the most current information and professional experience. Each class session is designed to provide theory or background information and an opportunity for application in the form of cases, guest speakers, or student activities. The diagram below represents a family business planning model that is demonstrated in the family projects completed throughout the course. It is found on page 12 of the text (handout), Strategic planning for the family business by Carlock & Ward. …show more content…
(BB)
THE PARALLEL PLANNING PROCESS Management
Philosophy
Management
Philosophy
Core Values
Core Values | Family
Commitment
Family
Commitment
| |
Strategic
Commitment
Strategic
Commitment
Values | | | FAMILY | | Strategic Thinking | | BUBINESS | Family Vision
Family Vision | |
Business Vision
Business Vision
Shared FutureVision | | | Family
Enterprise
Continuity
Plan
Family
Enterprise
Continuity
Plan
| |
Business
Strategy
Plan
Business
Strategy
Plan
Formulating | | | Plans
REQUIRED TEXT:
Family Business, 3rd Edition, Ernesto J. Poza, ISBN # 0-324-59769-x, Thomson South-Western, 2010. (Bookstore)
**Students are responsible for downloading copies of course materials placed on Blackboard (BB)—and bringing to class. REFERENCE TEXT: Carlock, R.S., & Ward, J.L. (2001). Strategic planning for the family business: Parallel planning to unify the family and business. London: Palgrave. SECTION 1 – PDF Handout (BB). COURSE VALUES:
I believe strongly in the importance of family business. I recognize the unique challenges that families-in-business face and I strive to create a family business learning community where we all learn from each other. The classroom must be a safe environment where individuals can take risks and test new ideas, such as:
* Family enterprise is an exciting opportunity that offers our students significant rewards, but not everyone should pursue a family business career. * The dynamics and interaction of family and business systems require a multidisciplinary approach to management and planning that can be taught. * A healthy family supports a successful business - a successful business doesn't always create a positive family situation. * Balancing work and love are determinants of a successful human life. * Ethical values are important to all family enterprises. COURSE OUTLINE: Part 1: UNDERSTANDING FAMILY BUSINESS PLANNING Chapter 1: The Nature, Importance, and Uniqueness of Family Business. Chapter 2: Great Families in Business: Building Trust and Commitment. Part 2: PLANNING FOR THE FAMILY Chapter 3: Ownership of an Enterprise Built to Last. Chapter 4: Succession: Continuing Entrepreneurship and the Next Generation. Chapter 5: Succession and the Transfer of Power. Chapter 6: Creating the Strategy. Part 3: PLANNING FOR THE BUSINESS Chapter 7: Planning the Estate. Chapter 8: Financial Considerations and Valuation of the Family Business. Chapter 9: Key Non-Family Management: The Visible Commitment to Managing the Family Business Professionally. Part 4: INTEGRATING FAMILY AND BUSINESS PLANS Chapter 10: Family Business Governance: Advisory Boards and Boards of Directors.
CLASS PARTICIPATION: By providing an environment of mutuality, I hope we can have an enjoyable learning experience together. I believe all students and family members have a wealth of resources to add to the class, and intend to draw on this resource for the benefit of the whole. It is of vital importance to your own as well as your classmates learning that you ask questions reveal facts, and challenge presented material. Each student should come prepared to discuss and contribute ideas on the readings or case included in that day's topics. I hope that each of you will be eager to enter into the discussion. Let’s find out what chat synergy is all about, learn, grow and develop! EVALUATION: All exams will be non-cumulative. They will consist of True-False and Multiple Choice questions. Material not in your textbook that is covered in the lectures will be included in the exams. This may vary somewhat by exam. This includes, but is not limited to, information given by articles, films, cases, handouts, guest speakers and any material discussed during class lecture. ***NO MAKE-UP EXAMS WILL BE GIVEN WITHOUT A WRITTEN MEDICAL EXCUSE. Evaluation Approx. Percentage * Exam 1 (covers 5 chapters) 100 Points 18% * Exam 2 (covers 5 chapters) 100 Points 18% * Exercises A, B, C, D worksheets 100 Points (25 points each x 4 worksheets) 18% * Exercise A, B, C, D Reflection Papers 80 Points (20 points each x 4 papers) 15% * Team Presentation, Outline, and Final Paper and Bibliography 80 Points 15% * Attendance and Participation in Discussions, Class Activities, and 89 Points 16% Case Preparation (Based on 28 classes) Total Points = 549 100% GRADING: All points will be added at the end of the quarter to get your total point score. This is the fairest way for students because it gives you the advantage of being able to “bump-up” your total points from one test to the next instead of getting a blanket grade point for each exam that you don’t have the chance to improve. After all points are totaled, the total points are ranked from the highest point total to the lowest point total. Two columns are made. One is a percentage column and the other is a curve column. The percentage columns are figured as: Your total points Total points possible
The following percentages are used to help you determine your approximate class standing at any time: A+ | 98% - 100% | 538.02 - 549 | C+ | 78% - 79% | 428.22 – 439.19 | A | 93% - 97% | 510.57 – 538.01 | C | 73% - 77% | 400.77 – 428.21 | A- | 90% - 92% | 494.1 – 510.56 | C- | 70% - 72% | 384.3 – 400.76 | B+ | 88% - 89% | 483.12 – 494.09 | D+ | 68% - 69% | 373.32 – 384.29 | B | 83% - 87% | 455.67 – 483.11 | D | 60% - 67% | 329.4 – 373.31 | B- | 80% - 82% | 439.2 – 455.66 | F | Less than 60% | < 329.4 | The curve column takes the highest point total in the class as a 4.0 and works down from there. These percentage and curve columns are then compared to arrive at the fairest grades for the class. Each type of grading has its advantages, and this way we use the best of both systems. During the quarter it is best to figure how you are doing based on the percentage column, knowing that you will do at least that well, but probably better when both systems are figured at the end of the quarter. Please feel free to see me concerning your grade at any time.
PRESENTATION SUMMARIES AND REFLECTIONS:
The purpose of this assignment is to provide you with an opportunity to apply concepts from class to real world situations. This paper must include a thorough summary of all points of the presentation followed by your personal reflections on your family business and how the presentation's family business has similarities, differences, advantages, and disadvantages to your own.
EVALUATION CRITERIA FOR EXERCISES A, B, C, D: 1. Concise information presented in an understandable and persuasive style (5 points). 2. Thoroughness (includes information from readings and class activities) (5 points). 3. Well thought out ideas to reflect your personal understanding of your family business situation (5 points). 4. Demonstrated participation and involvement of other family members, employees, or professional consultants that work with your family business (5 points). 5. Inclusion of concepts or ideas from the exercise worksheet (5 points). WRITTEN ASSIGNMENTS: Papers should be typed, double-spaced on standard 8 1/2 x 11 white paper. Written assignments should not exceed the guidelines set. Please leave at least 1" margins on the top, bottom and sides so there will be room for comments. Always remember to add a cover page, header, or footer to all of your papers that contain your name, the class title and number (ENT/BUS 337) Family Business), and the date the paper is due. Also include a floppy disk with each hard copy.
DESCRIPTION OF ASSIGNMENTS: The exercise worksheets are a guideline and data gathering tools for exploration and thinking about your family and business situation. Each student/family team should review the exercise worksheet and develop a three to five page, double-spaced response to the summary questions. Discuss the information with your family and identify the key influences that will impact on your business and family decisions. Your paper for each exercise should identify and analyze concerns, opportunities and challenges the family business presents to you and your career.
Exercise A: Family Business History and Culture This exercise is the first step in developing an understanding of your family business. Knowing the family business history, values and culture is an important foundation for analyzing the situation from both a family and a business perspective. The goal of this project is to understand the influences and experiences that shape your family's personal and business relationships and values. At the end of the exercise, write a 2-3 page reflective paper on the lessons learned from the exercise and the topics you and your family would like to pursue further. Attach this reflective paper to the exercise itself and turn both in during class on the due date.
Exercise B: Family Participation The family needs to make a transition from parent-child relationships to a family of adults. This transition requires the family to examine its core values, communications patterns and structure. This exercise helps the adult family develop new behaviors and ideas for decision making, problem solving and leadership. The family participation plan clarifies the family's business and personal relationships. At the end of the exercise, write a 2-3 page reflective paper on the lessons learned from the exercise and the topics you and your family would like to pursue further. Attach this reflective paper to the exercise itself and turn both in during class on the due date.
Exercise C: Management Development
The management development plan represents an opportunity to negotiate your potential entry and participation into the family business. This exercise identifies several important topics related to family business participation. The outline for Exercise C is a guide, but there may be other issues specific to your family or a business that should be considered. The nature of this assignment requires interaction between the student and senior management of the family firm. The assignment should demonstrate input from the current family management and represent a discussion of your possible participation in the firm. At the end of the exercise, write a 2-3 page reflective paper on the lessons learned from the exercise and the topics you and your family would like to pursue further. Attach this reflective paper to the exercise itself and turn both in during class on the due date.
Exercise D: Strategic Business Plan
The strategic plan represents the family, owners and management's attempt to create a shared future vision. The plan articulates the tactics and actions that will help the firm successfully compete in the marketplace. This exercise brings together the family and business systems and explores missions, goals, assessing the environment and the firm, and developing action plans. This exercise demonstrates the interdependence and interrelationships of family business plans. At the end of the exercise, write a 2-3 page reflective paper on the lessons learned from the exercise and the topics you and your family would like to pursue further. Attach this reflective paper to the exercise itself and turn both in during class on the due date.
Final Summary Reflective Paper (5-8 pages) This final paper and its attendant presentation are designed to help you integrate the blocks of knowledge from the course with a systemic view of your family business. Students will learn new information and develop personal insights by completing the exercises throughout the course. The paper should conclude with a summary of your SWOT (strengths, weaknesses, opportunities, and threats) analysis of your business; the direction you believe it should take in the next five years; what it needs to successfully reach its goals for that period; and your own decisions; actions (even if preliminary) related to your family business career; and what you liked best about this class and what you might do to improve it for others. Each student or team will have one hour to present the highlights of their paper to the class in whatever way they deem most effective (lecture, handouts, overheads, etc.). However, the presentation must include a PowerPoint presentation with the other mean(s) of presentation.
The final grade for this course will reflect the quality of your learning experience based on your application of the course concepts to your family situation. Each family exercise will be discussed in class and your work returned with instructor comments so you can make revisions and have that work product to assist you with your final summary paper. Papers that do NOT reflect A or B work or miss critical concepts will be returned for rewriting. Your reflective papers should represent a portion of the "portfolio" of your family.
FINAL PAPER AND PRESENTATION:
Grading: You will be graded on:
I. Written Content: A. Accurate Information B. Adequate Coverage - minimum of 5 academic journal references and 5 non-academic, popular references (some of these can be from class handouts) C. Incorporation of Text Concepts D. Formation of Concrete Solutions E. New Information Other than Text – tell us what your references say F. Paper Outline and Bibliography – APA, major headings and sub-headings II. Presentation: A. Clear and Concise Presentation B. Visual Presentation – PowerPoint slides, handouts, diagrams, figures, etc. done by each group member C. Coordination of Presentation
III. Group or Individual Presentation: A. A Logical Flow
Evaluation:
Outline and Paper 25 Points Presentation 25 Points Group or Individual Performance 15 Points Peer Evaluation (Average) 15 Points Total 80 Points
Schedule for Presentations:
* Wed November 17 * Mon November 22 * Mon November 29 * Wed December 1 * Mon December 6
UNIVERSITY POLICIES AND RESOURCES Confidentially: This course stimulates the discussion of sensitive and personal topics about individual class members and their family businesses. An important aspect of the learning process is the discussion of this private information. I define any information or material shared as a part of this class as confidential, whether in the classroom or as a part of learning activity. This confidential material may not be discussed outside the classroom, except as part of a learning activity, and then only with class members or the instructor. Each participant agrees to this confidentiality agreement and accepts that any violation of this confidentiality agreement will result in no grade or credit for the course. Academic Integrity Policy:
Students are expected to know and abide by the Honor Code in all matters pertaining to this course. Violations of this code will be pursued in accordance with the code. The link to UNCG’s academic integrity policy is: http://academicintegrity.uncg.edu/complete/ All of your assignments should be submitted on time, word-processed, spell-checked, checked for grammatical errors, and conform to APA Handbook guidelines. All work submitted should be thoughtful, reflective of your learning. Faculty and Student Guidelines
Please familiarize yourself with the Bryan School’s Faculty and Student Guidelines. These guidelines establish principles and expectations for the administration, faculty, staff, and students of the Bryan School of Business and Economics. The link for this document is: http://www.uncg.edu/bae/faculty_student_guidelines.pdf Attendance Policy: Participation points are given to each class for attendance. To earn these points, you must be in attendance when role is taken and stay for the entire class period. Religious Observance: 1. The University allows for a limited number of excused absences each academic year for religious observances required by the faith of the student. 2. Students must notify instructors of absences in advance of the date of the religious observance. Instructors have authority to specify, via written notice to students, the amount of lead time required and may require that the nature of the religious observance be specified and the student's participation be confirmed in writing by an official of the religious organization. 3. When appropriate notice is provided by a student, the student must be granted at least two excused absences under this policy and must be allowed to make up or waive work and tests missed due to these particular absences. With regard to any test or other assignment that a student would miss due to notice of a required religious observance, faculty members may require the student to complete the test or assignment in advance of the originally scheduled date of the test or assignment. Beyond the minimum terms and limits of this policy, instructors maintain authority to establish and enforce the attendance policy for the courses they are teaching. 4. The requirement for students to make such requests for excused absences applies only to days when the University is holding class. Americans with Disabilities Act UNCG seeks to comply fully with the Americans with Disabilities Act (ADA). Students requesting accommodations based on disability must be registered with the Office of Disability Services (ODS) located at 208 Elliott University Center, (336) 334-5440 V/TTY. Students with a disability must provide a letter from the ODS stating the appropriate accommodations for this course as soon as possible. If you have a documented disability and wish to discuss how these academic accommodations will be implemented in the course, please contact me.
ASK FOR HELP! This class explores the interaction of your family and work systems and addresses important and possibly emotional topics. If you or a family member needs help in addressing personal or family issues raised by the course you should contact me. I have training in family business and will offer you support in exploring your situation and in securing qualified professional consultation. *Please consider using these resources for your course project. *Resource for Writing:
The Writing Center at UNCG
3211 HHRA Building
334-3125 (Call for appointment OR drop-in.)
Sunday: 5–8 p.m.
Monday–Thursday: 9 a.m.–8 p.m.
Friday: 9 a.m.–3 p.m.
The purpose of the Writing Center is to enhance the confidence and competence of student writers by providing free, individual assistance at any stage of any writing project. Staff consultants are experienced writers and alert readers, prepared to offer feedback and suggestions on drafts of papers, help students find answers to their questions about writing, and provide one-on-one instruction as needed.
*Resources for Research – The UNCG Library
Your courses are online, and so is your library, and me, Steve Cramer [http://uncg.libguides.com/cramer], your Business Librarian. The University Libraries have developed a suite of services designed specifically to support online education online tutorials (http://library.uncg.edu/research/tutorials
As we roll out new services or promote existing ones, we will create ads in Blackboard. Could you look out for these and point them out to your students? (For example, one might cover how we will mail print library books to distance ed students who live beyond Greensboro.)
The library’s Distance Education page, http://library.uncg.edu/info/distance_education/,
The new Bryan School subject portals (still works in progress) link to the library’s many research databases and datasets: * Accounting & Finance: http://uncg.libguides.com/acc * Business Administration: http://uncg.libguides.com/bus * Economics: http://uncg.libguides.com/eco * Entrepreneurship: http://uncg.libguides.com/ent * ISOM: http://uncg.libguides.com/ism * MBA: http://uncg.libguides.com/mba
Journal Finder (http://journalfinder.wtcox.com/uncg/) provides access to our 48,000 online journals and magazines (including the Wall Street Journal and Harvard Business Review).
DATE | READINGS & TOPICS | ASSIGNMENTS DUE | Mon Aug 23 | * INTRODUCTION/SYLLABUS * Article 1(BB) "You Can't Fire Me, I'm Your Father: What Every Family Business Should Know," Koenig | | Wed Aug 25 Drop/Add Deadline is Aug 27 | * CH 1(Poza) - The Nature, Importance, and Uniqueness of Family Business. * Article 2(BB), "Younger Generation Poised to Take The Helm," Marino * VIDEO CASE INTRODUCTION | | Mon Aug 30 | * Article 3(BB), "Succession Can Be Trickiest Part of A Family Business…" Brown & "Succession in Family Business…," Stavrou * Case # 1(Poza) “The Binghams and the Louisville Courier…” * REVIEW GOUP EXERCISE A (BB) | Groups FormedRead Group Exercise A (BB) | Wed Sep 1 | * CH 2 (Poza) - Great Families in Business: Building Trust and Commitment * Case #2(Poza) “SFB – Power Play at the Inn” * Case #4(Poza) “SFB – She’ll Always Be My Little Sister” | | Mon Sep 6 | LABOR DAY HOLIDAY (No Class) | | Wed Sep 8 | * SPEAKER: JOSEPH R. BUDD, CEO, 2nd Generation Owner of The Budd Group, http://www.buddgroup.com/message.cfm | Group Exercise A Worksheet & Paper Due (45 POINTS) | Mon Sep 13 | * SPEAKERS: JACOB and CAL CUNNINGHAM, 3rd Generation Owners – Cunningham Brick Co. * CH 3(Poza) – Ownership of an Enterprise Built to Last. | | Wed Sep 15 | * Article 4(BB), “Copreneurs and Dual-Career Couples: Are They Different?” Marshack * Case #5(Poza) “The Vega Food Company” * Case #7(Poza) “SFB – The Ambivalent CEO…” * REVIEW GROUP EXERCISE B (BB) | Read Group Exercise B (BB) | Mon Sep 20 | * CH 4(Poza) – Succession: Continuing Entrepreneurship and the Next Generation. * Article 5(BB), “Daughters Find That Fathers Still Resist Passing the Family Business On To Them,” Marsh * Case #10(Poza) “Fasteners for Retail (Part A)” | | Wed Sep 22 | * SPEAKER: ROBERT CALDWELL, JR. MA, Founder of Family Firm Resources LLC, http://www.familyfirmresources.com/index.html | | Calendar Mon Sep 27 | * CH 5(Poza) – Succession and the Transfer of Power. * Case #8(Poza) “SFB – Borrowing to Grow at Andrews Co.” | SUMMARY OF FINAL PRESENTATION & PAPER DUE | Wed Sep 29 | * Article 6(BB), “Spousal Leadership and Continuity in the Family Firm,” Poza & Messer * Case #3(Poza) “The Ferre Media Group (Part A)” | Group Exercise B Worksheet & Paper Due (45 POINTS) | Mon Oct 4 | REVIEW FOR MIDTERM EXAM (Poza Chapters 1 – 5) | | Wed Oct 6 | | MIDTERM EXAM (100 points) | Mon Oct 11 | FALL BREAK (No Class) | | Wed Oct 13 Last Day to Drop w/no Penalty | * CH 6(Poza) – Creating the Strategy * Article 7(BB), “Developing Effective Ownership Case, “Too Closely Knit?” Fryer * REVIEW GROUP EXERCISE C (BB) | Read Group Exercise C (BB) | Mon Oct 18 | * Case #6(Poza) “Sigma Motion, Inc.” * Case #9(Poza) “SFB – Adams Funeral Home” | | Wed Oct 20 | * CH 7(Poza) – Planning the Estate.
* Case #15(Poza) “SFB – The Son-In-Law” * Case #16(Poza) “SFB – The New MBA” | | Mon Oct 25 | * Article 8(BB) “Structuring the Financing of Family Businesses,” Susbauer & Johnson * Case #17(Poza) “SFB – Real Estate Development Partners” | Group Exercise C Worksheet & Paper Due (45 POINTS) | Wed Oct 27 | * SPEAKER: PAUL HATTENHAUER JD CPA, Estate Planning Attorney, http://www.ceclaw.com/partners/paul-hattenhauer * CH 8(Poza) - Financial Considerations and Valuation of the Family Business |
| Mon Nov 1 | * Article 9(BB), "The Power Vacuum & The Successors," Danco * Article 10(BB), "Succession Planning in the US and the UK Family Owned Firms", Furio & Desai * Case #13(Poza) “Private Business Valuation Report” * REVIEW GROUP EXERCISE D(BB) | Read Group Exercise D (BB) |
Wed Nov 3 | * CH 9(Poza) - Key Non-Family Management: The Visible Commitment to Managing the Family Business Professionally * Case #11(Poza) “Ferre Media Group (Part B)” * Case #18(Poza) “SFB – Glassking Distributor Co.” * SPEAKER TBD | | Mon Nov 8 | * Catch up Day & Group Work Day | Group FINAL PRESENTATION & PAPER Update Due | Wed Nov 10 | * CH 10 (Poza) - Family Business Governance: Advisory Boards and Boards of Directors * Case #12(Poza) “The Cousins Tournament” * Case #19 (Poza) “New Way Distributing” | | Mon Nov 15 | * SPEAKER: DR. STAN MANDEL, CPA PhD, Wake Forest University – Family Business Center, http://business.wfu.edu/apps/facprofiles.cfm?id=stan.mandel | Group Exercise D Worksheet & Paper Due (45 POINTS) | Wed Nov 17 | **ALL GROUP PAPERS DUE NOW (40 POINTS)Presentations as scheduled (40 POINTS) | **ALL GROUP PAPERS DUE (40 Points)FINAL PRESENTATIONS (40 points) | Mon Nov 22 | | FINAL PRESENTATIONS (40 points) | Wed Nov 24 | THANKSGIVING BREAK (No Class) | | Mon Nov 29 | | FINAL PRESENTATIONS (40 points) | Wed Dec 1 | | FINAL PRESENTATIONS (40 points) | Mon Dec 6 | REVIEW FOR FINAL EXAM (Poza Chapters 6 – 10) | FINAL PRESENTATIONS (40 points) | TBD | | FINAL EXAM (100 Points) |
*Note – The readings (text chapters, articles, and cases) for each class period are designed to be 25-30 pages. Class preparation requires the reading of these materials for proper group discussions and class participation points. **Note – All reading materials can be found on the (BB) Blackboard site. Students should download and print out all materials before class and bring to class. Laptop Computers may not be allowed for some or all classes at the discretion of the instructor. PowerPoint slides for note taking will be posted on the BB also for the Poza text which can be printed before class.
Bryan School of Business and Economics
Department of Business Administration ENT/BUS 337 Family Business M-W 2:00pm - 3:15pm – (Room 216 Bryan Building) Professor: W. Noah Reynolds, CPA MBA Email: wnreynol@uncg.edu Office: TBD – after class Home: NA Phone: (336) 971-1600 Fax: NA Office Hours: By appointment Credits: 3:3 Prerequisites: None CATALOG DESCRIPTION: This course is designed to provide an overview of family business, including what is required for family harmony and business continuity. STUDENT LEARNING OUTCOMES: This course is an upper level elective designed for students interested in pursuing a career in …show more content…
a family business environment. Upon completion of the course, the student should be able to: 1. Identify the social and economic impact of family business. 2. Explain family business dynamics in terms of three elements – the individual, the family, and the business. 3. Apply the specific practices and skills of effective family businesses. 4. Integrate entrepreneurial and professional management concepts for strengthening family business organizational performance. COURSE OBJECTIVES: This course explores the challenges and opportunities facing individuals and families involved in family business relationships. The course uses a systems model of the family and business to demonstrate the interrelationships and connections among the key stakeholders. Some of the specific topics include the family system, culture, entrepreneurial influences, conflict and negotiation, career planning, ethics, governance, succession and strategic planning, professional support relationships, and survival skills as a son or daughter in a family business. Students are encouraged to invite a parent or other significant relatives from their family business to attend and participate in the course. University experience has demonstrated that families participating in this course report improved family learning and development. This course is designed to provide an overview of the planning and management process required for family harmony and business continuity.
The course is structured as a seminar on family business success factors. Each student group will select a family business and complete four exercises exploring their own selected family business situation. The first exercise will provide an overview of the family history and culture with three additional exercises addressing family participation, leadership development, and strategic planning. These exercises represent a foundation for the development of a comprehensive planning process for a family business. The learning activities include lectures, assessments, exercises, guest speakers, family projects, videos, case and class discussion, text readings and outside reading assignments. The study of family business is a multidisciplinary academic topic and consequently, guest speakers will be used to provide the most current information and professional experience. Each class session is designed to provide theory or background information and an opportunity for application in the form of cases, guest speakers, or student activities. The diagram below represents a family business planning model that is demonstrated in the family projects completed throughout the course. It is found on page 12 of the text (handout), Strategic planning for the family business by Carlock & Ward. …show more content…
(BB)
THE PARALLEL PLANNING PROCESS Management
Philosophy
Management
Philosophy
Core Values
Core Values | Family
Commitment
Family
Commitment
| |
Strategic
Commitment
Strategic
Commitment
Values | | | FAMILY | | Strategic Thinking | | BUBINESS | Family Vision
Family Vision | |
Business Vision
Business Vision
Shared FutureVision | | | Family
Enterprise
Continuity
Plan
Family
Enterprise
Continuity
Plan
| |
Business
Strategy
Plan
Business
Strategy
Plan
Formulating | | | Plans
REQUIRED TEXT:
Family Business, 3rd Edition, Ernesto J. Poza, ISBN # 0-324-59769-x, Thomson South-Western, 2010. (Bookstore)
**Students are responsible for downloading copies of course materials placed on Blackboard (BB)—and bringing to class. REFERENCE TEXT: Carlock, R.S., & Ward, J.L. (2001). Strategic planning for the family business: Parallel planning to unify the family and business. London: Palgrave. SECTION 1 – PDF Handout (BB). COURSE VALUES:
I believe strongly in the importance of family business. I recognize the unique challenges that families-in-business face and I strive to create a family business learning community where we all learn from each other. The classroom must be a safe environment where individuals can take risks and test new ideas, such as:
* Family enterprise is an exciting opportunity that offers our students significant rewards, but not everyone should pursue a family business career. * The dynamics and interaction of family and business systems require a multidisciplinary approach to management and planning that can be taught. * A healthy family supports a successful business - a successful business doesn't always create a positive family situation. * Balancing work and love are determinants of a successful human life. * Ethical values are important to all family enterprises. COURSE OUTLINE: Part 1: UNDERSTANDING FAMILY BUSINESS PLANNING Chapter 1: The Nature, Importance, and Uniqueness of Family Business. Chapter 2: Great Families in Business: Building Trust and Commitment. Part 2: PLANNING FOR THE FAMILY Chapter 3: Ownership of an Enterprise Built to Last. Chapter 4: Succession: Continuing Entrepreneurship and the Next Generation. Chapter 5: Succession and the Transfer of Power. Chapter 6: Creating the Strategy. Part 3: PLANNING FOR THE BUSINESS Chapter 7: Planning the Estate. Chapter 8: Financial Considerations and Valuation of the Family Business. Chapter 9: Key Non-Family Management: The Visible Commitment to Managing the Family Business Professionally. Part 4: INTEGRATING FAMILY AND BUSINESS PLANS Chapter 10: Family Business Governance: Advisory Boards and Boards of Directors.
CLASS PARTICIPATION: By providing an environment of mutuality, I hope we can have an enjoyable learning experience together. I believe all students and family members have a wealth of resources to add to the class, and intend to draw on this resource for the benefit of the whole. It is of vital importance to your own as well as your classmates learning that you ask questions reveal facts, and challenge presented material. Each student should come prepared to discuss and contribute ideas on the readings or case included in that day's topics. I hope that each of you will be eager to enter into the discussion. Let’s find out what chat synergy is all about, learn, grow and develop! EVALUATION: All exams will be non-cumulative. They will consist of True-False and Multiple Choice questions. Material not in your textbook that is covered in the lectures will be included in the exams. This may vary somewhat by exam. This includes, but is not limited to, information given by articles, films, cases, handouts, guest speakers and any material discussed during class lecture. ***NO MAKE-UP EXAMS WILL BE GIVEN WITHOUT A WRITTEN MEDICAL EXCUSE. Evaluation Approx. Percentage * Exam 1 (covers 5 chapters) 100 Points 18% * Exam 2 (covers 5 chapters) 100 Points 18% * Exercises A, B, C, D worksheets 100 Points (25 points each x 4 worksheets) 18% * Exercise A, B, C, D Reflection Papers 80 Points (20 points each x 4 papers) 15% * Team Presentation, Outline, and Final Paper and Bibliography 80 Points 15% * Attendance and Participation in Discussions, Class Activities, and 89 Points 16% Case Preparation (Based on 28 classes) Total Points = 549 100% GRADING: All points will be added at the end of the quarter to get your total point score. This is the fairest way for students because it gives you the advantage of being able to “bump-up” your total points from one test to the next instead of getting a blanket grade point for each exam that you don’t have the chance to improve. After all points are totaled, the total points are ranked from the highest point total to the lowest point total. Two columns are made. One is a percentage column and the other is a curve column. The percentage columns are figured as: Your total points Total points possible
The following percentages are used to help you determine your approximate class standing at any time: A+ | 98% - 100% | 538.02 - 549 | C+ | 78% - 79% | 428.22 – 439.19 | A | 93% - 97% | 510.57 – 538.01 | C | 73% - 77% | 400.77 – 428.21 | A- | 90% - 92% | 494.1 – 510.56 | C- | 70% - 72% | 384.3 – 400.76 | B+ | 88% - 89% | 483.12 – 494.09 | D+ | 68% - 69% | 373.32 – 384.29 | B | 83% - 87% | 455.67 – 483.11 | D | 60% - 67% | 329.4 – 373.31 | B- | 80% - 82% | 439.2 – 455.66 | F | Less than 60% | < 329.4 | The curve column takes the highest point total in the class as a 4.0 and works down from there. These percentage and curve columns are then compared to arrive at the fairest grades for the class. Each type of grading has its advantages, and this way we use the best of both systems. During the quarter it is best to figure how you are doing based on the percentage column, knowing that you will do at least that well, but probably better when both systems are figured at the end of the quarter. Please feel free to see me concerning your grade at any time.
PRESENTATION SUMMARIES AND REFLECTIONS:
The purpose of this assignment is to provide you with an opportunity to apply concepts from class to real world situations. This paper must include a thorough summary of all points of the presentation followed by your personal reflections on your family business and how the presentation's family business has similarities, differences, advantages, and disadvantages to your own.
EVALUATION CRITERIA FOR EXERCISES A, B, C, D: 1. Concise information presented in an understandable and persuasive style (5 points). 2. Thoroughness (includes information from readings and class activities) (5 points). 3. Well thought out ideas to reflect your personal understanding of your family business situation (5 points). 4. Demonstrated participation and involvement of other family members, employees, or professional consultants that work with your family business (5 points). 5. Inclusion of concepts or ideas from the exercise worksheet (5 points). WRITTEN ASSIGNMENTS: Papers should be typed, double-spaced on standard 8 1/2 x 11 white paper. Written assignments should not exceed the guidelines set. Please leave at least 1" margins on the top, bottom and sides so there will be room for comments. Always remember to add a cover page, header, or footer to all of your papers that contain your name, the class title and number (ENT/BUS 337) Family Business), and the date the paper is due. Also include a floppy disk with each hard copy.
DESCRIPTION OF ASSIGNMENTS: The exercise worksheets are a guideline and data gathering tools for exploration and thinking about your family and business situation. Each student/family team should review the exercise worksheet and develop a three to five page, double-spaced response to the summary questions. Discuss the information with your family and identify the key influences that will impact on your business and family decisions. Your paper for each exercise should identify and analyze concerns, opportunities and challenges the family business presents to you and your career.
Exercise A: Family Business History and Culture This exercise is the first step in developing an understanding of your family business. Knowing the family business history, values and culture is an important foundation for analyzing the situation from both a family and a business perspective. The goal of this project is to understand the influences and experiences that shape your family's personal and business relationships and values. At the end of the exercise, write a 2-3 page reflective paper on the lessons learned from the exercise and the topics you and your family would like to pursue further. Attach this reflective paper to the exercise itself and turn both in during class on the due date.
Exercise B: Family Participation The family needs to make a transition from parent-child relationships to a family of adults. This transition requires the family to examine its core values, communications patterns and structure. This exercise helps the adult family develop new behaviors and ideas for decision making, problem solving and leadership. The family participation plan clarifies the family's business and personal relationships. At the end of the exercise, write a 2-3 page reflective paper on the lessons learned from the exercise and the topics you and your family would like to pursue further. Attach this reflective paper to the exercise itself and turn both in during class on the due date.
Exercise C: Management Development
The management development plan represents an opportunity to negotiate your potential entry and participation into the family business. This exercise identifies several important topics related to family business participation. The outline for Exercise C is a guide, but there may be other issues specific to your family or a business that should be considered. The nature of this assignment requires interaction between the student and senior management of the family firm. The assignment should demonstrate input from the current family management and represent a discussion of your possible participation in the firm. At the end of the exercise, write a 2-3 page reflective paper on the lessons learned from the exercise and the topics you and your family would like to pursue further. Attach this reflective paper to the exercise itself and turn both in during class on the due date.
Exercise D: Strategic Business Plan
The strategic plan represents the family, owners and management's attempt to create a shared future vision. The plan articulates the tactics and actions that will help the firm successfully compete in the marketplace. This exercise brings together the family and business systems and explores missions, goals, assessing the environment and the firm, and developing action plans. This exercise demonstrates the interdependence and interrelationships of family business plans. At the end of the exercise, write a 2-3 page reflective paper on the lessons learned from the exercise and the topics you and your family would like to pursue further. Attach this reflective paper to the exercise itself and turn both in during class on the due date.
Final Summary Reflective Paper (5-8 pages) This final paper and its attendant presentation are designed to help you integrate the blocks of knowledge from the course with a systemic view of your family business. Students will learn new information and develop personal insights by completing the exercises throughout the course. The paper should conclude with a summary of your SWOT (strengths, weaknesses, opportunities, and threats) analysis of your business; the direction you believe it should take in the next five years; what it needs to successfully reach its goals for that period; and your own decisions; actions (even if preliminary) related to your family business career; and what you liked best about this class and what you might do to improve it for others. Each student or team will have one hour to present the highlights of their paper to the class in whatever way they deem most effective (lecture, handouts, overheads, etc.). However, the presentation must include a PowerPoint presentation with the other mean(s) of presentation.
The final grade for this course will reflect the quality of your learning experience based on your application of the course concepts to your family situation. Each family exercise will be discussed in class and your work returned with instructor comments so you can make revisions and have that work product to assist you with your final summary paper. Papers that do NOT reflect A or B work or miss critical concepts will be returned for rewriting. Your reflective papers should represent a portion of the "portfolio" of your family.
FINAL PAPER AND PRESENTATION:
Grading: You will be graded on:
I. Written Content: A. Accurate Information B. Adequate Coverage - minimum of 5 academic journal references and 5 non-academic, popular references (some of these can be from class handouts) C. Incorporation of Text Concepts D. Formation of Concrete Solutions E. New Information Other than Text – tell us what your references say F. Paper Outline and Bibliography – APA, major headings and sub-headings II. Presentation: A. Clear and Concise Presentation B. Visual Presentation – PowerPoint slides, handouts, diagrams, figures, etc. done by each group member C. Coordination of Presentation
III. Group or Individual Presentation: A. A Logical Flow
Evaluation:
Outline and Paper 25 Points Presentation 25 Points Group or Individual Performance 15 Points Peer Evaluation (Average) 15 Points Total 80 Points
Schedule for Presentations:
* Wed November 17 * Mon November 22 * Mon November 29 * Wed December 1 * Mon December 6
UNIVERSITY POLICIES AND RESOURCES Confidentially: This course stimulates the discussion of sensitive and personal topics about individual class members and their family businesses. An important aspect of the learning process is the discussion of this private information. I define any information or material shared as a part of this class as confidential, whether in the classroom or as a part of learning activity. This confidential material may not be discussed outside the classroom, except as part of a learning activity, and then only with class members or the instructor. Each participant agrees to this confidentiality agreement and accepts that any violation of this confidentiality agreement will result in no grade or credit for the course. Academic Integrity Policy:
Students are expected to know and abide by the Honor Code in all matters pertaining to this course. Violations of this code will be pursued in accordance with the code. The link to UNCG’s academic integrity policy is: http://academicintegrity.uncg.edu/complete/ All of your assignments should be submitted on time, word-processed, spell-checked, checked for grammatical errors, and conform to APA Handbook guidelines. All work submitted should be thoughtful, reflective of your learning. Faculty and Student Guidelines
Please familiarize yourself with the Bryan School’s Faculty and Student Guidelines. These guidelines establish principles and expectations for the administration, faculty, staff, and students of the Bryan School of Business and Economics. The link for this document is: http://www.uncg.edu/bae/faculty_student_guidelines.pdf Attendance Policy: Participation points are given to each class for attendance. To earn these points, you must be in attendance when role is taken and stay for the entire class period. Religious Observance: 1. The University allows for a limited number of excused absences each academic year for religious observances required by the faith of the student. 2. Students must notify instructors of absences in advance of the date of the religious observance. Instructors have authority to specify, via written notice to students, the amount of lead time required and may require that the nature of the religious observance be specified and the student's participation be confirmed in writing by an official of the religious organization. 3. When appropriate notice is provided by a student, the student must be granted at least two excused absences under this policy and must be allowed to make up or waive work and tests missed due to these particular absences. With regard to any test or other assignment that a student would miss due to notice of a required religious observance, faculty members may require the student to complete the test or assignment in advance of the originally scheduled date of the test or assignment. Beyond the minimum terms and limits of this policy, instructors maintain authority to establish and enforce the attendance policy for the courses they are teaching. 4. The requirement for students to make such requests for excused absences applies only to days when the University is holding class. Americans with Disabilities Act UNCG seeks to comply fully with the Americans with Disabilities Act (ADA). Students requesting accommodations based on disability must be registered with the Office of Disability Services (ODS) located at 208 Elliott University Center, (336) 334-5440 V/TTY. Students with a disability must provide a letter from the ODS stating the appropriate accommodations for this course as soon as possible. If you have a documented disability and wish to discuss how these academic accommodations will be implemented in the course, please contact me.
ASK FOR HELP! This class explores the interaction of your family and work systems and addresses important and possibly emotional topics. If you or a family member needs help in addressing personal or family issues raised by the course you should contact me. I have training in family business and will offer you support in exploring your situation and in securing qualified professional consultation. *Please consider using these resources for your course project. *Resource for Writing:
The Writing Center at UNCG
3211 HHRA Building
334-3125 (Call for appointment OR drop-in.)
Sunday: 5–8 p.m.
Monday–Thursday: 9 a.m.–8 p.m.
Friday: 9 a.m.–3 p.m.
The purpose of the Writing Center is to enhance the confidence and competence of student writers by providing free, individual assistance at any stage of any writing project. Staff consultants are experienced writers and alert readers, prepared to offer feedback and suggestions on drafts of papers, help students find answers to their questions about writing, and provide one-on-one instruction as needed.
*Resources for Research – The UNCG Library
Your courses are online, and so is your library, and me, Steve Cramer [http://uncg.libguides.com/cramer], your Business Librarian. The University Libraries have developed a suite of services designed specifically to support online education online tutorials (http://library.uncg.edu/research/tutorials
As we roll out new services or promote existing ones, we will create ads in Blackboard. Could you look out for these and point them out to your students? (For example, one might cover how we will mail print library books to distance ed students who live beyond Greensboro.)
The library’s Distance Education page, http://library.uncg.edu/info/distance_education/,
The new Bryan School subject portals (still works in progress) link to the library’s many research databases and datasets: * Accounting & Finance: http://uncg.libguides.com/acc * Business Administration: http://uncg.libguides.com/bus * Economics: http://uncg.libguides.com/eco * Entrepreneurship: http://uncg.libguides.com/ent * ISOM: http://uncg.libguides.com/ism * MBA: http://uncg.libguides.com/mba
Journal Finder (http://journalfinder.wtcox.com/uncg/) provides access to our 48,000 online journals and magazines (including the Wall Street Journal and Harvard Business Review).
DATE | READINGS & TOPICS | ASSIGNMENTS DUE | Mon Aug 23 | * INTRODUCTION/SYLLABUS * Article 1(BB) "You Can't Fire Me, I'm Your Father: What Every Family Business Should Know," Koenig | | Wed Aug 25 Drop/Add Deadline is Aug 27 | * CH 1(Poza) - The Nature, Importance, and Uniqueness of Family Business. * Article 2(BB), "Younger Generation Poised to Take The Helm," Marino * VIDEO CASE INTRODUCTION | | Mon Aug 30 | * Article 3(BB), "Succession Can Be Trickiest Part of A Family Business…" Brown & "Succession in Family Business…," Stavrou * Case # 1(Poza) “The Binghams and the Louisville Courier…” * REVIEW GOUP EXERCISE A (BB) | Groups FormedRead Group Exercise A (BB) | Wed Sep 1 | * CH 2 (Poza) - Great Families in Business: Building Trust and Commitment * Case #2(Poza) “SFB – Power Play at the Inn” * Case #4(Poza) “SFB – She’ll Always Be My Little Sister” | | Mon Sep 6 | LABOR DAY HOLIDAY (No Class) | | Wed Sep 8 | * SPEAKER: JOSEPH R. BUDD, CEO, 2nd Generation Owner of The Budd Group, http://www.buddgroup.com/message.cfm | Group Exercise A Worksheet & Paper Due (45 POINTS) | Mon Sep 13 | * SPEAKERS: JACOB and CAL CUNNINGHAM, 3rd Generation Owners – Cunningham Brick Co. * CH 3(Poza) – Ownership of an Enterprise Built to Last. | | Wed Sep 15 | * Article 4(BB), “Copreneurs and Dual-Career Couples: Are They Different?” Marshack * Case #5(Poza) “The Vega Food Company” * Case #7(Poza) “SFB – The Ambivalent CEO…” * REVIEW GROUP EXERCISE B (BB) | Read Group Exercise B (BB) | Mon Sep 20 | * CH 4(Poza) – Succession: Continuing Entrepreneurship and the Next Generation. * Article 5(BB), “Daughters Find That Fathers Still Resist Passing the Family Business On To Them,” Marsh * Case #10(Poza) “Fasteners for Retail (Part A)” | | Wed Sep 22 | * SPEAKER: ROBERT CALDWELL, JR. MA, Founder of Family Firm Resources LLC, http://www.familyfirmresources.com/index.html | | Calendar Mon Sep 27 | * CH 5(Poza) – Succession and the Transfer of Power. * Case #8(Poza) “SFB – Borrowing to Grow at Andrews Co.” | SUMMARY OF FINAL PRESENTATION & PAPER DUE | Wed Sep 29 | * Article 6(BB), “Spousal Leadership and Continuity in the Family Firm,” Poza & Messer * Case #3(Poza) “The Ferre Media Group (Part A)” | Group Exercise B Worksheet & Paper Due (45 POINTS) | Mon Oct 4 | REVIEW FOR MIDTERM EXAM (Poza Chapters 1 – 5) | | Wed Oct 6 | | MIDTERM EXAM (100 points) | Mon Oct 11 | FALL BREAK (No Class) | | Wed Oct 13 Last Day to Drop w/no Penalty | * CH 6(Poza) – Creating the Strategy * Article 7(BB), “Developing Effective Ownership Case, “Too Closely Knit?” Fryer * REVIEW GROUP EXERCISE C (BB) | Read Group Exercise C (BB) | Mon Oct 18 | * Case #6(Poza) “Sigma Motion, Inc.” * Case #9(Poza) “SFB – Adams Funeral Home” | | Wed Oct 20 | * CH 7(Poza) – Planning the Estate.
* Case #15(Poza) “SFB – The Son-In-Law” * Case #16(Poza) “SFB – The New MBA” | | Mon Oct 25 | * Article 8(BB) “Structuring the Financing of Family Businesses,” Susbauer & Johnson * Case #17(Poza) “SFB – Real Estate Development Partners” | Group Exercise C Worksheet & Paper Due (45 POINTS) | Wed Oct 27 | * SPEAKER: PAUL HATTENHAUER JD CPA, Estate Planning Attorney, http://www.ceclaw.com/partners/paul-hattenhauer * CH 8(Poza) - Financial Considerations and Valuation of the Family Business |
| Mon Nov 1 | * Article 9(BB), "The Power Vacuum & The Successors," Danco * Article 10(BB), "Succession Planning in the US and the UK Family Owned Firms", Furio & Desai * Case #13(Poza) “Private Business Valuation Report” * REVIEW GROUP EXERCISE D(BB) | Read Group Exercise D (BB) |
Wed Nov 3 | * CH 9(Poza) - Key Non-Family Management: The Visible Commitment to Managing the Family Business Professionally * Case #11(Poza) “Ferre Media Group (Part B)” * Case #18(Poza) “SFB – Glassking Distributor Co.” * SPEAKER TBD | | Mon Nov 8 | * Catch up Day & Group Work Day | Group FINAL PRESENTATION & PAPER Update Due | Wed Nov 10 | * CH 10 (Poza) - Family Business Governance: Advisory Boards and Boards of Directors * Case #12(Poza) “The Cousins Tournament” * Case #19 (Poza) “New Way Distributing” | | Mon Nov 15 | * SPEAKER: DR. STAN MANDEL, CPA PhD, Wake Forest University – Family Business Center, http://business.wfu.edu/apps/facprofiles.cfm?id=stan.mandel | Group Exercise D Worksheet & Paper Due (45 POINTS) | Wed Nov 17 | **ALL GROUP PAPERS DUE NOW (40 POINTS)Presentations as scheduled (40 POINTS) | **ALL GROUP PAPERS DUE (40 Points)FINAL PRESENTATIONS (40 points) | Mon Nov 22 | | FINAL PRESENTATIONS (40 points) | Wed Nov 24 | THANKSGIVING BREAK (No Class) | | Mon Nov 29 | | FINAL PRESENTATIONS (40 points) | Wed Dec 1 | | FINAL PRESENTATIONS (40 points) | Mon Dec 6 | REVIEW FOR FINAL EXAM (Poza Chapters 6 – 10) | FINAL PRESENTATIONS (40 points) | TBD | | FINAL EXAM (100 Points) |
*Note – The readings (text chapters, articles, and cases) for each class period are designed to be 25-30 pages. Class preparation requires the reading of these materials for proper group discussions and class participation points. **Note – All reading materials can be found on the (BB) Blackboard site. Students should download and print out all materials before class and bring to class. Laptop Computers may not be allowed for some or all classes at the discretion of the instructor. PowerPoint slides for note taking will be posted on the BB also for the Poza text which can be printed before class.