Fbm Tutorial
DIPLOMA IN BUSINESS STUDIES
Family Business Management
Tutorial 4
(for week beginning 13 May 2013)
Managing The Family Business I
Discussion Questions
1. Why is the understanding of family conflict important to family-owned businesses?
2. Emily’s family runs a lucrative F & B business selling beef noodles. She is about to take over the running of the empire when her father retires later this year. However, she is worried that family conflicts may erode their very successful business. Applying what you have learnt in your Family Business Management course, advise Emily on the following:
(a) Explain to Emily five possible sources of family conflicts that are associated with family-run companies.
(b) Discuss the approach that Emily’s family business must focus on when managing and resolving family conflicts? Propose three informal mechanisms that can be adopted.
Case Study A
Power Play at the Inn
(Ernesto J Poza and Mary S Daugherty, Family Business, 4th Edition, 2013, South-Western Cengage Learning, Pg 77.)
Fronting on the Pacific Ocean, the Inn at the Wharf boasts 410 guest rooms and suites, two dining rooms, a lobby bar, and the lively Gull’s Nest nightclub. The inn’s annual revenues are $15 million.
Robert May, 57, purchased and remodelled the inn in 1970. His wife Katherine, although not now active in the business, has assisted in decorating and menu design. They have three children: Jake, 35; Amy, 30; and Andy, 24.
Three years ago, Jake and his wife Elaine, wanting to settle down from their life as rock musicians and start a family, were welcomed back. Jake manages the Gull’s Nest. Elaine, a stabilising force for Jake, especially during the stress of on-the-road tours, is interested in using her art skills at the inn.
Business degree in hand, Amy took over office management 5 years ago, including computer operations, for the inn. She and her husband, who is not involved at the inn, have a son.
Family Business Management
Tutorial 4
(for week beginning 13 May 2013)
Managing The Family Business I
Discussion Questions
1. Why is the understanding of family conflict important to family-owned businesses?
2. Emily’s family runs a lucrative F & B business selling beef noodles. She is about to take over the running of the empire when her father retires later this year. However, she is worried that family conflicts may erode their very successful business. Applying what you have learnt in your Family Business Management course, advise Emily on the following:
(a) Explain to Emily five possible sources of family conflicts that are associated with family-run companies.
(b) Discuss the approach that Emily’s family business must focus on when managing and resolving family conflicts? Propose three informal mechanisms that can be adopted.
Case Study A
Power Play at the Inn
(Ernesto J Poza and Mary S Daugherty, Family Business, 4th Edition, 2013, South-Western Cengage Learning, Pg 77.)
Fronting on the Pacific Ocean, the Inn at the Wharf boasts 410 guest rooms and suites, two dining rooms, a lobby bar, and the lively Gull’s Nest nightclub. The inn’s annual revenues are $15 million.
Robert May, 57, purchased and remodelled the inn in 1970. His wife Katherine, although not now active in the business, has assisted in decorating and menu design. They have three children: Jake, 35; Amy, 30; and Andy, 24.
Three years ago, Jake and his wife Elaine, wanting to settle down from their life as rock musicians and start a family, were welcomed back. Jake manages the Gull’s Nest. Elaine, a stabilising force for Jake, especially during the stress of on-the-road tours, is interested in using her art skills at the inn.
Business degree in hand, Amy took over office management 5 years ago, including computer operations, for the inn. She and her husband, who is not involved at the inn, have a son.