Question one.
We all live a life driven by customs and believes. What is clear from this case study is that, running a corporate business as a family is worth the embrace. A pragmatic view dawns on the existence of this firm for over four decades. The success and survival in the tough business scene is evidence of outstanding family solidarity and its importance in business endeavors. A major part of this business, is considerably headed by close relatives of the proprietor. Notably, purchasing and inventory control, and collections department are headed by the president’s oldest son and daughter-in-law respectively. These are key areas of any business and basic foundation is sought. Single handedly handling these units is a symbol enough that this family’s believes and practices are transformable into best practices in corporate world.
The stakeholders.
The company is a family run business whose foundation is based on strengths and vital achievements of a strongly knight family of stakeholders. Closeness of the family is not separable from endeavors and corporate success, as a careful lift of veil, lies the basis of a strong family. The oldest son of the president and the daughter-in-law are adequately in power, signifying the balance in family interests.
These people are directly interested in the financial success or failure of the company, and they are in a position to substantially influence policy formulation in this company.
Question two.
Barriers.
As a rule of thumb, success in the business scene is defined by the ease with which one deals with obstacles. A family run business is no special exception, it faces a bunch of barriers: family feuds- for example in this business conflict of interest may ascend from the fact that it is difficult to completely separate business and personal lives. The feuding can be due to personal interests of members, egocentric behaviors and rivalry that may spill in the business environment.
Nepotism is like a huge stumbling block as family feuds. The easiest way to alienate the people that work for family run business is embracing a culture based in nepotism. Non-family workers will be quick to lose motivation to work and this obviously hinders productivity.
Advantages.
The idea of building and running a family business is thrilling, if you asked anyone. As a matter of fact many experts would recommend building a family business because it ensures that the family stays together and high efficiency can be attained. This business having survived four decades is a perfect example why family businesses are preferable. Statistics shows that, most successful businesses in the world started as family businesses.
Limitations.
Mixed interests, poor performance and rivalry between family members are major limitations of family run businesses. In running a family business, there is a high risk that one’s family interests will cross corporate interests. Deducting family expenses from the business revenues is a common conflict family business owners should learn to deal with.
Poor performance in a family business may result from the fact that, some member may become too comfortable knowing they’re working with the people closest to them. The result of this attitude is poor performance, lack of proper budgeting and planning.
Question three.
Fishbone diagram.
Question four.
The company requires a quick fix and a change in the company’s operations comes in handy. To easily deal with the issue at hand, a close look at the possibilities is necessary. As possible solutions; training exercise for the staff or possible demotion and replacement of poorly performing personnel are quite convenient decision acts. Equally is closing off poorly performing divisions.
Training of staff will augur well, especially in this close knight family business. As this, the business will get to save reliable personnel with the skills and experience on which the business is basically found on.
Facilitation of training as new senior operations director will be a way to go. This will specifically act as a motivating factor, as the employees and members of the family will realize who much they are valued. This promises light at the end of the tunnel and a change of attitude towards operations in this firm. This will constitute fresh management skills, integrated and tailored to this business.
After an effective observation period, the success of this action is to be evaluated and further remedying actions taken.
