Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Pros and cons

No description
by

Attila Wieszt

on 8 March 2018

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Pros and cons

Strengths and weaknesses
Governance
What?
Governance system
OWNERSHIP
FAMILY
COMPANY
Typical strengths
1. fewer conflicts of interests
2. efficient leadership
3. resource advantages
4. long-term orientation
5. culture of commitment
6. identity and reputation
Typical strengths
1. fewer conflicts of interests
2. efficient leadership
3. resource advantages
4. long-term orientation
5. culture of commitment
6. identity and reputation
Typical weaknesses
1. dependence on family
2. agency costs (altruism)
3. succession challenges
4. resource constraints
5. declining entrepreneurial orientation
6. role ambuigity
- validation of owner's interests inside the organization
- main functions: own, control, lead
Why?
1. Problems with the traditional approach
2. Limited functionality of traditional mechanisms
Assumptions of the traditional approach
- families = blockholders
- primary motivation = financial
- individual member = part of a united group
- control/supervision
Traditional governance mechanisms
Internal mechanisms
- boards
- concentrated ownerships
- performance-based pay
External mechanisms
- product market competition
- managerial labor market competition
- threat of takeover
Family business
1st March, 2018
Board of directors
Shareholders Meeting
Family Council
Family Assemby
Family Office
Family Committee
Trust
Constitution/Protocol/Charter
Supervisory Board
Advisory Board
Questions to be clarified
Does the family want
to be a business-owner?
To what extent are the family and the members
able and competent
?
operative involvement (employement)
strategic involvement
succession
ownership shares
What are the rules for:
(Based on Carlock-Ward 2010)
Typical constellations
Founder owner
Sibling partnership
Cousin Consortium
Business Family
Full transcript