This document compares and contrasts a family business entity with a professional business entity. A family business has more centralized decision-making, focuses on specific products, and has clear ownership. It is tightly run and controlled. A professional business has more decentralized decision-making, focuses on turnover rather than specific products, and is loosely held without clear ownership. It lacks the tight control and sense of ownership of a family business. The document discusses the board structures, philosophies, and information sharing practices of family-owned Godrej and professionally-managed Larsen & Toubro to illustrate these differences.

1. Family v/s Professional Business
Entity
To. Prof, Ms. J Bhakay
by
Prashant Mahamulkar
MMM – 2 year (I sem)2011-14
Roll no. 19

2. VISION
• ‘Godrej in every home and work place’.

3. VISION
• “L & T shall be a professionally- managed Indian
multinational, committed to total customer
satisfaction & enhancing shareholder value. L&T-ites
shall be an innovative, entrepreneurial & empowered
team constantly creating value & attaining global
benchmarks. L&T shall foster a culture of
caring, trust & continuous learning while meeting
expectations of employees, stakeholders & society.”

4. PHILOSOPHY
• To achieve business excellence by enhancing the long
term welfare of all its stakeholder.
• They believes that corporate governance is about
creating outperforming organisations

5. PHILOSOPHY
• Revolves around values based on
a. Transparency
b. integrity
c. Professionalism
d. Accountability
• Adopts innovative approaches for leveraging resources
• Converting opportunities into achievements through
proper empowerment & motivation
• Fostering healthy growth & development of human
resources to take the company forward

6. BOARD STRUCTURE
Chairman
MD
2 Whole-time E D
10 Independent
Directors
Mr.Adi Godrej
Mr. Nadir Godrej
Ms.Tanya Dubash
Mr. Mathew Eipe
10 Non E D
07 Ind D

7. BOARD STRUCTURE
Chairman & M
D
CEO & MD
6 Exe Dir
08 Non-Ex
Directors
Mr.A M Naik
Mr. K
Venkataraman
Mr.V K Magapu
Mr. M V Kotwal
Mr. S N Subrahmanyan
Mr. R Shankar Raman
Mr. Shailendra Roy
08 Non Exe
Directors

8. INFORMATION
• Information supplied to the board
• The board of the company is presented with all
information whenever applicable. These are
submitted either as part of the agenda papers well in
advance of the board meeting or are tabled in the
course of the board meeting

9. INFORMATION
• The board of directors has complete access to the
information within the company
• Post – meeting internal communication system
• The important decision taken at the board /
committee meetings are communicated to the
concerned departments / independent companies

10. PRODUCT

11. PRODUCT

12. CONCLUSION
• More centralization in
decision making
• Product centered
business
• Ownership is there
• Tightly runned
• Decentralization of
decision making
• Turnover centred
business not product
specific
• Loosely held
• Lacks ownership

13. Thank you 