This document summarizes information about a medium-sized plastic manufacturing business, models for analyzing family businesses, and recommendations. It provides details on the business, applies several family business analysis models, shares results from an online questionnaire, and gives proposals to improve leadership, strategy, innovation, institutionalization, continuity, and next generation development. Key recommendations include forming a family charter and board of directors to ensure continued success across generations.
1. 1. Family business information
Name : Plastic material
Sector: industrial
Size :medium
Description:
A medium-sized factoryfor the productionof plastic materials, characterized
by opportunities for permanent demand for the plastic industries; increase
the chance of making a profit; This project is characterized by easy access
to raw materials and easy access to the required labor and training to work,
and the factory is working to provide a high quality product and work on
developing future plans for development and progress in the field. The
factory owns the best equipment, tools and modern devices for the
manufacture of high quality plastic containers and bags to meetthe needs of
users. The factory owns a large group of trained human cadres at a level of
skill and accuracy. The factory abides by all health and environmental
standards imposed by the authorities. The factory works to reduce waste,
whether harmful or Environmentally friendly.
2. Genogram,Three-circle model,Gersick’s developmentmodel
Three-circle model:
we need to identify its members and the roles they play in the system.The
system is made up of three components which intersect to form seven
zones or sectors,where we can place each of the differentplayers. The
system, representedby the Three-Circle Model (Figure 1), allows us to
identify:
The business-family-ownership system
1. Family members who are not involved in the business.
2. Family members who work in the business but are not owners.
3. Nonfamily employees who are shareholders.
4. Family members who are owners, management or employees.
2. Gersick’s development model
The family dimension, it all starts with a young family business, then new
generations enter the company, until such time as everyoneworks
together. Eventually, the business reaches the point where it is time to
transfer responsibility, as the founding generation hands over control to
the new generations. The transformation of the ownership dimension
begins with the controlling owner, then the patriarchalpartnership formed
by the members of the second generation, and over time, it will be the turn
of the grandchildren. The dimensions and their evolution are represented
in the Gersick’s developmentmodel.
family
business
ownership
2
1
3
20
3. Genogram
this evolution frequently occurs simultaneously in each of the three
dimensions, the configuration of each of the areas of the business-family-
ownership system mustbe taken into consideration,as family business roles
can change over time.
Another key tool that helps us to understand the complexity of the family
business is the genogram. The genogram is not a business organizational
chart or the family’s genealogical tree. It represents the history of the
entrepreneurial family, its relationships and the situation of each family
member in relation to the company and to ownership.
The following is a simple example of a genogram (men are in the squares
and women in the circles):
Mohammad
63
Ali
30
Legal Affairs
Ahmed
23
Salim
33
financial affairs
Safa
36
Market
ing
Reem
27
Said
3
Sara
6
4. 3. StructuralModelAnalysis :
Measuring the structural risk of a family business,family complexity,
greater business complexity, and less structural developmentequals
structural risk.
This means that if the level of family complexityis low, plus a low level of
business complexityminus a large structural development,then the
structural risk will be less, i.e. the risk of disappearance of the company In
the future.
The following graph displays the components of the structure:
The modelis the professionalfamily, small simple family, in a large or
complexbusiness,which
The family is professionallymanaged. The mental modelis that the family
runs with a high level of accountability; In the company
there are management practices,strategy, plan, budget,managers
5. Type of company:captain
complexitylevel: simple family, in other words few family members in the
business,usually first generation who pass it on to their children.
Mental model:someone has to be the family and business leaders.
The Miller & Miller Model:
Predecessor
There are two fundamental actors in succession: the predecessor (founder, etc.) and the
successor(s).
Business context
Business context is important for a successful succession. This basically refers to what we analyzed
in Module 2 regarding the professionalization of the business and the existence of, for example, a
Board of Directors and other institutionalizing components.
Family context
Family context is another significant component for a successful succession. In other words, the
family dynamic and the quality of the relationships between the family members, which should be
harmonious, open and with spaces for conflict resolution.
Process
Establishes the process or steps for implementing succession, i.e., knowing how to make a
succession plan. The plan must be based on common rules and the family business vision and
should include successor support and development: Then, the selection process and finally the
installation process and succession transition.
The Successor
We will start by discussing the successor variable. There are four types of successors (Sharma, P.,
Irving, G.; 2005), according to the type of commitment they have with the family business.
6. 4.Result of the online questionnaire (results attached in pdf)
IFEM Community.pdf
7. 5. Proposalfor improvement(recommendations)
Recommendations forthe next generation developmentplan.
First, family entrepreneurs and practitioners must be able to discern the
stage of developmentof successors from infancy to successorintegration
into the business, in order to identify appropriate strategies or best
practices for knowledge sharing and integration.
Second,the strategies must induce the type of learning to develop an
entrepreneurial leader: assimilating, interacting,
Reflect,among other things.
Third, to measure the impact of the results of the strategies by comparing
them with proposals in this work for each stage
and type of learning.
fourth, provoke a conscious use of knowledge within the family by serving
as a major resource or inviting you to continue learning about the family
business.
recommendationforforming the family board or the board of directors.
The company’s board of directors should prepare a family charter; To
achieve the continued success,growth and maximization of the company,
keep going.
8. Checklist:
Checklist Yes No
1. Includes Genogram, 3-circle Model, Gersick’s Development Model Yes
2. Identifies structural risk, applying the formula and determining the type of company
(Captain, emperor, etc.)
Yes
3. Contains the result of the online questionnaire “Snapshot of a Family business” in pdf
format.
Yes
4. Includes 1 recommendation for each of the 5 diagnostic variables: leadership, strategy,
innovation, institutionalization and continuity.
Yes
5. Includes the prediction of the family business model into which it will evolve, 2
recommendations for developing the next generation, and 1 recommendation for forming
the family board or the board of directors.
Yes