Case Study on Family Owned Business

Family Owned Business Case Study:

Family owned business is the type of a firm which is owned by the members of the single family and all the decisions concerning the production and development of the company are made by them. It is very easy to recognize a family owned business, because all the highest positions and whole control over the processes of the company’s work are performed by the members of the single family. Moreover, the management is fulfilled by the members of a family who belong to different generations, so that they learn about the manner and approach towards management borrowing the experience form their parents and grandparents. A family business is supposed to be the oldest form of business, because centuries ago people who decided to start their own business, like trade, craft (carpenter, blacksmith, cooper, etc) opened at home (the family lived in one room and the other room was devoted to business) and involved all the members of the family into the work. Obviously, at the very beginning families could not afford employing other people to work on their business and the members of the family (grandparents, children) had to work for the family’s best.

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With the run of time the process of industrialization reduced the number of family owned business but still even today it is possible to find the bright examples of this type of firms. The majority of the prosperous corporations belong to the family owned business though the influence of the family in decision making reduces constantly. Furthermore, the majority of the small firms, like shops, cafes, restaurants belong to a family and can be called a family business.

Family owned business is the firm which is owned and managed by the several generations of the members of the single family. It is possible to observe the problem about family owned business on the example of the definite company suggested by the professor or chosen by the student. One should observe the structure of the company, analyze its staff, define the role of a family in the business administration and think about the case and effect of the problem suggested for the analysis. After that the student should solve the case professionally taking into account the facts collected during the research.

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