Zayed-Alhussaini Group is a family business, and we have been asked to find the reasons behind Group General Manager post. This report will discuss about the family, and family business issues in front of Ahmed. It will also explain about the organization culture and financial performance of the group. In the later section of this repot, recommendations will discuss.
Family businesses in the Arab Gulf
Family business is handled by the multiple generation of a family. In Gulf region, family businesses are predominant, because of three reasons behind it, which are following:
Family Tradition: In Gulf regions, traditions are hereditary, which is beneficial for family business.
Family Politics: Oil industries are most popular sector in the Gulf regions. Every father wants to transfer their family to his children.
Religion: Family member are having same religion, so it is also a big reason for joining the same business. Gulf regions are fully dominant religion area.
There are so many examples in Gulf Countries, which are having family business from last five generations. Few examples are here:
- In Saudi Arabia, Al-Rajhi is huge family business.
- In the UAE, Al-Futtaim is a big organization from 1930.
- In Qatar, Al-Muftah group is oldest family business
- In Kuwait, Al-Shaya group is a commercial organization and it is a family business
The family is a group of people, which are having a bond of blood, and legal ties. It is a part of society. Few members are combining with their responsibility. They follow traditions according to their society. They are bounded with their work and responsibilities for their family (Achoui, 2009).
There so many family issues facing by the people for their family business. Few challenges are:
Family Issues: business is having so many operations, and it requires physical, emotional, and financial support. Therefore, if someone is not physically fit then it may be an issue for him or her. Few family members are having emotional issues, which may be an issue for family business (Davis, Pitts, & Cormier, 2000).
Informal Culture: Few businesses are having informal culture and structure, because of that few family members are not ready to join their business.
Basic skills: it is a big issue for not joining family business because of not fit for business due to lack of skills.
Non-family employees: it is a reason for not joining the family business, because they are not working with efforts.
Source of income: it is a huge challenge for family member to having a growth from their business.
Lack of thinking: not all the family members are having same views for business. Therefore, it will be an issue for not joining the family businesses.
Misunderstanding about the business: it also an issue, because everyone is not understand about the business. It is having so many factors for running business in a proper way.
Politics in family business: it is an issue because everyone wants to acquire top position of their family business.
Plan for future: all business re having plans for future and strategies for making their business successful. In case of family business, there is no exit plan.
Leadership challenges for zayed al hussaini group
Family-corporations are one of a kind from other organizations because of their complexity and uncertain roles. for example, family-members’ contention concerning positions, conflicts in thoughts, enterprise choices are continually taken very in my view; and in other organization this types of issues never occur. There are numerous issues in the Gulf countries for joining family businesses. A better entrepreneur is always used their ideas for innovative works in their business. Not everyone is a good entrepreneur. It is a main issue for not joining the family business. All above mention reasons are also eligible for the not joining family businesses (Mathew, 2010).
Ahmad is having so many opportunities for managing their business. He was declared as Group general manager and it was a huge position in that group. There are so many hurdles in front of Ahmed, still he thought about the plans and strategies for increasing their business in future. Ahmad is having meeting with board member and he have to explain about the degradation of business. He will have to answer all group members about different things with solid evidences. Ahmad is having a new post in the Al Husseini group by the chairperson. His mother was holding that post before it (PWC, 2016).
Moreover, struggle among relatives or any circle of relatives-contributors can motive internal issues within the agency. Conflicts in own family-groups occur while bad overall performance is noticed or while proprietors recognize that their dreams are not executed. Additionally, conflagrations while situations are ambiguous or no_longer quite understood. As an example, conflict can smash any a success circle of relatives-commercial enterprise
In connection with Ahmed, he is going to face a project of creating his circle of relatives members informed approximately setting apart work from private relationships, as each choice has to be taken professionally because it is for the interest of the agency. Furthermore, he will face a venture of placing guidelines in the enterprise in order to keep away from conflicts concerning commercial enterprise choice
Issues for continuing family businesses in the Gulf Regions
In Gulf Regions, all businesses only run for family benefits. There are so many responsibilities on the leaders, such as financial results, commitment, and handling different things related to family. In case of Arab Gulf business, leaders are mainly faces two things in their business, which are demand of the family, and business requirements.
Leaders are having different mindsets for their future based on their skills. Leaders are also facing so many problems if they join their family businesses. Every person is having different thoughts and skills. Basis on skills and leadership quality they can survive in their business as well as grow their business. There is a generation gap between the family businesses. Most of the people want their personal business so they do not want to join their family businesses. Although, they know that their family business is growing in international market (Palliam, Cader, & Chiemeke, 2011). It is a very difficult stage to join their family business. Few people having their own goal based on their educational and technical skills. There are so many reasons behind joining family businesses.
In family businesses, everyone always was having a pressure to stay in their business. It is a critical condition for a person for joining family issues (Poza, 2013). Ahmed is facing same problem that it is a difficult situation. He was promoted as Group General Manager but he will have to answer about losses in their business. Ahmad has to manage all the departments using their skills, such as leadership, time management and teamwork (Reiche, 2010).
Furthermore, few family members are not agreeing with this decision. It is also a reason for not joining family businesses. There are so many issues but skilled person is having opportunities according to their qualities and knowledge about the businesses. It is so difficult situation in front of Ahmed that he will answer about the financial performance of the company in last six months. Family business always requires unity for their success in business perspectives. There are five divisions of Al Hussaini Group, which are retails, industrial, franchises, financial services, and real estate. They all are having different business lines (Welsh & Raven, 2006).
A good leader is always facing these types of problems in the business of family. Ahmed is having a clear vision for their working and Growth and successes. Positive leadership is useful for handling these types of conditions in which lot of stressful environment in the front of leader. Ahmed should have this quality, manage all the family members, and grow their businesses at worldwide level.
Not all family members are agreeing but few of them are with Ahmed for helping him in their strategies. A Good leader is always managing people for their work and getting success in their field. Family members are supportive in some cases, as his mother is Group general manager before him. He will have these opportunities to understand few things about the financial area and manage all the disputes in the group.
Furthermore, uncertainty avoidance can affect leaders to hesitate in making changes within circle of relatives-companies. For example, family-members are afraid of trade and controlling the destiny due to unknown state of affairs, which are come back. For that reason, the chief will locate difficulties to create urgency as own family-contributors do not need alternate. therefore, change will stay hard considering the fact that own family participants are terrified of it, and they do not breakthrough to take an possibility to control the destiny.
Achoui, M. M. (2009). Human resource development in Gulf countries: an analysis of the trends and challenges facing Saudi Arabia. Human Resource Development International,, 12(1), 35-46.
Davis, J., Pitts, E., & Cormier, K. (2000). Challenges facing family companies in the Gulf region. Family Business Review, 13(3), 217-237.
Mathew, V. (2010). Women entrepreneurship in Middle East: Understanding barriers and use of ICT for entrepreneurship development. International Entrepreneurship and Management Journal, 6(2), 163-181.
Palliam, R., Cader, H. A., & Chiemeke, C. (2011). Succession issues among family entrepreneurs in countries of the gulf. International Journal of Business Administration, 2(2), 25.
Poza, E. (2013). Family business. New York: Cengage Learning.
PWC. (2016, December 12). The Middle East family business. Retrieved from PWC: https://www.pwc.com/m1/en/publications/family-business-survey/the-middle-east-family-business.html
Reiche, D. (2010). Renewable energy policies in the Gulf countries: A case study of the carbon-neutral “Masdar City” in Abu Dhabi. Energy Policy, 38(1), 378-382.
Welsh, D. H., & Raven, P. (2006). Family business in the Middle East: An eexploratory study of retail management in Kuwait and Lebanon. Family Business Review, 19(1), 29-48.