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Family businesses are mainly run by family members based on a significant structure of the business and manage principles of a constitutional process. The study sheds light on drafting a family constitution and integrating with external investments, visions, governance processes, criteria for leaderships, change management along with fundamental repositioning of different ethos and principles of family businesses. The study considers the example of R J Balson & Son for managing the oldest business in the town, Dorset, UK. The chosen family business is one of the finest high street butchers continually trading family business. It can also be added that the instances drawn by Balson & Son below can draft proper family business constitutions with principles.
The size of the chosen family business
Family businesses mainly focus on economic bonds easily for the family to navigate better results than emotional bonds. It can be added to the statement, the size of a family business is also dependent on the experiences that have been gained during the running process by the family itself (Ferrari, 2020).
The experience can share a blueprint for turnover and succession so that the issues related with hurt or egos cannot get valued. On the other hand Wasim et al. (2018), family businesses understand changes of succession to allow family members to thrive independent guidance for ownership changes. There are over a third of UK GDP is generated by over 5 million family businesses paying 196 billion taxes (ifb.org.uk, 2021). John Balson started the butcher shop in 1535 whereas it has been identified as a non for profit association exporting sausages. It has been situated in the Allington premises since 1880. On the other hand, the chosen R J Balson & Sons is having 25 generations of experiences enhancing their businesses for 500 years (rjbalson.co.uk , 2021).
Identifying circumstances where external sales or investments can be considered
There are considerations amongst owners to build reasons for selling the family business or allowing external investment.
United vision of the business
The vision of family businesses can be related with an economic bond that can guide family members to be connected with each other. Also, the vision statement can organize goals and objectives in a frame by the family businesses (Ahmed & Uddin, 2018). The chosen family business, R J Balson & Son is having visions for selling famous butchers to their customers maintaining proper hygiene and health safety. It can be added to the statement, the corporate vision of the organization is to serve customers the products sourced from local suppliers. Customers are also being encouraged according to their needs and establish their position along with the fame and the experience. Balson & Son also provides Somerset and West Dorset meat from freshly prepared seasonal tastes, top quality sausages and with the dry cured bacon and gammon. In addition to this, the service is to deal with the top quality poultry, meat and game by making them in a range of specialty foods along with differentiating for their old fashioned business models.
Analyzing interest of family members in running significant business
By analyzing the interests of family members in the family business, it can be said that there are different team roles to start a business with family members. Family businesses mainly focus on better results to differentiate emotional bonds and economic bonds easily within the family members. In this factor, the Belbin team role model can be identified for making the purpose validated. It can be added to the statement, deciding business to start with family members requires the adoption of Belbin team role models such as the planner, the monitor, evaluator, specialist, shaper, implementer, completer, coordinator, team workers, resource investigators.
It can be said that, the experts and specialists can maintain major designs in a family business. However Bozer, Levin and Santora, (2017), the coordinator, implementer, evaluator, team workers and shaper can execute important actions and required changes in the current business model of the family business. For instance, Robert Balson started the business with a small stall within the open air market. The family survived in the 17th century whereas the business was taken over by Richad. Selling ox cheeks and bath chaps, the attentive customer service offered personal selling opportunities to keep buyers coming in a row (Parada & Dawson, 2017). This in turn, has enhanced the family business for 500 years.
Limitations and restrictions of the family business
As per the views of Gabriel and Bitsch (2018), there are different strengths and opportunities in a family business by sharing economic responsibilities with other family members. Also, allowing family members according to their experiences can have organizational visions towards a shared goal. However, the limitations and restrictions of a family business can help the business to run smoothly and more effectively. There are limitations in talent management where most of the family members are being hired according to their expertise. However lack of talent can create complexes by bringing lack of agility in the business. In addition to this lack of external views, the family business can run out of inventions and advancements. There can be restrictions in applying regulations beyond emotional intelligence. This in turn creates pressure to hire externals. On the other hand, Porfírio, Felício and Carrilho, (2020), operational limitations and problems can have an impact on family businesses and create informal culture and structure. For instance, running the business for 500 years, R J Balson and Son faced difficulties with the Civil War, Black Death, world wars and even surviving in modern competition in international supermarket chains.
Criteria for employments
In social structure, family businesses are also welcomed as it aligns with the economic rises in the society. In family enterprises, business management can adapt family employment policy to develop terms and conditions over it. Also it can be added that, family members are being difficult to be followed by objectives such as hiring, firing and training. Family businesses are mainly run by family members based on a significant structure of the business and manage principles of a constitutional process. The family employment policies of the UK support established processes for hiring family members. On the other hand Adil et al. (2017), the risk management and contingency policy can help other family members in resolving conflicts and focus on employment rather than creating emotional bonds in the business. Also, making sure about the taxations and national insurance contributions, promotions and working conditions and also family members must avoid special treatment terms of payment and promotions. Lastly, it can be stated that the family businesses in the UK cover young family members and ensure employer liability insurance as well as hire employees enhancing their health and safety needs.
Identifying the process how future participants and younger members in the family business be encouraged and monitored for joining
Young and future participants can be encouraged and monitored following family employment policy and rules. Young people must have statutory maternity pay, paternity pay, redundancy pay, paid time off for study according to the National Minimum wage policy in the UK. On the other hand Nelson and Constantinidis (2017), voluntary staff must be given inductions and training for making tasks simpler. It can be stated that, providing young employees to health and safety procedures can reach them in wider contexts. In addition to this, full time and part time contracts in family business can be entertained as employment opportunities in the UK.
Introducing flexibility, promoting positive workplace culture along with reducing turnover intentions, and reducing workplace absenteeism can impact on the growth of the family business. Lastly, it can be said that family businesses are owned by mainly family members, so improving firm productivity, recruiting high expertise and improving commitments towards the business can enhance allover performance management of each existing member and encourage them to join the team.
Family business governance process
Family business governance has an approach of addressing issues into the central organizing framework that understands the family business system. The three Circle model of the family business system can be represented in a family enterprise with the three components: family, ownership and business. Family governance process must have inductions and training for making tasks simpler. Moreover, the functions of family business must understand how to support and interact with other systems. On the other hand, Samara and Arenas (2017), family business governance systems must appreciate different decisions. Also the interaction process and decision-making structured as governance to facilitate communication between different family members. This in turn, provides problem-solving about how the business relates with the family.
The role of family governance can structure a strong family by providing vision for the family. It can also define philosophy towards family relationships and support the values. Family governance also educates each member about rights and responsibilities of ownership according to the future. Family governance also establishes and maintains effective plans for leadership role succession (Samara & Paul, 2019). Lastly, in recognizing and resolving family conflicts, family governance promotes harmony. In this study, the chosen business, R J Balson & Son tackles governance strategy using external advisers and helps them to make decisions.
Criteria for leadership
There are many different elements in family businesses by overcoming leadership challenges and transitions where most of the existing family members have a wealth of experience to become leaders. Such consequences can create problems amongst different leaders covering the issue in family businesses. There are different criteria for being a successful leader in family business. An effective leader must know about the process of motivating people and influencing other family members with each other (Jaskiewicz & Dyer, 2017). Also another criteria of an effective leader in family business must meet or exceed company milestones and goals keeping the team motivated while securing the business succession planning. The benefits of effective leaders also can obtain improved family relationships as well as provide regular planning amongst the pressures of daily business activity. There are also characteristics of a leader dependent on honesty, inspiration, confidence, Sense of humor, conscientiousness as well as decisiveness towards positive attitude. For instance, the chosen business R J Balson & Son evaluated himself as an effective leader in the 17th century that he interacted with other family members and communities to shape the future of future generations, families and youth.
Board structure of the family owned business
The role of the board in family business structures can maintain different characteristics of stakeholders Including board of directors, advisory board, senior executive team and executive management team. Board of directors manages strategic decision making with strategic planning management, risk evaluation, corporate governance, reputational protection and performance review. As per the views of Bozer, Levin and Santora (2017), board of directors can also be external as non-family members by increasing breadth of experiences during the succession process. The advisory board is the members who are selected for their expertise and wisdom for making any decisions for the business. Advisory boards also provide transition training and education for directors and make advice for real changes in the organization. Senior executive team is highly trusted with the senior management board making delicate decisions. In addition to this, the executive management team is autocratic with many decisions and grows beyond a certain size (Oudah, Jabeen & Dixon, 2018). The chosen business, R J Balson & Son in the town of England manages safeguarding policies by working with different stakeholders as well as choosing from world’s largest professional Community.
Explaining how should the family governance processes deal with family members spread geographically and repositioning of the ethos and principles
The role of family governance can make decisions by evolving with the size of the family. Also there are different family members enhancing the business from different geographical places. The stages of family governance can cope up with increasing intentional methods and best decision making process with formal meetings. Managing effective family meetings, embracing the process with accomplishments, mitigating challenges ahead and also executing decision making are the main stages in family governance. According to the views of Bau et al. (2019), balancing family and business demands can address the complex interaction between the needs of the business and family demands. It is critical to execute both family members externally and internally while working together and it can create family problems such as rivalry, competition and unresolved conflicts. On the flip side, family governance tackles effective decision making across the family, ownership and management regarding conflict resolution, involvement and performance management along with setting required skills to meet the business goals. The benefits of family governments also can obtain improved family relationships as well as provide regular planning amongst the pressures of daily business activity. Family governance also establishes effective planning upon a variety of factors and tends to set trust amongst family members from different geographic locations.
Identifying how family business structures rotate through the family branches with the principal locations of the family’s wealth
Family business ownership through family branches enhances the family‘s wealth. There are different business ownership models managing the goals of family business growth.
The importance of trusted advisers on specific issues
Advisers in family business can play crucial roles encouraging family cohesion, strategic decisions as well as provide access to different networks that can encourage community activities. Advisors in family business also can understand social dynamics and achieve most trusted perspectives providing innovative solutions to family business. There are different types of family advisors such as informal advice, family firm boards and also formal advice managing different processes in family business.
Conclusion
The chosen family business, R J Balson & Son is having visions for selling famous butchers to their customers maintaining proper hygiene and health safety. In family enterprises, business management can adapt family employment policy to develop terms and conditions over it. The study sheds light on drafting a family constitution and integrating with external investments, visions, governance processes, criteria for leaderships, change management along with fundamental repositioning of different ethos and principles of family businesses. There are also characteristics of a leader dependent on honesty, inspiration, confidence, Sense of humor, conscientiousness as well as decisiveness towards positive attitude.
In addition to this, it can also be said that, family businesses are owned by mainly family members, so improving the firm’s productivity, recruiting high expertise and improving commitments towards the business can enhance allover performance management of each existing member and encourage them to join the team. There are different strengths and opportunities in a family business by sharing economic responsibilities with other family members. Managing effective family meetings, embracing the process with accomplishments, mitigating challenges ahead and also executing decision making are the main stages in family governance. In addition to this, the conclusion can be based on family members who according to their experiences can have organizational visions towards a shared goal and providing young employees health and safety procedures can reach them in wider contexts.
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