Gac008 Academic Essay

Question: The benefits of running a family business far outweigh the disadvantages. Relate this to your personal experience. Use specific examples and provide appropriate evidence to support your answer.

1. Introduction

Family business is the oldest and most common model of economic organization. In the contemporary society, it has been highly concerned that whether the benefits of running a family business far outweigh the shortcomings or not. In this essay, the advantages and disadvantages would be analyzed respectively. Then, the more academic answer would be given after searching online. As far as I am concerned, there are both supports and objector for running a family business.

Advantages

Those who are in favor of the benefits outweigh the disadvantages claim that it has several advantages.

Firstly, it is easier to control a family business than other form of business. The most obvious characteristic of the family enterprise management is that they combined the property rights and management rights unity into one. Besides that, Startup family business has its unique management advantages reflected in the use of family affection, it also make more than 95% of the equity concentrated in the hands of members of the family. Such as: Japan's Panasonic,Day friend software( Chinese company) ect. The holding of the enterprise are able to quickly reach a consensus, catch the best business opportunities in the market, establish strategic objectives, formulate the strategy, and implement strategic decisions.

Secondly, due to high level of family loyalty and the relationship between blood, kinship and other related aspects, it means that there is a natural family trust existed among the people. In the early stages of the development of family enterprises, most enterprises lack of funds, the rise and fall of enterprises is closely related with the interests of the family. The enterprise operation and management personnel are generally dominated by members of...