Question one. What steps should the Ferre’ family take in order to plan for the future of their family business?
The Ferre’ board of directors should come up with a strategic plan that tables out what the company is all about. The plan should include all the activities that the company is involved in carrying out and also all the processes that are involved (De Clercq & Belausteguigoitia, 2015). Additionally, a strategic plan should show short term and long term goals that the company wants to achieve within a stipulated duration of time. With this, the company will be more goal oriented and has a vision that it is working towards achieving. Moreover, when coming up with the strategic plan the Ferre’ company should ensure that it puts into consideration the internal and external environmental factors to ensure its survival as a family business for many years to come.
Furthermore, the board of directors should ensure that those who are in the finance department are able to decide the company’s activities that are a priority and require the use of company resources. If they do not adhere to the advice of the finance department when it comes to redistributing of resources, then the company within a short span of time will become bankrupt. Also, the company has to ensure that those heading the finance department are people who have integrity and will not end up embezzling funds. Additionally, since change is inevitable in the business world, the Ferre’ organization has to table ways in which they will be able to handle change so as when change strikes they are not caught off guard.
Additionally, since the company is a family business, and the members possess different skills and experience that are vital for the smooth running of the company, therefore they should be assigned to the departments they have the skills required. They have to work in harmony, complement and appreciate each other’s and ensure that there is no unhealthy competition between them.
Question two. Has entrepreneurship or intergenerational entrepreneurship activity had an impact on the family business?
The intergenerational entrepreneurship has had an impact on Ferre’ family business. Maria Luisa credits her father who realized that many of the entrepreneurs were not able to establish intergenerational family businesses because they lacked a coherent structure that is responsible for the long time survival of a company in the business world. Additionally, the discipline that he had been able to set in terms of handling the company and all the activities involved in the running of the business resulted in its growth and expansion over the years.
Moreover, the father had instilled in them the importance of strong family ties and the need to be in harmony with each other. This enabled them to be able to work in unity. Additionally, Maria Luisa father was very supportive of their individual differences from childhood, and hence they grew up knowing to respect their different ideas, complement and consult one another before making decisions. This has led to the massive growth and expansion of their family business. Also, having done different courses, the children were able to work in the departments that they would be able to utilize their academic qualifications fully.
For a company to thrive, the managerial heads have to be people with vast knowledge in the departmental areas they are heading as well as have to experience (Priem & Alfano, 2016). Before joining the company, the five professionals had worked in different companies and rise the ranks to hold top managerial positions. This has enabled them to be able to run the family business with ease, creativity, and knowledge and stir its growth to become the most sort after companies due to the quality of services they offer.
Works Cited;
- De Clercq, D., & Belausteguigoitia, I. (2015). Intergenerational strategy involvement and family firms’ innovation pursuits: The critical roles of conflict management and social capital. Journal of Family Business Strategy, 6(3), 178-189. https://dx.doi.org/10.1016/j.jfbs.2015.04.003
- Priem, R., & Alfano, F. (2016). Setting new directions for the management discipline through family business research. Journal of Family Business Strategy, 7(1), 58-62. https://dx.doi.org/10.1016/j.jfbs.2016.01.001