Student:Ioana NISTOR

Attending teacher:KateinaSTRNICK

Universite dAuvergne Ecole de Management

2014

Introduction
Its all about the numbers
Why the experts predictions of 50 years ago have proved wrong?
Its not personal...its strictly business.
Conclusion
Bibliography

Companies controlled by founding

important and look set to stay so.

families

remain surprisingly

50 years ago management experts expected the hereditary principle to

fade fast.
Nowadays family firms increased their presence among global
businesses.

Family-controlled firms make up 19% of the companies in the Fortune Global 500
Family-run companies in statistics:
In Europe, 40% of big stock market-listed companies still have a controlling family
85% of $1 billion-plus businesses in South-East Asia
75% in Latin America
67% in India
65% in the Middle East
China 40% and Sub-Saharan Africa 35% (large firms are state-owned)
American firms 15% are family ones

 Stock markets & regulators accommodating, let founding families retain a

fair degree of control despite selling large stakes to outside investors;

are the product of a super talented entrepreneur(a strong CA);

tend to take a longer-term perspective;
less likely to load up on debt;
have better labor relations;
higher on their culture, worker motivation and leadership, though they
lagged slightly on innovation and being too internally focused;

good for a businesss image(73% of people trusted family-owned firms)

1,000 invested in 2001 generated in 10 years: 3,533 in family firms
2,241 in non-family.

No issue is potentially more toxic than the transition from one generation of
a family to the next.

from shirtsleeves to shirtsleeves in three generations;

16% of firms had a discussed and documented succession plan in place;
Training the next generation to work in the family firm;
Professionalizing their business;
Outsiders often refuse to get involved in managing tensions within the
family.

THE "Lucky Sperm Club

By Warren Buffett

The challenge will be to reconcile the familys needs and desires

with the demands of running a successful business.
When it comes to company matters founders need to learn that Its
not personal...its strictly business.

Bibliography:

http://www.economist.com/news/business/21629385-companies-controlled-foundingfamilies-remain-surprisingly-important-and-look-set-stay